AEGON's 2010 Value of New Business Target Increased 14% to EUR 1.25 Billion
November 26 2007 - 1:00AM
PR Newswire (US)
THE HAGUE, November 26 /PRNewswire-FirstCall/ -- AEGON today raised
its 2010 value of new business target (VNB) by 14% to EUR 1.25
billion. The new target represents an average annual increase in
the Group's VNB of approximately 18% over the period 2005 - 2010.
In recent quarters, AEGON's businesses in the Americas, Europe and
Asia have continued to make better-than-expected progress toward
the Group's original 2010 target of EUR 1.1 billion. Further
details on the new 2010 targets for each of AEGON's businesses are
provided below. "The underlying performance of our businesses in
both our established and emerging markets continues to be strong,
resulting in better-than-expected progress toward the value of new
business target we announced last year," said Don Shepard, Chairman
of the Executive Board. "As a result, we have increased the target
to reflect the gains we are making across our businesses in the
Americas, Europe and Asia. The strong increase in VNB, combined
with a consistent improvement in the internal rate of return on new
business and solid earnings growth provide a further indication of
our commitment to growing our business profitably in both the near-
and long-term." Mr. Shepard will present the new VNB target at
AEGON's Analyst and Investor Conference in New York on Monday,
November 26, 2007 at 5 p.m. EST. He will be joined by other members
of the Management Board and senior management in highlighting the
progress of AEGON's businesses internationally. Alex Wynaendts, who
will take over as AEGON's new Chairman of the Executive Board at
the Annual General Meeting of Shareholders on April 23, 2008, will
also make a presentation at the conference, outlining in general
terms his view of the business opportunities opening up for AEGON
in the coming years. Alex Wynaendts said: "In both our established
and developing markets, AEGON is in a strong position to capitalize
on the opportunities that global trends are creating for the life
insurance and pension sector. In the coming months, we will be
looking at ways to more fully unlock AEGON's potential as a leading
global provider of these products and services. We intend to drive
growth by better transferring our broad capabilities across our
markets, strengthening distribution, and by entering new markets."
In a separate presentation, Pat Baird, member of the Management
Board and CEO of AEGON Americas, will highlight strategy, recent
developments and updated targets for AEGON Americas. Eric Goodman,
CEO of AEGON USA Investments, will emphasize the Group's continued
confidence with AEGON USA's investment portfolio, particularly in
light of the current turmoil in the asset backed securities
markets. AEGON reported no impairments to its investment portfolio
of subprime backed assets when it announced its third quarter 2007
results on November 8. The program for the conference will also
include a number of separate smaller group meetings between
analysts and members of AEGON's Management Board, senior management
of various country units and Group Staff. AEGON Group The VNB
target for the entire Group has been increased to EUR 1.25 billion,
up 14% from the original target of EUR 1.1 billion. This new VNB
target implies an average annual increase of approximately 18% from
the 2005 figure of EUR 550 million. AEGON expects the share of
total VNB coming from Asia, Central and Eastern Europe and Other
European Countries to reach 35%(1) by 2010. AEGON Americas AEGON
Americas aims to grow its VNB to USD 730 million (EUR 503 million)
by 2010, an average annual growth rate of 17% from 2005, and an
increase of 17% from the original target. The increase in VNB is
expected to come from a combination of organic growth, margin
improvements in the life business, rising sales of savings,
retirement, pension and asset management products, as well as
further expansion of AEGON Americas' international capabilities.
AEGON The Netherlands AEGON The Netherlands reiterates its target
to more than double its value of new business by 2010 to EUR 82
million, by increasing the new production by 8% to 10% a year. In
comparison with 2005, this implies an average annual VNB growth
rate of 16% from 2005. AEGON United Kingdom AEGON UK aims to triple
its VNB between 2005 and 2010 to GBP 213 million (EUR 308 million),
by achieving a VNB margin(2) of at least 22% and increasing its
overall share of the UK life and pensions market to at least 10% by
2010. This updated target translates into an average annual VNB
growth rate of 26% from 2005. AEGON UK's strategy is to grow its
business profitably by continuing to diversify into higher margin
products, developing new distribution channels, building on its
existing capabilities in life, pensions, asset management and
distribution and by further strengthening lines of business that
offer opportunities for AEGON to grow its presence in the UK
market. AEGON Central and eastern europe AEGON CEE has created an
excellent platform for further expansion and growth. AEGON CEE aims
to grow its VNB to EUR 100 million by 2010, an average annual
growth rate of 30% from 2005, and up 33% from the original target.
A number of factors will contribute to expected growth in the CEE
region, including new distribution initiatives, the introduction of
new products, rising life sales and a further expansion of AEGON's
pension business - both organically and through new acquisitions.
AEGON CEE aims to have 2.5 million pension fund members by 2010.
AEGON Asia AEGON aims to grow its VNB in Asia to EUR 105 million by
2010, an average annual growth rate of 5% from 2005. The VNB and
sales of Taiwan were exceptionally high in 2005. The new VNB target
reflects the impact of the growth in China and of new distribution
initiatives in both India and Japan, expected to begin in the first
half of 2008. AEGON OTHER EUROPEAN COUNTRIES AEGON aims to grow its
VNB in Spain and France to EUR 147 million by 2010, an average
annual growth rate of 37% from 2005. The growth in VNB will come
primarily from existing and new bancassurance partnerships in
Spain. Value of New Business Targets (in mln) 2005 Actual 2010 Old
2010 New New vs Old % Change Total EUR 550 1,100 1,250 14% Americas
USD 340 625 730 17% The Netherlands EUR 39 82 82 0% United Kingdom
GPB 67 158 213 35% Asia EUR 83 98 105 7% Central and Eastern Europe
EUR 27 74 100 35% Other European Countries EUR 30 111 147 32%
PROGRAM The program for this conference is as follows (all times US
EST): Monday, NOVEMBER 26, 2007 5:00 pm Welcome Michiel van
Katwijk, Executive Vice President AEGON N.V. 5:05 pm AEGON USA
Investments Eric Goodman, CEO AEGON USA Investments 6:00 pm AEGON
Group - Growing the Value Don Shepard, Chairman of the Executive
Board and CEO AEGON N.V. 6:10 pm AEGON Group - Unlocking AEGON's
Global Potential Alex Wynaendts, Member of the Executive Board and
COO AEGON N.V. tuesday, NOVEMBER 27, 2007 8:30 am AEGON Americas -
Overview of the Americas Pat Baird, Member of the Management Board
AEGON N.V. and CEO AEGON USA 9:30 am Small group meetings -
remainder of the day All targets and objectives mentioned are based
on current economic and business assumptions and assume a neutral
effect from currency movements. The presentations will be audio web
cast live and slides of the presentations will be available on
http://www.aegon.com/. ABOUT AEGON AEGON is one of the world's
largest life insurance and pension companies, and a strong provider
of investment products. AEGON empowers local business units to
identify and provide products and services that meet the evolving
needs of customers, using distribution channels best suited to
local markets. AEGON takes pride in balancing a local approach with
the power of an expanding global operation. With headquarters in
The Hague, the Netherlands, AEGON companies employ approximately
30,000 people worldwide. AEGON's businesses serve millions of
customers in over twenty markets throughout the Americas, Europe,
and Asia, with major operations in the United States, the
Netherlands and the United Kingdom. Respect, quality, transparency
and trust constitute AEGON's core values as the company continually
strives to meet the expectations of customers, shareholders,
employees and business partners. AEGON is driven to deliver new
thinking with the ambition to be the best in the industry.
DISCLAIMERS Forward looking statements The statements contained in
this press release that are not historical facts may be
forward-looking statements as defined in the U.S. Private
Securities Litigation Reform Act of 1995. Words such as 'believe',
'estimate', 'target', 'intend', 'may', 'expect', 'anticipate',
'predict', 'project', 'counting on', 'plan', 'continue', 'want',
'forecast', 'should', 'would', 'is confident' and 'will' and
similar expressions as they relate to us are intended to identify
such forward-looking statements. 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 speak only as of their
dates. All forward-looking statements are subject to various risks
and uncertainties that could cause actual results to differ
materially from expectations, including, but 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, including: - 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 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 affect the profitability of our insurance
products; - Changes affecting interest rate levels and continuing
low interest rate levels and rapidly changing interest rate levels;
- Changes affecting currency exchange rates, including 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; - The impact
on our reported financial results and financial condition as a
result of our adoption of International Financial Reporting
Standards. (1) Including AEGON Americas International activities
(2) VNB margin targets are on a pre-tax and pre-solvency basis
CONTACT INFORMATION Group Corporate Affairs & Investor
Relations The Hague, The Baltimore, the United States Netherlands
Analysts & +31(0)70-344-83-05 +1-877-548-9668 (toll free) /
Investors +1-410-576-45-77 Media +31(0)70-344-83-44 E-mail Website
http://www.aegon.com/ DATASOURCE: AEGON N.V. CONTACT: The Hague,
The Netherlands, Analysts & Investors, +31(0)70-344-83-05,
Media, +31(0)70-344-83-44, E-mail, ; Baltimore, the United States,
Analysts & Investors, +1-877-548-9668 (toll free), E-mail,
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