OTHER COUNTRIES - EARNINGS Q1 Q1 EUR millions Notes 2009 2008 % Underlying earnings before tax by line of business Life 7 17 (59) Accident and health 1 2 (50) Life and protection 8 19 (58) Variable annuities 0 1 N.M. Saving products 1 0 N.M. Retail mutual funds 4 1 N.M. Individual savings and retirement products 5 2 150 Pensions and asset management 5 3 67 General insurance 8 7 14 Share in net results of associates 4 8 (50) Underlying earnings before tax 30 39 (23) Over/(under) performance of fair value items 1 0 N.M. Operating earnings before tax 31 39 (21) Operating earnings before tax by line of business Life 7 17 (59) Accident and health 1 2 (50) Life and protection 8 19 (58) Variable annuities 1 1 0 Saving products 1 0 N.M. Retail mutual funds 4 1 N.M. Individual savings and retirement products 6 2 200 Pensions and asset management 5 3 67 General insurance 8 7 14 Share in net results of associates 4 8 (50) Operating earnings before tax 31 39 (21) Gains/(losses) on investments 4 0 N.M. Impairment charges (5) (1) N.M. Income before tax 30 38 (21) Income tax (21) (10) (110) Net income 9 28 (68) Net underlying earnings 9 27 (67) Net operating earnings 10 27 (63) Commissions and expenses 98 91 8 of which operating expenses 52 43 21 OTHER COUNTRIES - SALES Q1 Q1 EUR millions Notes 2009 2008 % New life sales 10 Life single premiums 112 172 (35) Life recurring premiums annualized 39 39 0 Total recurring plus 1/10 single 50 56 (11) Life 50 56 (11) Total recurring plus 1/10 single 50 56 (11) New premium production accident and health insurance 2 2 0 New premium production general insurance 5 8 (38) Gross deposits (on and off balance) Variable annuities 115 35 N.M. Retail mutual funds 406 48 N.M. Pensions and asset management 185 151 23 Total gross deposits 706 234 N.M. Net deposits (on and off balance) Variable annuities 109 34 N.M. Retail mutual funds 98 6 N.M. Pensions and asset management 93 92 1 Total net deposits 300 132 127 REVENUE GENERATING INVESTMENTS At Mar. At Mar. 31 31 2009 2008 % Revenue generating investments (total) 13,350 13,609 (2) Investments general account 6,030 6,243 (3) Investments for account of policyholders 2,085 2,067 1 Off balance sheet investments third parties 5,235 5,299 (1) NET UNDERLYING EARNINGS GEOGRAPHICALLY Q1 Q1 EUR millions Notes 2009 2008 % 1 Americas (44) 348 N.M. The Netherlands 6 55 92 (40) United Kingdom 11 40 (73) Other countries 9 27 (67) Holding and other (45) (4) N.M. Net underlying earnings (14) 503 N.M. OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS EUR millions Operating earnings before tax (219) 217 N.M. (Over)/under performance of fair value items - Americas 32 374 (91) (Over)/under performance of fair value items - The Netherlands 6 190 154 23 (Over)/under performance of fair value items - United Kingdom 3 0 N.M. (Over)/under performance of fair value items - Other countries (1) 0 N.M. (Over)/under performance of fair value items - Holding and other (27) (87) 69 Underlying earnings before tax (22) 658 N.M. Net underlying earnings (14) 503 N.M. AMERICAS - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS USD millions Over/(under) performance of fair value items by line of business Life and protection (45) (30) (50) Individual savings and retirement products 9 (260) N.M. Pensions and asset management (13) (7) (86) Institutional products (99) (244) 59 Life reinsurance 106 (19) N.M. Total over/(under) performance of fair value items (42) (560) 93 Total over/(under) performance of fair value items in EUR (32) (374) 91 THE NETHERLANDS - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS EUR millions 6 Over/(under) performance of fair value items by line of business Life and protection (26) (19) (37) Pensions and asset management (164) (135) (21) Total over/(under) performance of fair value items (190) (154) (23) UNITED KINGDOM - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS GBP millions Over/(under) performance of fair value items by line of business Pensions and asset management (3) 0 N.M. Total over/(under) performance of fair value items (3) 0 N.M. OTHER COUNTRIES - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS EUR millions Over/(under) performance of fair value items by line of business Variable annuities 1 0 N.M. Total over/(under) performance of fair value items 1 0 N.M. SALES Q1 Q1 EUR millions 2009 2008 % New life sales 543 686 (21) Gross deposits (on and off balance) 8,241 8,636 (5) New life sales Life single premiums 2,025 2,757 (27) Life recurring premiums annualized 341 410 (17) Total recurring plus 1/10 single 543 686 (21) Life 249 284 (12) Pensions 253 352 (28) BOLI/COLI 1 9 (89) Life reinsurance 40 41 (2) Total recurring plus 1/10 single 543 686 (21) New premium production accident and health insurance 164 166 (1) New premium production general insurance 12 16 (25) Gross deposits (on and off balance) Fixed annuities 1,628 306 N.M. Variable annuities 714 685 4 Saving products 580 648 (10) Retail mutual funds 642 564 14 Pensions and asset management 2,829 3,183 (11) Institutional guaranteed products 1,848 3,249 (43) Life reinsurance 0 1 N.M. Total gross deposits 8,241 8,636 (5) Total gross deposits excl. institutional guaranteed products 6,393 5,387 19 Net deposits (on and off balance) by line of business Fixed annuities 688 (795) N.M. Variable annuities 78 (152) N.M. Saving deposits (67) (72) 7 Retail mutual funds (98) 171 N.M. Pensions and asset management 506 1,170 (57) Institutional guaranteed products (2,354) (1,195) (97) Life reinsurance (16) (15) (7) Total net deposits (1,263) (888) (42) Total net deposits excl. institutional guaranteed products 1,091 307 N.M. EMPLOYEE NUMBERS At At Mar. Dec. 31 31 2009 2008 Number of employees 31,156 31,425 VALUE OF NEW BUSINESS AND IRR VNB VNB EUR EUR Notes Q1 Q1 EUR millions, after tax 2009 2008 % Americas 79 79 0 The Netherlands 31 12 158 United Kingdom 57 53 8 Asia 2 5 (60) Central and Eastern Europe 12 23 (48) Other European Countries 26 14 86 VA Europe (7) 0 N.M. Total 201 186 8 IRR % IRR% Americas 10.3 12.6 The Netherlands 14.1 10.7 United Kingdom 15.0 13.0 Asia 9.6 17.0 Central and Eastern Europe 34.4 39.0 Other European Countries 48.8 43.2 VA Europe (3.8) - Total 17.8 18.4 MODELED NEW BUSINESS, Premium APE AND DEPOSITS business APE Notes Q1 Q1 EUR millions 2009 2008 % 11 Americas 266 295 (10) The Netherlands 78 73 7 United Kingdom 312 378 (17) Asia 13 17 (24) Central and Eastern Europe 17 25 (32) Other European Countries 84 59 42 Total 769 847 (9) Deposit business Deposits Americas 5,252 5,997 (12) Asia 3 7 (57) Central and Eastern Europe 22 17 29 Other European Countries 0 6 N.M. VA Europe 111 0 N.M. Total 5,389 6,026 (11) Premium business VNB/PVNBP SUMMARY VNB PVNBP VNB/ VNB/ PVNBP APE Notes Q1 EUR millions 2009 % % 12 Americas 31 1,230 2.6 11.8 The Netherlands 31 647 4.8 39.6 United Kingdom 57 2,024 2.8 18.3 Asia 2 76 2.2 12.7 Central and Eastern Europe 7 102 6.6 39.8 Other European Countries 26 753 3.5 31.3 Total 154 4,832 3.2 20.0 Deposit business VNB PVNBP VNB/ VNB/ PVNBP Deposits 12 Americas 47 6,386 0.7 0.9 Asia 1 13 5.2 21.7 Central and Eastern Europe 6 195 2.9 25.5 VA Europe (7) 111 (5.9) (5.9) Total 47 6,705 0.7 0.9 Notes: 1) Certain assets held by AEGON Americas, AEGON The Netherlands and AEGON UK are carried at fair value, and managed on a total return basis, with no offsetting changes in the valuation of related liabilities. These include assets such as hedge funds, private equities, real estate limited partnerships, convertible bonds and structured products. Underlying earnings exclude any over- or underperformance compared to management's long-term expected return on these assets. Based on current holdings and asset class returns, the long-term expected return on an annual basis is 8-10%, depending on the asset class, including cash income and market value changes. The expected earnings from these assets classes are net of DPAC where applicable. In addition, certain products offered by AEGON Americas contain guarantees and are reported on a fair value basis, including the segregated funds offered by AEGON Canada and the total return annuities and guarantees on variable annuities of AEGON USA. The earnings on these products are impacted by movements in equity markets and risk free interest rates. Short-term developments in the financial markets may therefore cause volatility in earnings. Included in underlying earnings is a long-term expected return on these products and any over- or underperformance compared to management's expected return is excluded from underlying earnings. The fair value movements of certain guarantees and the fair value change of derivatives that hedge certain risks on these guarantees of AEGON the Netherlands and Variable Annuities Europe (included in Other countries) are excluded from underlying earnings. The Holding includes certain issued bonds that are held at fair value through profit or loss. The interest rate risk on these bonds is hedged using swaps. The change in AEGON's credit spread resulted in a gain of EUR 27 mln in Q1 2009 on the fair value movement on these bonds. 2) Net income refers to net income attributable to equity holders of AEGON N.V. 3) New life sales is defined as new recurring premiums + 1/10 of single premiums. 4) Deposits on and off balance sheet. 5) Return on equity is calculated by dividing the net underlying earnings after cost of leverage by the average shareholders' equity excluding the preferred shares and the revaluation reserve. 6) In order to maintain consistency in definitions, starting in the fourth quarter 2008, the net impact of the fair value movements of guarantees and the related hedges in the Netherlands has been excluded from underlying earnings. Previously, differences in fair value between guarantees and related hedges, referenced as hedge ineffectiveness, were reported in gain/losses on investments. Results from previous years have been adjusted. 7) Capital securities that are denominated in foreign currencies are, for purposes of calculating the capital base ratio, revalued to the period- end exchange rate. 8) All ratios exclude AEGON's revaluation reserve. Included in other non-operating income/(charges) are charges made to 9) policyholders with respect to income tax. There is an equal and opposite tax charge which is reported in the line Income tax attributable to policyholder return. Includes production on investment contracts without a discretionary 10) participation feature of which the proceeds are not recognized as revenues but are directly added to our investment contract liabilities. 11) APE = recurring premium + 1/10 single premium. 12) PVNBP: Present Value New Business Premium. CONDENSED CONSOLIDATED BALANCE SHEET At Mar. At Dec. 31 31 2009 2008 % EUR millions Investments general account 133,130 130,481 2 Investments for account of policyholders 103,312 105,400 (2) Investments in associates 584 595 (2) Deferred expenses and rebates 13,104 12,794 2 Other assets and receivables 26,618 27,766 (4) Cash and cash equivalents 6,274 10,223 (39) Total assets 283,022 287,259 (1) Shareholders' equity 4,899 6,055 (19) Convertible core capital securities 3,000 3,000 0 Other equity instruments 4,700 4,699 0 Minority interest 7 6 17 Group equity 12,606 13,760 (8) Insurance contracts general account 101,575 97,377 4 Insurance contracts for account of policyholders 59,635 60,808 (2) Investment contracts general account 35,390 36,231 (2) Investment contracts for account of policyholders 44,386 45,614 (3) Other liabilities 29,430 33,469 (12) Total equity and liabilities 283,022 287,259 (1) CAPITAL BASE Group equity 12,606 # 13,760 (8) Trust pass-through securities 154 161 (4) Subordinated borrowings 8 41 (80) Senior debt related to insurance activities 328 69 N.M. Total capital base 13,096 14,031 (7) CONDENSED CONSOLIDATED INCOME STATEMENT Q1 Q1 EUR millions (except per share data) Notes 2009 2008 % Premium income 5,990 6,315 (5) Investment income 2,250 2,422 (7) Fee and commission income 400 434 (8) Other revenues 1 1 0 Total revenues 8,641 9,172 (6) Income from reinsurance ceded 461 335 38 Results from financial transactions (7,254) (8,900) 18 Other income 2 0 N.M. Total income 1,850 607 N.M. Benefits and expenses 1,756 270 N.M. Impairment charges 430 34 N.M. Interest charges and related fees 120 95 26 Other charges 1 0 N.M. Total charges 2,307 399 N.M. Share in net results of associates 2 9 (78) Income before tax (455) 217 N.M. Income tax 282 (64) N.M. Net income attributable to equity holders of AEGON N.V. (173) 153 N.M. Net income per common share Basic earnings per share (0.15) 0.07 N.M. Dilluted earnings per share (0.15) 0.07 N.M. CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE At Mar. At Mar. At Dec. INCOME 31 31 31 2009 2008 2008 EUR millions Net income (173) 153 (1,082) Other comprehensive income: Movements in foreign currency translations reserve 455 (1,066) (170) Movements in revaluation reserves (1,373) (1,510) (6,651) Other comprehensive income for the period (918) (2,576) (6,821) Total comprehensive income attributable to shareholders of AEGON N.V. (1,091) (2,423) (7,903) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Shareholders' equity at January 1 6,055 15,151 15,151 Total comprehensive income attributable to shareholders of AEGON N.V. (1,091) (2,423) (7,903) Dividends paid on ordinary shares 0 0 (548) Preferred dividend 0 0 (112) Repurchased and sold own shares 4 (73) (217) Coupons on perpetuals (net of tax) (48) (46) (189) Coupons on convertible core capital securities 0 0 (121) Other changes (21) (12) (6) Shareholders' equity at end of period 4,899 12,597 6,055 CONDENSED CONSOLIDATED CASH FLOW STATEMENT Q1 Q1 EUR millions Notes 2009 2008 % Cash flow from operating activities (4,127) 1,615 N.M. Cash flow from investing activities Purchase and disposal of intangible assets (1) (1) 0 Purchase and disposal of equipment and other assets (15) (11) (36) Purchase, disposal and dividends of subsidiaries and associates (8) (6) (33) (24) (18) (33) Cash flow from financing activities Issuance and purchase of share capital 4 (73) N.M. Issuance, repayment and coupons of perpetuals (64) (62) (3) Issuance, repayment and finance interest on borrowings 628 810 (22) 568 675 (16) Net increase/(decrease) in cash and cash equivalents (3,583) 2,272 N.M. AMOUNTS PER COMMON SHARE Q1 Q1 Notes 2009 2008 % Net income in EUR 1 (0.15) 0.07 N.M. Net income fully diluted in EUR 1 (0.15) 0.07 N.M. Net income in USD (0.20) 0.10 N.M. Net income fully diluted in USD (0.20) 0.10 N.M. Net underlying earnings in EUR 1 (0.04) 0.30 N.M. Net underlying earnings fully diluted in EUR 1 (0.04) 0.30 N.M. Net underlying earnings in USD (0.05) 0.45 N.M. Net underlying earnings fully diluted in USD (0.05) 0.45 N.M. Net operating earnings in EUR 1 (0.14) 0.09 N.M. Net operating earnings fully diluted in EUR 1 (0.14) 0.09 N.M. Net operating earnings in USD (0.18) 0.13 N.M. Net operating earnings fully diluted in USD (0.18) 0.13 N.M. At At Mar. 31 Dec. 31 2009 2008 Shareholders' equity in EUR 2 1.84 2.60 (29) Shareholders' equity in USD 2 2.45 3.62 (32) NET INCOME PER COMMON SHARE CALCULATION Q1 Q1 EUR millions (except per share data) Notes 2009 2008 % Net income (173) 153 N.M. Coupons on perpetuals (48) (46) (4) Net income / (loss) attributable to ordinary shareholders (221) 107 N.M. Weighted average number of common shares outstanding 1,516 1,499 1 Net income per share (0.15) 0.07 N.M. Quarterly net income per common share first quarter (0.15) 0.07 N.M. second quarter 0.08 third quarter (0.25) fourth quarter (0.82) SEGMENT REPORTING (quarter- to-date information) The United Americas Netherlands Kingdom Q1 Q1 Q1 Q1 Q1 Q1 EUR millions 2009 2008 2009 2008 2009 2008 Underlying earnings before tax geographically for reportable segments (60) 499 76 130 7 45 Inter-segment elimination (8) (21) (4) (17) 0 0 Underlying earnings before tax geographically for reportable segments (68) 478 72 113 7 45 Over/(under) performance of fair value items (32) (374) (190) (154) (3) 0 Total operating earnings before tax (100) 104 (118) (41) 4 45 Gains/(losses) on investments 28 (47) 110 76 10 3 Impairment charges (286) (19) (78) (17) (14) 0 Impairment reversals 2 5 0 0 0 0 Other income/ (charges) 1 0 0 0 (24) (54) Income before tax (355) 43 (86) 18 (24) (6) Income tax 222 (69) 45 1 30 47 Net income (133) (26) (41) 19 6 41 Revenues Life insurance gross premiums 1,499 1,474 1,568 1,458 1,820 2,258 Accident and health insurance 453 422 106 118 0 0 General insurance 0 0 138 134 0 0 Total gross premiums 1,952 1,896 1,812 1,710 1,820 2,258 Investment income 1,142 1,202 502 547 517 596 Fee and commission income 222 242 106 111 44 60 Other revenues 0 1 0 0 0 0 Total revenues for reportable segments 3,316 3,341 2,420 2,368 2,381 2,914 Inter-segment elimination 0 (1) (1) 1 (1) 0 Total revenues 3,316 3,340 2,419 2,369 2,380 2,914 - Table Continued - SEGMENT REPORTING (quarter- to-date information) Holding Other and other countries activities Total Q1 Q1 Q1 Q1 Q1 Q1 EUR millions 2009 2008 2009 2008 2009 2008 Underlying earnings before tax geographically for reportable segments 32 40 (77) (56) (22) 658 Inter-segment elimination (2) (1) 14 39 0 0 Underlying earnings before tax geographically for reportable segments 30 39 (63) (17) (22) 658 Over/(under) performance of fair value items 1 0 27 87 (197) (441) Total operating earnings before tax 31 39 (36) 70 (219) 217 Gains/(losses) on investments 4 0 21 54 173 86 Impairment charges (5) (1) (5) 0 (388) (37) Impairment reversals 0 0 0 0 2 5 Other income/ (charges) 0 0 0 0 (23) (54) Income before tax 30 38 (20) 124 (455) 217 Income tax (21) (10) 6 (33) 282 (64) Net income 9 28 (14) 91 (173) 153 Revenues Life insurance gross premiums 340 383 0 0 5,227 5,573 Accident and health insurance 29 29 0 0 588 569 General insurance 37 39 0 0 175 173 Total gross premiums 406 451 0 0 5,990 6,315 Investment income 77 61 70 60 2,308 2,466 Fee and commission income 28 21 0 0 400 434 Other revenues 1 0 0 0 1 1 Total revenues for reportable segments 512 533 70 60 8,699 9,216 Inter-segment elimination 0 0 (56) (44) (58) (44) Total revenues 512 533 14 16 8,641 9,172 Amounts in million EUR (unless otherwise stated) INVESTMENTS GEOGRAPHICALLY United Americas Kingdom The USD GBP At March 31, 2009 Americas Netherlands Investments 1,412 36 Shares 1,061 785 77,611 5,111 Bonds 58,319 18,195 18,910 10 Loans 14,209 11,734 19,322 0 Other financial assets 14,519 117 679 0 Investments in real estate 510 2,044 Investments general 117,934 5,157 account 88,618 32,875 0 16,114 Shares 0 5,450 0 11,950 Bonds 0 12,896 Separate accounts and 55,791 2,327 investment funds 41,923 0 0 5,825 Other financial assets 0 1,011 0 972 Investments in real estate 0 0 Investments for account of 55,791 37,188 policyholders 41,923 19,357 Investments on balance 173,725 42,345 sheet 130,541 52,232 Off balance sheet investments 105,674 1,863 third parties 79,407 11,195 Total revenue generating 279,399 44,208 investments 209,948 63,427 Investments 92,655 5,055 Available-for-sale 69,623 18,783 18,910 10 Loans 14,209 11,734 0 0 Held-to-maturity 0 0 Financial assets at fair value through 61,481 36,308 profit or loss 46,199 19,671 679 972 Investments in real estate 510 2,044 Total investments on balance 173,725 42,345 sheet 130,541 52,232 Elimination of treasury (2) 0 shares * (2) (5) Investments in 24 13 associates 18 60 35,144 6,723 Other assets 26,408 7,651 Consolidated 208,891 49,081 total Assets 156,965 59,938 - Table Continued - Holding & United Other other Total At March 31, 2009 Kingdom countries activities Eliminations EUR Investments Shares 39 161 47 Bonds 5,491 4,672 21 0 86,698 Loans 11 1,077 0 0 27,031 Other financial Assets 0 120 0 0 14,756 Investments in real estate 0 0 0 0 2,554 Investments general account 5,541 6,030 68 (2) 133,130 Shares 17,312 344 0 (5) 23,101 Bonds 12,838 278 0 0 26,012 Separate accounts And investment funds 2,500 1,251 0 0 45,674 Other financial assets 6,258 212 0 0 7,481 Investments in real estate 1,044 0 0 0 1,044 Investments for account of policyholders 39,952 2,085 0 (5) 103,312 Investments on balance sheet 45,493 8,115 68 (7) 236,442 Off balance sheet Investments third parties 2,001 5,235 0 0 97,838 Total revenue Generating investments 47,494 13,350 68 (7) 334,280 Investments Available-for-sale 5,431 2,447 68 0 96,352 Loans 11 1,077 0 0 27,031 Held-to-maturity 0 2,278 0 0 2,278 Financial assets at fair value through profit or loss 39,007 2,313 0 (7) 107,183 Investments in real estate 1,044 0 0 0 3,598 Total investments on balance sheet 45,493 8,115 68 (7) 236,442 Elimination of treasury shares * 0 0 0 7 0 Investments in associates 13 490 5 (2) 584 Other assets 7,224 1,728 14,870 (11,494) 46,387 Consolidated total Assets 52,730 10,333 14,943 (11,496) 283,413 * Due to the split by country unit on this line, it is necessary to reverse the elimination of treasury shares in the column eliminations, as elimination by type had already taken place in the column eliminations above as well. Amounts in million EUR (unless otherwise stated) INVESTMENTS GEOGRAPHICALLY United Americas Kingdom The USD GBP At December 31, 2008 Americas Netherlands Investments 1,436 39 Shares 1,031 1,297 83,846 4,915 Bonds 60,247 18,298 19,194 10 Loans 13,792 10,416 15,635 0 Other financial assets 11,235 112 679 0 Investments in real estate 488 2,040 Investments general 120,790 4,964 account 86,793 32,163 0 17,360 Shares 0 6,416 0 12,675 Bonds 0 11,675 Separate accounts and 58,943 2,381 investment funds 42,353 0 0 6,376 Other financial assets 0 1,042 0 1,077 Investments in real estate 0 0 Investments for account 58,943 39,869 of policyholders 42,353 19,133 Investments on balance 179,733 44,833 sheet 129,146 51,296 Off balance sheet investments 106,434 2,289 third parties 76,478 11,783 Total revenue generating 286,167 47,122 investments 205,624 63,079 Investments 94,444 4,859 Available-for-sale 67,862 19,110 19,194 10 Loans 13,792 10,416 0 0 Held-to-maturity 0 0 Financial assets at fair value through 65,416 38,887 profit or loss 47,004 19,730 679 1,077 Investments in real estate 488 2,040 Total investments on 179,733 44,833 balance sheet 129,146 51,296 Elimination of treasury (3) 0 shares * (2) (9) Investments in 30 13 associates 21 55 36,798 7,192 Other assets 26,442 12,469 Consolidated 216,558 52,038 total Assets 155,607 63,811 - Table Continued - Holding & United Other other Total Kingdom countries activities Eliminations EUR Investments Shares 41 183 52 (2) 2,602 Bonds 5,161 4,827 20 0 88,553 Loans 10 1,116 0 0 25,334 Other financial assets 0 117 0 0 11,464 Investments in real estate 0 0 0 0 2,528 Investments general account 5,212 6,243 72 (2) 130,481 Shares 18,225 167 0 (9) 24,799 Bonds 13,307 330 0 0 25,312 Separate accounts and investment funds 2,500 1,420 0 0 46,273 Other financial assets 6,693 150 0 0 7,885 Investments in real estate 1,131 0 0 0 1,131 Investments for account of policyholders 41,856 2,067 0 (9) 105,400 Investments on Balance sheet 47,068 8,310 72 (11) 235,881 Off balance sheet investments third parties 2,403 5,299 0 0 95,963 Total revenue generating investments 49,471 13,609 72 (11) 331,844 Investments Available-for -sale 5,101 2,602 72 0 94,747 Loans 10 1,116 0 0 25,334 Held-to-maturity 0 2,269 0 0 2,269 Financial assets at fair value through profit or loss 40,826 2,323 0 (11) 109,872 Investments in real estate 1,131 0 0 0 3,659 Total investments On balance sheet 47,068 8,310 72 (11) 235,881 Elimination of treasury shares * 0 0 0 11 0 Investments in associates 13 503 4 (2) 594 Other assets 7,552 1,660 17,395 (14,734) 50,784 Consolidated total Assets 54,633 10,473 17,471 (14,736) 287,259 * Due to the split by country unit on this line, it is necessary to reverse the elimination of treasury shares in the column eliminations, as elimination by type had already taken place in the column eliminations above as well. ASSETS AND CAPITAL GEOGRAPHICALLY amounts in million EUR (unless otherwise stated) United Americas Kingdom The USD GBP Americas Netherlands At March 31, 2009 208,891 49,081 Assets business units 156,965 59,938 Other assets Total assets on balance sheet 10,228 1,132 Capital in units 7,686 2,351 Total capital base Other net liabilities Total At December 31, 2008 216,558 52,038 Assets business units 155,607 63,811 Other assets Total assets on balance sheet 10,617 1,257 Capital in units 7,629 2,954 Total capital base Other net liabilities Total - Table Continued - United Other Total Kingdom countries EUR At March 31, 2009 Assets business units 52,730 10,333 279,966 Other assets 3,056 Total assets on balance sheet 283,022 Capital in units 1,216 1,802 13,055 Total capital base 13,096 Other net liabilities (41) Total 13,055 At December 31, 2008 Assets business units 54,633 10,473 284,524 Other assets 2,735 Total assets on balance sheet 287,259 Capital in units 1,320 1,948 13,851 Total capital base 14,031 Other net liabilities (180) Total 13,851 Currencies Income statement items: average rate 1 EUR = USD 1.3023 (2008: USD 1.4989). Income statement items: average rate 1 EUR = GBP 0.9070 (2008: GBP 0.7569). Balance sheet items: closing rate 1 EUR = USD 1.3308 (2008: USD 1.5812; year-end 2008: USD 1.3917). Balance sheet items: closing rate 1 EUR = GBP 0.9308 (2008: GBP 0.7958; year-end 2008: GBP 0.9525). Notes: 1) After deduction of preferred dividend and coupons on perpetuals. Shareholders' equity per share is calculated after deduction of the preferred share 2) capital of EUR 2.1 billion (at Dec. 31, 2008: EUR 2.1 billion) and considering the number of treasury shares. The number of common shares used in the calculation of shareholders' equity per share is 1,516 million (at Dec. 31, 2008: 1,515 million). Basis of preparation and significant accounting policies The condensed consolidated interim financial statements as at and for the 3 month period ended March 31, 2009, included in Appendix III have been prepared in accordance with IAS 34 'Interim financial reporting'. It does not include all of the information required for full financial statements and should therefore be read together with the 2008 consolidated financial statements of AEGON N.V. as included in AEGON's Annual Report for 2008. The condensed consolidated interim financial statements included in Appendix III have been prepared in accordance with the historical cost convention as modified by the revaluation of investment properties and those financial instruments (including derivatives) and financial liabilities that have been measured at fair value. The published figures in these condensed consolidated interim financial statements are unaudited. All accounting policies and methods of computation applied in the condensed consolidated interim financial statements are the same as those applied in the 2008 consolidated financial statements, which were prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and adopted by the European Union, except for the changes highlighted below. The following new standards and amendments to standards are mandatory for the first time for the financial year beginning January 1, 2009: IFRS 8 'Operating segments'. This standard requires disclosure of information about the Group's operating segments and replaces the requirement to determine primary (geographical) and secondary (business) reporting segments of the Group. Under IFRS 8, AEGON's operating segments are based on the businesses as presented in internal reports that are regularly reviewed by the executive board which is regarded as the "chief executive decision maker". The operating segments are: - AEGON Americas. Main business lines include life and protection, individual savings and retirement, pensions and asset management, institutional products and life reinsurance. - AEGON The Netherlands. Main business lines include life and protection, individual savings and retirement, pensions and asset management, distribution and general insurance. - AEGON United Kingdom. Main business lines include life and protection, pensions and asset management and distribution. - Other countries. Other countries include the country units Central and Eastern Europe, other European countries, European variable annuities and Asia. Main business lines include life and protection, pensions and asset management and general insurance. - Holding and other activities. Includes finance, employee and other administrative expenses of the group staff functions. This report includes a non-IFRS financial measure: Underlying earnings before tax. AEGON believes this non-IFRS measure, together with the IFRS measure (Net income), provides a meaningful measure for the investing public to evaluate AEGON's business relative to the businesses of our peers. In addition, underlying earnings is a key performance indicator on which the executive board manages AEGON's performance. The reconciliation of this measure to the most comparable IFRS measure is shown in table Segment reporting on page 34. The adoption of IFRS 8 did not have any impact on equity or net income. In accordance with the transitional requirements of the standard, AEGON has provided full comparative information. IAS 1 (revised) 'Presentation of financial statements'. The revised standard separates owner and non-owner changes in equity. The statement of changes in equity includes only details of transactions with owners, with non- owner changes in equity presented as a single line. In addition, the standard introduces the statement of comprehensive income: it presents all items of recognized income and expenses, either in one single statement, or in two linked statements. AEGON has elected to present two statements. The adoption of this standard did not have any impact on equity or net income. In accordance with the transitional requirements of the standard, AEGON has provided full comparative information. IFRS 2 'Share-based Payment - Vesting Conditions and Cancellations'. The Standard has been amended to clarify the definition of vesting conditions and to prescribe the accounting treatment of an award that is effectively cancelled because a non-vesting condition is not satisfied. The adoption of this amendment did not have any impact on the financial position or performance of the Group. IAS 23 'Borrowing Costs (revised)'. The standard has been revised to require capitalization of borrowing costs on qualifying assets. This amendment is not relevant to the Group as the Group already has a policy to capitalize borrowing costs. In addition, the following new standards, amendments to existing standards and interpretations are mandatory for the first time for the financial year beginning January 1, 2009 but are not currently relevant for the Group: - IFRIC 16 'Hedges of a net investment in a foreign operation'; - Amendments to IAS 39 'Eligible hedged items'; - Improvements to IFRS (2008). Condensed consolidated income statement The result from financial transactions in Q1 2009 amounted to a loss of EUR 7.3 billion compared to a loss of EUR 8.9 billion in Q1 2008. These losses primarily reflect losses on investments for account of policyholders. This decrease of losses is offset by an increase in the benefits and expenses line which increases from an amount of EUR 270 million in Q1 2008 to EUR 1.8 billion in Q1 2009. Capital and funding The capital management section, on page 2 provides information on issuances, repurchases and repayments of debt and equity securities during the current interim reporting period. Investment impairments Page 6 of the results release includes information on net impairments recognized in Q1 of 2009. Fair value measurement Fair value measurement of financial assets and liabilities has been subject of industry-wide discussions between preparers, regulators and users of financial statements. The distressed markets continuing since the second half of 2008 resulted in challenges related to the fair value measurement of financial instruments because of far less liquidity in the market, forced sales resulting from deleveraging activities and asset/liability programs. Assets with a mark-to-model valuation are now 3.8% (EUR 3.7 billion) of the total valuation of debt instruments held at fair value (Q4 2008: 1.1%). Business combinations There were no significant new business combinations during Q1 2009. Commitments and contingencies There have been no material changes in contingent assets and liabilities reported in the 2008 consolidated financial statements of AEGON. Events after the balance sheet date On April 22, 2009 AEGON announced it has agreed to sell its Taiwanese life insurance business to Zhongwei Company Ltd. The sale price is expected to be EUR 65 million resulting in an estimated total negative impact on earnings of EUR 400 million in Q2 2009, resulting in a charge to shareholders' equity of EUR 300 million. The sale of the Taiwanese life insurance business is subject to regulatory approval and is expected to close by the end of Q3 2009. On April 29, 2009 AEGON completed an issue of senior unsecured notes with a nominal value of EUR 1 billion due April 29, 2012, under its USD 6 billion program for the issuance of debt instruments. The notes, issued at a price of 99.673, will carry a coupon of 7%. As an international life insurance, pension and investment company based in The Hague, AEGON has businesses in over twenty markets in the Americas, Europe and Asia. AEGON companies employ just over 31,000 people and have over 40 million customers across the globe. Key figures First quarter Full year 2008 2009 Underlying earnings before tax EUR (22) million EUR 1.57 billion New life sales EUR 543 million EUR 2.63 billion Gross deposits EUR 8.2 billion EUR 40.75 billion Revenue generating investments (End of period) EUR 334 billion EUR 332 billion Disclaimers Cautionary note regarding non-GAAP measures This press release includes certain non-GAAP financial measures: (net) underlying earnings, net operating earnings, operating earnings before tax and value of new business. The reconciliation of net underlying earnings and underlying earnings before tax to the most comparable IFRS measures is provided on page 34. A reconciliation of (net) underlying earnings to operating earnings before tax is provided on page 27. Value of new business is not based on IFRS, which are used to report AEGON's quarterly condensed consolidated interim financial statements and should not be viewed as a substitute for IFRS financial measures. AEGON believes that these non-GAAP measures, together with the IFRS information, provide a meaningful measure for the investment community to evaluate AEGON's business relative to the businesses of our peers. Local currencies and constant currency exchange rates This press release contains certain information about our results and financial condition in USD for the Americas and GBP for the United Kingdom, because those businesses operate and are managed primarily in those currencies. Certain comparative information presented on a constant currency basis eliminates the effects of changes in currency exchange rates. None of this information is a substitute for or superior to financial information about us presented in EUR, which is the currency of our primary financial statements. Forward-looking statements The statements contained in this press release that are not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following are words that identify such forward-looking statements: believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on, plan, continue, want, forecast, should, would, is confident, will, and similar expressions as they relate to our company. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. We undertake no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which merely reflect company expectations at the time of writing. Actual results may differ materially from expectations conveyed in forward-looking statements due to changes caused by various risks and uncertainties. Such risks and uncertainties include but are not limited to the following: - Changes in general economic conditions, particularly in the United States, the Netherlands and the United Kingdom; - Changes in the performance of financial markets, including emerging markets, such as with regard to: - The frequency and severity of defaults by issuers in our fixed income investment portfolios; and - The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of equity and debt securities we hold; - The frequency and severity of insured loss events; - Changes affecting mortality, morbidity and other factors that may impact the profitability of our insurance products; - Changes affecting interest rate levels and continuing low or rapidly changing interest rate levels; - Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates; - Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets; - Changes in laws and regulations, particularly those affecting our operations, the products we sell, and the attractiveness of certain products to our consumers; - Regulatory changes relating to the insurance industry in the jurisdictions in which we operate; - Acts of God, acts of terrorism, acts of war and pandemics; - Changes in the policies of central banks and/or governments; - Litigation or regulatory action that could require us to pay significant damages or change the way we do business; - Customer responsiveness to both new products and distribution channels; - Competitive, legal, regulatory, or tax changes that affect the distribution cost of or demand for our products; - Our failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving initiatives; and - The impact our adoption of the International Financial Reporting Standards may have on our reported financial results and financial condition. Further details of potential risks and uncertainties affecting the company are described in the company's filings with Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report on Form 20-F. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Group Corporate Communications & Investor Relations Media relations: Phone: +31(0)70-344-8956 E-mail: Media conference call 8:00 am CET Audio webcast on http://www.aegon.com/ Investor relations: Phone: +31(0)70-344-8305 or +1-877-548-9668 - toll free USA only E-mail: Analyst & investor call 3:00 pm CET Audio webcast on http://www.aegon.com/ Call-in numbers (listen only): Netherlands +31-20-796-5332 United Kingdom +44-208-515-2316 United States +1-480-293-1744 Website: http://www.aegon.com/ Financial supplement: AEGON's Q1 2009 Financial supplement is available on http://www.aegon.com/. Video interview Alex Wynaendts Available on http://www.aegon.com/ at 7.45 a.m., via the link http://www.aegon.com/q1interview. DATASOURCE: AEGON N.V.

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