Edgar Filing: AEGON NV

Form 6-K

Securities and Exchange Commission

Washington, D.C. 20549

Form 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d/16 of

the Securities Exchange Act of 1934

May 2012

AEGON N.V.

AEGONplein 50

2591 TV THE HAGUE

The Netherlands

AEGON’s condensed consolidated interim financial statements Q1 2012, is included as an exhibit and incorporated herein by reference.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		AEGON N.V.
		(Registrant)

Date: May 10, 2012	By	/s/ E. Lagendijk
		E. Lagendijk
		Executive Vice President and General Counsel

THE HAGUE, MAY 10, 2012

LOGO

CONDENSED CONSOLIDATED

INTERIM FINANCIAL STATEMENTS

Q1 2012


LIFE INSURANCE		PENSIONS		ASSET MANAGEMENT

TABLE OF CONTENTS


Condensed consolidated income statement			p 2

Condensed consolidated statement of comprehensive income			p 3

Condensed consolidated statement of financial position			p 4

Condensed consolidated statement of changes in equity			p 5

Condensed consolidated cash flow statement			p 6

Notes to the condensed consolidated interim financial statements			p 7


Unaudited				Page 1

CONDENSED CONSOLIDATED INCOME STATEMENT


EUR millions (except per share data)	Notes		Q1 2012			Q1 2011
Premium income		4		5,851			6,277
Investment income		5		2,076			2,111
Fee and commission income				465			460
Other revenues				2			2

Total revenues				8,394			8,850
Income from reinsurance ceded		6		953			430
Results from financial transactions		7		7,565			1,113
Other income		8		—			37

Total income				16,912			10,430

Benefits and expenses		9		16,164			9,859
Impairment charges / (reversals)		10		46			64
Interest charges and related fees				132			111
Other charges		11		18			28

Total charges				16,360			10,062

Share in net result of associates				11			5

Income before tax				563			373
Income tax (expense) / benefit				(42	)		(46	)

Net income				521			327

Net income attributable to:
Equity holders of AEGON N.V.				521			327
Non-controlling interests				—			—

Earnings and dividend per share (EUR per share)
Earnings per share ¹				0.25			(0.05	)
Earnings per share, excluding premium on convertible core capital securities				0.25			0.16
Diluted earnings per share ^{1, 2}				0.25			(0.05	)
Dividend per common share				—			—

Earnings per common share calculation
Net income				521			327
Preferred dividend				—			—
Coupons on other equity instruments				(47	)		(44	)
Coupons and premium on convertible core capital securities				—			(375	)

Earnings attributable to common shareholders				474			(92	)

Weighted average number of common shares outstanding				1,880			1,765

¹	After deduction of preferred dividend, coupons on other equity instruments and coupons and premium on core capital securities.

In Q1 2011, the potential conversion of the convertible core capital securities is taken into account in the calculation of diluted earnings per share if this would have a dilutive effect (i.e. diluted earnings per share would be lower than the earnings after potential attribution to convertible core capital securities).


Unaudited				Page 2

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


EUR millions	Q1 2012			Q1 2011
Net income		521			327

Other comprehensive income:
Gains / (losses) on revaluation of available-for-sale investments		453			(200	)
(Gains) / losses transferred to the income statement on disposal and impairment of available-for-sale investments		(34	)		(61	)
Changes in revaluation reserve real estate held for own use		—			(1	)
Changes in cash flow hedging reserve		(330	)		(87	)
Movement in foreign currency translation and net foreign investment hedging reserve		(305	)		(888	)
Equity movements of associates		17			(8	)
Aggregate tax effect of items recognized in other comprehensive income		13			100
Other		2			1

Other comprehensive income for the period		(184	)		(1,144	)
Total comprehensive income		337			(817	)

Total comprehensive income attributable to:
Equity holders of AEGON N.V.		337			(817	)
Non-controlling interests		—			—


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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION


EUR millions	Notes		Mar. 31, 2012		Dec. 31, 2011
ASSETS
Intangible assets		12		3,225		3,285
Investments		13		140,770		144,079
Investments for account of policyholders		14		149,501		142,529
Derivatives		15		15,361		15,504
Investments in associates				774		742
Reinsurance assets		16		10,977		11,517
Deferred expenses and rebates		17		11,580		11,633
Other assets and receivables				8,859		8,184
Cash and cash equivalents				8,671		8,104

Total assets				349,718		345,577

EQUITY AND LIABILITIES
Shareholders’ equity				21,283		21,000
Other equity instruments		19		4,998		4,720

Issued capital and reserves attributable to equity holders of AEGON N.V.				26,281		25,720
Non-controlling interests				14		14

Group equity				26,295		25,734

Trust pass-through securities				151		159
Subordinated borrowings		20		58		18
Insurance contracts				103,774		105,175
Insurance contracts for account of policyholders				76,972		73,425
Investment contracts				19,323		20,847
Investment contracts for account of policyholders				74,659		71,433
Derivatives		15		12,581		12,728
Borrowings		21		11,199		10,141
Other liabilities				24,706		25,917

Total liabilities				323,423		319,843

Total equity and liabilities				349,718		345,577


Unaudited				Page 4

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


EUR millions	Share capital¹		Retained earnings			Revaluation reserves			Other reserves			Convertible core capital securities			Other equity instruments			Issued capital and reserves²			Non-controlling interests		Total
Three months ended March 31, 2012

At beginning of year		9,097		9,403			3,464			(964	)		—			4,720			25,720			14		25,734

Net income recognized in the income statement		—		521			—			—			—			—			521			—		521

Other comprehensive income:
Gains / (losses) on revaluation of available-for-sale investments		—		—			453			—			—			—			453			—		453
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments		—		—			(34	)		—			—			—			(34	)		—		(34	)
Changes in cash flow hedging reserve		—		—			(330	)		—			—			—			(330	)		—		(330	)
Movement in foreign currency translation and net foreign investment hedging reserves		—		—			—			(305	)		—			—			(305	)		—		(305	)
Equity movements of associates		—		—			—			17			—			—			17			—		17
Aggregate tax effect of items recognized in other comprehensive income		—		—			(4	)		19			—			(2	)		13			—		13
Transfers from / to other headings		—		(17	)		17			—			—			—			—			—		—
Other		—		2			—			—			—			—			2			—		2

Total other comprehensive income		—		(15	)		102			(269	)		—			(2	)		(184	)		—		(184	)

Total comprehensive income / (loss) for 2012		—		506			102			(269	)		—			(2	)		337			—		337

Issuance of non-cumulative subordinated notes		—		—			—			—			—			271			271			—		271
Coupons on non-cumulative subordinated notes		—		(3	)		—			—			—			—			(3	)		—		(3	)
Coupons on perpetual securities		—		(44	)		—			—			—			—			(44	)		—		(44	)
Cost of issuance of non-cumulative subordinated notes (net of tax)		—		(9	)		—			—			—			—			(9	)		—		(9	)
Share options and incentive plans		—		—			—			—			—			9			9			—		9

At end of period		9,097		9,853			3,566			(1,233	)		—			4,998			26,281			14		26,295

Three months ended March 31, 2011

At beginning of year		8,184		9,529			958			(1,343	)		1,500			4,704			23,532			11		23,543

Net income / (loss) recognized in the income statement		—		327			—			—			—			—			327			—		327

Other comprehensive income:
Gains / (losses) on revaluation of available-for-sale investments		—		—			(200	)		—			—			—			(200	)		—		(200	)
(Gains) / losses transferred to income statement on disposal and impairment of available-for-sale investments		—		—			(61	)		—			—			—			(61	)		—		(61	)
Changes in revaluation reserve real estate held for own use		—		—			(1	)		—			—			—			(1	)		—		(1	)
Changes in cash flow hedging reserve		—		—			(87	)		—			—			—			(87	)		—		(87	)
Movement in foreign currency translation and net foreign investment hedging reserves		—		—			—			(888	)		—			—			(888	)		—		(888	)
Equity movements of associates		—		—			—			(8	)		—			—			(8	)		—		(8	)
Aggregate tax effect of items recognized in other comprehensive income		—		—			56			44			—			—			100			—		100
Other		—		1			—			—			—			—			1			—		1

Total other comprehensive income		—		1			(293	)		(852	)		—			—			(1,144	)		—		(1,144	)

Total comprehensive income / (loss) for 2011		—		328			(293	)		(852	)		—			—			(817	)		—		(817	)

Shares issued		913		—			—			—			—			—			913			—		913
Repayment convertible core capital securities		—		—			—			—			(750	)		—			(750	)		—		(750	)
Coupons on perpetual securities		—		(44	)		—			—			—			—			(44	)		—		(44	)
Coupons and premium on convertible core capital securities		—		(375	)		—			—			—			—			(375	)		—		(375	)
Share options and incentive plans		—		—			—			—			—			2			2			—		2
Cost of issuance of shares (net of tax)		—		(14	)		—			—			—			—			(14	)		—		(14	)

At end of period		9,097		9,424			665			(2,195	)		750			4,706			22,447			11		22,458

¹	For a breakdown of share capital please refer to note 18.

²	Issued capital and reserves attributable to equity holders of AEGON N.V.


Unaudited				Page 5

CONDENSED CONSOLIDATED CASH FLOW STATEMENT


EUR millions	Q1 2012			Q1 2011
Cash flow from operating activities		(732	)		(900	)

Purchases and disposals of intangible assets		(11	)		(3	)
Purchases and disposals of equipment and other assets		(13	)		(14	)
Purchases, disposals and dividends of subsidiaries and associates		(7	)		(4	)

Cash flow from investing activities		(31	)		(21	)

Issuance and purchase of share capital		—			913
Dividends paid		—			—
Issuances, repurchases and coupons of convertible core capital securities		—			(1,125	)
Issuances, repurchases and coupons of perpetuals		(58	)		(59	)
Issuances, repurchases and coupons of non-cumulative subordinated notes		266			—
Issuances and repayments of (subordinated) borrowings		1,315			267

Cash flow from financing activities		1,523			(4	)

Net increase / (decrease) in cash and cash equivalents		760			(925	)

Net cash and cash equivalents at January 1		7,826			5,174
Effects of changes in exchange rate		(17	)		(31	)

Net cash and cash equivalents at end of period		8,569			4,218


	Mar. 31, 2012			Mar. 31, 2011
Cash and cash equivalents		8,671			4,286
Bank overdrafts		(102	)		(68	)

Net cash and cash equivalents		8,569			4,218


Unaudited				Page 6

Notes to the condensed consolidated interim financial statements

Amounts in EUR millions, unless otherwise stated

1. Basis of presentation

The condensed consolidated interim financial statements as at, and for the first quarter ended, March 31, 2012, have been prepared in accordance with IAS 34 ‘Interim financial reporting’ as adopted by the European Union (EU) as issued by the International Accounting Standards Board (IASB). It does not include all of the information required for a full set of financial statements prepared in accordance with IFRS and should therefore be read together with the 2011 consolidated financial statements of AEGON N.V. as included in AEGON’s Annual Report for 2011. AEGON’s Annual Report for 2011 is available on its website (www.aegon.com).

The condensed consolidated interim financial statements have been prepared in accordance with the historical cost convention as modified by the revaluation of investment properties and those financial instruments (including derivatives) and financial liabilities that have been measured at fair value. The condensed consolidated interim financial statements for the first quarter of 2012 were approved by the Executive Board on May 8, 2012.

The published figures in these condensed consolidated interim financial statements are unaudited.

2. Significant accounting policies

All accounting policies and methods of computation applied in the condensed consolidated interim financial statements are the same as those applied in the 2011 consolidated financial statements, which were prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board as adopted by the European Union, except for the following accounting policy for compound instruments:

•

Non-cumulative subordinated notes, issued on February 7, 2012, are identified as a compound instrument due to the nature of this financial instrument. For these non-cumulative subordinated notes, issued in US dollars, AEGON has an unconditional right to avoid delivering cash or another financial asset to settle the coupon payments. The redemption of the principal is however not at the discretion of AEGON and therefore AEGON has a contractual obligation to settle the redemption in cash or another financial asset or through the exchange of financial assets and liabilities at potentially unfavorable conditions for AEGON. Compound instruments are separated into liability components and equity components. The liability component for the non-cumulative subordinated notes is equal to the present value of the redemption amount and subsequently carried at amortized cost using the effective interest rate method. The liability component is derecognized when the Group’s obligation under the contract expires, is discharged or is cancelled. The equity component is assigned the residual amount after deducting the liability component from the fair value of the instrument as a whole. The equity component in US dollars is translated into euro using the historical transaction exchange rates.

Incremental external costs that are directly attributable to the issuing or buying back of the non-cumulative subordinated notes are recognized proportionate to the equity component and liability component, net of tax.

Coupon payments and other distributions to holders of the non-cumulative subordinated notes are recognized directly in equity, net of tax. A liability for non-cumulative dividends payable is not recognized until the coupon has been declared and approved.


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The following standards, interpretations, amendments to standards and interpretations became effective in 2012:

•

Amendment to IFRS 1 First time adoption - Severe Hyperinflation and Removal of Fixed Dates for First Time Adopters;

•

Amendment to IFRS 7 Disclosures - Transfers of Financial Assets;

•

IAS 12 Income Taxes – Recovery of Tax Assets.

None of these new or revised standards and interpretations had a significant effect on the condensed consolidated interim financial statements for the period ended March 31, 2012.

Taxes on income for the Q1 2012 interim period are accrued using the tax rate that would be applicable to expected total annual earnings.

Critical accounting estimates

Certain amounts recorded in the condensed consolidated interim financial statements reflect estimates and assumptions made by management. Actual results may differ from the estimates made.

Exchange rates

The following exchange rates are applied for the condensed consolidated interim financial statements:

Closing exchange rates


			USD		GBP
March 31, 2012	1	EUR		1.3317		0.8335
December 31, 2011	1	EUR		1.2982		0.8353

Weighted average exchange rates


			USD		GBP
Q1 2012	1	EUR		1.3101		0.8335
Q1 2011	1	EUR		1.3663		0.8523


Unaudited				Page 8

3. Segment information

3.1 Income statement


EUR millions	Americas			The Netherlands			United Kingdom			New Markets			Holding and other activities			Eliminations			Non-IFRS Total			Associates eliminations			Total IFRS based
*Three months ended March 31, 2012*

Underlying earnings before tax geographically		292			79			29			88			(61	)		(2	)		425			(3	)		422
Fair value items		64			42			(2	)		7			45			—			156			—			156
Realized gains / (losses) on investments		9			34			—			2			—			—			45			—			45
Impairment charges		(36	)		(3	)		—			(4	)		(4	)		—			(47	)		—			(47	)
Impairment reversals		6			—			—			—			—			—			6			—			6
Other income / (charges)		(1	)		(3	)		6			(18	)		(1	)		—			(17	)		—			(17	)
Run-off businesses		(2	)		—			—			—			—			—			(2	)		—			(2	)

Income before tax		332			149			33			75			(21	)		(2	)		566			(3	)		563
Income tax (expense) / benefit		(53	)		(8	)		13			(27	)		30			—			(45	)		3			(42	)

Net income		279			141			46			48			9			(2	)		521			—			521

Inter-segment underlying earnings		(46	)		(12	)		(16	)		71			3

Revenues
Life insurance gross premiums		1,581			1,772			1,415			408			—			(18	)		5,158			(93	)		5,065
Accident and health insurance		444			109			—			62			1			(1	)		615			—			615
General insurance		—			134			—			37			—			—			171			—			171

Total gross premiums		2,025			2,015			1,415			507			1			(19	)		5,944			(93	)		5,851
Investment income		890			552			562			86			89			(87	)		2,092			(16	)		2,076
Fee and commission income		285			86			31			128			—			(65	)		465			—			465
Other revenues		—			—			—			1			1			—			2			—			2

Total revenues		3,200			2,653			2,008			722			91			(171	)		8,503			(109	)		8,394

Inter-segment revenues		7			—			1			76			87


EUR millions	Americas			The Netherlands			United Kingdom			New Markets			Holding and other activities			Eliminations			Non-IFRS Total			Associates eliminations			Total IFRS based
*Three months ended March 31, 2011*

Underlying earnings before tax geographically		336			81			12			68			(82	)		(1	)		414			(4	)		410
Fair value items		(12	)		(60	)		(1	)		—			(12	)		—			(85	)		—			(85	)
Realized gains / (losses) on investments		24			35			29			3			—			—			91			—			91
Impairment charges		(83	)		(3	)		—			(2	)		—			—			(88	)		—			(88	)
Impairment reversals		25			1			—			—			—			—			26			—			26
Other income / (charges)		—			(8	)		(6	)		11			—			—			(3	)		—			(3	)
Run-off businesses		22			—			—			—			—			—			22			—			22

Income before tax		312			46			34			80			(94	)		(1	)		377			(4	)		373
Income tax (expense) / benefit		(56	)		(7	)		20			(31	)		24			—			(50	)		4			(46	)

Net income		256			39			54			49			(70	)		(1	)		327			—			327

Inter-segment underlying earnings		(40	)		(10	)		(17	)		64			3

Revenues
Life insurance gross premiums		1,522			1,871			1,862			435			—			(11	)		5,679			(156	)		5,523
Accident and health insurance		413			109			—			59			—			—			581			—			581
General insurance		—			132			—			41			—			—			173			—			173

Total gross premiums		1,935			2,112			1,862			535			—			(11	)		6,433			(156	)		6,277
Investment income		935			520			599			75			83			(81	)		2,131			(20	)		2,111
Fee and commission income		274			95			37			118			—			(64	)		460			—			460
Other revenues		—			—			—			1			1			—			2			—			2

Total revenues		3,144			2,727			2,498			729			84			(156	)		9,026			(176	)		8,850

Inter-segment revenues		6			1			—			70			79

As of the first quarter of 2012, AEGON has revised its financial reporting to reflect changes in its organization. Businesses in Asia, which were previously managed by AEGON Americas, are included in the Asia line of business within the “New Markets” segment. For the full year of 2011, the underlying earnings before tax generated by the Asian operations totaling EUR 37 million were previously reported under the “Americas” segment.


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Non-IFRS measures

This report includes the non-IFRS financial measure: underlying earnings before tax. The reconciliation of this measure to the most comparable IFRS measure is presented in the tables in this note. This non-IFRS measure is calculated by consolidating on a proportionate basis the revenues and expenses of AEGON’s associated companies in Spain, India, Brazil and Mexico. AEGON believes that its non-IFRS measure provides meaningful information about the underlying operating results of AEGON’s business including insight into the financial measures that senior management uses in managing the business.

AEGON’s senior management is compensated based in part on AEGON’s results against targets using the non-IFRS measure presented here. While many other insurers in AEGON’s peer group present substantially similar non-IFRS measures, the non-IFRS measure presented in this document may nevertheless differ from the non-IFRS measures presented by other insurers. There is no standardized meaning to these measures under IFRS or any other recognized set of accounting standards and readers are cautioned to consider carefully the different ways in which AEGON and its peers present similar information before comparing them.

AEGON believes the non-IFRS measure shown herein, when read together with AEGON’s reported IFRS financial statements, provides meaningful supplemental information for the investing public to evaluate AEGON’s business after eliminating the impact of current IFRS accounting policies for financial instruments and insurance contracts, which embed a number of accounting policy alternatives that companies may select in presenting their results (i.e. companies can use different local GAAPs) and that can make the comparability from period to period difficult.

Underlying earnings

Certain assets held by AEGON Americas, AEGON The Netherlands and AEGON UK are carried at fair value and managed on a total return basis, with no offsetting changes in the valuation of related liabilities. These include assets such as investments in hedge funds, private equities, real estate limited partnerships, convertible bonds and structured products. Underlying earnings exclude any over- or underperformance compared to management’s long-term expected return on assets.

Based on current holdings and asset returns, the long-term expected return on an annual basis is 8-10%, depending on asset class, including cash income and market value changes. The expected earnings from these asset classes are net of deferred policy acquisition costs (DPAC) where applicable.

In addition, certain products offered by AEGON Americas contain guarantees and are reported on a fair value basis, including the segregated funds offered by AEGON Canada and the total return annuities and guarantees on variable annuities of AEGON USA. The earnings on these products are impacted by movements in equity markets and risk-free interest rates. Short-term developments in the financial markets may therefore cause volatility in earnings. Included in underlying earnings is a long-term expected return on these products and excluded is any over- or underperformance compared to management’s expected return. The fair value movements of certain guarantees and the fair value change of derivatives that hedge certain risks on these guarantees of AEGON The Netherlands and Variable Annuities Europe (included in New Markets) are excluded from underlying earnings, and the long-term expected return for these guarantees is set at zero.

Holding and other activities include certain issued bonds that are held at fair value through profit or loss (FVTPL). The interest rate risk on these bonds is hedged using swaps. The fair value movement resulting from changes in AEGON’s credit spread used in the valuation of these bonds are excluded from underlying earnings and reported under fair value items.


Unaudited				Page 10

Fair value items

Fair value items include the over- or underperformance of investments and guarantees held at fair value for which the expected long-term return is included in underlying earnings. Changes to these long-term return assumptions are also included in the fair value items.

In addition, hedge ineffectiveness on hedge transactions, fair value changes on economic hedges without natural offset in earnings and for which no hedge accounting is applied and fair value movements on real estate are included under fair value items.

Realized gains or losses on investments

Includes realized gains and losses on available-for-sale investments, mortgage loans and loan portfolios.

Impairment charges / reversals

Includes impairments and reversals on available-for-sale debt securities and impairments on shares including the effect of deferred policyholder acquisition costs, mortgage loans and loan portfolios on amortized cost and associates respectively.

Other income or charges

Other income or charges is used to report any items which cannot be directly allocated to a specific line of business. Also items that are outside the normal course of business are reported under this heading.

Other charges include restructuring charges that are considered other charges for segment reporting purposes because they are outside the normal course of business. In the condensed consolidated income statement, these charges are included in operating expenses.

Run-off businesses

Includes underlying results of business units where management has decided to exit the market and to run off the existing block of business. Currently, this line includes the run-off of the institutional spread-based business, structured settlements blocks of business, Bank-Owned and Corporate-Owned Life Insurance (BOLI/COLI) business and life reinsurance business in the United States. AEGON has other blocks of business for which sales have been discontinued and of which the earnings are included in underlying earnings.

Share in earnings of associates

Earnings from AEGON’s associates in insurance companies in Spain, India, Brazil and Mexico are reported on an underlying earnings basis. Other associates are included on a net income basis.


Unaudited				Page 11

3.2 Investments geographically


					amounts in million EUR (unless otherwise stated)
Americas USD		United Kingdom GBP		At March 31, 2012	Americas		The Netherlands		United Kingdom		New Markets		Holding & other activities		Eliminations			Total EUR
				Investments
	1,711		47	Shares		1,284		421		57		68		7		(2	)		1,835
	84,887		8,245	Debt securities		63,744		17,691		9,891		4,175		—		—			95,501
	13,142		6	Loans		9,868		19,163		8		682		—		—			29,721
	13,380		—	Other financial assets		10,048		303		—		32		587		—			10,970
	997		—	Investments in real estate		749		1,994		—		—		—		—			2,743

	114,117		8,298	Investments general account		85,693		39,572		9,956		4,957		594		(2	)		140,770
	—		23,194	Shares		—		8,382		27,827		3,446		—		(6	)		39,649
	—		9,832	Debt securities		—		15,861		11,796		375		—		—			28,032
	86,279		7,691	Separate accounts and investment funds		64,789		—		9,227		1,176		—		—			75,192
	—		2,834	Other financial assets		—		468		3,400		1,666		—		—			5,534
	—		912	Investments in real estate		—		—		1,094		—		—		—			1,094

	86,279		44,463	Investments for account of policyholders		64,789		24,711		53,344		6,663		—		(6	)		149,501
	200,396		52,761	Investments on balance sheet		150,482		64,283		63,300		11,620		594		(8	)		290,271
	126,265		—	Off balance sheet investments third parties		94,814		—		—		51,668		—		—			146,482

	326,661		52,761	Total revenue generating investments		245,296		64,283		63,300		63,288		594		(8	)		436,753

				Investments
	93,930		8,250	Available-for-sale		70,534		18,241		9,898		4,013		23		—			102,709
	13,142		6	Loans		9,868		19,163		8		682		—		—			29,721
	—		—	Held-to-maturity		—		—		—		164		—		—			164
	92,327		43,593	Financial assets at fair value through profit or loss		69,331		24,885		52,300		6,761		571		(8	)		153,840
	997		912	Investments in real estate		749		1,994		1,094		—		—		—			3,837

	200,396		52,761	Total investments on balance sheet		150,482		64,283		63,300		11,620		594		(8	)		290,271

	107		7	Investments in associates		80		52		9		629		4		—			774
	32,633		5,979	Other assets		24,504		20,781		7,174		3,747		36,131		(33,664	)		58,673

	233,136		58,747	Consolidated total assets		175,066		85,116		70,483		15,996		36,729		(33,672	)		349,718


					amounts in million EUR (unless otherwise stated)
Americas USD		United Kingdom GBP		At December 31, 2011	Americas		The Netherlands		United Kingdom		New Markets		Holding & other activities		Eliminations			Total EUR
				Investments
	1,570		45	Shares		1,209		505		54		60		11		(2	)		1,837
	84,192		8,261	Debt securities		64,853		17,640		9,890		4,036		—		—			96,419
	13,319		7	Loans		10,260		18,825		8		643		—		—			29,736
	16,196		—	Other financial assets		12,476		40		—		43		744		—			13,303
	1,006		—	Investments in real estate		775		2,009		—		—		—		—			2,784

	116,283		8,313	Investments general account		89,573		39,019		9,952		4,782		755		(2	)		144,079
	—		21,755	Shares		—		7,608		26,045		3,459		—		(4	)		37,108
	—		10,003	Debt securities		—		15,124		11,975		277		—		—			27,376
	80,137		7,095	Separate accounts and investment funds		61,729		—		8,495		1,060		—		—			71,284
	—		2,940	Other financial assets		—		491		3,519		1,619		—		—			5,629
	—		946	Investments in real estate		—		—		1,132		—		—		—			1,132

	80,137		42,739	Investments for account of policyholders		61,729		23,223		51,166		6,415		—		(4	)		142,529
	196,420		51,052	Investments on balance sheet		151,302		62,242		61,118		11,197		755		(6	)		286,608
	119,371		—	Off balance sheet investments third parties		91,951		—		—		44,959		—		—			136,910

	315,791		51,052	Total revenue generating investments		243,253		62,242		61,118		56,156		755		(6	)		423,518

				Investments
	96,145		8,266	Available-for-sale		74,060		18,016		9,896		3,861		27		—			105,860
	13,319		7	Loans		10,260		18,825		8		643		—		—			29,736
	—		—	Held-to-maturity		—		—		—		168		—		—			168
	85,950		41,833	Financial assets at fair value through profit or loss		66,207		23,392		50,082		6,525		728		(6	)		146,928
	1,006		946	Investments in real estate		775		2,009		1,132		—		—		—			3,916

	196,420		51,052	Total investments on balance sheet		151,302		62,242		61,118		11,197		755		(6	)		286,608

	100		7	Investments in associates		77		52		9		600		4		—			742
	33,562		5,919	Other assets		25,852		19,403		7,086		3,789		35,878		(33,781	)		58,227

	230,082		56,978	Consolidated total assets		177,231		81,697		68,213		15,586		36,637		(33,787	)		345,577


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4. Premium income and premium to reinsurers


EUR millions	Q1 2012		Q1 2011
Gross
Life		5,065		5,523
Non-Life		786		754

Total		5,851		6,277

Reinsurance
Life		825		362
Non-Life		100		81

Total		925		443

Reinsurance premiums increased mainly as a result of the increased external reinsurance life premiums following the divestment of the life reinsurance business, Transamerica Reinsurance, to SCOR completed on August 9, 2011.

5. Investment income


EUR millions	Q1 2012		Q1 2011
Interest income		1,812		1,837
Dividend income		225		228
Rental income		39		46

Total investment income		2,076		2,111

Investment income related to general account		1,459		1,471
Investment income for account of policyholders		617		640

Total		2,076		2,111

6. Income from reinsurance ceded

The increase in Income from reinsurance ceded is mainly the result of the increased income from external reinsurance following the divestment of the life reinsurance business, Transamerica Reinsurance, to SCOR completed on August 9, 2011.

7. Results from financial transactions


EUR millions	Q1 2012			Q1 2011
Net fair value change of general account financial investments at FVTPL other than derivatives		263			127
Realized gains and (losses) on financial investments		55			104
Gains and (losses) on investments in real estate		(25	)		(11	)
Net fair value change of derivatives		130			(523	)
Net fair value change on for account of policyholder financial assets at FVTPL		7,167			1,410
Net fair value change on investments in real estate for account of policyholders		(8	)		6
Net foreign currency gains and (losses)		7			(8	)
Net fair value change on borrowings and other financial liabilities		(24	)		8

Total		7,565			1,113

Net fair value changes on for account of policyholder financial assets at fair value through profit and loss are offset by amounts in Claims and benefits reported in the Benefits and expenses line (note 9).


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8. Other income

Other income in Q1 2011 mainly relates to a benefit related to a settlement of legal claims.

9. Benefits and expenses


EUR millions	Q1 2012			Q1 2011
Claims and benefits		15,494			9,068
Employee expenses		504			537
Administration expenses		262			284
Deferred expenses		(367	)		(387	)
Amortization charges		271			357

Total		16,164			9,859

Claims and benefits reflects the claims and benefits paid to policyholders, including claims and benefits in excess of account value for products for which deposit accounting is applied and the change in valuation of liabilities for insurance and investment contracts. Claims and benefits fluctuates mainly as a result of changes in technical provisions resulting from fair value changes on for account of policyholder financial assets included in results from financial transactions (note 7).

10. Impairment charges / (reversals)


EUR millions	Q1 2012			Q1 2011
Impairment charges / (reversals) comprise:
Impairment charges on financial assets, excluding receivables ¹		50			88
Impairment reversals on financial assets, excluding receivables ¹		(6	)		(26	)
Impairment charges / (reversals) on non-financial assets and receivables		2			2

Total		46			64

Impairment charges on financial assets, excluding receivables, from:
Shares		4			2
Debt securities and money market instruments		31			70
Loans		14			9
Other		1			7

Total		50			88

Impairment reversals on financial assets, excluding receivables, from:
Debt securities and money market instruments		(1	)		(24	)
Loans		(5	)		(2	)

Total		(6	)		(26	)

¹	Impairment charges / (reversals) on financial assets, excluding receivables, are excluded from underlying earnings before tax for segment reporting (refer to note 3).

11. Other charges

Other charges, in both years, consist mainly of the annual bank tax charge in Hungary.


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12. Intangible assets


EUR millions	Mar. 31, 2012		Dec. 31, 2011
Goodwill		756		753
VOBA		2,019		2,086
Future servicing rights		396		397
Software		43		36
Other		11		13

Total intangible assets		3,225		3,285

The increase in goodwill is mainly attributable to foreign currency effects. The decrease in value of business acquired (VOBA) is mainly attributable to amortizations and foreign currency effects.

13. Investments


EUR millions	Mar. 31, 2012		Dec. 31, 2011
Available-for-sale (AFS)		102,709		105,860
Loans		29,721		29,736
Held-to-maturity (HTM)		164		168
Financial assets at fair value through profit or loss (FVTPL)		5,433		5,531

Financial assets, excluding derivatives		138,027		141,295
Investments in real estate		2,743		2,784

Total investments for general account		140,770		144,079



Total financial assets, excluding derivatives

	AFS		FVTPL		HTM		Loans		Total
Shares		837		998		—		—		1,835
Debt securities		93,807		1,530		164		—		95,501
Money market and other short term investments		6,938		938		—		—		7,876
Mortgages		—		—		—		26,165		26,165
Private loans		—		—		—		989		989
Deposits with financial institutions		—		—		—		286		286
Policy loans		—		—		—		2,116		2,116
Receivables out of share lease agreements		—		—		—		16		16
Other		1,127		1,967		—		149		3,243

March 31, 2012		102,709		5,433		164		29,721		138,027


	AFS		FVTPL		HTM		Loans		Total
Shares		869		968		—		—		1,837
Debt securities		94,722		1,529		168		—		96,419
Money market and other short term investments		9,382		1,090		—		—		10,472
Mortgages		—		—		—		26,012		26,012
Private loans		—		—		—		927		927
Deposits with financial institutions		—		—		—		452		452
Policy loans		—		—		—		2,180		2,180
Receivables out of share lease agreements		—		—		—		19		19
Other		887		1,944		—		146		2,977

December 31, 2011		105,860		5,531		168		29,736		141,295


Unaudited				Page 15

Government bond investments

Included in the available-for-sale investments are EUR 1,104 million (December 31, 2011: EUR 1,112 million) of exposures to the central governments of the European peripheral countries of Portugal, Italy, Ireland, Greece and Spain. The table below provides the amortized cost and fair value of these exposures.


EUR millions	Mar. 31, 2012				Dec. 31, 2011
	Amortized cost		Fair value		Amortized cost		Fair value
Portugal		13		9		13		7
Italy		46		43		46		38
Ireland		25		24		30		26
Greece		—		—		1		1
Spain		1,020		950		1,022		962

Total		1,104		1,026		1,112		1,034

14. Investments for account of policyholders


EUR millions	Mar. 31, 2012		Dec. 31, 2011
Shares		39,649		37,108
Debt securities		28,032		27,376
Money market and short-term investments		2,235		2,283
Deposits with financial institutions		2,800		2,813
Separate accounts and unconsolidated investment funds		75,192		71,284
Other		499		533

Total investments for account of policyholders at fair value through profit or loss, excluding derivatives		148,407		141,397
Investment in real estate		1,094		1,132

Total investments for account of policyholders		149,501		142,529

15. Derivatives

In the first quarter of 2012, AEGON The Netherlands entered into a derivative to partially hedge its longevity risk. The derivative, with a notional amount of EUR 12 billion, becomes in the money if - over 20 years - realized mortality rates are more than 7.5% lower than pre-defined mortality tables. The derivative is measured at fair value through profit or loss in accordance with IAS 39. The value of the longevity derivative is calculated using an internal model as there is no active market for this type of derivative.

16. Reinsurance assets

Reinsurance assets reflect the external reinsurance following the divestment of the life reinsurance business, Transamerica Reinsurance, to SCOR completed on August 9, 2011.


Unaudited				Page 16

17. Deferred expenses and rebates


EUR millions	Mar. 31, 2012		Dec. 31, 2011
DPAC for insurance contracts and investment contracts with discretionary participation features		10,413		10,486
Deferred cost of reinsurance		572		541
Deferred transaction costs for investment management services		405		405
Unamortized interest rate rebates		190		201

Total deferred expenses and rebates		11,580		11,633

18. Share capital


EUR millions	Mar. 31, 2012		Dec. 31, 2011
Share capital - par value		310		310
Share premium		8,787		8,787

Total share capital		9,097		9,097

19. Other equity instruments

On February 7, 2012, AEGON issued USD 525 million in aggregate principal amount of 8.00% non-cumulative subordinated notes, due 2042, in an underwritten public offering in the United States registered with the U.S. Securities and Exchange Commission. The subordinated notes bear interest at a fixed rate of 8.00% and will not be cumulative and are priced at 100% of their principal amount.

The securities are subordinated and rank junior to all other liabilities, senior to the junior perpetual capital securities and equally with the perpetual cumulative subordinated bonds. The conditions of the securities contain certain provisions for optional and required cancellation of interest payments. The securities have a stated maturity of 30 years, however AEGON has the right to call the securities for redemption at par for the first time on the coupon date in 2017, or on any coupon payment date thereafter.

The interest rate exposure on substantially all of these securities has been swapped to a EURIBOR based interest rate.

These notes are recognized as a compound instrument due to the nature of this financial instrument. Compound instruments are separated into equity components and liability components. At March 31, 2012 the equity component amounts to EUR 271 million, subordinated borrowings amounts to EUR 40 million and a deferred tax liability (included in Other liabilities) amounting to EUR 90 million.

Refer to note 20 for the component classified as subordinated borrowings.

The proceeds from the issuance of the subordinated notes are used for general corporate purposes.


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20. Subordinated borrowings

Subordinated borrowings include a liability of EUR 40 million relating to the non-cumulative subordinated notes. This liability component for the non-cumulative subordinated notes is related to the redemption amount.

For further information on the non-cumulative subordinated notes refer to note 19.

21. Borrowings


EUR millions	Mar. 31, 2012		Dec. 31, 2011
Debentures and other loans		10,601		9,199
Commercial paper		478		646
Short term deposits		18		18
Bank overdrafts		102		278

Total borrowings		11,199		10,141

On March 1, 2012, AEGON The Netherlands borrowed EUR 1.5 billion from the European Central Bank, under its Long Term Refinancing Operation (LTRO) program. The borrowing has a 3 year term and bears 1% interest per annum. The borrowing is fully collateralized and is reported under debenttures and other loans. The funds will be mainly used to fund the mortgage loan production of AEGON The Netherlands.

Included in Debentures and other loans is EUR 1,023 million relating to borrowings measured at fair value (2011: EUR 1,010 million).

Commercial paper, Short term deposits and Bank overdrafts vary with the normal course of business.

22. Commitments and contingencies

There have been no material changes in contingent assets and liabilities as reported in the 2011 consolidated financial statements of AEGON.

23. Acquisitions / Divestments

There were no significant acquisitions or divestments during the first quarter of 2012.

24. Events after the balance sheet date

There were no events after the balance sheet date with a significant impact on the financial position of the Company per March 31, 2012.


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Unaudited				Page 19

Disclaimers

Cautionary note regarding non-GAAP measures

This document includes certain non-GAAP financial measures: underlying earnings before tax and market consistent value of new business. The reconciliation of underlying earnings before tax to the most comparable IFRS measure is provided in Note 3 “Segment information” of our Condensed consolidated interim financial statements. Market consistent value of new business is not based on IFRS, which are used to report AEGON’s primary financial statements and should not be viewed as a substitute for IFRS financial measures. We may define and calculate market consistent value of new business differently than other companies. AEGON believes that these non-GAAP measures, together with the IFRS information, provide a meaningful measure for the investment community to evaluate AEGON’s business relative to the businesses of AEGON’s peers.

Local currencies and constant currency exchange rates

This document contains certain information about AEGON’s results and financial condition in USD for the Americas and GBP for the United Kingdom, because those businesses operate and are managed primarily in those currencies. Certain comparative information presented on a constant currency basis eliminates the effects of changes in currency exchange rates. None of this information is a substitute for or superior to financial information about us presented in EUR, which is the currency of AEGON’s primary financial statements.

Forward-looking statements

The statements contained in this document that are not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following are words that identify such forward-looking statements: aim, believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on, plan, continue, want, forecast, goal, should, would, is confident, will, and similar expressions as they relate to AEGON. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. AEGON undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which merely reflect company expectations at the time of writing. Actual results may differ materially from expectations conveyed in forward-looking statements due to changes caused by various risks and uncertainties. Such risks and uncertainties include but are not limited to the following:

•

Changes in general economic conditions, particularly in the United States, the Netherlands and the United Kingdom;

•

Changes in the performance of financial markets, including emerging markets, such as with regard to:

The frequency and severity of defaults by issuers in AEGON’s fixed income investment portfolios;

The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of equity and debt securities AEGON holds; and

The effects of declining creditworthiness of certain private sector securities and the resulting decline in the value of sovereign exposure that AEGON holds;

•

Changes in the performance of AEGON’s investment portfolio and decline in ratings of the company’s counterparties;

•

Consequences of a potential (partial) break-up of the euro;

•

The frequency and severity of insured loss events;

•

Changes affecting mortality, morbidity, persistence and other factors that may impact the profitability of AEGON’s insurance products;

•

Reinsurers to whom AEGON has ceded significant underwriting risks may fail to meet their obligations;

•

Changes affecting interest rate levels and continuing low or rapidly changing interest rate levels; changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates;

•

Changes in the availability of, and costs associated with, liquidity sources such as bank and capital markets funding, as well as conditions in the credit markets in general such as changes in borrower and counterparty creditworthiness;

•

Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets;

•

Changes in laws and regulations, particularly those affecting AEGON’s operations, ability to hire and retain key personnel, the products the company sells, and the attractiveness of certain products to its consumers;

•

Regulatory changes relating to the insurance industry in the jurisdictions in which AEGON operates;

•

Acts of God, acts of terrorism, acts of war and pandemics;

•

Changes in the policies of central banks and/or governments;

•

Lowering of one or more of AEGON’s debt ratings issued by recognized rating organizations and the adverse impact such action may have on the company’s ability to raise capital and on its liquidity and financial condition;

•

Lowering of one or more of insurer financial strength ratings of AEGON’s insurance subsidiaries and the adverse impact such action may have on the premium writings, policy retention, profitability of its insurance subsidiaries and liquidity;

•

The effect of the European Union’s Solvency II requirements and other regulations in other jurisdictions affecting the capital AEGON is required to maintain;

•

Litigation or regulatory action that could require AEGON to pay significant damages or change the way the company does business;

•

As AEGON’s operations support complex transactions and are highly dependent on the proper functioning of information technology, a computer system failure or security breach may disrupt the company’s business, damage its reputation and adversely affect its results of operations, financial condition and cash flows;

•

Customer responsiveness to both new products and distribution channels;

•

Competitive, legal, regulatory, or tax changes that affect profitability, the distribution cost of or demand for AEGON’s products;

•

Changes in accounting regulations and policies may affect AEGON’s reported results and shareholder’s equity;

•

The impact of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including AEGON’s ability to integrate acquisitions and to obtain the anticipated results and synergies from acquisitions;

•

Catastrophic events, either manmade or by nature, could result in material losses and significantly interrupt AEGON’s business; and

•

AEGON’s failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving initiatives.

Further details of potential risks and uncertainties affecting the company are described in the company’s filings with NYSE Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.


Unaudited				Page 20

CORPORATE AND SHAREHOLDER INFORMATION

HEADQUARTERS

AEGON N.V.

P.O. Box 85

2501 CB The Hague

The Netherlands

Telephone: + 31 70 344 32 10

www.aegon.com

GROUP CORPORATE COMMUNICATIONS & INVESTOR RELATIONS

AEGON N.V.

P.O. Box 85

2501 CB The Hague

The Netherlands

MEDIA


Telephone:		+ 31 70 344 83 44
E-mail:		gcc-ir@aegon.com

ANALYSTS AND INVESTORS


Telephone:		+ 31 70 344 83 05 or + 1 877 548 96 68 - toll free USA only
E-mail:		ir@aegon.com

PUBLICATION FIGURES IN 2012


Thursday, August 9, 2012		Results second quarter 2012
Thursday, November 8, 2012		Results third quarter 2012

PRESS RELEASE AND SUPPLEMENTS

AEGON’s Q1 2012 press release and Q1 2012 Financial Supplement are available on AEGON’s website www.aegon.com.


Unaudited				Page 21

ABOUT AEGON

Throughout their working lives and into retirement, millions of people around the world rely on AEGON to help them secure their long-term financial futures.

As an international life insurance, pension and investment company, AEGON has businesses in over twenty markets in the Americas, Europe and Asia. AEGON companies employ over 25,000 people and have some 47 million customers across the globe.

AEGON uses its strength and expertise to create added value for customers, employees, shareholders and the wider community. AEGON does this by encouraging innovation and by growing its businesses profitably and sustainably.

AEGON’s ambition is to be a leader in all its chosen markets.

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