CORPORATE RESPONSIBILITY REPORT 2006 - · PDF fileABOuT AEGON AEGON is one of the...

Local knowledge. Global power.

CORPORATE RESPONSIBILITY REPORT

2006

“As a company that serves more than 40 million customers in over twenty countries around the world, AEGON has a global reach with global responsibilities.” DonalD J. SheparD, ChAIRmAN Of ThE ExECuTIvE BOARd

ABOuT AEGONAEGON is one of the world’s largest life insurance and pension companies, and a strong provider

of investment products. We empower our local business units to identify and provide products and

services that meet the evolving needs of our customers, using distribution channels best suited

to their local markets. We take 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

29,000 people. 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 and our ambition is to be the best in the industry.

AT A GLANCE7%UK 777%%%UKUKUK

21%Netherlands 212121%%%NNNeeetherlandstherlandstherlands

1% Other countries1%1%1%%%% Other countriesOther countriesOther countries

71% Americas71%71%71% AmeriAmeriAmericccasasas

millionmillionmillionmillion

millionmillionmillionmillion

225225225225

634634634634

37373737millionmillionmillionmillion

2,1742,2,2,111777444 millionmillionmillionmillion

Rebased

75

125

100

150

175

AEGON

AEX Index

S&P 500

AEGONAEGONAEGON

AEX IndexAEX IndexAEX Index

S&P 500S&P 500S&P 500

AEGON SHARE PRICE DEVELOPMENT VERSUS INDICES

757575

125125125

100100100

150150150

175175175

Jan05JanJanJan050505

Mar05MarMarMar050505

Jun05JunJunJun050505

Sep05SepSepSep050505





�e � 06 � e��e ��e � 060606

RebasedRebasedRebasedAEGON SHARE PRICE DEVELOPMENT VERSUS INDICES Rebased

75

125

100

150

175

AEGON

DJ Stoxx 600 Insurance Index

S&P 500 Insurance Index

AEGONAEGONAEGON

DJ Stoxx 600 Insurance IndexDJ Stoxx 600 Insurance IndexDJ Stoxx 600 Insurance Index

S&P 500 Insurance IndexS&P 500 Insurance IndexS&P 500 Insurance Index

757575

125125125

100100100

150150150

175175175









Dec 06 DecDecDec 060606

RebasedRebasedRebased

operating earningS before tax geographically

amounts in eUr million and %

NET INCOME Amounts in EUR million

2006

2005

0 500 1,000 1,500 2,000 2,500 3,000

NET INCOME PER SHARE Amounts in EUR

2006

2005

0 0.40 0.80 1.20 1.60 2.00

OPERATING EARNINGS BEFORE TAX BY ACTIVITY Amounts in EUR million

Life insurance

2006

2005

(700) 0 700 1,400 2,100 2,800 3,500 0 800 1,600 2,400 3,200 4,000

INCOME BEFORE TAX GEOGRAPHICALLY Amounts in EUR million

2006

2005

General insurance

Accident & health insurance

Banking activities

Interest charges and other

Other activities

Netherlands

Americas

Other countries

UK

0 200 400 600 800 1,000

VALUE NEW BUSINESS Amounts in EUR million

2006

2005

DIVIDEND PER SHARE Amounts in EUR

2006

2005

0 0.10 0.20 0.30 0.40 0.600.50

Proposed

TOTAL ASSETS UNDER MANAGEMENT

Amounts in EUR billion

2006

2005

0 30025020015010050

(excluding off balance sheet items)

explanation Vnb /irr

Value of new business (vNB) is part of the embedded value reporting

and is considered an important supplemental measurement of the

business performance. vNB is widely used in the insurance industry to

measure how profitable new policies will be. vNB represents the

present value of future, distributable earnings that will be generated by

these new policies, sold in a defined reporting period. The vNB reflects

how much profit can be expected from new business, discounted to its

present-day value, using various assumptions for changes in interest

rates, economic circumstances and other variables.

In addition AEGON discloses its internal rate of return (IRR) on the

value of new business. IRR represents the discount rate at which the

present value of the distributable earnings from new business equals

the investment in new business; i.e. the projected return on the initial

investment in new business.

AEGON believes that the information it publishes on the vNB, along

with the other financial disclosures it regularly makes, provides

valuable, additional assistance to investors and shareholders in

helping them understand the nature of the company’s business.

vNB and IRR should not, however, be viewed as a substitute for

AEGON’s primary financial statements. The method AEGON uses to

calculate its vNB is consistent with European Embedded value

Principles and is described in more detail in the Embedded value

disclosure document available on AEGON’s website: www.aegon.com.

AEGON CORPORATE RESPONSIBILITY REPORT 2006 �

INTRODUCTION 2 Chairman’sletter

4 Makingprogress

5 AEGON’sstrategy

6 AEGON’sstakeholdersandaimsfor2007

1.THECOMPANY 8 AEGON’sbusinesses;Globalresources

9 WhereAEGONseesfuturegrowth

2.GOVERNANCE 14 Corporategovernance;Asolidfinancialbase

15 InvestorRelations

16 CodeofConduct

17 AEGON’scommitmenttohumanrights

1 8 Limitingrisk

3.THEMARKETPLACE 20 AEGON’smarkets;Managingcustomerrelations

24 Ensuringproducttransparency

28 Investingresponsibly

30 AEGON’sbrands

31 Workingwithdistributionpartners;

Thebenefitsoftheinternet

32 AEGON’ssuppliers;Governmentsandregulators

4.THEWORKPLACE 34 AEGON’semployees

36 Payingafairwage;Employeesatisfaction

37 Healthandsafety

38 Protectingtheenvironment

5.THEWIDERCOMMUNITY 42 AEGON’slong-termcommitmenttolocalcommunities

43 Givingtogoodcauses

ADDITIONALINfORMATION 45 Summary

46 Corporateresponsibilityindicators

APPENDICES 48 AppendixI:Thescopeofthisreport

48 AppendixII:AnoverviewoftheGlobalReportingInitiative(GRI)

49 AppendixIII:GlobalReportingInitiativeIndex(G3)

55 AppendixIV:HowAEGONpromotescorporateresponsibility

initiatives

56 forward-lookingstatements

7 19 413313

IMAGES

Page7 AEGONcolleaguesworkingonaprojectatthe

company’sheadquartersinTheHague.

Page19 AEGON’sheadquartersinTaiwan.AEGONisoneof

thelargestforeign-ownedlifeinsuranceprovidersin

thecountry.

Page33 AnAEGONcolleagueworksthephonesinAEGON

Hungary’sclaimsdepartment.

Page41 Volunteerday:AEGONemployeesraisemoneyfor

goodcausesinTaiwan.

CorporateResponsibilityReport2006

CONTENTS

2 AEGON CORPORATE RESPONSIBILITY REPORT 2006

DonaldJ.Shepard

CHAIRMANOf

THEEXECUTIVEBOARD

DEARSTAKEHOLDER,Asoneoftheworld’sleadingprovidersoflong-termfinancialprotectionproducts

andservices,AEGONmakeslong-termpromisestoawiderangeofcustomers,

businesspartners,employeesandshareholders.Eachdaywetakestepstoensure

thatweareabletokeepthosepromisesthroughsoundandresponsiblebusiness

practicesandtheintegrityoftheproductsandserviceswedeliver.

AEGON’scorevaluesofrespect,quality,transparencyandtrustare

centraltothemanyconsiderationsthatguideourbusinessdecisions.

ThislatestCorporateResponsibilityReportprovidesabroadoverview

oftheinitiativesandpolicieswehaveimplementedduringthispast

yeartostrengthenourcommitmenttothemanydiversecommunities

thatAEGONservesthroughouttheUnitedStates,EuropeandAsia.

Ourindustryhaschangeddramaticallyinrecentyears.Indeveloped

countries,peopleare living longerandarehaving tomanage their

pension assets for considerably longer periodsof time than in the

past. As individuals assume greater responsibility for their own

retirement, it is important that our customers have a clear

understandingoftheirparticularneedsandavailableoptionsinorder

tomakethebestfinancialplanningdecisions.

forthisreason,AEGONiscommittedtoimprovingfinancialliteracyin

the communities in which it operates. This includes supporting

programsinourmarketsdesignedtoprovideinstructiononpersonal

finance and retirement planning. Providing clear and transparent

productsisalsoanessentialrequirementtomaintainingthetrustand

confidenceofourcustomers.

Since our last Corporate Responsibility Report, we have made

significantprogressinanumberofkeyareas.Wehaveenhancedthe

transparency of our products. We have improved levels of both

customer and employee satisfaction. And we have extended and

strengthenedtheCodeofConductthatprovidesallemployeeswith

the essential guidelines for howAEGON operates as a responsible

companyinanever-changinginternationalbusinessenvironment.

Chairman’sletter

DONALDJ.SHEPARD,CHAIRMANOfTHEEXECUTIVEBOARD


“Providingclearandtranparentproductsisanessentialrequirementtomaintainingthetrustandconfidenceofourcustomers.”

As a global company, AEGON also has responsibilities that extend

beyondthefinancialservicesindustry.Aswecontinuetoexpandour

internationalpresenceinthecomingyears,wewillundoubtedlyface

newchallengesandnewresponsibilities.Intheseareas,too,wehave

madeprogress.Sinceourlastreport,wehavebecomeasignatoryto

theCarbonDisclosureProject,whichencouragescompaniesaround

theworldtobemoreopenabouttheirgreenhousegasemissions.We

havealsoexpandedthenumberofSociallyResponsibleInvestment

fundsweofferintheUnitedKingdomtothree,havestrengthenedour

commitmenttopromotingandprotectingfundamentalhumanrights

inouroperationsaroundtheworldandhaveextendedAEGON’slong-

standingsupportforinternationalresearchprogramsintothecauses

andtreatmentofcancer.

Looking ahead,we are examining the possibility of a new, globally

coordinated action plan to reduce energy consumption across

AEGON’s operations internationally. Other projects include

establishing group-wide corporate responsibility standards for

suppliers in all our major procurement centers, and group-wide

principlestohelpdeterminehowAEGONexercisesitsvotingrightsas

ashareholderinothercompanies.

While we are pleased with the advances in AEGON’s record on

corporate responsibility issues, we recognize that there are areas

wherefurtherimprovementispossible.Aspartofthisprocess,weare

committedtoincorporatinginsightsandrecommendationsfromour

stakeholders that will strengthen our principles and their

implementationinourday-to-dayperformance.

Asacompany thatservesmore than40millioncustomers inover

twentycountriesaroundtheworld,AEGONhasaglobalreachwith

global responsibilities. We remain committed to fulfilling those

responsibilitiesinawaythatwillcontinuetojustifytheconfidenceof

our customers, partners, employees and shareholders, while

maintainingAEGON’s reputation as a leading contributor to sound

andresponsiblebusinesspracticesaroundtheworld.

Sincerely,

DonaldJ.Shepard

CHAIRMANOfTHEEXECUTIVEBOARD

� AEGON CORPORATE RESPONSIBILITY REPORT 2006

HOWAEGONIMPROVEDITSCORPORATERESPONSIBILITYRECORDIN2006AEGONisproudoftheprogressithasmadeoverthepastyeartoimproveits

recordoncorporateresponsibilityissues.Sinceitslastreport,AEGON:

Has rolled out a company-wide e-learning program, aimed at

increasingemployeeawarenessofitsCodeofConductandensuring

amoreeffectiveimplementationacrossallAEGONcompanies.

Hasbecomeasignatory to theCarbonDisclosureProject,which

encouragescompaniesaround theworld tobemoreopenabout

theirgreenhousegasemissions.

Has adopted a stronger and clearer position on human rights,

whichwillbeincorporatedintoitsCodeofConductin2007.

HasextendedthescopeofthisCorporateResponsibilityReportto

includeallcountryunits.

Has added another Socially Responsible Investment fund to its

rangeoffundsintheUnitedKingdom.

HasensuredamoretimelyreleaseofitsCorporateResponsibility

Report,making itavailabletoall investorsand interestedparties

ahead of the company’s 2007 annual General Meeting of

Shareholders.

Has strengthened its support for research into the causes and

treatmentofcancer.

HasremainedpartofboththeDowJonesSustainabilityandthe

fTSE4Goodindices.AEGONhasbeenincludedinbothindicesforat

leastthepastfouryears.

Has taken action to improve both customer and employee

satisfaction.

Introduction

MAKINGPROGRESS


AEGONisoneoftheworld’sleadinglifeinsurersandpensioncompanies.Assuch,

ithaslong-termresponsibilitiesnotonlytoitsmanycustomers,employees,

shareholdersandbusinesspartners,butalsotothewidercommunitiesinwhich

itoperates.

AEGONSErvESlOcAlNEEDSwIthGlObAlrESOurcES

Supportedbyitsglobalresourcesandbroadexpertise,AEGONrelies

on the knowledge of local management to identify and serve the

evolving needs of its customers. AEGON further seeks to deliver

innovativeproductsandservicesthroughmulti-channeldistribution

networksbestsuitedtolocalmarkets.

AEGONfOcuSESONGrOwINGItSbuSINESSESprOfItAbly

AEGONpursuesastrategyof long-termprofitabilityandsustainable

growth.AEGONaimstoachievealong-termaveragenetincomegrowth

rateof 10percentper annum. In themedium term,AEGONaims to

doubleitsvalueofnewbusinessduringtheperiod2005-2010.AEGON

setsitsreturnobjectivesrelativetotherisksofitsmarketsandwellin

excessofthecostofcapital.Disciplinedexpensemanagement,together

with the divestiture of non-core and structurally underperforming

activities,arekeytoachievingtheseobjectives.

AEGONAIMStOSEcurElEADINGMArkEtpOSItIONS

AEGONstrivesfora leadingpositionin itschosenmarketsinorder

torealizethebenefitsofscale,whileattractingandretainingquality

managementaswellasstronglocalpartners.

AEGONpurSuESGrOwthbyExpANDING

ItSINtErNAtIONAlprESENcE

AEGONpursuesgrowth incountries thatoffer long-termprofitable

growth for the products and services it provides. AEGON seeks to

expand its presence in its chosenmarkets throughorganic growth

andthroughselectacquisitionsandpartnerships.

“2006wasayearofprogressandachievementforAEGON.”

Introduction

AEGON’SSTRATEGY

AEGONiscommittedtoprinciplesofbusinesspracticethatpromote

respect,quality,transparencyandtrust.ThisfourthannualCorporate

Responsibility Report details the specific steps both senior

management and local divisions have been taking to ensure these

principles becomean integral part of thewayAEGONmanages its

operationsaroundtheworld.

from a business perspective, 2006 was a year of progress and

achievementforAEGON.Significantadvancesweremadeinenhancing

the company’s profitability, strengthening its distribution network

andexpandingitsinternationalpresence.Operatingearningsbefore

tax in 2006 rose 32 percent compared with the year before, to

EUR 2.83 billion. The value of new business (VNB), meanwhile,

increased41percenttoEUR775million,providingasolidfoundation

forfutureprofits.

AEGON’sstrategyAEGON’sbusinessstrategyisbasedonfive,clearlydefinedprinciples:

AEGONIScOMMIttEDtOItScOrEbuSINESSES

AEGON is focused on the long-term financial protection and asset

accumulationneedsofitsclients,withaprimaryfocusondelivering

lifeinsurance,pensions,savingsandinvestmentproducts.


Introduction

AEGON’SSTAKEHOLDERSANDAIMSfOR2007

Setoutgroup-wideprinciplesonexercisingvotingrightsrelatedto

shares AEGON owns in other companies. These principles will

operateinconjunctionwithexistingcountryunitpolicies.

Establish group-wide corporate responsibility standards for

suppliersinallitsmajorprocurementcenters.

Examinethepossibilityofanewgloballycoordinatedactionplanto

reduceenergyconsumption.

cuStOMErS

AEGON builds long-term relationships with all its customers by

deliveringproductsandservicesdesignedtoimprovetheirfinancial

security, both now and in the future. The company ensures its

customers have clear, accurate and timely information, allowing

them to choose the right products and services for their evolving

needs. AEGON shows its customers respect by honoring its

commitmentstothem,bysolicitingtheirviewsand,whereappropriate,

actinguponthem.

ShArEhOlDErS

AEGON works hard to create sustainable financial returns for its

shareholders,whilemakingsurethecompanyalsorespectsitscore

valuesandtheconcernsofallitsotherstakeholders.Open,accurate

and timely financial communication allows shareholders to make

informeddecisionsregardingtheirinvestmentsinthecompany.

EMplOyEES

AEGON provides its employees with the incentives they need to

translatethecompany’scorevaluesofrespect,quality,transparency

and trust into practice. AEGON encourages a culture in which

employees are committed to working together. Training is a high

priority for AEGON and the company provides formal skills and

developmenttrainingforemployeesatall levels.Everyemployeeis

expected to seek theopportunities, the training and the resources

necessaryforsuccess.AEGONexpectseveryonewhoworksforthe

companytodemonstrateinitiativeandcommitmentandtoactinthe

long-terminterestsofallthecompany’sstakeholders.

buSINESSpArtNErS

AEGONbuildslastingrelationshipswithbusinesspartnerswhoshare

its core values. Together, AEGON and its partnerswork to provide

quality products and services. At all times, AEGON strives to

communicateopenlyandaccuratelyandexpectsitsbusinesspartners

todothesame.

cOMMuNItIES

AEGON endeavors to establish long-term relationships within the

communities in which it operates. Through employment and

opportunitiesforpersonaldevelopment,aswellasthroughrespect

for the local environment and the financial support the company

extends to a number of good causes, AEGON hopes to enrich the

communitiesinwhichitsemployeesliveandwork.

Invest in streamlining and enhancing its corporate responsibility

informationgatheringandreporting.

Investigatepossiblemembershipofbusinessnetworkstoexchange

viewswithothercompaniesonhowtoimproveitsmanagementof

corporateresponsibilityissues.

Beginworkonatrackable,baselineindex,compiledfromexisting

surveys, to measure overall rates of customer satisfaction for

AEGONcompaniesworldwide.

In2007,AEGONwilltakefurtherstepstoimproveitsmanagementofboth

governanceandbroadercorporateresponsibilityissues.Duringtheyear,

AEGONwill:


ENSURINGLOCALDECISION-MAKINGINANEXPANDINGGLOBALGROUP

1

Chapterone

THECOMPANY

� AEGON CORPORATE RESPONSIBILITY REPORT 2006

“AEGONisseekingtocapitalizeonsignificantgrowthopportunitiesintheyearsahead.”

AEGON’SbuSINESSES

AEGONfocusesonalimitednumberofcorebusinesses:lifeinsurance,

pensions and investment products. In 2006, its established markets

–theUnitedStates,theNetherlandsandtheUnitedKingdom–accounted

forapproximately99percentofAEGON’soperatingearningsbeforetax.

Inrecentyears,AEGONhasbeenexpandingitsinternationalpresence

andnowhasmore than40millioncustomersaround theworld. In

additiontoitsestablishedmarkets,thecompanyisnowactiveinmore

than twenty other countries in the Americas, Europe and Asia. In

early 2007, AEGON signed new joint ventures with partners in

RomaniaandJapan.

With its headquarters in The Hague, the Netherlands, AEGON has

nearly 29,000 employees and operates an extensive and highly

diversifieddistributionnetwork, througha rangeofdifferentbrand

names.ThisnetworkensuresAEGON’sfinancialproductsreachthe

peopletheyweredesignedfor.Asoneoftheworld’sleadingfinancial

servicescompanies,AEGONisasignificantinvestorinbusinessesand

economiesaroundtheworld.

Thecompany

AEGON’SBUSINESSES;GLOBALRESOURCES

GlObAlrESOurcES,lOcAlDEcISION-MAkING

AEGON’s operating structure emphasizes the importance of local

businesseswithinaglobalgroup.Thisprincipleisalsoreflectedinthe

company’sapproachtoissuesofcorporateresponsibility.AEGONsets

outageneralcorporateresponsibilityframework,aswellasaCodeof

Conductforallcompanyemployees.Eachcountryandbusinessunit

is, however, encouraged to identify and focus on issues that are

specifictoitslocalsituation.

AllAEGON’scountryandbusinessunitsshareanumberofcommon

objectives.These includeprovidingsoundandtransparentfinancial

products that addvalue for customers, ensuringall employeesare

committed and knowledgeable, and managing the company’s

businesses with integrity and in the best interests of all AEGON’s

manystakeholders.

Thisapproachguaranteesthatlocalmanagersretaintheauthorityto

makelocaldecisionsbutstillenjoytheresourcesandadvantagesof

an expanding global operation. Determining policies and setting

specifictargetsistheresponsibilityoflocalmanagers.Thisensures

that AEGON works toward objectives that reflect local needs and

circumstances.


fransvanderhorst

MANAGINGDIRECTOR

AEGONPENSIONNETWORK

Thecompany

WHEREAEGONSEESfUTUREGROWTH

whErEAEGONSEESfuturEGrOwth

foranumberofreasons,AEGONbelievesitscorebusinessesoflife

insurance, pensions and investment productswill show strong and

sustainablegrowthinthecomingyears.

Throughout thedevelopedworld, people are living longer and are

havingtomanageassetsforconsiderablylongerperiodsoftimethan

inthepast.Thisphenomenonisdrivingdemandforthetypeoflong-

termsavings,lifeinsuranceandretirementproductsinwhichAEGON

specializes.InEurope,itisestimatedthatby2050,theworking-age

populationwillhavedeclinedby20percent.Atthesametime,the

populationofover-65swillhaverisenbyastaggering80percent.1

Governmentsareincreasinglytransferringresponsibilityforpension

andothersocialprovisionsfromthepublictotheprivatesector.

Many companies are shifting their pension plans from defined

benefit to defined contribution, effectively passing responsibility

forretirementplanningtotheindividual.

Wealth in many parts of the world is increasing, enabling more

peoplethanevertosaveandplanforretirement.

In2006,AEGON launchedaseriesofglobalgrowth initiativesand,

forthefirsttime,setoutanambitiousmedium-termfinancialtarget

todoublethevalueofitsnewbusinessoverthenextseveralyears.

AEGONisseekingtocapitalizeonsignificantgrowthopportunitiesin

theyearsaheadbystrengtheningitsfocusonpensions,expandingits

internationalpresenceandextendingitsbancassurancenetwork.1Source:Eurostat.

pENSIONS

AEGONistakinganumberofstepstoenhanceitsalreadyconsiderable

presenceintheworldwidepensionbusiness.In2006,newinitiatives

helpedthecompanystrengthenitspositionintheUnitedStates,the

Netherlands and theUnited Kingdom, its three largestmarkets. In

addition, AEGON’s strategy to expand its international presence

brought benefits for its pension business. New joint ventures,

partnerships and acquisitions in countries such as Poland,Mexico,

IndiaandChinaduringtheyearsignificantlyextendedthepotential

reachofAEGON’spensionoperations.

Towardtheendof2006,AEGONalsoboughtPTEErgoHestia,oneof

Poland’s leading pension fund management companies. The

acquisitionwillhelpsupportwhathasrecentlybeenarapidexpansion

ofAEGON’spensionbusinessinCentralandEasternEurope.

Bycoordinatingproductdevelopmentandsharingexpertiseacross

its business and country units, AEGON believes it can capture a

significantshareoftheextensiveaccumulatedretirementassetsthat

willflowintotheworldpensionmarketoverthenextseveralyears.

As AEGON expands its international operations, the company is

working on strengthening AEGON Pension Network (APN), an

international network of pension providers formed in 2003 with

AEGON’sfrenchpartnerLaMondiale.APNisthefirstnetworkofits

kinddedicatedtodevelopingcross-borderpensionsolutions,acting

as a bridge between APN member companies and multinational

clients across the globe. APN members include most of AEGON’s

countryunitsandnumberofexternalpartners,notablyLaMondiale

andHDIGerling PensionsmanagementAG, Germany’s third largest

pensionprovider,whichjoinedthenetworkin2006.In2007,APNwill

berollingoutnewproductsdesignedtohelpitsmulinationalclients

track their cross-border pension risks and liabilities. APN already

providesproductsandservices,includingriskpoolingandretirement

plansforexpatriateemployees.

InDecember2006,APNpublishedthefirst-everGlobalPensions

Survey,an importantcontributiontothe internationaldebateon

thefutureofpensionfunding.Thesurveyfoundthatmulti-national

companies, confrontedby an arrayof different national pension

arrangements,are increasingly lookingto internationally-minded

providers like AEGON to help them come up with cross-border

solutions to their pension plan issues. Details of the survey,

‘BridgingPensionPlansWorldwide’,areavailableonAPN’swebsite:

www.aegonpensionnetwork.com/10-global_pensions_survey.htm.

fransvanderHorstin‘Wideningthepensionboundaries’:

“Pensionsarebecomingmoreandmoreinternational.Asaresult,weatAEGONareprovidingmoreinternationalsolutionsforourmultinationalclients.”

�0 AEGON CORPORATE RESPONSIBILITY REPORT 2006

The pensionmarket is changing fast. As companies becomemore

international, so do their pension requirements. In recent years,

manycompanieshavefoundthatrunningseparateretirementplans

for employees in each of their national subsidiaries is becoming

increasingly difficult and costly. What they want are cross-border

answerstocross-borderissues.

forthisreason,fouryearsago,AEGONsetupAEGONPensionNetwork

(APN)tohelpmultinationalcompaniesdealwiththecomplexitiesof

differentnationalpensionarrangements–justoneofthemanyways

AEGONisstrivingtocatertoitscustomers’ever-changingneeds.

“This isamassive issuefora lotofourcorporateclients,”explains

fransvanderHorst,APN’sManagingDirector.“Pensionsarebecoming

moreandmoreinternational.Asaresult,weatAEGONareproviding

more international solutions for our multinational clients. That’s

somethingwemustcontinue–itwillhelpusstayaheadofthepack.”

formultinationals, cross-borderpensionshavebecomean issueof

enormousimportance.Atatimewhenpensionliabilitiesaregrowing,

the recent introduction of new accounting rules persuaded many

companyCfOsthatchangewasoverdue.Effortshavebeenmadeto

bringEurope’sdifferentpensionregimesclosertogether.But,insuch

acomplexarea,reformhasprovedfarfromstraightforward.

APN effectively acts as a bridge between its member companies

andmultinationals across the globe, providing clients and pension

providerswithasingleofpointofcontactandanetwork thatnow

coversmorethanfifteencountriesintheAmericasandEurope.

“Ifwehaveaclient,forexample,intheUnitedStateswhoislooking

forsomeassistancewithpensionplansinHungaryorPoland,thenwe

canhelp.ThroughAPN,wecanbringtogetherthepensionprovider

andthecustomer.APNisthelink”,saysMr.VanderHorst.

“Manycompanieshavedifferentpensionplansindifferentcountries,”

headds.“Thatcanbeaverycomplexsituation.Whatthey’retelling

usisthis:‘Wehavetomakethiswork.Wecan’twaitforchangesin

regulations.Wewantsolutionsnow’.AndAPNisthereforthem.”

Wideningthepensionboundaries

Thecompany WhereAEGONseesfuturegrowth

AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��

INtErNAtIONAlExpANSION

In 2006, AEGON made considerable progress in expanding its

internationalbusinesses.Duringtheyear,AEGONboughta49percent

stakeinSegurosArgos,aMexicanlifeinsurer,andannouncedanew

venture with the Ranbaxy Promoter Group in India to provide life

insuranceandassetmanagementservicesthroughtheIndiangroup’s

subsidiary,Religare.AEGONalsoextendeditsoperationsinChinaand

madeacquisitionsinPoland,theNetherlandsandtheUnitedStates.

Earlyin2007,AEGONannouncedfurtherpartnershipswithBanca

Transilvania,oneofRomania’sbest-knownbanks,andwiththe

insurerSonyLifeinJapan,whichwillenableAEGONtoextendits

reachintotheworld’ssecondlargestmarketforlifeinsurance.

Mexico

Brazil

Ireland

United Kingdom

France

Spain

The Netherlands

Germany

Italy

Poland

Czech Republic Hungary

Slovakia

Thailand China

Hong Kong

Taiwan

S. Korea

Japan

Australia

Canada USA

SingaporeChile

Bermuda

AEGONAROUNDTHEWORLD

1AEGONDirectMarketingServices(ADMS)isoneoftheoperatinggroupsofAEGONUSA.

Mainmarkets

AEGONDirectMarketingServices1

Otheractivities


Thecompany WhereAEGONseesfuturegrowth

bANcASSurANcE

Partnershipswithbanksacross theUnitedStates,EuropeandAsia

helpAEGONreachmillionsofcustomersitwouldn’totherwisereach.

Thesepartnershipsareakeypartofthecompany’soverallbusiness

strategy.Distributingthroughdifferentchannelsallowscustomersto

accessAEGON’sproductsinthewaythatbestsuitsthem.

InadditiontoAEGON’ssuccessfulpartnershipwithCajadeAhorrosde

Mediterráneo (CAM), new joint ventures with two additional Spanish

mutual savings banks – Caja de Badajoz and CajaNavarra – became

operationalin2006.ThesenewjointventureswillhelpextendAEGON’s

productsandservicesthroughnearly1,500bankbranchesacrossSpain.

InSpain,some70percentoflifeinsurancepoliciesaresoldthroughthe

country’sbanks.

AEGON’SMEDIuM-tErMfINANcIAltArGEt

for the first time, AEGON set itself amedium-termfinancial target in

2006,areflectionoftheconfidencethecompanyhasinitscoremarkets

and businesses. AEGON’s objective is to double the value of its new

business by 2010 to EUR 1.1 billion. further expansion in developing

markets, the strength of AEGON’s established businesses and the

prospectsforrisingdemandforpensionsandlong-termsavingsproducts

willdrivegrowthintheyearsahead.In2006,thevalueofnewbusiness

amountedtoEUR775million,anincreaseof41percentcomparedwith

thepreviousyear,puttingAEGONoncoursetomeetits2010target.

StrongergrowthwillnotonlysecureAEGON’sfinancial futurebutwill

alsobringlong-term,sustainablebenefitstoitscustomers,partnersand

shareholdersaswellas to themanycommunitiesaround theworld in

whichthecompanyoperatesandinvests.


OPERATINGASARESPONSIBLECOMPANYINANEVER-CHANGINGBUSINESSENVIRONMENT

2

Chaptertwo

GOVERNANCE

�� AEGON CORPORATE RESPONSIBILITY REPORT 2006

Governance

CORPORATEGOVERNANCE;ASOLIDfINANCIALBASE

AEGON’sfinancialstrengthisreflectedintheratingsbelow:

rAtINGS AEGON USAAEGON

The NetherlandsAEGON Scottish

Equitable

asofMarch31,2007

S&Prating AA AA AA

S&Poutlook Stable Stable Stable

Moody’srating Aa3 Notrated A1

Moody’soutlook Stable Notrated Stable

fitchrating AA+ Notrated Notrated

fitchoutlook Stable Notrated Notrated

In 2006, AEGON paid out a total of EUR 798 million in interest

and dividends to shareholders and bondholders, an increase from

EUR701millionthepreviousyear.At itsannualGeneralMeetingof

Shareholdersin2007,AEGONwillproposeadividendofEUR0.55a

commonshare,anincreaseof22percentcomparedwiththeprevious

year’sEUR0.45,toreflectthecompany’sstrongcashflow.

cOrpOrAtEGOvErNANcE

AEGONhasawell-establishedandcomprehensivesystemofcorporate

governance. This helps strengthen overall financial management,

ensureasolidcapitalbase for thecompanyandsupportefforts to

mitigateandlimitoperationalandmarketrisk.Aspartofitsapproach

tocorporategovernance,AEGONiskeentoensurethatthehighest

ethical standards are respected throughout the company. for this

reason,sinceitslastCorporateResponsibilityReportwaspublishedin

August2006,AEGONhastakenstepstoextendtrainingonitsCode

ofConductandhasadoptedastrongerandclearerpositiononhuman

rights.AEGONbelievesthesemeasureswillreinforcethecompany’s

core values as it continues to expand into new countries and new

markets.

forfurtherdetails,refertothecorporategovernancesectionofAEGON’s

2006AnnualReport,availableatwww.aegonannualreport.com.

ASOlIDfINANcIAlbASE

AsofDecember312006,AEGON’sshareholders’equityamountedto

EUR19.1billion.Thisrepresentedsome77percentofthecompany’s

totalcapitalbase,inlinewithEUR19.3billion,or76percent,atthe

endof2005,andwellabovetheminimumrequirementof70percent

thatthecompanysetsforitself.Perpetualcapitalsecuritiesaccounted

for another 16 percent ofAEGON’s total capital base at end-2006,

while senior and dated subordinated debt made up the remaining

7percent.

Overall, this provides strong capital adequacy for AEGON’s local

operationsandasolidcapitalbaseforthecompanyasawhole. It

alsoensuresAEGON’smanycustomersaroundtheworldcanhave

confidenceinthecompany’slong-termfinancialstrength.AEGONis

committedtoabusinessstrategythatwillguaranteeitscontinuing

financialsolidity.AEGONvaluesitsmanytrustedrelationshipswithin

the global investment community and the geographical diversity

of its investor base reflects the company’s broad international

businessreach.

“AEGON’sCodeofConductprovidesbothmanagementandemployeeswithguidelinesforhowthecompanyoperatesasaresponsiblebusiness.”

Dividend paid on common shares

Interest paid on other equity instruments

Dividend paid on preferred shares

Interest on debt instruments

INTEREST AND DIVIDENDS 2006 Amounts in EUR million

391

80

204

123


Governance

INVESTORRELATIONS

INvEStOrrElAtIONS

Inkeepingwithitscommitmenttofurtherimprovedisclosure,AEGON

has started to report quarterly valueof newbusiness information

andinternalrateofreturnofthenewbusiness,beginningwiththe

first quarter 2006 results. Additionally, AEGON will provide

information on its various business activities in a statistical

supplementtobeincludedinitsquarterlyearningsreleasesstarting

withthefirstquarterof2007.Withtheaimofensuringequalaccess

toall relevant information,AEGONactivelymaintainscontactwith

thefinancialcommunity. Interactionswiththefinancialcommunity

includeroadshowsthroughouttheUSA,Europe,andAsia,webcasts,

press releases and regularly scheduled investor days. Moreover,

shareholders,bondholdersandpotentialinvestorsareencouragedto

learnmoreaboutAEGON’sbusinesses andmanagementdecisions

aimed at achieving its strategy of long-term profitable growth in

AEGON’smajoranddevelopingmarkets.Inkeepingwithitsongoing

determination to maintain an open dialog with the financial

community,AEGON’sprofessionalinvestorrelationsstaffisavailable

toanswerquestionsatanytime.

ShArEhOlDErSANDShArEprIcEDEvElOpMENt

AEGON’s international business activities are reflected in the

geographicaldiversityofitsinvestorbase.In2006,theAEGONshare

priceappreciated5.0percent,fromEUR13.75onDecember30,2005

toEUR14.44onDecember29,2006.Includingthedividendspaidin

2006thetotalreturn1foranAEGONcommonsharein2006was8.7

percent(2005:42.8percent).Thiscomparestototalreturns1forthe

European Insurance Index (DJStoxx600 Insurance Index) of 20.7

percent (2005: 34.6 percent) and the S&P 500 Insurance Index

(inEUR)ofminus0.5percent(2005:30.7percent).

Sharepriceinformation2(inEur)

2006 200� 200� 200� 2002

Price-high 15.56 14.25 12.98 13.47 28.89

Price-low 12.17 9.63 8.24 5.87 9.04

Price-year-end 14.44 13.75 10.03 11.73 11.79

Price/earningsratio 8.86 8.44 7.27

Sharepriceinformation2(inuSD)

2006 200� 200� 200� 2002

Price-high 18.97 16.78 16.12 14.80 26.00

Price-low 15.24 12.19 10.41 6.76 8.88

Price-year-end 18.95 16.32 13.71 14.80 12.33

1The source for the total return calculation and comparison is Bloomberg.Thecalculationassumesreinvestmentofthedividendinthestockorintheindex.

2Source:Bloomberg.

Americas

United Kingdom

Rest of Europe

The Netherlands

Rest of the world

SHAREHOLDER BASE Estimated

36%

20%

17%

26%

1 %


Governance

CODEOfCONDUCT

cODEOfcONDuct

AEGON’sCodeofConductprovidesbothmanagementandemployees

with guidelines for how the company operates as a responsible

business.ThisCodesetsoutAEGON’scorevaluesanditsunderlying

principlesofbusinesspractice.AcopyoftheCodecanbefoundon

AEGON’swebsiteatwww.aegon.com/corporateresponsibility/policies.

All AEGON employees, excluding those working for joint ventures

whereAEGONdoesnothavefullmanagementcontrol,arecovered

bythisCodeofConduct.

AEGON requires all employees not only to be well informed about

thecompany’sCodeofConduct,butalsotoincorporateitintotheirday-

to-daywork.Toincreaseemployeeawarenessofthecompany’sCodeof

Conduct,AEGONhasputinplaceanintranet-basede-learningtraining

program,whichwaslaunchedlastyearacrossallbusinessunits.Training

workshopshavebeenorganizedatallAEGONcompanies.

Todate,approximately95percentofAEGONemployeesaroundthe

worldhavecompletedtheCodeofConducttraining.Giventheusual

rate of staff turnover and the number of employees absent on

maternityorlong-termleave,thesefiguresareclosetothemaximum

AEGONcanachieve.AEGONisalsoextendingtrainingontheCodeof

Conducttosome800employeesatfinancialadvicecompanyUnirobe,

whichbecameafully-ownedunitofAEGONTheNetherlandsin2006.

Seventy-fiveUnirobemanagershavealreadytakenpartinthetraining

program.

AEGON’s Code of Conduct also includes ‘whistleblower’ provisions

which allow employees to report suspected irregularities without

jeopardizingtheirposition.Inaddition,AEGONhasinplaceadetailed

procedure for reporting complaints regarding accounting, internal

financialcontrolsandauditingissues.Detailsofthisprocedurecanbe

foundonAEGON’swebsiteat:www.aegon.com/corporategovernance/

governancestructure/.


Governance

AEGON’SCOMMITMENTTOHUMANRIGHTS

AEGON’ScOMMItMENttOhuMANrIGhtS

AEGONupholdstheUnitedNations’UniversalDeclarationofHuman

Rights.In2007,AEGONwillincorporatethisDeclarationintoitsCode

ofConduct.ThisdecisionreflectstherecentexpansionofAEGON’s

businesses into a number of developing countries as well as the

company’s desire to adopt a stronger and clearer position on this

issue.AEGONrecognizesitsresponsibilitytohelpprotectandpromote

humanrightsinallthecountriesinwhichitoperates.

DoingtherightthingAlthoughgovernmentsareprimarilyresponsibleforprotectinghuman

rights, companiesalsohavea role toplay.from2007,allAEGON’s

business activities will be guided by the United Nations’ Universal

DeclarationofHumanRights,thecorestandardsoftheInternational

Labor Organization (ILO) and the principles on human rights and

laborstandardscontainedintheUNGlobalCompact.

TheUN’sDeclarationofHumanRights,itsGlobalCompactandtheILO’s

corestandardssetoutanumberoffundamentalrightsandfreedoms.

Thesedocumentsseektoprotectpeoplearoundtheworldfromunfair

discrimination,torture,arbitraryarrestandimprisonment.Amongother

things,theyseektooutlawallformsofslaveryandchildlabor,aswellas

guaranteeingthebasicfreedomsofmovement,associationandworship

andupholdingtheprinciplesofequaltreatmentbeforethelaw.

SigninguptothesedocumentsdemonstratesAEGON’scommitment

to protect and promote human rights in all its operations around

theworld,particularlyinthosejointventureswhereitexercisesfull

managementcontrol.InotherbusinesseswhereAEGONdoesnothave

fullmanagementcontrol, thecompanystrivesalwaystoencourage

andsupportarespectforfundamentalhumanrightsandfreedoms.

Business cultures and practices, of course, vary from country to

countrybut, asa rapidlyexpanding international company,AEGON

recognizes its own responsibility for helping protect human rights

whereveritcanaroundtheworld.

AEGON’SpOlIcyONhuMANrIGhtS

“AllAEGONbusinessactivitiesareguidedbythearticlesoftheUnited

Nations’UniversalDeclarationofHumanRights,thecorestandards

oftheInternationalLaborOrganizationandtheprinciplesonhuman

rightsandlaborstandardsassetforthbytheUNGlobalCompact.

AEGON pledges that it will actively promote the human rights

principlescontainedinthispolicywithregardtobothitsownwholly-

owned companies and, wherever possible, to its business dealings

withthirdparties.”

AEGON’spolicycommitsthecompanytoupholdinghumanrightsin

areaswhereithasthemanagementcontroltomakeadifference.It

cannotbeheldresponsibleforcompaniesandjointventureswhereit

hasonlyaminorityinterest,forbusinesspartnersorforprojectsthe

companyhasinvestedin,orinsured.Whenseekingbusinesspartners,

however,AEGONendeavorstoensurethatthesepartnersliveupto

highstandardsof integrityandsoundbusinesspracticeconcerning

humanrights.


lIMItINGrISk

RiskisinherentinallfinancialmarketsandacentralpartofAEGON’s

businessinvolvesassessingandcalculatingthatrisk.Thecompanyis

exposed to a variety of operational and financial market risks. In

addition, like other companies, it faces risks to its reputation that

couldhaveamaterialeffectonitsfuturebusiness.

Someof theserisks,suchas thoserelatedtocurrencyrates,area

reflectionoftheinternationalnatureofAEGON’sbusinesses.froma

purely financial point of view, AEGON’s largest exposure is to

movements in world markets that can affect the value of the

company’sinvestmentsandbusinesses,itslevelofdeferredexpenses,

aswellastheliabilitiesfromproductsitsells.

financialriskscanresult frommovements incurrenciesor interest

rates,aswellasvolatilityininternationalequity,realestateorcapital

markets.AEGONseeks tomitigate these risks throughavarietyof

systematic risk management strategies and programs designed to

strengthenthecompany’slong-termfinancialstability.

In recent years, AEGONhas taken a number of steps to centralize

moreofitsriskmanagement.Thishasbecomenecessaryasregulation

in the pension and insurance industries has grownmore extensive

andmorecomplex.AEGONbelievesthatamorecentralizedapproach

will ultimately contribute to better products and services and help

reinforce long-term confidence in the company’s businesses.

furtherdetailsofAEGON’s riskandcapitalmanagementstrategies

can be found in the company’s 2006 Annual Report, available at

www.aegon.com/pressroom/publications/25088.

By definition, risks to AEGON’s reputation are more difficult to

quantify.Asanexpandinginternationalbusiness,AEGONisawareof

thelegitimateinterestthatmanystakeholderstakeinthecompany’s

operations around the world. for this reason, AEGON is currently

implementinganewinternet-basedtechnologythatwillhelpsenior

managementmonitorriskstothecompany’sreputationacrossallits

operations.ThistechnologywillenableAEGONmanagerstorespond

quicklyandefficientlytoanyrisk,eithertothecompanyasawholeor

toitsvariousbrands.

AEGONfullyexpectstobeheldaccountableforthedecisionsitmakes

andfortheimpactthosedecisionsinevitablyhaveonthecommunities

inwhichthecompanyconductsitsbusiness.AnydamagetoAEGON’s

reputationwould,ofcourse,underminethetrustthatcurrentlyexists

betweenthecompanyanditsmanycustomers,employees,business

partnersandotherstakeholders.ButAEGONbelievesthatbyfarthe

bestwaytoprotectthesolidreputationitcurrentlyenjoysistoensure

thecompanyand itsemployeescontinuetorespect itscorevalues

andprinciples.

Governance

LIMITINGRISK


SERVINGCUSTOMERSANDCOMMUNITIESAROUNDTHEWORLD

3

Chapterthree

THEMARKETPLACE


Themarketplace

AEGON’SMARKETS;MANAGINGCUSTOMERRELATIONS

“AEGONplaysanactiveroleinensuringitscustomershavetheinformationandknowledgetheyneedtomaketherightfinancialchoicesforthemselvesandtheirfamilies.”

MANAGINGcuStOMErrElAtIONS

Customer satisfaction is a high priority forAEGON.AEGON strives

always to establish long-term relationships with all its customers,

basedontrust,transparencyandanopendialog.

ManyofAEGON’s countryunits usedifferentmethods for gauging

customer satisfaction. for some of the company’s larger country

units, methods may also differ from region to region. AEGON will

begin work in 2007 on a trackable, baseline index, compiled from

existingsurveys, thatwillallow thecompany tomonitorbetter the

evolving needs of its customers. Ultimately, this exercise will help

improve and adapt the products and services AEGON provides to

millionsofpeopleindifferentcountriesaroundtheworld.Currently,

AEGON companies conduct between 15 and 20 customer surveys

eachyear.

AEGON’s country units use a variety of different tools tomeasure

levelsofcustomersatisfaction,rangingfromregularsurveystocall

centermonitoringandcustomerresponsedatabases.Thesesurveys

and other measurements showed that, overall, AEGON customer

satisfactionimprovedin2006.Thisimprovementwaslargelyaresult

ofthestepsAEGONhastakentoexplainitscostandfeestructures,to

makeitsproductseasiertounderstand,tospeedupprocessingtimes

andtoimprovetheperformanceofitscallcenters.

Customers’pensionandlong-termsavingsneedsarecomplexsince

circumstances and risk tolerance can vary widely. AEGON strives

always to deliver financial products that are tailored to individual

requirementsandcustomers’changingneeds.

AEGON’SMArkEtS

AEGON serves more than 40 million customers worldwide. The

majority of these customers are located in the company’s three

established markets: the United States, the Netherlands and the

United Kingdom. Although life insurance penetration and pension

savingsinthesecountriesarealreadyrelativelyhigh,AEGONexpects

significantgrowthindemandfortheseproductsinthecomingyears.

Currentpensionsavings inmanycountriesare inadequatetomeet

risingdemandbecauseofacombinationofchangingdemographics,

longer lifeexpectancy ratesandmovesbyvariousgovernments to

shifttheresponsibilityforretirementplanningtoindividualsandthe

privatesector.

Inthesethreemarkets,AEGONfocusesonprovidingfinancialproducts

and services to individuals, corporates and institutions. Given its

leadingposition,AEGONisabletocapitalizeonsignificantbenefitsof

scale.Inallothermarkets–suchasCanada,China,theCzechRepublic,

Hungary,Poland,Slovakia,SpainandTaiwan–AEGONfocuseschiefly

on individuals and, to a lesser extent, corporates. In2006,AEGON

paid out a total of EUR 21.2 billion in claims and benefits to its

customersaroundtheworld,up32.5percent fromEUR16.0billion

thepreviousyear.

Emergingmarkets–marketsthatthecompanyconsidersgenerallyto

havea lowpenetrationof life insuranceandpension savings – are

becoming increasingly important to AEGON. Emerging markets in

Central andEastern Europe accounted for 5.9 percent of the total

value of new business generated by AEGON in 2006, up from 4.9

percentin2005.In2006,theregiongeneratedEUR46millioninnew

business,anincreaseofmorethan70percentfromEUR27million

theyearbefore.InAsia,thevalueofnewbusinessdeclinedtoEUR58

million,down30percentfromEUR83millionin2005.Thisdecrease

wasduetoarepricingoflifeinsurancepoliciesinTaiwanafterachange

inreserverequirementsin2005.Therepricingresultedinasignificant

improvementintheregion’soverallinternalrateofreturn.

Americas

United Kingdom

The Netherlands

Asia

Central and Eastern Europe

Other European countries

VALUE NEW BUSINESS Amounts in EUR million

393

48

181

4846

58

AEGON CORPORATE RESPONSIBILITY REPORT 2006 2�

AEGON’sstrategytoimprovecustomersatisfactionisbasedonfour

maingoals:toimprovethequalityandtransparencyofitsproducts,

to use distribution means that allow customers to access those

products in a way that best suits them, to deal efficiently with

customercomplaintsandtostrengthenthefinancialliteracyofthose

buyingthecompany’sproducts.

hElpINGcuStOMErSONlOwINcOMES

AEGONiscommittedtohelpingthosecustomerswhofindthemselves

onlowincomesandunabletokeepupwiththeirpremiumpayments,

sometimes through no fault of their own.Many are serving in the

militaryonextendedcontracts,havelosttheirjobs,becomedisabled

orarethevictimsofanaccidentoranaturaldisaster.Likemanyofits

peersintheinsuranceindustry,AEGONhasanumberofcontractual

measures inplacetohelpthesecustomers, includinggraceperiods

andloans.Otheroptionsincludereducingthecoverageofaparticular

policyor,inextremecases,eventerminatingthecontractaltogether.

In addition, some AEGON units have developed products aimed

specifically at improving the living standards of people on lower

incomes, very often those most in need of financial protection.

MonumentalLife,intheUnitedStates,forexample,providesproducts

thatcoverbasicfuneralexpenses,incomeandmortgagereplacement,

education funding and supplemental retirement income, helping

improve financial security for many low and middle-income

households.AEGONDirectMarketingServices,meanwhile, offers a

rangeofadditionallifeandhealthinsuranceforlow-to-middleincome

customers, which includes affordable accidental death, term life,

creditandwholelifecover.

IntheUnitedKingdom,AEGONScottishEquitableofferspersonaland

mortgage insurance at affordable prices, as well as low-cost

‘stakeholderpensions’-savingsplansintroducedrecentlybytheUK

authoritiestoencouragelow-incomeearnerstosaveforretirement.

In Canada, meanwhile, AEGON provides a range of life insurance

productsofferingincomeprotectionforlowminimumfaceamounts,

withsimplifiedunderwritingterms,thatcanbeboughtbycustomers

under the age of 45. AEGON Canada also offers a medical

reimbursementplancalled‘CriticalAdvantage’,whichprovidesexpert

medicaladvicetocustomerswhohavebeendiagnosedwithaserious

illness.ThisplanofferscustomersalumpsumbenefitofCDN25,000

oruptoCDN1,000,000tocoverout-of-countrytreatmentcosts.

MakingthegradeTransamerica Retirement Services, part of AEGON USA, secured

eleven ‘Best in Class’ ratings from consumer research company

ChathamPartners’December2006clientsatisfactionsurvey.

“Transamerica has established itself as a customer service leader

in the retirement services industry”, said Peter Starr, President of

ChathamPartners.“Thefactthatthecompany’scustomersatisfaction

has improved in almost every area we measured is a result of its

commitmenttocontinuouslyimproveclientrelationships.”


trAcINGAbSENtpOlIcyhOlDErS

Occasionally,customersdonotreceivetheirfullbenefits,moreoften

than not because they have forgotten to update their contact

information. AEGON is committed to tracing all beneficiaries and

ensuringtheyreceivetheirfullentitlements.AEGONcompaniesusea

number of techniques, ranging from the more straightforward

– consulting telephone directories and government registers – to

more advanced online searches and placing advertisements in

newspapersandotherpublications.

Overall,AEGONestimatesthat,initsthreeestablishedmarketsofthe

UnitedStates,theNetherlandsandtheUnitedKingdom,some17,000

eligiblebeneficiariesdidnotinitiallyclaimtheirentitlementsin2006,

a small percentage of the company’s total customer base ofmore

than40million.IntheUnitedKingdom,approximatelyathirdofthese

customersinitiallylistedasuncontactableweresuccessfullytraced.

Themarketplace AEGON’Smarkets;Managingcustomerrelations

IntheNetherlands,theproportionwashigher,at50percent.Inthe

UnitedStates,AEGONhastakenanumberofmeasurestohelptrace

customerswhodonotclaimtheirentitlements.

WhileAEGONdoesitsbesttocontactallcustomers,thereisinevitably

anumberwhocannotbetraced.IntheUnitedStates,theNetherlands

andtheUnitedKingdom,AEGONensuresbenefitsandentitlements

forthesecustomersremainavailableforas longaspossible. Inthe

UnitedStates,whichhasthehighestnumberofsuchcustomers,all

benefitsremaininpolicyholders’accountsandarenotaddedtothe

company’s income. In the Netherlands, customers never lose their

righttoclaim,nomatterhowmanyyearslapse.IntheUnitedKingdom,

meanwhile, benefits are transferred to anexternal fundonlywhen

absentpolicyholdersreachtheageof75.

Detectivework:AEGON’steamintheNetherlandsensuresthatasmuchmoneyaspossiblegoestoitsrightfulowner.


DEAlINGEffEctIvElywIthcuStOMErcOMplAINtS

AEGONbelievesthatdealingwithcomplaintsefficientlyandopenlyis

animportantpartofensuringoverallcustomersatisfaction.AllAEGON

countryunits havea formal procedure andmost havea dedicated

structureforhandlingcustomercomplaints.Giventhewidevarietyof

customersegmentsandproducts,however,AEGONdoesnotconsider

itfeasibleatthisstagetocentralizecustomerfeedbackforallAEGON

companies. Nevertheless, where possible, AEGON companies are

working toward a more uniform approach to handling customer

feedbackandcomplaints.

AEGONconductsregularsurveystoidentifyareaswhereitisnotfully

meeting customer requirements. These surveys play a vital role in

helpingAEGONimprovethequalityofitsproducts.Asfaraspossible,

AEGONcompaniesworktoconvertlegitimateandjustifiedfeedback

andcomplaintsintopositivechangeforalltheircustomers.

DetectiveworkInrecentmonths,AEGONTheNetherlandshasdoubleditseffortsto

tracemissingpolicyholders.Thankstothecompany’sinvestigations,

the number of policyholders listed as ‘missing’ has dropped from

8percenttojust4percent.IntheNetherlands,insurancecompanies

arenotrequiredtotrackdownpolicyholderswhodon’tcomeforward

tocollecttheirbenefits.ButAEGONTheNetherlandsismakingsure

as much money as possible goes to its rightful owner. Searches

are made at local government registries, with former employers

and among other family members. Advertisements appealing for

information are even placed in some national newspapers. AEGON

TheNetherlandsmaynotbeabletotraceeverycustomer,butitdoes

makeoneguarantee: nomatter howmanyyearsgoby, customers

neverlosetherighttotheirbenefits.

Detectivework:AEGONTheNetherlandshasdoubleditseffortstotrace

missingpolicyholders.

2� AEGON CORPORATE RESPONSIBILITY REPORT 2006

ENSurINGprODucttrANSpArENcy

AEGON is committed to providing clear, transparent and sound

financial products and services that are as easy to understand as

possible.Marketing,communicationsandproductinformationare,of

course, subject to government regulation. Naturally, all AEGON

Themarketplace

ENSURINGPRODUCTTRANSPARENCY

TreatingCustomersfairly

TheUKregulator,thefinancialServicesAuthority,isalwaysinterested

inwaysofbolsteringpublicconfidenceinthecountry’sfinancialsector.

Itslatestinitiativeis:TCf,or‘TreatingCustomersfairly’.ThenewTCf

principle aims to raise standards among companies in the United

Kingdomsellingfinancialproducts.Morespecifically,regulatorswant

TCftohelpconsumersbetterunderstandtherisks,benefitsandcosts

ofthefinancialproductstheybuy,sotheydon’tendupmakingthe

wrongdecisions.

AEGONUKisbackingtheinitiative.Ithasalreadybeguntodevelopits

own‘responsibilityframework’,whichwillgivemanagersthesupport

theyneedtoimplementTCfguidelines.

“Basically,TCfboilsdowntothreequestions,”saysStevenCameron,

Head of Business Regulation at AEGON UK. “Do I really, really,

understand this product or service I’moffering to people?Would I

buy itandrecommend it tomymates?And,most importantofall,

whatwouldIsaytomyMumifsheaskedmeforhelpaftersomeone

triedtosellittoher?”

companies are expected to comply with local rules. furthermore,

AEGON and AEGON companies subscribe to voluntary industry

standards.AEGON isconstantlyworking to improveandclarify the

documentationassociatedwiththefinancialproductsitsells.

StevenCameron,HeadofBusinessRegulationatAEGONUK.


“Wethinkdemandsforgreatertransparencyareamoveintherightdirection-andwe’rehappytosupportthem.”

PointingthewayIntheNetherlands,AEGONhasprintedanddistributedmorethana

millionspecialleaflets,providingcustomerswithsimple-to-understand

financial information about the company’s products. In Dutch, the

leafletsaredubbed ‘Wegwijzer’ – ‘Signpost’.With thehelpofa few

keyquestionsandanswers,theleafletsgivecustomersalltheyneed

toknowtomaketherightdecisionaboutwhichproductstobuy.Just

onepartofAEGON’sstrategytoimproveproducttransparency,the

‘Signpost’ leaflets now cover some 50 different financial products

–andallarereproducedonthecompany’swebsite.

BackinggreatertransparencyintheNetherlandsIn2006,theDutchInsurers’Associationsetupaspecialcommission

toinvestigatecomplaintsaboutunit-linkedfundsintheNetherlands.

Most of the complaints centered on the funds’ perceived lack of

transparency.Thecommission,headedbyformergovernmentminister

JobdeRuiter,acceptedmanyofthecomplaintsandrecommended

insurerstakestepsto improvethetransparencyoftheirunit-linked

products,particularlywithregardtocostsandfees.

AEGONfullybackedtheCommission’srecommendations.Infact,the

companyhadalready implementedmanyof them,evenbefore the

findingswerepublished.In2005and2006,AEGONTheNetherlands

reviseditsentireportfolioofunit-linkedproducts,reducingcharges

tocustomersretrospectivelyandinvestingthedifference.

AEGONbookedachargeofEUR100milliontomeettheextracostof

doingthis.Thecompanyhasalsotakenstepstoimproveitsunit-linked

products,whichwillresult inanestimatedEUR100millioninlower

profitsoverthecomingyears.AEGONisnowoncoursetoimplement

recommendationsforgreatertransparencyby2007,ayearaheadof

adeadlinesetbytheDutchInsurers’Association.

“Ofcourse,anyperceived lackof transparency isnotgood for the

reputation of the insurance industry,” says Jos Streppel, CfO and

member of AEGON’s Executive Board. “But, having said that, we

acted quickly. We did a lot even before these problems emerged.

Wehavecommunicatedwithallourcustomers.Wehavegiventhem

the guarantees they need. We think these demands for greater

transparencyareamoveintherightdirection-andwe’rehappyto

supportthem.”

Josephb.M.Streppel

CfOANDMEMBER

EXECUTIVEBOARD


Themarketplace Ensuringproducttransparency

MODIfyINGprODuctSwhErENEcESSAry

As life insurance and investment products often span decades,

opinionsaboutriskandreturnscanchangeaftertheproductshave

been sold. Therefore,AEGON regularly reviews products thatwere

developed and marketed in former years against any changes in

social or business trends. If necessary, product specifications are

thenmodified.Often,thesemodificationsapplytoproductsthathave

been in existence for many years. Since May 2005, for example,

AEGONTheNetherlandshasmadechangestosomeonemillionunit-

linkedlifeinsurancepoliciestomeetcurrentstandardsandimprove

financialreturnsforcustomers.

IMprOvINGfINANcIAllItErAcy

AEGON plays an active role in ensuring its customers have the

information and knowledge they need to make the right financial

choicesforthemselvesandtheirfamilies.Evenincountriesthathave

long-establishedandsophisticatedtraditionsofpersonalfinance,many

people can find it hard to select the appropriate mix of savings,

investmentand insuranceproductsthatbestfitstheirneeds.AEGON

believesthatfinancialserviceprovidersandadvisorshaveanobligation

toguidecustomerstowardtherightproducts.

Inallthemarketsinwhichitoperates,AEGONisworkingtoimprove

levelsoffinancialliteracy,especiallyasregulationsinthepensionand

insuranceindustrybecomemoreextensiveandmorecomplex.

IntheUnitedStates,theNetherlandsandtheUnitedKingdom,aswell

asinmarketselsewhere,AEGONactivelypromotesprogramsdesigned

toprovideinstructionaboutlife,health,disability,pensionandlong-

termcareinsurance.

IntheUnitedKingdom,AEGONUKisbackingtheNationalStrategy

forfinancialCapability,launchedbythefinancialServicesAuthority,

thecountry’smainregulator.Meanwhile,intheUnitedStates,AEGON

USAisamajorcontributortotheLifeandHealthInsurancefoundation

for Education (LIfE), a non-profit industry organization that every

yearhelpsinstructthousandsofpeopleabouttheimportanceoflife

insurance as part of sound family financial planning. Also in the

UnitedStates,Transamericaispromotinganewinitiativetoimprove

AEGON’ScOuNtryuNItS MODIfyINGprODuctSwhErENEcESSAry

AEGONuSA AEGONfinancialPartnerssetupaprogramtoreplaceunderperformingproductsoutofthesurrenderperiodandreplacethemwithproductsthatwouldallowbetterfeaturesforitscustomers.

AEGONDirectMarketingServicesrecalledandchangedmarketingdocumentswhenacustomerpointedoutthelanguageusedinthematerialcouldbeopentomisinterpretation.

AEGONDirectMarketingServicesalsointroducedanewbenefitproductfordiabetessufferersinresponsetocustomerdemand.

AEGONcANADA AEGONCanadaalteredsomeofitslegacyproductstoincludea‘split’provisionallowingjointcoveragestobedividedbetweentwobeneficiaries.Thechangesweremadeinclosecooperationwithactuariesandthecompany’sreinsurers.

AEGONuk AEGONUKwonrecognitionforitsuseofplainEnglish.

SeveralAEGONUKannuityproductswererenamed.Theirnewnamesaredesignedtohelpcustomersrecognizethepurposeoftheproductmoreeasily.

AEGONthENEthErlANDS In2005and2006,AEGONTheNetherlandsreviseditsentireportfolioofunit-linkedproducts.Chargestocustomerswerereducedretrospectivelyandthedifferencereinvested.AEGONTheNetherlands’revisionswereapprovedandsupportedbytheinstitutionsthatoverseetheinsurancesectorintheNetherlands.

AEGONhuNGAry AEGONHungaryextendedthedurationofoneofitsunit-linkedproductsfromthreetofiveyearstoprovidethepossibilityofbetterreturnsforitscustomers.

Inresponsetosignificantfeedbackfromcustomers,AEGONHungarymodifiedsomeofthetermsofitsCascoinsuranceproduct,resultinginariseinsalesandmoresatisfiedcustomers.

AEGONpOlAND AEGONPolandbecamethefirstinsurerinthecountrytodetailalltaxes,feesandchargesinitspolicydocuments.


individuals’ financial management while its Center for Retirement

Studies provides a valuable contribution to the continuing debate

surroundingpensionissues.

Onlyinaclimatewherepeopleareabletomakeinformeddecisions

about theirfinancial investmentscancompanies likeAEGONthrive

and remain profitable. Helping people arrive at decisions that will

secure theirfinancial futuresnotonlymakesgoodbusiness sense,

butfulfillsavitalsocialresponsibilityaswell.

All AEGON’s country units commit time and resources to helping

improveawarenessofpersonalfinanceissues.Examplesinclude:

Monumental Life, in the United States, has developed special

software designed to instruct consumers about insurance,

educationandretirementneeds.

In2007,TransamericaRetirementManagementwilllaunchanew

internet-based consumer education center that will cater to the

needsofmillionsofbabyboomersintheUnitedStatesnowcoming

upforretirement.

IntheNetherlands,AEGONhasput inplaceanextensivetraining

programforsalesmenandintermediariestohelpimprovetheadvice

theygivetocustomersaboutinsuranceandlong-termsavings.

ExtendingahelpinghandInJanuary2007,theUKgovernmentlaunchedanambitiousinitiativeto

provideimpartialfinancialadvicetoanyonewhoneedsit–anditturned

tooneofAEGON’sseniorexecutivestohelpspearheadthenewproject.

TheinitiativeispartofUKgovernmenteffortstostrengthenfinancial

educationinthecountry.Inrecentyears,theUnitedKingdomhasseen

asteepriseinoverallhouseholddebt.Expertsarenowconcernedthat

manypeopleintheUnitedKingdomendupmakingbadchoicessimply

becausetheydon’thavetheinformationtheyneed–thereasonAEGON

has been striving for many years to raise awareness of personal

financeissues.

Inthislatestinitiative,theUKgovernmentaskedOttoThoresen,CEOof

AEGONUK,toheadupataskforcetolookintoprovidingquick,easy-to-

understandandaffordablefinancialadvice,especiallytothosewiththe

lowestincomes.Thenewtaskforcewillreporttogovernmentministers

onapossibleactionplanbytheendofthisyear.“for lotsofpeople,

personalfinanceisanissuethattheyfindconfusingandasaresult

theytrytoavoidthinkingabout italtogether,puttingoff important

decisionsormakingthewrongchoices,”saysMr.Thoresen.

“Muchoftheworkwewillbedoingwillaimtocatertotheneedsof

verylowincomeindividualsandfamilies–thosewhomightotherwise

nothaveaccesstosoundfinancialadvice.”OttoThoresen,CEOAEGONUK.

2� AEGON CORPORATE RESPONSIBILITY REPORT 2006

Themarketplace

INVESTINGRESPONSIBLY

INvEStINGrESpONSIbly

WithatotalEUR363billioninassetsundermanagement,AEGONis

oneoftheworld’sleadinginstitutionalinvestors.AEGONplacesgreat

importance on the responsibilities it has as an investor. Above all,

AEGONrecognizesthatpoorsocialandenvironmentalpracticescan

harm a company’s financial performance and the value of any

investmentinthatcompany.

In both the United Kingdom and the Netherlands, AEGON offers

SociallyResponsibleInvestment(SRI)funds,whichtakeintoaccount

a range of environmental, social and geographical factors before

making investments. AEGONUSAoffers similar SRI funds that are

managed by third parties. Typically, these funds invest only in

companies thathaveethically andenvironmentally soundbusiness

practices.

In 2006, SRI funds represented EUR 857 million, or 0.32 percent

ofAEGON’s total assets undermanagement (excluding off balance

sheet items), up from0.21 percent in 2005 1. The increase reflects

growing demand among many international investors for socially,

environmentallyandethicallysound investments.Thefiguresshow

thatSRIfunds,asaproportionofAEGON’sassetsundermanagement,

grewby78percentin2006.

IntheUnitedKingdom,SRIfundsaccountedfor0.96percentofall

assetsundermanagementattheendof2006,upfrom0.65percent

ayearpreviously.Overall,theamountsinvestedinUKSRIfundsrose

substantiallytooverGBP472million(EUR703million),upmorethan

61 percent from just underGBP293million (EUR429million) the

yearbefore.IntheNetherlands,meanwhile,SRIassetsincreasedto

0.31percentoftotalmanagedassets,upfrom0.28percent,whilethe

amount invested in SRI funds rose to EUR 154 million, up from

EUR140millionin2005.

AEGON’stwoethicalfundsintheUnitedKingdom–theEthicalEquity

fund and the Ethical Corporate Bond fund – specifically exclude

investmentsincompanieswithlinkstoarmsmanufacturing,nuclear

power,tobacco,gamblingandalcohol.Thefundsalsorefusetoinvest

in companies that have made substantial political donations, have

beenfinedforpollutionviolationsoroperateincountrieswithpoor

humanrights records. InMarch2007,AEGONUK launched itsnew

EthicalCautiousManagedfundinresponsetodemandfrominvestors

forlowerriskmanagedfundsinthisarea,increasingthenumberof

SRIfundsitofferstothree.

Similarly,intheNetherlands,theAEGONDuurzaamAandelenfonds–

the AEGON Sustainable Shares fund – does not invest in alcohol,

tobacco,armaments,firearmsorgambling.

1AEGONhasrestatedits2005figureforSRIfundsto0.21percentfrom0.18percenttoincludecertainUKassetsomittedfromtheoriginalcalculation.

TakinganethicalstanceIn2006,oneofAEGON’sbondmanagers,PhilipMilburn,wasnamed

InvestmentWeek’s‘UKCorporateBondManageroftheYear’forhis

managementofthecompany’sEthicalBondfund.

for the prize, Mr. Milburn was considered along with other bond

managersoverseeingboth‘ethical’and‘non-ethical’ investments. It

wasMr.Milburn’s second award in less than a year. Earlier, he had

wontheLipperCitywireCorporateBondfundManageroftheYear

forhiswork.

AEGON does not seek to place a pre-determined proportion of its

assetsinSRIfunds.WithinAEGONUK,oneofthecompany’slargest

country units, most assets are managed on behalf of individual

policyholders.Thesame, toa lesserdegree,applies toAEGONThe

Netherlands.

AEGON’sstrategyconsistsinattemptingtobalanceconsiderationfor

socialandenvironmentalfactorsandtheneedtomaximizereturns

fromthecompany’sinvestments.

As part of these investments,AEGONowns shares in a number of

othercompanies.Whendecidinghowtoexerciseitsvotingrightsin


these companies and, occasionally as part of other investments,

AEGON acts in the long-term interests of its policyholders and its

shareholders.AEGONisalsomindful,however,oftheinterestsofits

fellowinvestors.

AEGON’scountryunitsintheUnitedStatesandtheUnitedKingdom

alreadyhavedetailedpolicies inplacegoverning theuseof voting

rights.AEGONTheNetherlands,meanwhile,haspublisheditspolicies

on its Dutch-language website (www.aegon.nl). A report detailing

AEGONTheNetherlands’ record as an institutional investor is also

availableonthesamewebsite.Thisrecordisupdatedatleastevery

quarter.

AEGONiscurrentlydevelopinggroup-wideprinciplesgoverningthe

useofvotingrightsthatwillapplytoallsharesthecompanyowns,

regardless ofwhere they are held. These principleswill operate in

conjunctionwithexistingcountryunitpolicies.

BeingmoreopenaboutclimatechangeAs an investor, AEGON knows that climate change could have a

significantimpactonmanyofthecompaniesinwhichitinvests.That’s

whyAEGON has decided to sign up to the fifth CarbonDisclosure

Project(CDP5).CDP5encouragescompaniesaroundtheworldtobe

moreopenabouttheirgreenhousegasemissions.

Launched inDecember2000, thisprojectbrings together someof

theworld’sleadinginstitutionalinvestors,concernedbythebusiness

implicationsofclimatechange.TheCDPhasthe largestregistryof

corporategreenhousegasemissions in theworld.More than 1,000

large corporations currently report emissions data via the CDP’s

website(www.cdproject.net).1

1Source:theCarbonDisclosureProject.


Themarketplace

AEGON’SBRANDS

AEGON’SbrANDS

Brand awareness is very important to AEGON. AEGON sells its

products under a range of different brand names. This helps the

company cater to the broadest possible range of customer

requirements.AEGON’s leadingbrands includeTransamerica in the

UnitedStates,TKPPensioenandUnirobeMeeùsintheNetherlands

andAEGONScottishEquitableintheUnitedKingdom,aswellasthe

AEGONbranditself.

Giventheir importancetothebusiness,AEGONregularlymeasures

theperformanceofitsbrands.Thecompanytracksbrandawareness

andbrandpreferenceformorethan90percentofitsbrands.Over90

percentofAEGON’sbrandsarealsoregularlybenchmarkedagainst

theirpeers.

AEGONUKandAEGONDirectMarketingServicesAsiarecentlyadded

theAEGONname to its individual and corporate brands. By giving

greaterprominencetotheAEGONbrandname,thesetwocompanies

areaimingtoleveragethefinancialstrengthandglobalcredentialsof

the company as a whole in order to grow their share of local

markets.

Inearly2007,AEGONrolledoutnewlogoandwebsiteguidelinesfor

allitsAEGON-brandedentities.Thesenewguidelinesaredesignedto

ensure greater consistency and emphasize the link between the

company’s localbusinessesandtheAEGONbrand. In thecourseof

2007,eachlocalbrandwillbeformallyendorsedbyAEGONaspartof

aprocessdesignedtoenhanceconsistencyacrossallAEGON-branded


TrustingthebrandAEGON-CNOOC - AEGON’s joint venturewith the Chinese National

OffshoreOilCorporation(CNOOC)-hasbeenselectedasoneofthe

top tenmost trusted insurancebrands inChina. The top-ten list is

compiledeveryyearbyagroupofexpertsfromChinaandelsewhere.

Theexpertsweighanumberofdifferentfactorswhencomingupwith

theirlist,includingcompanyintegrity,customerserviceandefficiency

inprocessingclaims.

Key to the success was a case in Nanjing where AEGON-CNOOC

trackeddownthegrandparentsofayoung12year-oldboyandhelped

themprocessanaccidentinsuranceclaim.Tragically,theboy’sown

parents had died after a gas leak at their home just a fewweeks

before.Nobody in the familyknewtheparentshadeven takenout

accidentcoveruntilAEGON-CNOOCwasabletoinformthem.


Themarketplace

WORKINGWITHDISTRIBUTIONPARTNERS;THEBENEfITSOfTHEINTERNET

wOrkINGwIthDIStrIbutIONpArtNErS

AEGONusesawide rangeof commercial channels todistribute its

products,includingagents,brokers,banks,directmarketing,aswell

aspartnershipswithothercompanies.AEGONhelpsitsdistributors

byprovidinglow-costadministrationandbyworkingwiththemtofind

waysofimprovingtheirbusinesses.

AEGONisalsostrivingtomakeitspaymentstructurefordistributors

astransparentaspossible.Transparencyisparticularlyimportantin

the insurance business because of the complex nature of many

transactions.

thEbENEfItSOfthEINtErNEtProvidingonlinefinancialserviceshelpsreducetransactioncostsand

improvesefficiencybycuttingdownontheneedfortravelandprinted

materials. AEGON estimates that approximately a third of its

customersusedthe internettoaccessthecompany’sproductsand

services in 2006, up from 30 percent a year ago 1, suggesting no

slowdown in the trend toward greater use of online financial

services.

1Basedondatacovering40percentofthecompany.

NearlyallAEGONcompaniesprovidepolicy informationonline.The

vast majority also provides facilities for modifying personal

informationandcontributionamountsovertheinternet.Inaddition,

almostallhaveonlinecalculationtoolsandallowcustomerstomake

applicationsandaccessquotesonline.

AEGONstrivestoensureitsonlineplatformsremainsafeandsecure

atalltimes–aprerequisiteforanyonlinefinancialservicesprovider.

MostAEGONcompaniesoperate ITfrauddetectionsystemsandall

companies use feedback loops to compliance officers in case of

securitybreaches.

Technologyprovidesausefultool,butitisnotenough.Asageneral

rule, AEGON companies operate a ‘know-your-customer’ policy.

Gettingtoknowcustomers,theirpersonalrequirementsandpractices,

givesAEGONabetterchanceofdetectingerrorsandanomaliesmore

quickly,avoidingmissellingandcounteringtheriskoffraud.


Themarketplace

AEGON’SSUPPLIERS;GOVERMENTSANDREGULATORS

AEGON’SSupplIErS

In2006,AEGONpaidouta totalofEUR 1.58billion tosuppliers in

returnforawiderangeofgoodsandservices,upfromEUR1.25billion

the year before. This increase reflects the growth in AEGON’s

businesses during the year as well as a switch in some staff and

recruitmentcostsfromcompanypayrolltooutsidesuppliers.

As amatter of local practice, amajority ofAEGON’s country units

already takes environmental and health and safety factors into

accountaspartoftheselectionprocessforsuppliers.

In 2007, AEGON will establish group-wide corporate responsibility

standardsforsuppliersinitsmajorprocurementcenters,animportant

stepforthecompanyinitseffortstoensurehighethicalstandards

throughoutitssupplychains.

GOvErNMENtSANDrEGulAtOrS

Throughitsdifferentcountryunits,AEGONisanactiveandinterested

participant in discussionswith governments and regulators on the

futureofpensionfunding.Thisisbecomingincreasinglyimportantas,

facedwithagingpopulationsandshrinkingworkforces,governments

aroundtheworldconsiderhowbesttoregulatepensionsystemsfor

the long term.AEGONseeksalways tomakeaserious, responsible

andwell-balancedcontributiontothisdebate.

AEGONhaspublicpolicy representatives inboth theUnitedStates

andtheUnitedKingdom.In2006,thecompanyalsoopenedapublic

policyofficeinBrussels,areflectionofthegrowingimportanceofthe

role theEuropeanUnionCommission is playing in helping reshape

Europe’spensionindustry.InBrusselsandelsewhere,AEGONseeksto

workalongsidepolicymakersandensuretheyhavetheopportunityto

make use of the company’s considerable knowledge and expertise

whenframinglegislation.

In2006,AEGONpaida totalofEUR442million in tax.Thiswasa

decreasefromEUR680millionthepreviousyear–largelytheresult

of significantly lower tax payments in the United States. AEGON’s

effective tax rate decreased to 18 percent in 2006, down from 24

procent in 2005, mainly due to higher tax-exempt gains and a

reductioninthecorporatetaxrateintheNetherlands.


PROMOTINGRESPECTfORPEOPLEANDTHEIRWORKENVIRONMENT

4

Chapterfour

THEWORKPLACE


Theworkplace

AEGON’SEMPLOYEES

AEGON’SEMplOyEES

AEGON’smostvaluableassetisthepeopleitemploys.Attheendof

2006,AEGONhadatotalof28,726employees,upfrom27,159twelve

monthspreviously.ThisincreasewasduemainlytoAEGON’saddition

of Unirobe in theNetherlands and an expansion of the company’s

businessesinAsiaandCentralandEasternEurope.

ll AEGON companies have policies that ensure non-discrimination

withintheirworkforces.Thesepoliciesareactivelyenforced.Atthe

end of 2006, 51.2 percent of AEGON’sworkforcewere female and

48.8 percent male. Of the most senior managers at AEGON,

85percentweremaleand15percentfemale.AEGONdoesnothavea

specificpolicytopromoteahigherpercentageofwomenthanmen,

but it does encourage women to apply for roles in senior

management.

ManyAEGONcompaniesallowtheiremployeestoworkpart-timeor,

where appropriate, from home. In 2006, 9.2 percent of all AEGON

employees worked part-time, up from 8.4 percent in 2005. The

remaining90.8percentworkedfull-time,downfrom91.6percentthe

previousyear.

In2006,employee turnover reached 14.0percent,up slightly from

13.8 percent in 2005 1. Of the total, 7.3 percent left the company

voluntarilytopursueopportunitieselsewhere,upfrom7.0percentin

2005. Employmentwas terminated for another 5.2 percent, either

becauseofinternalreorganizationsorindividualunderperformance.

The remaining 1.5 percent was due to ‘natural attrition’, mostly

retirement.

Overall, AEGON is satisfied with the current level of employee

turnover. There was, however, a rise in the number of voluntary

departures in 2006 from its UK operations. This was due to the

exceptionallyfavorablejobsmarketinEdinburgh,AEGONUK’smain

location. Management in the United Kingdom has introduced

measures designed to limit future departures, particularly in the

company’scustomerservicesdepartment.

1AEGONhas restated its staff turnoverfigure for2005 to reflect a change in themethodofcalculationintheUnitedKingdom,wherethecompanyrecentlyintroducedanewhumanresourcesdatabasesystem.AEGONemployeeturnoverin2005wasoriginallyestimatedat11.8percent.

ADvANcINGcArEErDEvElOpMENt

TrainingandperformanceevaluationsarehighprioritiesforAEGON.

In2006,EUR597peremployeewasspentoninternalandexternal

training, up fromEUR555 in 2005. Company employees spent an

average of 4.0 days on training in 2006, in line with 4.1 days the

previousyear.

AEGONencouragesemployeesatalllevelstotakepartinformalskills

and development programs. Some 95 percent of all employees

participateintheseprograms.Trainingsessionscovertopicssuchas

customer service, product knowledge, businesswriting, compliance

and sales. In addition, most of AEGON’s country units grant their

employees time and, occasionally, financial assistance to pursue

individualprojects,forexample,languagetrainingorhighereducation

relatedtotheirworkatAEGON.

“AEGONstressestheimportanceofrespectingtheenvironment,conservingenergyandeliminatingwaste.”

Americas

United Kingdom

The Netherlands

Asia

Central and Eastern Europe

Other countries/holding

BREAKDOWN OF THE NUMBER OF EMPLOYEES 2006

14,236

6,404

4,639

1,858

1,195

394


ApassporttolearningIn2006,TransamericaInsurance&InvestmentGroup(TIIG)launched

anewemployeeeducationprogram.Dubbed‘PassporttoLearning’,

theprogramoffersTIIG’semployeesinLosAngelestheopportunity

tofindoutmoreaboutthecompany’soperations.The2006agenda

included instruction on TIIG’s strategy and key initiatives, on the

company’sproducts,andasessiononinternationalbusiness.Nearly

three-quartersofemployeesattendedthisvoluntaryprogram.

Asaninternationalcompany,AEGONisalsoabletoofferitsemployees

a passport of a different kind. Every year, a number of employees

take up the opportunity to relocate to other countries, promoting

thetransferofexpertisebetweenAEGONcountryunitsandhelping

enhanceemployeeandmanagementdevelopment.


Theworkplace

PAYINGAfAIRWAGE;EMPLOYEESATISfACTION

pAyINGAfAIrwAGE

In order to attract capable and talented employees andmanagers,

AEGON offers competitive compensation packages. AEGON’s total

employmentcostsin2006,foritsentireworkforceof28,726,cameto

EUR1.82billion.Thatwasanincreaseof9.6percentcomparedwith

EUR1.66billionin2005foratotalworkforceof27,159.

Thetablebelowgivesabreakdownofthesecostsbysalaryandother

expensesforeachofAEGON’smainregions.

EMplOyMENtcOStS2006AmountsinEURmillion Salaries

Other employeeexpenses tOtAl

Americas 720 200 920

TheNetherlands 223 232 455

UnitedKingdom 193 138 331

Others 46 23 69

Holding&Otheractivities 24 22 46

AEGON 1,206 615 1,821

Per employee, AEGON’s 2006 employment costs amounted to

EUR63,382,anincreaseof3.6percentfromEUR61,195in2005.

Employees’salariesmaycontainafixedandavariablecomponent.

Variable compensation may be based on individual performance,

overall countryunit performance, or a combinationof the two.On

average across the entire AEGON workforce, excluding senior and

middle management, 34 percent of total compensation is based

purelyonindividualperformance.

Typically, the proportion of pay linked to individual performance

variesaccordingtotheseniorityoftheemployee.Payformanysenior

managers, including members of the Executive and Management

Boards, is linked to theperformanceof the companyaswell as to

individual performance, ensuring a strong connection between

executiveremunerationandAEGON’soverallfinancialhealth.AEGON

regularlyconductsbenchmarkingexercises,usingoutsideconsultants,

toguaranteepayforitsseniormanagementremainscompetitive.

Naturally, pension arrangements vary from country to country.

AEGONTheNetherlandsoperatesadefinedbenefitplan,whilemost

of AEGON’s smaller units operate defined contribution plans.

AEGON USA and AEGON UK offer both. Substantially, all AEGON

employees have access to a pension plan. Details of AEGON’s

pension plans and the funding status of the company’s defined

benefitschemescanbefoundinthe2006AnnualReport,availableat

www.aegonannualreport.com.

AEGON companies provide a range of other benefits, including

disabilityinsurance(availableto100percentofallemployees),health

andaccidentinsurance(availableto96percent1)andseparatehealth

coverthatincludesemployees’families.Some89percentofAEGON

employeeshaveaccesstochildcarefacilities,whileflexibleworking

andmaternity leave programs are available to almost all company

staffmembers.

1figuresforhealthandaccidentinsurancerefertoallAEGONcountryunitswiththeexceptionofthoseintheCzechRepublic,Hungary,PolandandSlovakia.

EMplOyEESAtISfActION

AEGONbelievesthereisadirectcorrelationbetweenthequalityof

theproductsandservicesitisabletoofferandthesatisfactionofits

employees.AEGONhasintroducedanumberofmeasuresdesignedto

improveemployeesatisfaction.Theseincludeemployeerecognition

programs, introduction days and initiatives to enhance internal

communication.Employeesarealsoencouragedtobecomeinvolved

inAEGON’scommunityactivities.

Overthepasttwelvemonths,AEGONhasmadeconsiderableefforts

toaddressvariousemployeeconcernsand,particularly, to improve

internal communication, in order to improve levels of employee

satisfaction.

Onaverage,AEGONemployeesremainwiththecompanyforeight-

and-halfyears.


Theworkplace

HEALTHANDSAfETY

hEAlthANDSAfEty

AllAEGONcompanieshaveprograms inplace to limitabsenteeism

and reduce the number of work-related injuries. In 2006, AEGON

companies’absenteerate(forillnessandotherreasons,butexcluding

maternity leave)stoodat3.1percent,upfrom2.6percent in2005,

duemainlytohigherratesofabsenteeismintheUnitedKingdomand

an expansion in theworkforce in theNetherlands. Reportedwork-

relatedinjuries,meanwhile,wereunchangedat304.

AbSENtEErAtES 2006 200� Change

AEGONGroup 3.1% 2.6% + 0.5

AEGONUSA 0.8% 1.0% - 0.2

AEGONCanada 2.9% 1.9% + 1.0

AEGONUK 6.4% 5.4% + 1.0

AEGONTheNetherlands 5.5% 5.3% + 0.2

AEGONTaiwan 0.9% 1.0% - 0.1

AEGONCEE(in2005onlyHungary) 4.6% 5.3% - 0.7

AEGONSpain 3.5% n.a. 1 n.a. 1

1n.a.–notavailable.

AEGON’ShEAlthANDSAfEtyprOGrAMSINcluDE:

InCanada,AEGONorganizestwice-a-year‘Wellnessfairs’,aswell

asall-year-roundstressmanagementcourses.

IntheNetherlands,thereareregularworkshopsformanagerson

howtodealwithsicknessintheworkplace.Inaddition,AEGONhas

medical staff based permanently at its main offices in the

Netherlands.

IntheUnitedKingdom,AEGONhason-siteoccupationalnursesto

helpcareforstaff.Lastyear,thecompanywona‘ScottishHealthat

Work’silverawardforitsefforts.

In the United States, the Employee Assistance Program (EAP)

providesarangeofservicestostaffmembersandtheir families,

includinginstructiononhealthylifestyles,self-helpresourcesand

confidentialcounseling.


Theworkplace

PROTECTINGTHEENVIRONMENT

prOtEctINGthEENvIrONMENt

AEGON has a corporate environmental policy (available at www.

aegon.com/corporateresponsibility/policies), which stresses the

importance of respecting the environment, conserving energy and

eliminatingwaste. TwoofAEGON’s countryunits –AEGONUKand

AEGONTheNetherlands–havebeencertifiedISO14001compliant1.

Inrecentyears,AEGONTheNetherlandshasreduceditsenergyuse

as part of broader efforts by the Netherlands to comply with the

KyototargetsforCO2emissionreductions.Thecompanywasranked

asoneofthebestperformersinreducingitsconsumptionofenergy.

In2007,aspartofitseffortstohelpconservevitalresources,AEGON

willexaminethepossibilityofanew,globallycoordinatedactionplan,

designedtoreducethecompany’soverallconsumptionofenergy.

Eachyear,AEGONmeasuresitsconsumptionofenergyandessential

raw materials as well as its production of waste and emissions of

carbondioxide.Thefigurescontainedinthissection‘Protectingthe

environment’ refer to the entire AEGON workforce but for both

2006and2005havebeencalculatedfromdatacovering lessthan

100percentofAEGONemployees.

AEGON’ScONSuMptIONOfpApEr

AEGON’ssinglemost importantrawmaterial ispaper. In2006, the

companyused5,201metrictonsofpaper,up5.8percentfrom4,914

tons in2005 2. This increasewasdue toanexpansion inAEGON’s

businesses.Paperconsumptionperemployee remainedunchanged

at 181kilograms.Useof recycledpaper,meanwhile, rosesharply to

10 percent in 2006, up from 1.5 percent the previous year, thanks

primarily to AEGON The Netherlands’ switching to 100 percent

recycledpaper.

AEGONhas taken a numberof steps to reduce its consumptionof

paperandtomakethatconsumptionmoreenvironmentallyfriendly.

In 2006, AEGON USA switched to chlorine-free paper for all its

customerstatements.AEGONTheNetherlands,meanwhile,startedto

useonlypapercertifiedbytheDutchforestryStewardshipCouncil,

the body responsible for managing the country’s woodlands and

forests.AEGONUKalso uses only chlorine-free paper.OfAEGON’s

overallpaperuse,morethan58percentwaschlorine-free.

AEGON’SuSEOfENErGy

AEGON’stwomainsourcesofenergyaregasandelectricity.In2006,

electricityuseroseto143GWh,upfrom129GWhthepreviousyear,an

increase of 10.9 percent. Gas consumption was also higher, at

4.3millioncubicmeters,up34.4percent from3.2million in2005.

AEGON emitted some 77,225 metric tons of CO2 in 2006, up

12.0percentfrom68,939tonsin20053.Peremployee,thisequates

to2.69tonsayear,upfrom2.54tons.

Theriseinenergyconsumptioncanbeattributedtothreefactors:an

increaseinthenumberofemployees,theacquisitionofamajornew

320,000squarefootfacilityatAEGONUSA’sCedarRapids,Iowa,site,

andtheexceptionallyhotsummer inEuropeandtheUnitedStates

in2006.

IntheUnitedKingdom,AEGONhasincreasedtheamountof‘green’

electricityitbuysunderanewsupplyagreementwithpowerprovider

npower,partoftheRWEGroup.forthenextfiveyears,20percentof

AEGON UK’s power will be ‘green’, double the amount under the

previousfour-yeardeal.

In2006,AEGONstartedtocollectdataonbusinesstravelwithinits

companies.Thesedataarenotcomplete,butresultsshowemployees

fromsixAEGONcountryunits–AEGONUSA,AEGONTheNetherlands,

AEGON UK, AEGON Canada, AEGON Hungary and AEGON Spain –

traveled a total of 104.3million kilometers on business during the

year. AEGON USA accounted for almost 74 percent of this travel,

unsurprisinggiventhesizeofthecountryandtheimportanceofthe

UnitedStatestoAEGONasawhole.AEGONiscommittedtoapproving

onlyessentialbusinesstravel.

1 ISO 14001, compiled and published by the International Organization forStandardization(ISO),setsoutminimumstandardsandqualityrequirements forenvironmentalmanagementsystems.Ithelpscompaniesandotherorganizationsmeasuretheirimpactontheenvironmentanddemonstratesoundenvironmentalpractice.

2 InAEGON’s2005CorporateResponsibilityReport,thefigureforthatyear’spaperconsumptionwasmisstatedas3,290tons.Thiswastheresultofatypographicalerror.

3 AccordingtoguidelineslaiddownbytheUnitedNations’EnvironmentalProgram(UNEP).


LittlethingscangoalongwayExperience atAEGONUSA’s headquarters at CedarRapids in Iowa

shows that sometimes even small things can make a difference.

Energy consumption at Cedar Rapids, where around 3,000 people

work, is being reducedby simply replacinghundredsof lightbulbs

withmoreefficientfluorescentlighting.Inaddition,motion-activated

switches,which shutoff lightsautomaticallywhen the room isnot

inuse,havebeenfittedinsomeofthesite’sofficesandconference

rooms.Anditdoesn’tendthere.Wateruseisalsobeingcurbed-a

little at least - by pioneering a newwaterless urinal in one of the

men’sbathrooms.

IntheUnitedKingdom,thereisasimilarattentiontodetail.Anewfive-

yearcleaningcontract,signedinApril2006,willbe‘zero-chemical’.

Moreover, in offices, wastepaper baskets have been removed and

replacedbycentral recyclingpoints forusedpaper, cupsandcans,

while250,000squarefeetofcarpettilesaretoberecycledaspartof

are-carpetingofAEGONUK’sheadquartersinEdinburgh.

Anewdealwithprintingandcopyingcompany IKONwillalsohave

benefits.Inreturnforevery100,000printsmadeonthenewmachines

itisinstallingatAEGONUKoffices,IKONhaspromisedtheywillplant

atreetohelpprotecttheenvironment.


AEGON’SuSEOfwAtEr

AEGON’stotalwaterusein2006amountedto428,415cubicmeters,

up 13.5percent from377,527cubicmeters in2005.Peremployee,

waterconsumptionroseto65litersaday,upfrom60litersin2005,

butwellbelow70litersin2004.Theriseinoverallconsumptionwas

duetoanincreaseinAEGON’stotalworkforce,theadditionofthenew

facility at Cedar Rapids, Iowa, in the United States, and the hot

summerof2006.

Theworkplace Protectingtheenvironment

AEGON’SMANAGEMENtOfwAStE

Atpresent,notallAEGONbusinessesmeasurewasteproductionand

recycling.Thosethatdorepresentsome45percentofthecompany’s

workforce. Based on these figures, it is estimated that the entire

AEGONcompanyproducedatotalof4,035metrictonsofwaste in

2006,down12.3percentfrom4,601tonsin2005.Ofthis,59percent

wasrecycled,unchangedfromthepreviousyear.


SUPPORTINGLOCALCOMMUNITIESTHROUGHLONG-TERMCOMMITMENTS

5

Chapterfive

THEWIDERCOMMUNITY


Thewidercommunity

AEGON’SLONG-TERMCOMMITMENTTOLOCALCOMMUNITIES

“AEGONcompaniesaroundtheworldhavebeeninvolvedinthefightagainstcancerformanyyears.”

AEGON’SlONG-tErMcOMMItMENttOlOcAlcOMMuNItIES

AEGONhasalong-termcommitmenttothecommunitiesinwhichit

operates. In all these communities, AEGON creates jobs and

contributestosustainableeconomicgrowth,helpingprovideschooling

fordisadvantagedyoungstersandfundingresearchintothecauses

andtreatmentofseriousillnessessuchascancerandheartdisease.

In2006,TransamericaOccidentalLife InsuranceCompany(TOLIC),

partofAEGONUSA,celebrateditscentenary.fromitsbeginningsas

a small California life insurer, through the traumas of the 1918 ‘flu

epidemicwhenexecutiveshadtodipintotheirownpocketstomeet

obligations, down to the present day. Over the past one hundred

years,TOLIChasremainedcommittedtoallthelocalcommunitiesin

whichitoperates.Today,withmorethan1,700employees,TOLICisa

majorplayerintheUSandPacificRimlifeinsurancemarkets.

Overthepastyear,AEGONhasexpandeditsworkforcebymorethan

1,500people.MuchofthisincreaseisduetotheacquisitionsAEGON

madein2006,mostnotablyUnirobeintheNetherlands,aswellas

the expansion of its operations in Asia and Central and Eastern

Europe.Creatingjobsisparticularlyimportantinemergingcountries.

InHungary,AEGONaddedseveralhundredjobsin2006,particularly

by opening new call centers in a number of locations across the

countryandthroughtheexpansionofitsmortgagebusiness.


Thewidercommunity

GIVINGTOGOODCAUSES

Lythamhavebeencollectinggifts for thesechildrenaspartof the

‘TheGivingTree’ project. InDecember 2006,more than500 such

giftsweredistributed,helpingbrightenChristmasforjustsomeofthe

UnitedKingdom’schildreninneed.

GIvINGtOGOODcAuSES

AEGONcompaniesaroundtheworldhavebeeninvolvedinthefight

againstcancerformanyyears.Theysupportaninternationalcancer

researchprogramthatbringstogetherleadingscientistsandresearch

fellows at the Johns Hopkins Oncology Center at the School of

MedicineinBaltimoreintheUnitedStates,theVrijeUniversiteit(VU)

MedicalCenterinAmsterdamandUtrecht’sUniversityMedicalCenter,

both in the Netherlands. In 2006, a total of six researchers were

workingontheprogram,threeintheUnitedStatesandthreeinthe

Netherlands.Resultsfromthisprogramhavebeenpresentedatthe

prominentAmericanAssociationforCancerResearchandatother,

renowned cancer research conferences. In addition, AEGON also

supports a separate research program into prostate cancer at the

ErasmusHospitalintheDutchcityofRotterdamandcontributesto

theAlzheimerCenterattheVUinAmsterdam.Inrecentyears,AEGON

has extended its support for cancer research into Asia by helping

fundafurtherprograminChinabetweenJohnsHopkinsandNanjing

University.

TheGivingTreeEveryChristmas,hundredsofchildrenspendtheend-of-yearholidays

inWomen’srefugesacrosstheUnitedKingdom.Inmanycases,their

mothers are sheltering at the refuges to escape abuse at home.

forthepastfiveyears,staffatAEGONUKofficesinEdinburghand

SurvivingthestormWhenHurricaneRitachangedthelandscapeandlivesofresidentsof

theGulfCoastoftheUnitedStatesforever,oneofthecommunities

hardesthitwasCameronParish inLouisiana.TheSeptember2005

stormleftonlytwoofthearea’ssixschoolsstanding.

AEGONsteppedintohelpout.Overthefollowingfewweeks,some

USD700,000wasraised,morethanathirdofitbyAEGONemployees

andagents,tohelprebuildthetown’sschools.

Ayearlater,AEGONvolunteersreturnedtoCameronParishtohelp

withlast-minuteeffortstogetthenewschoolsreadyforthestartof

thenewterm.OnaswelteringdayinAugust,thevolunteershelped

teachers, parents, students and contractors empty truckloads of

furniture,assembledesksandarrangethenewclassrooms.

CameronParish:AEGONemployeesstepintohelpoutafterHurricaneRita.

TheBreastCancerResearchTeamattheJohnsHopkinsKimmelCancerCenter.


Breakingthecyclefor the past ten years, AEGON in the United States has been

supporting the Living Classrooms foundation (LCf). A non-profit

organizationbasedinBaltimore,Maryland,andWashingtonDC,LCf

provideseducationalprogramsformorethan30,000disadvantaged

childrenandyoungpeople.Theprogramsteachnewskillsandhelp

developasenseofself-esteemamongchildrenwhooftenliveincity

neighborhoodsplaguedbypoverty,crimeandviolence.

Andtheneedisgreat.AlthoughMarylandisthethirdwealthieststate

inthecountry,Baltimorehasthesixthhighestpovertyrateamong

citiesofasimilarsizeandthegapbetweenrichandpoorhasbeen

wideningsteadily.IntheDistrictofColumbia,meanwhile,morethan

a third of young people under the age of eighteen currently live in

poverty 1.Everyyear,LCfhelps thousandsofcityyoungstersbreak

thedepressingcycleofpovertyandviolence.

1 Sources:USCensusBureau,2004,andTheAnnieE.Caseyfoundation,Kids Count,2006.

PledgingtohelpAEGONTransamericafoundationhaspledgedmorethanUSD800,000

to support the Kennedy Krieger foundation, which helps children

withdisordersofthebrainandspinalcordacrosstheUnitedStates.

KennedyKrieger isthehomeofthe InternationalCenterforSpinal

Cord Injury, a facility dedicated to the research and treatment of

spinalcordinjuriesandparalysisinchildren.Italsocarriesoutwork

on autism, a developmental disorder that affects as many as one

in 150 children in the country.With its support, AEGON is helping

childrenwiththesedisordersachievetheirpotentialandparticipate

asfaraspossibleinnormalfamily,schoolandcommunitylife.

The classrooms in Cameron Parish are only temporary until new,

morepermanentstructurescanbebuilt.Butthereisatleastoneitem

still standing from before the storm: the school’s mascot, a fierce-

lookingtarponfish,survivedRitaandnowtakesprideofplaceatthe

newbuilding.

AEGON’scashdonationstoavarietyofcharitablecausesamounted

toEUR9.0million in2006 1,upfromEUR8.8million in2005.The

donationsrepresent0.32percentofAEGON’snetincome,unchanged

from2005.

Everyyear,AEGONemployeesdonatetheirtimeandmoneytogood

causesaroundtheworld.Thesecausesrangefromtacklingserious

illnesses,tohelpingdisadvantagedchildrenandtheelderly.Hereare

afewoftheprojectsAEGONhassupportedduringthispastyear:

In Canada, AEGON has signed a partnership with the country’s

HeartandStrokefoundation, tohelpfundresearch intotreating

thesediseases.

EmployeesinCanadaalsoraisedhundredsofthousandsofdollars

forchildrenatriskofabuse,womenstrugglingtocopewithdrug

addictionsandtohelpimprovesocialconditionsfortheworst-off.

InPoland,AEGONishelpingsupportanorphanageinthesouthern

cityofKatowice.

In Taiwan, employees took part in efforts to raise money for the

elderly while AEGON Taiwan has set up a special fund to support

schoolingforchildrenlivinginpovertyinChina’sGuizhouprovince.

IntheUnitedStates,AEGONemployeessupportarangeofeducational

initiatives,helpingdisadvantagedyoungstersandprovidingfinancial

assistance to elementary schools in Baltimore, Charlotte and Los

Angeles,aswellassponsoringscholarshipsandprogramsinflorida.

forthepastfiveyears,AEGONemployeesinDayton,Ohio,havealso

beendonatingmoneytoalocalresidentialhomeforpeoplesuffering

withmentaldevelopmentproblems.

1 This figure excludes AEGON-CNOOC, the company’s joint venture in China, andAEGON’slong-standingfinancialcommitmenttotheKNSB,theRoyalDutchSkatingAssociation. In 2006, AEGON spent EUR 7million on sponsoring for the KNSB,some50percentofwhichwenttohelpingdevelopyoungtalentinthesportintheNetherlands.

Thewidercommunity Givingtogoodcauses


Additionalinformation

SUMMARY

In 2006, AEGON made significant advances in the corporate

responsibility field. Most notably, the company improved product

transparencyandfinancialliteracy,adoptedclearercommitmentsto

help protect human rights and the environment, and bolstered its

contributiontothefightagainstcancer.

Necessarily, this report can give only a brief overview of AEGON’s

achievementsin2006andonlyahandfulofthecausesthecompany

anditsemployeessupportedduringtheyear.

AEGON isproudof theseachievementsand isdeterminedtomake

furtheradvancesin2007.Progresswill,asever,dependonaclear-

mindedandopenassessmentofthoseareaswhereimprovementis

needed.forthisreason,AEGONwelcomesdialogwithallpartiesthat

have a legitimate interest in the future of the company and its


As populations age and governments, particularly in Europe, shift

more responsibility for retirement funding to individuals and the

privatesector,demandforpensionsandlong-termsavingsproducts

willcontinuetogrow.

Thisplacesanobligationoncompanies likeAEGONtoensuretheir

financialproductsarestraightforward,easytounderstand,andcater

totheever-changingneedsoftheircustomers.

AEGONiscommittedtoprinciplesofbusinesspracticethatpromoterespect,

quality,transparencyandtrustinallitsoperationsaroundtheworld.

Inrecentyears,AEGONhasexpanded its internationalpresence. In

addition to its established markets in the United States, the

NetherlandsandtheUnitedKingdom,AEGONnowhasoperationsin

more than twenty countries across the globe. This international

expansion will inevitably bring with it new challenges and new

responsibilities.

Whereveritoperates,AEGONstrivestoactinthebestinterestsofall

its stakeholders – its customers, shareholders, employees and

businesspartners,aswellastheverydiversecommunitiesitserves

aroundtheworld.

Inthedecisionsittakes,inthewayitmanagesitsbusinesses,inthe

policiesandinitiativesitpursues,AEGONremainscommittedtothe

highestpossiblestandardsofintegrityandhonesty.

As AEGON grows and expands, it is determined tomaintain these

standards and to meet new responsibilities in the years ahead,

confident it will retain the trust and support of its many

stakeholders.


Additionalinformation

CORPORATERESPONSIBILITYINDICATORS

Asof31/12/2006 Unit of measurement 2006 200� 200�

Economic1

Totalincome EUR m 49,309 45,510 38,355

Totalcharges EUR m 45,951 41,915 35,585

Netincome EUR m 2,789 2,732 2,256

Operatingearningsbeforetax EUR m 2,828 2,147 1,772

Valueofnewbusinessaftertax EUR m 775 550 489

Basicearningspershare EUR 1.63 1.63 1.38

Marketcapitalization EUR m 22,844 21,986 15,574

Totaldividendpershare EUR 0.55 0.45 0.42

Totalassetsundermanagement(excludingoffbalancesheetitems) EUR m 271,668 273,622 235,354

TotalSRIassetsundermanagement2 EUR m 857 569 340

SRIassets/totalassets Percent 0.32 0.21 0.14

Employmentexpenses EUR m 1,821 1,662 1,784

Environmental3

CO2emissions(fromgasandelectricityconsumption) Metric tons 77,225 68,939 68,770

CO2emissionsperemployee Metric tons per person 2.69 2.54 2.51

Gasconsumption Million cubic meters 4.3 3.2 3.1

Electricityconsumption GWh 143 129 131

Businesstravel Million kilometers 104.3 n.a. n.a.

CO2emissionsfrombusinesstravel Metric tons 12,510 n.a. n.a.

Paperconsumption Metric tons 5,201 4,914 4,761

Paperconsumptionperemployee Kilograms 181 181 173

Useofrecycledpaper Percent 10 1.5 n.a.

Wateruse Cubic meters 428,415 377,527 441,881

Wateruseperpersonperday Liters 65 60 70

Waste4 Metric tons 4,035 4,601 3,580

Recycledwaste Percent of total waste 59 59 48

humanresources

Totalemployees 28,726 27,159 27,446

female/maleemployees Percent 51.2/48.8 52.8/47.2 52.0/48.0

female/maleseniormanagers Percent 14.9/85.1 15.4/84.6 16.3/83.7

Part-timeemployees Percent 9.2 8.4 8.0

Trainingdays Days per employee 4.0 4.1 4.0

Trainingcosts EUR m 17.1 15.1 15.8

Trainingcostsperemployee EUR per employee 597 555 574

Absenteerate Percent of workforce 3.1 2.6 n.a.

community

Donations EUR m 9.0 8.8 6.2

1 Earningsandrevenuefiguresfor2004havebeenrestatedinaccordancewithnewIfRSaccountingstandards,introducedin2005.2 SRI:SociallyResponsibleInvestments,fundsthattypicallyexcludeinvestmentsincompanieswithlinkstobusinessessuchasarmsmanufacturing,tobacco,

gamblingoralcohol.3 EnvironmentalfiguresrefertotheentireAEGONworkforce,buthavebeenextrapolatedfromdatacoveringlessthan100percentofallemployees.4 figuresforWasteandRecycledWastearebasedondatasuppliedbyAEGONcountryunitscovering45percentoftheoverallworkforcein2006,

38percentin2005and40percentin2004.

n.a.–notavailable


LastingvalueAEGONhasbeenincludedinboththeDowJonesSustainabilityand

fTSE4Good indices for the past several years. These indices rank

companiesaccordingtotheirabilitytomanagearangeofeconomic,

socialandenvironmentalrisks.AEGONregardsitscontinuedinclusion

inthese indicesasrecognitionoftheefforts ithasmadetodeliver

lastingvalue to itscustomers,employeesandbusinesspartnersas

wellastoitsshareholders.

hOwAEGON’ScOrpOrAtErESpONSIbIlItypErfOrMANcE

ISrAtED

The table belowdetailsAEGON’s ratings from someof the leading

corporateandsocialresponsibilityindicesandresearchfirms.

rAtINGAGENcy 2006 200�

DowJonesSustainabilityIndex included included

fTSE4Good included included

Oekom C prime no rating

SiRi1 15th 10th

1 SiRirankedAEGON’scorporateresponsibilityperformanceas15thoutofthe25largestcompaniesintheNetherlandsin2006,and10thin2005.InSiRi’sresearch,eachcompanyiscomparedtoitsworldwideindustrygrouppeers.forbothyears,AEGONrankedaboveitsworldwideindustryaverage.


Appendices

APPENDIXI:THESCOPEOfTHISREPORTAPPENDIXII:GLOBALREPORTINGINITIATIVE(GRI)

AppENDIxI

thEScOpEOfthISrEpOrt

Thefinancial informationcontainedinthisCorporateResponsibility

ReporthasbeentakenfromAEGON’s2006AnnualReportandrefers

to all AEGON companies. This year, for the first time, AEGON’s

CorporateResponsibilityReportcoversallAEGONcountryunits.

Unlessotherwisestated,environmentalandsocialinformationrefers

toallAEGONoperationsaroundtheworld.Onlyjointventureswhere

AEGONdoesnothavefullmanagementcontrolareexcluded.

ThisCorporateResponsibilityReportcoversthefullyear2006,unless

specifically indicated otherwise. AEGON’s previous Corporate

ResponsibilityReportwaspublishedinAugust2006.Allfinancialand

employeeinformationisidenticaltothatcontainedinAEGON’s2006

AnnualReport.

This 2006 Corporate Responsibility Report was developed by the

Group CR department, which is part of AEGON’s Group Corporate

Affairs& InvestorRelationsdivision.AEGONwelcomesopinionson

boththecontentsofthisreportandthecompany’soverallperformance

inhandlingcorporateresponsibility issues.Commentsandopinions

shouldbesentto:[email protected]

ThenewG3guidelinesoftheGlobalReportingInitiative(GRI)served

asapartialframeworkforthis2006CorporateResponsibilityReport.

furtherdetailsontheseguidelinesmaybefoundinAppendixII.

The contents of this report are also based on the result of

comprehensivereportingfromAEGONcountryunits.Thesecountry

units,throughtheircorporateresponsibilitymanagers,areresponsible

forcollectingandsubmittingallthedatausedinthisreport.

AppENDIxII

ANOvErvIEwOfthEGlObAlrEpOrtINGINItIAtIvE(GrI)

TheGlobalReportingInitiativeaimstoensurethatthereareaccepted

and comparable standards for companies that report regularly on

theireconomic,environmentalandsocialperformances.Todetermine

the indicators and benchmarks it uses, GRI relies on an extensive

network of experts in dozens of countries around the world,

representingdifferentdisciplinesandinterests.

AEGON’sCorporateResponsibilityReportcoversmostGRIindicators

relating to the company four main areas of activity in this field:

governance,themarketplace,theworkplaceandthewidercommunity.

BasedonGRIguidelinesandtheInitiative’snew,tighterG3standards,

AEGONassessestheApplicationLevelofthis2006reportas‘B’.


AppENDIxIII

GlObAlrEpOrtINGINItIAtIvEINDEx(G3)

Strategyandanalyses wheretofindit page

1.1 CEOstatement Chairman’sletter 2

1.2 Keyimpacts,risks,andopportunities Makingprogress:howAEGONimproveditscorporate

responsibilityrecordin2006

WhereAEGONseesfuturegrowth

Limitingrisk

4

9

18

Organizationalprofile wheretofindit page

2.1 Nameoforganization CoverofCorporateResponsibilityReport2006

2.2 Productsandservices AboutAEGON

2.3 Operationalstructure AEGON’sbusinesses 8

2.4 Locationofheadquarters AEGON’sbusinesses 8

2.5 Countrieslocated AEGON’sbusinesses 8

2.6 Natureofownershipandlegalform Website(www.aegon.com)

2.7 Markets AEGON’sbusinesses 8

2.8 Sizeofoperations AEGON’sbusinesses 8

2.9 Organizationalchanges Notapplicable

2.10 Awards Investingresponsibly

Healthandsafety

28

37

Appendices

APPENDIXIII:GLOBALREPORTINGINITIATIVEINDEX(G3)

reportingparameters wheretofindit page

3.1 Reportingperiod AppendixI–Thescopeofthisreport 48

3.2 Previousreport Chairman’sletter 2

3.3 Reportingcycle AppendixI–Thescopeofthisreport 48

3.4 Contactperson(s) AppendixI–Thescopeofthisreport 48

3.5 Processreportcontent AppendixI–Thescopeofthisreport 48

3.6 Scope AppendixI–Thescopeofthisreport 48

3.7 Scopelimitations AppendixI–Thescopeofthisreport 48

3.8 Basisforreportingonjointventures AppendixI–Thescopeofthisreport 48

3.9 Datameasurementtechniques Corporateresponsibilityindicators 46

3.10 Re-statements ProtectingtheEnvironment–AEGON’sconsumptionofpaper 38

3.11 Reportingchanges AppendixI–Thescopeofthisreport 48

3.12 StandardDisclosures AppendixIII–GRIoverviewtable 48

3.13 Policywithregardtoexternalassurance

Governance,commitmentsandEngagement wheretofindit page

4.1 Governancestructure AnnualReport,availableatwww.aegon.com

4.2 Chairofthehighestgovernancebody AnnualReport,availableatwww.aegon.com

4.3 Independentmembers AnnualReport,availableatwww.aegon.com

4.4 Mechanismsforshareholdersandemployees AnnualReport,availableatwww.aegon.com

4.5 Compensationhighestgovernancebody AnnualReport,availableatwww.aegon.com

4.6 Processestoensureconflictsofinterestareavoided Website(www.aegon.com)

4.7 Expertisehighestgovernancebody Website(www.aegon.com)


4.8 Internallydevelopedstatements Website(www.aegon.com)

4.9 Proceduresofthehighestgovernancebody AnnualReport,availableatwww.aegon.com

4.10 Performanceofhighestgovernancebody AnnualReport,availableatwww.aegon.com

4.11 Precautionaryapproach CodeofConduct 16

4.12 Externallydevelopedprinciples AEGON’scommitmenttoHumanRights

Ensuringproducttransparency

Investingresponsibly

17

24

28

4.13 Membershipsofassociations Ensuringproducttransparency 24

4.14 Listofstakeholdergroups Introduction:AEGON’sstakeholders 6

4.15 Identificationandselectionofstakeholders Introduction:AEGON’sstakeholders 6

4.16 Approachestostakeholderengagement Introduction:AEGON’sstakeholders 6

4.17 Keytopicsthroughstakeholderengagement Introduction:AEGON’sstakeholders 6

Economicperformanceindicators wheretofindit page

EC1 Directeconomicvalue Website(www.aegon.com)

EC2 financialimplicationsduetoclimatechange

EC3 Coveragebenefitplanobligations AnnualReport,availableatwww.aegon.com

EC4 financialassistancereceivedfromgovernment Notapplicable

EC6 Locally-basedsuppliers

EC7 Localhiring

EC8 Infrastructureinvestments

Environmentalperformanceindicators wheretofindit page

EN1 Weightofmaterialsused Protectingtheenvironment–AEGON’sconsumptionofpaper 38

EN2 Recycledinputmaterials Protectingtheenvironment–AEGON’sconsumptionofpaper 38

EN3 Directenergyconsumption Protectingtheenvironment–AEGON’suseofenergy 38

EN4 Indirectenergyconsumption Protectingtheenvironment–AEGON’suseofenergy 38

EN5(add.) Energysavedduetoconservationandefficiency

improvements

Protectingtheenvironment–AEGON’suseofenergy 38

EN8 Totalwateruse Protectingtheenvironment–AEGON’suseofwater 40

EN11 Locationoflandinprotectedareas Notapplicable

EN12 Significantimpactsonbiodiversity Notapplicable

EN16 Directandindirectgreenhousegasemissions Protectingtheenvironment–AEGON’suseofenergy 38

EN17 Otherrelevantindirectgreenhousegasemissions Protectingtheenvironment–AEGON’suseofenergy 38

EN19 Emissionsofozone-depletingsubstances

EN20 NOx,SOxairemissions

EN21 Totalwaterdischarge

EN22 Totalweightofwaste Protectingtheenvironment–AEGON’smanagementofwaste 40

EN23 Totalspills Notapplicable

EN26 Initiativestomitigateenvironmentalimpacts Protectingtheenvironment–AEGON’suseofenergy 38

EN27 Productsreclaimedattheendoftheproducts’life Notapplicable

EN28 Monetaryvalueofsignificantfines Notapplicable

EN29(add.) Significantenvironmentalimpactsoftransport Protectingtheenvironment–AEGON’suseofenergy 38

Appendices AppendixIII:Globalreportinginitiativeindex(G3)


SOcIAlINDIcAtOrS

laborpracticesanddecentwork wheretofindit page

LA1 Breakdownoftotalworkforce AEGON’semployees 34

LA2 Employeeturnover AEGON’semployees 34

LA4 Employeescoveredbycollectivebargaining CorporateResponsibilityReport2005

LA5 Minimumnoticeperiod(s)regardingoperationalchanges

LA7 Ratesofinjury,occupationaldiseases,lostdays,and

absenteeism

Healthandsafety 37

LA8 Risk-controlprogramsregardingseriousdiseases Healthandsafety 37

LA10 Trainingperemployeecategory AEGON’semployees–Advancingcareerdevelopment 34

LA11(add.) Programsforskillsmanagementandlifelonglearning AEGON’semployees–Advancingcareerdevelopment 34

LA13 Genderbreakdownofgovernancebodies AEGON’semployees 34

LA14 Ratioofbasicsalaryofmentowomen

humanrights wheretofindit page

HR1 http://www.postbank.ie/Significantinvestment

agreementsthatincludehumanrightsclauses

HR2 Screeningofsuppliersonhumanrights AEGON’scommitmenttoHumanRights 17

HR4 Incidentsofdiscrimination Nonereported

HR5 Operationsidentifiedashavingriskforincidentsof

violationsoffreedomofassociationandcollective

bargaining

Noneidentified

HR6 Operationsidentifiedashavingriskforchildlabor Noneidentified

HR7 Operationsidentifiedashavingriskforforcedlabor Noneidentified

Society wheretofindit page

SO1 Impactoncommunities HowAEGON’sproductsandoperationsimpactthewider

community

41

SO2 Numberofbusinessunitsanalyzedforrisksrelated

tocorruption

AnnualReport,availableatwww.aegon.com

SO3 Employeestrainedinorganization’santi-corruption

policiesandprocedures

CodeofConduct 16

SO4 Actionstakeninresponsetoincidentsofcorruption Nonereported

SO5 Publicpolicypositionsandparticipationinpublicpolicy

development

Governmentsandregulators 32

SO8 Monetaryvalueofsignificantfines

productresponsibility wheretofindit page

PR1 Improvinghealthandsafetyimpactsacrosslifecycle Notapplicable

PR3 Productinformationandlabeling Ensuringproducttransparency 24

PR5(add.) Customersatisfaction Managingcustomerrelations 20

PR6 Marketingcommunications Ensuringproducttransparency 24

PR9 Monetaryvalueofsignificantfines


SocialSupplementIndicators wheretofindit page

CSR1 Corporateandsocialresponsibility(CSR)policy CodeofConduct 16

CSR2 CSRorganization AppendixIV.HowAEGONpromotescorporateresponsibility

initiatives

54

CSR3 CSRaudits

CSR4 Managementonsensitiveissues Managingcustomerrelations


Investingresponsibly

20

24

28

CSR5 Non-compliancewithregulations Ensuringproducttransparency 24

CSR6 Stakeholderdialogue Introduction:AEGON’sstakeholders 6

INT1 InternalSCRpolicy AEGON’semployees

Payingafairwage

Healthandsafety

34

36

37

INT2 Staffturnoverandjobcreation AEGON’semployees 34

INT3 Employeesatisfaction Employeesatisfaction 36

INT4 Seniormanagementremuneration AnnualReport,availableatwww.aegon.com

INT5 Bonusesfosteringsustainablesuccess

INT6 female-malesalaryratio

INT7 Employeeprofile AEGON’semployees 34

SOC1 Charitablecontributions Givingtogoodcauses 43

SOC2 Economicvalueadded AEGONEmbeddedValueReport2006,

availableatwww.aegon.com

SUP1 Screeningofmajorsuppliers AEGON’ssuppliers 32

SUP2 SupplierSatisfaction

AM1 Assetmanagementpolicy Refertocountryunits

AM2 Assetsundermanagementwithhighsocialbenefit Investingresponsibly 28

AM3 SRIorientedshareholderactivity Investingresponsibly 28

INS1 Underwritingpolicy Managingcustomerrelations


20

24

INS2 Customerprofile

INS3 Customercomplaints Managingcustomerrelations–MakingsureAEGONdeals

effectivelywithcustomercomplaints

23

INS4 Insurancewithhighsocialbenefit Managingcustomerrelations–Helpingcustomersonlow

incomes

21

Appendices AppendixIII:Globalreportinginitiativeindex(G3) Socialindicators


EnvironmentalSupplementIndicators wheretofindit page

f1 Policiesappliedtocorebusinesslines Protectingtheenvironment 38

f2 Screeningofenvironmentalrisks Website(www.aegon.com)

f3 Threshold(s)forriskassessment

f4 Monitoringaspectsinriskassessmentprocess(es)

f5 Addressingrisksandopportunities Limitingrisk 18

f6 Auditsofrisksystemsandprocedures Protectingtheenvironment(ISO14001hasregularaudits) 38

f7 Interactionwithstakeholdersonrisks/opportunities Investingresponsibly 28

f8 Engagementwithcompaniesinportfolio Investingresponsibly 28

f9 Assetssubjectedtoscreening Investingresponsibly 28

f10 Sharevotingpolicy Investingresponsibly 28

f11 AssetsUnderManagementwithrighttovoteshares Investingresponsibly 28

f12 Valueofenvironmentalproductsandservices Notapplicable

f13 Valueofportfolio AnnualReportandEmbeddedValueReport,

availableatwww.aegon.com


Appendices AppendixIII:Globalreportinginitiativeindex(G3) Disclosureonmanagementapproach

Disclosureonmanagementapproach chapter

Materiality responsibility

Objectivesand

performance policy training Monitoring

Economic Economicperformance ExecutiveBoard A A A A

Marketpresence A A A A

Environment Paper ManagementBoard 4.5 4.5 4.5

Energy 4.5 4.5 4.5

Water 4.5 4.5 4.5

Waste 4.5 4.5 4.5

Laborrights Non-discrimination ManagementBoard 4.1 4.1 4.1

Diversity 4.1 4.1

Training 4.1 4.1 4.1

fairwages 4.2 4.2 4.2

Employeesatisfaction 4.3 4.3

Health&Safety 4.4 4.4 4.4 4.4

Humanrights Ensuringbasichuman

rightsandfreedoms

ManagementBoard 2.3 2.3

Society Customers ManagementBoard 3.2 3.2

Website

3.2

Distributionpartners 3.6 3.6 3.6

Suppliers 3.8 3.8 3.8

Governments&regulators 3.9 3.9 3.9

Communityengagement 5.1 5.1 5.1

Productresponsibility Compliance ManagementBoard 2.2 2.2 2.2 2.2

Producttransparency 3.3 3.3 3.3 3.3

financialliteracy 3.3 3.3 3.3 3.3

Investingresponsibly 3.4 3.4 3.4


AppENDIxIv

hOwAEGONprOMOtEScOrpOrAtErESpONSIbIlIty

INItIAtIvES

Corporate responsibility policies and initiatives are coordinated by

GroupCR,adepartmentwithinAEGON’sGroupCorporateAffairs&

InvestorRelationsdepartment.GroupCRisledbyGuyNielsen,senior

vice president, who manages all AEGON’s corporate responsibility

processesandinitiatives.Hisresponsibilitiesincludepolicy-makingas

well as overseeing the reporting andmonitoring of the company’s

corporateresponsibilityinitiatives.

Inmattersrelatedtocorporateresponsibility,Mr.Nielsenreportsto

Johan van der Werf, a member of AEGON’s Management Board.

Mr.VanderWerfchairsaregularcommitteeoncorporateresponsibility,

whose members represent both senior management and AEGON’s

businessunits.Thiscommittee isresponsibleforenactingAEGON’s

corporateresponsibilitypoliciesandensuringoverall improvements

inthisarea.

Appendices

APPENDIXIV:HOWAEGONPROMOTESCORPORATERESPONSIBILITYINITIATIVES

InlinewithAEGON’sstrategyofencouraginglocaldecision-making,

eachcountryunitcontrols itsowncorporateresponsibilityagenda.

Country units have a Corporate Responsibility Leader, who is

responsibleforthefollowing:

Implementingallcorporateresponsibilitypoliciesandinitiatives;

EnsuringcompliancewithAEGON’sCodeofConduct;

Collatingallrelevantdataoncorporateresponsibilityissues;

Developing local corporate responsibilitypolicies andmonitoring

localactivities;

ReportingallprogresstoGroupCR.

Typically,theCorporateResponsibilityLeadermanagesthecountry

unit’scorporateresponsibilityactivitiesalongsidehisorher

otherworkresponsibilities.Corporateresponsibilityactivitiesare

thereforereflectedintheCorporateResponsibilityLeader’sjob

performancetargetsandareafactorindeterminingthatndividual’s

performance-relatedremuneration.


fORWARD-LOOKINGSTATEMENTS

The statements contained in this Corporate Responsibility Report

thatarenothistoricalfactsareforward-lookingstatementsasdefined

in the US Private Securities Litigation Reform Act of 1995. The

following arewords that identify such forward-looking statements:

believe, estimate, target, intend, may, expect, anticipate, predict,

project,countingon,plan,continue,want,forecast,should,would,is

confident,will,andsimilarexpressionsastheyrelatetoourcompany.

These statements are not guarantees of future performance and

involve risks, uncertainties and assumptions that are difficult to

predict.Weundertakenoobligationtopubliclyupdateorreviseany

forward-looking statements. Readers are cautioned not to place

undue reliance on these forward-looking statements,whichmerely

reflect companyexpectationsat the timeofwriting.Actual results

maydiffermateriallyfromexpectationsconveyedinforward-looking

statementsduetochangescausedbyvariousrisksanduncertainties.

Such risks and uncertainties include but are not limited to the

following:

Changesingeneraleconomicconditions,particularlyintheUnited

States,theNetherlandsandtheUnitedKingdom;

Changes in the performance of financial markets, including

emergingmarkets,suchaswithregardto:

• The frequencyandseverityofdefaultsby issuers inourfixed

incomeinvestmentportfolios;and

• The effects of corporate bankruptcies and/or accounting

restatementsonthefinancialmarketsandtheresultingdecline

inthevalueofequityanddebtsecuritieswehold;

Thefrequencyandseverityofinsuredlossevents;

Changesaffectingmortality,morbidityandotherfactorsthatmay

impacttheprofitabilityofourinsuranceproducts;

Changesaffectinginterestratelevelsandcontinuingloworrapidly

changinginterestratelevels;

Changesaffectingcurrencyexchangerates,inparticulartheEUR/

USDandEUR/GBPexchangerates;

Increasing levels of competition in the United States, the

Netherlands,theUnitedKingdomandemergingmarkets;

Changes in lawsandregulations,particularly thoseaffectingour

operations,theproductswesell,andtheattractivenessofcertain

productstoourconsumers;

Regulatory changes relating to the insurance industry in the

jurisdictionsinwhichweoperate;

ActsofGod,actsofterrorism,actsofwarandpandemics;

Changesinthepoliciesofcentralbanksand/orgovernments;

Litigation or regulatory action that could require us to pay

significantdamagesorchangethewaywedobusiness;

Customer responsiveness to both new products and distribution

channels;

Competitive, legal, regulatory, or tax changes that affect the

distributioncostofordemandforourproducts;

Ourfailuretoachieveanticipatedlevelsofearningsoroperational

efficienciesaswellasothercostsavinginitiatives;and

The impactouradoptionofthe InternationalfinancialReporting

Standardsmayhaveonourreportedfinancialresultsandfinancial

condition.

The paper used for this Corporate Responsibility Report 2006,

9lives, is a recycled and fsc certified paper (55% recycled and

45% fsc paper). The printer’s - habo dacosta - environmental

management system meets all of the conditions documented in

the SCGm certification system for the graphic media sector, in

accordance with ISO 14001:2004.

hEAdquARTERS

aegon n.V.

AEGONplein 50

P.O. Box 85

2501 CB The hague

The Netherlands

Telephone: + 31 70 344 32 10

www.aegon.com

groUp corporate affairS & inVeStor relationS

aegon n.V.

P.O. Box 85

2501 CB The hague

The Netherlands

E-mail: [email protected]

MeDia

Telephone: + 31 70 344 83 44

fax: + 31 70 344 84 45

analyStS anD inVeStorS

Telephone: + 31 70 344 83 05

fax: + 31 70 344 84 45

aegon USa, inc.

1111, North Charles Street

Baltimore, md 21201-5574

united States of America

MeDia

Telephone: + 1 410 576 45 26

fax: + 1 410 347 86 85

analyStS anD inVeStorS

Toll free: + 1 877 548 96 68 (uSA only)

Telephone: + 1 410 576 45 77

fax: + 1 410 347 86 85

E-mail: [email protected]

COLOPhON

Consultancy and design dart design, Amsterdam (NL)

Editing and production AEGON Group Corporate Affairs and

Investor Relations (NL)

Typesetting dart design, Amsterdam (NL),

habo daCosta bv (NL)

Printing habo daCosta bv (NL)

The Corporate Responsibility Report 2006 of AEGON N.v. is published

at www.aegonannualreport.com.

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