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Annual Report on Form 20-F 2012 17Results of operationsResults 2012 worldwideUnderlying earnings geographic all yAmounts in EUR millions 2012 2011 %Net underlying earnings 1,3821,233 12%Tax on underlying earnings 405289 40%Underlying earnings before tax geographicallyAmericas 1,317 1,273 3%The Netherlands 315 298 6%United Kingdom 105 5 -New markets 274 249 10%Holding and other activities (224) (303) 26%Underlying earnings be fore ta x 1,787 1,522 17%Net Fair value items - (416) -Gains / (lo sse s) on investments 407 446 (9%)Impairment charges (176) (388) 55%Other income / (charges) (162) (267) 39%Run-off businesses 2 28 (93%)Income before tax (excluding income tax from certain proportionately consolidated associates) 1,858 925 101%Income tax from certain proportionately consolidated associates included in income before tax 6 9 (33%)Income tax (326) (53) -Of which Income tax from certain proportionately consolidated associates included in income before tax (6) (9) 33%Net income 1,532 872 76%Commissions and expenses 5,829 6,272 (7%)of which operating expenses 3,241 3,442 (6%)This Annual Report includes the non-IFRS financial measure: underlying earningsbefore tax. The reconciliation of this measure to the most comparable IFRSmeasure is presented in the table above as well as in not e 5 of the consolidatedfinancial statements. This non-IFRS measure is calculated by consolidating on aproportionate basis the revenues and expenses of Aegon’s associated companiesin Spain, India, Brazil and Mexico. Aegon believes that its non-IFRS measureprovides meaningful information about the underlying operating results of Aegon’sbusinesses including insight into the financial measures that senior managementuses in managing the businesses.The table also includes the non-IFRS financial measure: net underlying earnings.This is the after-tax equivalent of underlying earnings. The reconciliation of netunderlying earnings to the most comparable IFRS measure is presented in the tableabove.Aegon’s senior management is compensated based in part on Aegon’s resultsagainst targets using the non-IFRS measure presented herein. While many otherinsurers in Aegon’s peer group present substantially similar non-IFRS measures,the non-IFRS measure presented in this document may nevertheless differ from thenon-IFRS measures presented by other insurers.There is no standardized meaning to these measures under IFRS or any ot herrecognized set of accounting standards and readers are cautioned to considercarefully the different ways in which Aegon and its peers present similar informationbefore comparing them. Aegon believes the non-IFRS measure shown herein,when read together with Aegon’s reported IFRS financial statements, providesmeaningful supplemental information for the investing public to evaluate Aegon’sbusinesses after eliminating the impact of current IFRS accounting policies forfinancial instruments and insurance contracts, which embed a number of accountingpolicy alternatives that companies may select in presenting their results (that iscompanies can use different local GAAPs) and that can make the comparabilityfrom period to period difficult.As of the first quarter of 2012, Aegon has revised its financial reporting to reflectchanges in its organization. Businesses in Asia, which were previously managed byAegon Americas, are included in the Asia line of business within the “New Markets”segment. For the full year 2011, the underlying earnings before tax generated bythe Asian operations totaling EUR 37 million were previously reported under the“Americas” segment.