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IntroductionFilingThis document contains Aegon’s Annual Report 2012 and will also be filed asAegon’s Annual Report on Form 20-F with the United States Securities andExchange Commission (SEC).About this reportThis report serves as Aegon’s Annual Report prepared in accordance withInternational Financial Reporting Standards, as issued by the InternationalAccounting Standards Board (IFRS), and with Part 9 of Book 2 of the Dutch CivilCode for the year ended December 31, 2012, for Aegon N.V. (the company) and itssubsidiaries (collectively known as Aegon). This report presents the ConsolidatedFinancial Statements of Aegon (pages 132-286) and the Parent Company FinancialStatements of Aegon (pages 290-304). Cross references to Form 20-F are set outon pages I-II of this report.Presentation of certaininformationAegon N.V. is referred to in this document as “Aegon,” or “the company.” AegonN.V. together with its member companies are referred to as the “Aegon Group.” Forsuch purposes, “member companies” means, in relation to Aegon N.V., thosecompanies that are required to be consolidated in accordance with legislativerequirements of the Netherlands relating to consolidated accounts.References to the “NYSE” are to the New York Stock Exchange and references tothe “SEC” are to the Securities and Exchange Commission. Aegon uses “EUR” and“euro” when referring to the lawful currency of the member states of the EuropeanMonetary Union; “USD,” and “US dollar” when referring to the lawful currency of theUnited States of America; “GBP”, “UK pound” and “pound sterling” when referring tothe lawful currency of the United Kingdom; “CAD” and “Canadian dollar” whenreferring to the lawful currency of Canada; “PLN” when referring to the lawfulcurrency of Poland; “CNY” when referring to the lawful currency of the People’sRepublic of China; “RON” when referring to the lawful currency of Romania; “HUF”when referring to the lawful currency of Hungary; “TRY” when referring to the lawfulcurrency of Turkey and “CZK” when referring to the lawful currency of CzechRepublic.Annual Report on Form 20-F 2012Aegon prepares its consolidated financial statements in accordance withInternational Financial Reporting Standards as issued by the InternationalAccounting Standards Board (IFRS) and with Part 9 of Book 2 of the NetherlandsCivil Code for purposes of reporting with the U.S. Securities and ExchangeCommission (‘SEC’), including financial information contained in this Annual Reporton Form 20-F. Aegon’s accounting policies and its use of various options underIFRS are described in note 2 to the consolidated financial statements.Other than for SEC reporting, Aegon prepares its Annual Accounts underInternational Financial Reporting Standards as adopt ed by the European Union,including the decisions Aegon made with regard to the options available underInternational Financial Reporting Standards as adopted by the EU (IFRS-EU).IFRS-EU differs from IFRS in respect of certain paragraphs in IAS 39 ‘FinancialInstruments: Recognition and Measurement’ regarding hedge accounting forportfolio hedges of interest rate risk. Under IFRS-E U, Aegon applies fair valuehedge accounting for portfolio hedges of interest rate risk (fair value macro hedges)in accordance with the EU ‘carve out’ version of IAS 39. Under IFRS, hedgeaccounting for fair value macro hedges cannot be applied to mortgage loans andineffectiveness arises whenever the revised estimate of the amount of cash flows inscheduled time buckets is either more or less than the original designated amountof that bucket.This information is prepared by reversing the hedge accounting impacts that areapplied under the EU ‘carve out’ version of IAS 39. Financial information underIFRS accordingly does not take account of the possibility that had Aegon appliedIFRS as its primary accounting framework it might have applied alternative hedgestrategies where those alternative hedge strategies could have qualified for IFRScompliant hedge accounting. These decisions could have resulted in differentshareholders ’ equity and net income amounts compared to those indicated in thisAnnual Report on Form 20-F.A reconciliation between IFRS-EU and IFRS is included in note 2.1 to theconsolidated financial statements.3