Aegon Annual Report 2012

Annual Report 201247Overview the NetherlandsAegon has a history in the Netherlands that dates back more than 150 years.Today, Aegon the Netherlands is one of the country’s leading 1 providers of lifeinsurance and pensions, with millions of customers and approximately 4,500employees. The fully owned Unirobe Meeùs Group is one of the largest 2intermediaries in the Netherlands. Aegon the Netherlands has its headquartersin The Hague and offices in Leeuwarden and Groningen.Organizational structureAegon is one of the most widely recognized brand namesin the Dutch financial services sector 3 . Additionally Aegonthe Netherlands operates through a number of other brands,including TKP Pensioen, OPTAS and Unirobe Meeùs.Aegon the Netherlands’ primary subsidiaries are: Aegon Bank N.V. Aegon Levensverzekering N.V. Aegon Schadeverzekering N.V. Aegon Spaarkas N.V. OPTAS Pensioenen N.V. Aegon Hypotheken B.V. TKP Pensioen B.V. Unirobe Meeùs Groep B.V. Aegon PPI B.V.Aegon the Netherlands has four lines of business: Life & Savings Pensions Non-life DistributionRestructuringIn September 2011, Aegon the Netherlands announced arestructuring that resulted in a loss of 300 positions as part ofstrategic plans to reduce the size and cost of the Dutch business.This plan was also aimed at increasing the fexibility and strengthof the organization. The restructuring was largely finalized in 2012.Overview sales and distribution channelsAegon the Netherlands sells its products through severaldifferent channels. Corporate & Institutional Clients, part of thePensions business line, serves large corporations and financialinstitutions such as company and industry pension funds.The intermediary channel, used by all business lines, focuseson independent agents and retail sales organizations in theNetherlands. The direct channel is used by Aegon Bank (mainlyfor savings) and there is a strategic partnership with the Dutchretailer Kruidvat for products sold by Aegon Schadeverzekering.In 2012, Aegon launched online bank Knab, in line with its driveto actively embrace technology and meet the evolving needs ofits customers.Overview business linesLife & SavingsAegon the Netherlands provides a variety of individual savingsproducts, mortgage loans and a range of life insurance andpersonal protection products and services, including traditional,universal and term life. Based on underlying earnings beforetax, Life & Savings is the largest line of business in Aegonthe Netherlands.ProductsEndowment insuranceThis category includes various products that accumulate a cashvalue. Premiums are paid at inception or over the term of thecontract.The accumulation products pay benefits on the policy maturitydate, subject to survival of the insured. In addition, most policiesalso pay death benefits in the event of the death of the insuredduring the term of the contract. The death benefits may bestipulated in the policy or depend on the gross premiums paid todate. Premiums and amounts insured are established at inceptionof the contract. The amount insured can be increased as a resultof profit sharing, if provided for under the terms and conditionsof the product.Minimum interest guarantees exist for all generations ofaccumulation products written, except for universal life typeproducts for which premiums are invested solely in equityfunds. Older generations contain a 4% guarantee; in 1999the guarantee decreased to 3%.1 Source: Verzekerd van Cijfers 2012, published by the Dutch Association of Insurers.2 Source: AM 2012 Jaarboek, published by Assurantie magazine.3 Source: Tracking Report Motivaction.