Supplemental offering circular EUR 450,000,000 perpetual ... - Aegon

UPDATED BUSINESS DESCRIPTION OF AEGON N.V.
AEGON N.V.
Foundation
AEGON N.V. was formed on 30 November, 1983 as a result of a merger between AGO and ENNIA, both
of which were successors to insurance companies founded in the 1800s. AEGON N.V. is a public limited
liability stock corporation established under Dutch law and is domiciled in the Netherlands. The
headquarters are located at AEGONplein 50, PO Box 202, 2501 CE The Hague, the Netherlands, telephone
+31 70 344 3210.
Summary description of the Group
Since its foundation AEGON N.V., through its member companies collectively referred to herein as
AEGON, the Company or Group, has emerged as an international insurer with major operations in the USA,
the Netherlands and the United Kingdom. AEGON is also present in Canada, Hungary, Spain, France,
Taiwan, China and a number of other countries and has a representative office in India.
AEGON’s strategy is to offer life insurance, pensions and related savings and investment products in markets
that offer scale and growth opportunities. The objective is to have a leading position in each of these markets.
Consistent with its strategy, over 85 per cent of AEGON’s business consists of life insurance, pensions and
related savings and investment products. The Group is also active in accident and health insurance, general
insurance and, to a limited extent, banking activities. AEGON focuses on growth in existing operations and
selected new markets, through acquisitions, joint ventures and greenfields. AEGON targets profitable
growth, i.e. average annual earnings growth of 10 per cent. and a return on investment that exceeds the cost
of capital.
AEGON emphasises a decentralised organizational structure while key control functions are aided by central
coordination and support at group level. The operating companies, with knowledgeable and experienced
local management and employees, market their own, unique products using multi-channel distribution
strategies.
AEGON Americas (AEGON USA) operates through business units, organised by distribution channel.
AEGON USA offers a broad portfolio of products nationwide to consumers, corporate and institutional
clients. The products range varies from term life insurance to variable universal life, fixed and variable
annuities, pensions plans, institutional products like guaranteed investment contracts (GICs), other related
financial products, supplemental health insurance and reinsurance. Products are offered using a multichannel
distribution system through agents, financial institutions, brokers, direct selling, business partners
and other channels.
The acquisition of the Providian life insurance business in 1997 added the country’s leading traditional and
synthetic GIC provider, and expanded market size in home service life insurance sales and direct-marketed
life and supplemental health insurance product sales. The acquisition of Transamerica in July of 1999 made
AEGON one of the largest life insurance companies in the USA and expanded the product portfolio by
adding a life reinsurance business and a Canadian life insurance company. In 2001 AEGON acquired JC
Penney’s direct marketing insurance operations. This has made AEGON USA the largest direct marketer of
life and supplemental insurance in the United States.
AEGON The Netherlands is a leading life insurer in The Netherlands in both the individual and group life
and pension businesses. AEGON The Netherlands offers a broad portfolio of products which range from
traditional life insurance to universal life, group pension plans and institutional asset management products
to accident and health and general insurance products. Distribution is equally broad using a large variety of
channels. In January 2003 AEGON The Netherlands acquired TKP, a provider of pension administration
services for pension funds.
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