Generating value in Spain & Portugal Toms Alfaro CEO Aegon - PowerPoint PPT Presentation

Generating value in Spain & Portugal Tomás Alfaro CEO Aegon Spain December 12, 2019 Helping people achieve a lifetime of financial security

Translating growth opportunities into valuable businesses Underlying earnings before tax 1H19 annualized Asia 1 Joint ventures in Spain & Portugal 2 Scale-up for the Future Drive for € 11m € 96m € 129m € 62m growth Sales CAGR 3 2017-1H19 17% 22% 26% AIFMC 19% 15% JVs -28% HNW 1. Consists of High Net Worth businesses, insurance joint ventures in China and India (combined as JVs for sales CAGR), and the asset management joint venture AIFMC in China D-2 2. Excludes expenses for services shared with own channels in Spain 3. Based on i) gross deposits for asset management and banking businesses, ii) sum of Life APE, and new premiums (A&H and P&C) for insurance businesses, iii) local currency for Mongeral Aegon

Capturing growth opportunities in Spain & Portugal Current organization Aegon Spain & Portugal Focus on personal protection: Term Life, Accident, Health and Household insurance Intermediate Holding companies 2 million customers with access to millions of potential additional customers through JVs Successful track record in managing Bancassurance JV Bancassurance JV bancassurance alliances, current JVs with Banco Santander and Liberbank are growing Own channels 1 Bancassurance JV Own channels add scale and support bancassurance JVs; operational restructuring to improve performance D-3 1. Own channels are part of Aegon España legal entity together with shared services, see next page

Aegon's footprint in Spain & Portugal 1 Bancassurance 2 Own channels Savings • 375 branches • 0.9m bank customers • 1,000 active brokers Term Life • GWP: EUR 32m • 200 active agents • UEBT: EUR 8m • GWP: EUR 146m • 3,000 branches • 425 branches • UEBT: EUR (10)m 1 Health • 17m bank customers • 5m bank customers • GWP: EUR 194m • GWP: EUR 56m • UEBT: EUR 32m • UEBT: EUR 11m House- hold • Managerial infrastructure Shared • Services for IT, finance, risk, actuarial, facilities and administration services • EUR 16m 1 expenses for shared services D-4 Notes: GWP = Gross Written Premium; UEBT = Underlying Earnings Before Tax; figures based on FY 2018; bancassurance financial figures based on Aegon’s share in joint ventures in Spain and Portugal (51% for Santander and 50% for Liberbank); branches and customer figures are based on most recent public information 1. Results are reported by Aegon España legal entity

Aegon Spain provides growth opportunities in market with attractive fundamentals Growth drivers Aegon Spain …of which bancassurance is the fastest Spanish market is growing … …with an increasing insurance penetration growing segment… JV customers 1 with Aegon insurance products Insurance premiums in Spanish market Insurance premiums bancassurance in Spanish market (in EUR billion) (in EUR billion) (in %) +5% +9% +8%-pts CAGR CAGR 5.0 16.5 27% 13.6 0,9 3.5 19% 8,5 Health 0,5 7,2 2,5 Household 1,6 4,3 Term Life 3,8 1,6 1,4 3,7 2,6 2014 2018 2014 2018 2014 2018 Own channels focus on fast growing Term Expanding JV network Driving product penetration in JVs Life and Health insurance products D-5 Source: The Economist intelligence unit, ICEA, McKinsey Global Insurance Pools 1. JV customers refers to active customers of banking partners

Successful bancassurance partnerships • Substantial growth through life insurance companies with Santander created in 2013 - Successful organic growth through increased sales to existing Santander customers - Addition of new JV in Portugal in 2015 - Expansion of partnership in Spain in 2018 to include former Popular branches expected to lead to further growth • Increased scale and shift in product mix towards Term Life insurance lead to favorable earnings momentum Bancassurance GWP Bancassurance UEBT (in EUR million) (in EUR million) +22% +28% 333 62 CAGR CAGR 282 50 239 208 228 37 42 184 34 170 194 31 32 157 25 137 102 123 27 22 113 23 14 19 54 59 12 11 56 51 43 9 5 33 5 3 58 48 46 8 8 7 28 28 31 32 6 5 5 5 1 1 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 Liberbank Santander Portugal Santander Spain Liberbank Santander Portugal Santander Spain D-6 Note: Figures based on Aegon’s share in joint ventures in Spain and Portugal (51% for Santander and 50% for Liberbank) 1. 1H 2019 annualized

JVs supported by own channels Turning around performance of own channels Instrumental role Standalone insurance Operational restructuring in supporting JVs platform to improve performance • • • Providing back-office and selected Developed multichannel capabilities Rationalize distribution, streamline front-office services to the JVs (tied agents, brokers and online and digitize processes, and stricter • JVs leveraging insurance expertise distribution) claims handling to improve financial • from own channels Focus on fast-growing segments of results • • Scalable platform for potential future the market: Health and Term Life Successful expense savings alliances insurance program initiated with additional EUR 13 million savings to be expected • Own channels expected to be break-even in the short to medium-term D-7

Management actions are driving capital generation growth • Normalized capital generation benefiting from increasing scale of bancassurance and operational restructuring of own channels • New business is capital efficient with attractive IRRs and payback periods - Business written in 2018 with an IRR of ~17% and a payback period of ~5 years Normalized capital generation Solvency II position in Spain (in EUR million) • 30 Transitional measures and Matching Adjustment are no longer being used as of 3Q19 25 • Capital injection of EUR 75 million from the Group in 3Q19 in 20 order to ensure Solvency II ratios of all entities in Aegon 15 Spain remain in target range 10 • Legal restructuring to include Spanish JVs under – instead of next to – Aegon Spain’s own channels. This is expected to 5 improve the Solvency II ratio and lead to an additional 0 2017 2018 2019 1 dividend to the Group 2 D-8 Note: Normalized capital generation excluding market impacts and one-off items 1. 1H 2019 annualized 2. Solvency II ratio of Aegon España, the legal entity containing the own channels and shared services. Legal restructuring is subject to regulatory approval

Translating growth opportunities into valuable businesses Strong foundation Growth opportunities • • Active in fastest growing market Expanding JVs and product segments penetration • • Strong track record in managing Increasing Health and Term Life bancassurance alliances insurance sales own channels Value creation D-9

Thank you For questions please contact Investor Relations +31 70 344 8305 ir@aegon.com P.O. Box 85 2501 CB The Hague The Netherlands Helping people achieve a lifetime of financial security