EX-99 3 dex99.txt EXHIBIT 99 [LOGO] 833398 PRESS RELEASE FIRST QUARTER 2003 NET INCOME, EUR 393 MILLION; NET INCOME PER SHARE, EUR 0.26 HIGHLIGHTS (amounts in millions, except per share data)
First First First First quarter quarter quarter quarter 2002 2003 2002 2003 USD USD % EUR EUR % ----------------------------------------------------------------------------------------------- 740 476 -36 Income before tax 845 444 -47 540 421 -22 Net income 617 393 -36 0.39 0.28 -28 Net income per share 0.44 0.26 -41 5,230 6,066 16 Premium income 5,972 5,653 -5 2,183 2,184 - Investment income 2,493 2,036 -18 7,495 8,351 11 Total revenues 8,558 7,783 -9 1,095 1,328 21 Commissions and expenses 1,250 1,238 -1 584 687 18 Standardized new life production 666 640 -4 7,611 7,787 2 Gross deposits /(1)/ 8,690 7,257 -16 14,924 14,732 -1 Shareholders' equity /(2)/ 14,231 13,522 -5 249,807 258,611 4 Total assets /(2)/ 238,206 237,367 -
/1)/ Annuity, GIC and savings deposits are not included in revenues /2)/ Amounts reported for 2002 are as of December 31, 2002 Chairman's statement "Income before tax increased significantly in comparison to the fourth quarter of 2002, but was 47% lower compared to the first three months of 2002. The first quarter of 2003 proved to be challenging, with continued low interest rates, lower equity markets, continued bond defaults and the weaker US dollar versus the euro. However, it is encouraging to see that the first quarter of 2003 showed some signs of improvement in the credit markets, even though default rates remain far above a level considered average for AEGON and the industry", said Don Shepard, CEO and Chairman of the Executive Board. "Excluding currency influence, we continue to increase total life production as we maintain our focus on cost control". Outlook 2003 AEGON's Executive Board remains cautious in its outlook for 2003 in view of continuing uncertainties in the financial markets and is not providing an earnings forecast. Key points for the first quarter 2003 . Standardized life production increased 10% in the Americas and 4% in the UK but was down 42% in the Netherlands, reflecting volatility in the placement of new business in the pension fund markets compared to first quarter of 2002. Total annuity and GIC deposits increased 2% in the Americas. Off-balance sheet production in the Americas increased 32% over the first quarter of 2002. Off-balance sheet production decreased 48% in the Netherlands but increased fourfold in the United Kingdom, compared to first quarter 2002. . Default provisions in the USA were strengthened by USD 149 million compared to USD 82 million in the first three months of 2002 but showed improvement in comparison to the fourth quarter of 2002 (USD 219 million). The balance of the USA default provisions at March 31, 2003 was USD 280 million. . EUR 126 million was released as indirect investment income from the revaluation account to income before tax compared with EUR 215 million for the first quarter of 2002. . Earnings are negatively affected by lower employee pension plan benefits in the USA (USD 22 million) and higher pension costs in the Netherlands (EUR 15 million) and the UK (GBP 4 million) totaling EUR 42 million. . Variable annuity results continue to assume annual equity returns of 12% for five years and 9% thereafter in the determination of deferred policy acquisition costs (DPAC) amortization and provisions for guaranteed benefits. . There was no accelerated amortization of deferred policy acquisition costs (DPAC unlocking). Additions to the provisions for guaranteed minimum benefits taken during the first quarter 2003 in the USA were USD 9 million, in Canada CAD 12 million and in the Netherlands EUR 13 million. In the first quarter 2002 the additions were nil in all countries. . Net income for Transamerica Finance Corporation was USD 78 million compared to USD 24 million in the first quarter of 2002. The increase was driven by lower credit losses, increased revenue due to mortgage refinancing activity, lower funding costs, and one-time tax benefits of USD 31 million. . Currency exchange rates negatively impacted net earnings by 10% compared to first quarter 2002, driven mainly by the lower US dollar exchange rate. . The ratio of shareholders' equity to total capital remains stable at approximately the same level as year-end 2002. Currency exchange rate translations do not affect the solvency at the operating units. Report of the Executive Board Income before tax for the first quarter of 2003 totaled EUR 444 million, 56% higher than the previous quarter but 47% lower than the same period last year. Earnings per share of EUR 0.26 were 41% lower than first quarter 2002. The decline from first quarter 2002 resulted from the lower average exchange rates of the main currencies (EUR 112 million), lower gross margin due to lower direct and indirect investment income, increased default charges (EUR 62 million), increased provisions for products with guaranteed minimum benefits (EUR 28 million) and lower fees on variable and unit-linked accounts. Total revenues were 9% lower (3% higher, excluding currency influence) and gross margin was 20% lower (excluding currency influence 7% lower). Commissions and expenses were 1% lower than the first quarter of 2002 (16% higher excluding currency influence) and negatively affected by higher employee pension cost; on balance higher DPAC amortization; EUR 13 million of investment costs in the Netherlands that are now recognized on a gross instead of a net basis, but which are offset by an equal amount in revenues; and EUR 27 million related to a USA coinsurance agreement. The Americas Net income totaled USD 245 million compared to USD 358 million in the first quarter of 2002. Pre-tax income for the quarter totaled USD 356 million compared to USD 536 million during the same period last year. Additions to asset default provisions of USD 149 million (USD 67 million higher than first quarter 2002), no indirect income compared to USD 81 million in the first quarter of 2002 and lower investment yields and squeezed spreads with an impact of approximately USD 44 million contributed to the decline. Variable annuity results continue to assume annual equity returns of 12% for five years and 9% thereafter in the determination of deferred policy acquisition costs (DPAC) amortization and provisions for guaranteed benefits. There was no accelerated DAC amortization (unlocking). Additions to the provisions for guaranteed minimum benefits in the U.S. were USD 9 million. In Canada provisions for guaranteed minimum benefits increased CAD 12 million. Excluding commissions and DPAC amortization, operating expenses increased USD 63 million. Reflected in the expenses of the first quarter 2003 is USD 22 million less in employee pension overfunding benefit, USD 27 million related to a coinsurance agreement that was cancelled and USD 7 million higher expenses related to acquisitions since the first quarter 2002. Excluding these items, expenses were up 2% from first quarter 2002 primarily as a result of increased sales production and growth of the in-force block of business. Standardized new premium life production in the Americas increased 10% over first quarter 2002 to USD 250 million. The majority of the increase was driven by the strong traditional universal life sales in our Agency operations. Total annuity and guaranteed investment contract (GIC) deposits increased 2% to USD 7 billion in the first quarter. Fixed annuity sales were down 20% compared to the first quarter of 2002. The strong growth (49% increase over the first quarter 2002) in variable annuity sales was influenced by consumer demand to capture the guaranteed minimum income benefit (GMIB) feature before its discontinuance in January 2003. Variable annuity production decreased significantly in the latter part of the quarter after the GMIB withdrawal. Off-balance sheet production was USD 5.6 billion, a 32% increase compared to the first quarter of 2002. Traditional life results of USD 174 million, down 24% compared to the first quarter of 2002, include USD 49 million of bond defaults compared to USD 13 million in the first quarter of 2002. Fixed annuity results of USD 64 million, down 44%, include USD 61 million of bond defaults compared to USD 19 million for the first quarter of 2002. The loss of the indirect investment income negatively impacted both the traditional life and fixed annuity earnings by USD 21 million and USD 31 million, respectively. GICs and funding agreement results of USD 44 million decreased 29% compared to the first three months of 2002. The loss of indirect investment income impacted GICs and funding agreement earnings by USD 22 million. Life for the account of policyholders results were USD 24 million compared to USD 28 million for the same period in 2002. Variable annuities experienced a loss of USD 4 million compared to a profit of USD 29 million in the first quarter of 2002. The majority of the decline over first quarter 2002 is due to higher guarantee death claims, higher DPAC amortization and an increase in provisions for guaranteed minimum benefits in Canada. Accident and health earnings were 29% lower due to increased bond defaults, loss of indirect investment income, and a one-time foreign currency gain in the first quarter of 2002. The Netherlands Net income was EUR 136 million compared to EUR 182 million for the first quarter 2002. Continued bearish equity markets were the primary driver of the decline. This resulted in lower investment income and in additions to the provisions for guaranteed minimum benefits, which were EUR 13 million and were nil in the first quarter 2002. The balance of DPAC amortization was EUR 7 million higher. New life production of EUR 73 million was down 42% compared to first quarter 2002 while off-balance sheet production decreased 48% to EUR 161 million for the quarter. With 6% production growth individual life performed well, while production in pensions decreased 62% compared to the first quarter 2002 reflecting the volatility in the placement of new business in the pension fund markets. Compared to year-end 2002 savings account balances slightly decreased (-1%) to a total of EUR 6 billion at the end of the first quarter 2003. Total revenues of EUR 2 billion were lower than the same period last year. The individual life business showed satisfying growth in premium income of 11%. Commissions and expenses increased 25% to EUR 189 million. Additional employee pension costs, lower deferral of policy acquisition costs and higher DPAC amortization are the primary drivers of the increase in commissions and expenses compared to the first quarter of 2002. Also included in expenses are EUR 13 million of investment costs that are now recognized on a gross instead of net basis, accounting for approximately 10% out of the 25% increase. This latter amount in expenses is offset by an equal amount in revenues. Traditional life results of EUR 133 million were 8% lower than the first quarter 2002, influenced by lower investment income. Life for the account of policyholder results were EUR 25 million, down from EUR 65 million in the prior year first quarter. Life results were affected by the higher provisions of EUR 31 million (e.g. guaranteed minimum benefits) and lower investment income due to the decline in the equity markets. Technical results from non-life were EUR 10 million, an increase of 9%. Mainly due to lower investment income total results were EUR 8 million lower compared with the first quarter 2002. Results from banking activities were zero, compared to EUR 9 million in the first quarter 2002. Lower interest spreads and further increases in provisions for credit risk contributed to the decline. United Kingdom Net income was GBP 21 million compared to GBP 42 million in the first quarter of 2002. The reduction in net income is primarily due to lower management and fund related fees as a direct result of the lower equity markets and higher DPAC amortization. Commissions and expenses increased to GBP 91 million, up GBP 36 million, due to inclusion of the operating costs of the acquired distribution companies, growth in the protection businesses, higher contributions of GBP 4 million to the employee pension plan and higher DPAC amortization. Standardized new life production of GBP 161 million was 4% higher than the first quarter 2002. Off-balance sheet production increased to GBP 127 million, a fourfold increase from the same quarter in 2002. Total revenues were up 21% as a result of increased single premium business and income from the acquired distribution companies. Other Countries Net income from other countries was EUR 14 million, a 17% increase from first quarter 2002. Higher investment income in Hungary, strict cost control and strong life sales at AEGON Taiwan as well as higher general insurance business results at AEGON Spain contributed to the increase. Capital Gains EUR 126 million was released as indirect investment income from the revaluation account to income before tax compared with EUR 215 million for the first quarter of 2002. The revaluation account balance at March 31, 2003 was EUR 2,170 million. Realized gains of EUR 1,840 million and unrealized gains of EUR 330 million account for the total. Capital and Funding Shareholders' equity was EUR 13,522 million compared to EUR 14,231 million at December 31, 2002. The decrease of EUR 709 million is largely comprised of negative currency exchange rate differences of EUR 539 million, a reduction in the revaluation account of EUR 428 million, a EUR 105 million decrease in the fair value of the total return swaps with Vereniging AEGON, and net income of EUR 393 million. AEGON is committed to a strategy of continued financial strength. At the end of the first quarter 2003, equity capital represented 71% of our total capital base, while senior and dated subordinated debt comprised 19% of our total capital base. Capital securities accounted for the remaining 10%. The ratio of shareholders' equity to total capital remains stable at approximately the same level as year-end 2002. Currency exchange rate translations do not affect the solvency at the operating units. Extraordinary General Meeting of Shareholders AEGON will hold an Extraordinary General Meeting of Shareholders on May 9, 2003, to adopt proposed changes to AEGON's corporate governance and to end its voluntary application of the Dutch large company regime. For further information please refer to the press release of March 20, 2003. Disclaimer Forward-looking statements The statements contained in this press release that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "believe", "estimate", "intend", "may", "expect", "anticipate", "predict", "project", "counting on", "plan", "continue", "want", "forecast", "should", "would", "is confident" and "will" and similar expressions as they relate to us are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. We undertake 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 speak only as of their dates. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations, including, but 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, including: -- the frequency and severity of defaults by issuers in our fixed income investment portfolios; and -- the effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in value of equity and debt securities we hold; . the frequency and severity of insured loss events; . changes affecting mortality, morbidity and other factors that may affect the profitability of our insurance products; . changes affecting interest rate levels; . changes affecting currency exchange rates, including the euro/US dollar and euro/UK pound exchange rates; . increasing levels of competition in the United States, The Netherlands, the United Kingdom and emerging markets; . changes in laws and regulations, particularly those affecting our operations, the products we sell and the attractiveness of certain products to our consumers; . regulatory changes relating to the insurance industry in the jurisdictions in which we operate; . acts of God, acts of terrorism and acts of war; . changes in the policies of central banks and/or foreign governments; . customer responsiveness to both new products and distribution channels; . competitive, legal, regulatory, or tax changes that affect the distribution cost of or demand for our products; and . our failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving initiatives. The Hague, May 6, 2003 -------------------------------------------------------------------------------- Inquiries: AEGON N.V. Group Communications Investor Relations Phone : +31 (0)70 344 83 44 NL +31 (0)70 344 83 05 USA +1 410 576 45 77 Web site: www.aegon.com -------------------------------------------------------------------------------- Conference call An investor conference call will be held today at 15.00 MET DST (14.00 BST; 09.00 a.m. ET). The phone numbers to listen in on the conference call are as follows: +31 (0)45 631 6905 (Netherlands) +44 208 515 2326 (United Kingdom) +1 416 646 3096 (United States, Canada) Webcast On 7 May 2003 the AEGON Executive Board will host an analyst and investor conference at 8.15 a.m. - 5.00 p.m. CET which will be webcast live on AEGON's website (www.aegon.com). Highlights
amounts in millions USD EUR ------------------------------ ------------------------------- First three months First three months ------------------------------ ------------------------------- 2003 2002 % 2003 2002 % Income by product segment 322 372 -13 Traditional life 300 425 -29 64 114 -44 Fixed annuities 60 130 -54 44 62 -29 GICs and funding agreements 41 71 -42 100 156 -36 Life for account policyholders 93 178 -48 -4 29 Variable annuities -4 33 3 4 -25 Fee business 3 4 -25 --------------------- ---------------------------------------------- ---------------------- 529 737 -28 Life insurance 493 841 -41 59 81 -27 Accident and health insurance 55 93 -41 16 15 7 General insurance 15 17 -12 --------------------- ---------------------------------------------- ---------------------- 604 833 -27 Total insurance activities 563 951 -41 0 8 -100 Banking activities 0 9 -100 -128 -101 27 Interest charges and other -119 -115 3 --------------------- ---------------------------------------------- ---------------------- 476 740 -36 Income before tax 444 845 -47 -133 -224 -41 Corporation tax -124 -255 -51 78 24 225 Transamerica Finance Corporation 73 27 170 --------------------- ---------------------------------------------- ---------------------- 421 540 -22 Net income 393 617 -36 ================================================================================================================ Income geographically 356 536 -34 Americas 332 612 -46 181 209 -13 The Netherlands 169 238 -29 46 83 -45 United Kingdom 43 95 -55 21 13 62 Other countries 19 15 27 --------------------- ---------------------------------------------- ---------------------- 604 841 -28 Income before tax business units 563 960 -41 -128 -101 27 Interest charges and other -119 -115 3 --------------------- ---------------------------------------------- ---------------------- 476 740 -36 Income before tax 444 845 -47 -133 -224 -41 Corporation tax -124 -255 -51 78 24 225 Transamerica Finance Corporation 73 27 170 --------------------- ---------------------------------------------- ---------------------- 421 540 -22 Net income 393 617 -36 ================================================================================================================ 1,804 1,835 -2 Gross margin 1,682 2,095 -20 1,328 1,095 21 Commissions and expenses 1,238 1,250 -1 Amounts per common share of EUR 0.12 0.28 0.39 -28 Net income /1/ 0.26 0.44 -41 0.28 0.39 -28 Net income fully diluted /1/ 0.26 0.44 -41 As at As at As at As at March 31 Dec. 31 March 31 Dec. 31 2003 2002 2003 2002 ---------------------------------------------------------------------------------------------------------------- 8.79 8.99 -2 Shareholders' equity /2/ 8.07 8.57 -6 9.22 9.54 -3 Shareholders' equity after full conversion /2/ 8.46 9.10 -7 ================================================================================================================ ---------------------------------------------------------------------------------------------------------------- Number of employees 26,559 25,817 3 Outstanding common shares: - Number of common shares (millions) 1,445 1,422 2 - Weighted average number (millions) 1,414 1,391 2 ================================================================================================================
/1/ Based on the weighted average number of common shares, adjusted for repurchased own shares. /2/ Based on the number of common shares outstanding at the end of the period, adjusted for repurchased own shares. Revenues and production
amounts in millions USD EUR ----------------------------- ----------------------------- First three months First three months ----------------------------- ----------------------------- 2003 2002 % 2003 2002 % Revenues 539 391 38 Life general account single premiums 502 447 12 1,610 1,446 11 Life general account recurring premiums 1,500 1,651 -9 1,413 1,319 7 Life policyholders account single premiums 1,317 1,506 -13 1,502 1,150 31 Life policyholders account recurring premiums 1,400 1,313 7 -------------------- --------------------------------------------------- ----------------------- 5,064 4,306 18 Total life insurance gross premiums 4,719 4,917 -4 753 726 4 Accident and health insurance premiums 702 829 -15 249 198 26 General insurance premiums 232 226 3 -------------------- --------------------------------------------------- ----------------------- 6,066 5,230 16 Total gross premiums 5,653 5,972 -5 2,182 2,163 1 Investment income insurance activities /1/ 2,034 2,470 -18 101 82 23 Income from banking activities 94 93 1 -------------------- --------------------------------------------------- ----------------------- 8,349 7,475 12 Total revenues business units 7,781 8,535 -9 2 20 -90 Income from other activities 2 23 -91 -------------------- --------------------------------------------------- ----------------------- 8,351 7,495 11 Total revenues 7,783 8,558 -9 ==================================================================================================================== Revenues by product segment 7,102 6,314 12 Life insurance 6,619 7,210 -8 881 861 2 Accident and health insurance 821 983 -16 265 218 22 General insurance 247 249 -1 101 82 23 Banking activities 94 93 1 2 20 -90 Other activities 2 23 -91 -------------------- --------------------------------------------------- ----------------------- 8,351 7,495 11 Total revenues 7,783 8,558 -9 ==================================================================================================================== Investment income for the account -1,662 859 of policyholders -1,549 981 ==================================================================================================================== Standardized new premium production life insurance 1,840 1,647 12 Single premiums 1,715 1,880 -9 503 419 20 Recurring premiums annualized 468 478 -2 687 584 18 Total recurring plus 1/10 single 640 666 -4 ==================================================================================================================== Deposits 1,705 2,140 -20 Fixed annuities 1,589 2,443 -35 2,669 2,957 -10 GICs and funding agreements 2,487 3,376 -26 2,586 1,739 49 Variable annuities 2,410 1,986 21 -------------------- --------------------------------------------------- ----------------------- 6,960 6,836 2 Total 6,486 7,805 -17 827 775 7 Savings deposits 771 885 -13 -------------------- --------------------------------------------------- ----------------------- 7,787 7,611 2 Total production on balance sheet 7,257 8,690 -16 ==================================================================================================================== Net deposits 782 1,514 -48 Fixed annuities 729 1,729 -58 672 1,168 -42 GICs and funding agreements 626 1,334 -53 1,577 476 Variable annuities 1,470 543 -------------------- --------------------------------------------------- ----------------------- 3,031 3,158 -4 Total 2,825 3,606 -22 -325 -37 -778 Savings deposits -303 -42 -621 -------------------- --------------------------------------------------- ----------------------- 2,706 3,121 -13 Total net deposits 2,522 3,564 -29 ==================================================================================================================== 9 132 -93 Investment contracts 8 151 -95 ==================================================================================================================== Off balance sheet production 3,368 2,538 33 Synthetic GICs 3,139 2,898 8 Mutual funds/Collective Trusts and 2,709 2,059 32 other managed assets 2,525 2,351 7 -------------------- --------------------------------------------------- ----------------------- 6,077 4,597 32 Total production off balance sheet 5,664 5,249 8 ==================================================================================================================== 135 188 -28 /1/ Of which indirect income on shares and real 126 215 -41 estate
Americas
amounts in millions USD EUR --------------------------- --------------------------- First three months First three months --------------------------- --------------------------- 2003 2002 % 2003 2002 % Income by product segment 174 230 -24 Traditional life 162 263 -38 64 114 -44 Fixed annuities 60 130 -54 44 62 -29 GICs and funding agreements 41 71 -42 24 28 -14 Life for account policyholders 22 32 -31 -4 29 Variable annuities -4 33 4 3 33 Fee business 4 3 33 --------------------- ------------------------------------------------------------ ---------------------- 306 466 -34 Life insurance 285 532 -46 50 70 -29 Accident and health insurance 47 80 -41 0 0 - General insurance 0 0 - --------------------- ------------------------------------------------------------ ---------------------- 356 536 -34 Total insurance 332 612 -46 332 476 -30 of which general account 310 544 -43 24 60 -60 of which policyholders account /2/ 22 68 -68 --------------------- ------------------------------------------------------------ ---------------------- 356 536 -34 Income before tax 332 612 -46 -111 -178 -38 Corporation tax -104 -203 -49 --------------------- ------------------------------------------------------------ ---------------------- 245 358 -32 Net income 228 409 -44 ========================================================================================================================= Revenues 187 193 -3 Life general account single premiums 174 220 -21 1,143 1,115 3 Life general account recurring premiums 1,065 1,273 -16 131 146 -10 Life policyholders account single premiums 122 167 -27 239 167 43 Life policyholders account recurring premiums 223 191 17 --------------------- ------------------------------------------------------------ ---------------------- 1,700 1,621 5 Total life insurance gross premiums 1,584 1,851 -14 637 631 1 Accident and health insurance premiums 594 720 -18 0 0 - General insurance premiums 0 0 - --------------------- ------------------------------------------------------------ ---------------------- 2,337 2,252 4 Total gross premiums 2,178 2,571 -15 1,701 1,769 -4 Investment income insurance activities /1/ 1,585 2,020 -22 --------------------- ------------------------------------------------------------ ---------------------- 4,038 4,021 0 Total revenues 3,763 4,591 -18 ========================================================================================================================= Investment income for the account -543 -96 of policyholders -506 -110 ========================================================================================================================= Gross margin, commissions and expenses 1,254 1,359 -8 Gross margin 1,169 1,552 -25 898 823 9 Commissions and expenses 837 940 -11 ========================================================================================================================= Standardized new premium production life insurance 302 325 -7 Single premiums 281 371 -24 220 195 13 Recurring premiums annualized 205 223 -8 250 228 10 Total recurring plus 1/10 single 233 260 -10 ========================================================================================================================= Deposits 1,705 2,140 -20 Fixed annuities 1,589 2,443 -35 2,669 2,957 -10 GICs and funding agreements 2,487 3,376 -26 2,586 1,739 49 Variable annuities 2,410 1,986 21 --------------------- ------------------------------------------------------------ ---------------------- 6,960 6,836 2 Total production on balance sheet 6,486 7,805 -17 ========================================================================================================================= Off balance sheet production 3,368 2,538 33 Synthetic GICs 3,139 2,898 8 Mutual funds/Collective Trusts and 2,281 1,730 32 other managed assets 2,126 1,975 8 --------------------- ------------------------------------------------------------ ---------------------- 5,649 4,268 32 Total production off balance sheet 5,265 4,873 8 ========================================================================================================================= 0 81 -100 /1/ Of which indirect income on shares and real estate 0 92 -100 /2/ Includes also variable annuities and fees.
The Netherlands
amounts in millions EUR ------------------------- First three months ------------------------- 2003 2002 % Income by product segment Traditional life 133 145 -8 Life for account policyholders 25 65 -62 -------------------------------------------------------------------------------- ---------------------- Life insurance 158 210 -25 Accident and health insurance 6 11 -45 General insurance 5 8 -38 -------------------------------------------------------------------------------- ---------------------- Total insurance 169 229 -26 of which general account 144 164 -12 of which policyholders account 25 65 -62 Banking activities /2/ 0 9 -100 -------------------------------------------------------------------------------- ---------------------- Income before tax 169 238 -29 Corporation tax -33 -56 -41 -------------------------------------------------------------------------------- ---------------------- Net income 136 182 -25 ================================================================================================================== Revenues Life general account single premiums 240 170 41 Life general account recurring premiums 290 298 -3 Life policyholders account single premiums 121 416 -71 Life policyholders account recurring premiums 687 605 14 -------------------------------------------------------------------------------- ---------------------- Total life insurance gross premiums 1,338 1,489 -10 Accident and health insurance premiums 80 83 -4 General insurance premiums 147 145 1 -------------------------------------------------------------------------------- ---------------------- Total gross premiums 1,565 1,717 -9 Investment income insurance activities /1/ 360 371 -3 Income from banking activities 94 93 1 -------------------------------------------------------------------------------- ---------------------- Total revenues 2,019 2,181 -7 ================================================================================================================== Investment income for the account of policyholders -226 249 ================================================================================================================== Gross margin, commissions and expenses Gross margin 358 389 -8 Commissions and expenses /3/ 189 151 25 ================================================================================================================== Standardized new premium production life insurance Single premiums 317 548 -42 Recurring premiums annualized 41 70 -41 Total recurring plus 1/10 single 73 125 -42 ================================================================================================================== Deposits Savings deposits 771 885 -13 -------------------------------------------------------------------------------- ---------------------- Total production on balance sheet 771 885 -13 ================================================================================================================== Investment contracts 8 151 -95 ================================================================================================================== Off balance sheet production Mutual funds and other managed assets 161 310 -48 -------------------------------------------------------------------------------- ---------------------- Total production off balance sheet 161 310 -48 ================================================================================================================== /1/ Of which indirect income on shares and real estate 126 119 6 /2/ Includes income on off balance sheet type products. /3/ Includes the effect of a change in presentation of investments costs from a net basis to a gross basis.
United Kingdom
amounts in millions GBP EUR -------------------------- ------------------------ First three months First three months -------------------------- ------------------------ 2003 2002 % 2003 2002 % Income by product segment -1 7 -114 Traditional life -2 12 -117 32 52 -38 Life for account policyholders 48 84 -43 -2 -1 Fee business -3 -1 -------------------- -------------------------------------------------- -------------------- 29 58 -50 Life insurance 43 95 -55 -1 7 -114 of which general account -2 12 -117 30 51 -41 of which policyholders account/2/ 45 83 -46 -------------------- -------------------------------------------------- ------------------- 29 58 -50 Income before tax 43 95 -55 -8 -16 -50 Corporation tax -12 -27 -56 -------------------- -------------------------------------------------- ------------------- 21 42 -50 Net income 31 68 -54 ================================================================================================================ Revenues 56 32 75 Life general account single premiums 83 53 57 21 17 Life general account recurring premiums 32 27 19 716 560 28 Life policyholders account single premiums 1,069 912 17 292 290 1 Life policyholders account recurring premiums 437 472 -7 -------------------- -------------------------------------------------- ------------------- 1,085 899 21 Total gross premiums 1,621 1,464 11 33 24 38 Investment income insurance activities/1/ 49 39 26 -------------------- -------------------------------------------------- ------------------- 1,118 923 21 Total revenues 1,670 1,503 11 ================================================================================================================ Investment income for the account -530 514 of policyholders -792 837 ================================================================================================================ Gross margin, commissions and expenses 120 113 6 Gross margin 179 184 -3 91 55 65 Commissions and expenses 136 89 53 ================================================================================================================ Standardized new premium production life insurance 741 582 27 Single premiums 1,107 948 17 87 97 -10 Recurring premiums annualized 129 158 -18 161 155 4 Total recurring plus 1/10 single 240 253 -5 ================================================================================================================ Off balance sheet production 127 25 Mutual funds and other managed assets 190 41 -------------------- -------------------------------------------------- ------------------- 127 25 Total production off balance sheet 190 41 ================================================================================================================ 0 1 -100 /1/ Of which indirect income on shares and real estate 0 2 -100 /2/ Includes also fee income.
Other countries
amounts in millions EUR ------------------------- First three months ------------------------- 2003 2002 % Income by product segment Traditional life 7 5 40 Life for account of policyholders -2 -3 33 Fee business 2 2 0 ------------------------------------------------------------------------------------------------ ----------------- Life insurance 7 4 75 Accident and health insurance 2 2 0 General insurance 10 9 11 ------------------------------------------------------------------------------------------------ ----------------- Total insurance 19 15 27 of which general account 19 16 19 of which policyholders account /2/ 0 -1 100 ------------------------------------------------------------------------------------------------ ----------------- Income before tax 19 15 27 Corporation tax -5 -3 67 ------------------------------------------------------------------------------------------------ ----------------- Net income 14 12 17 =============================================================================================================================== Revenues Life general account single premiums 5 4 25 Life general account recurring premiums 113 53 113 Life policyholders account single premiums 5 11 -55 Life policyholders account recurring premiums 53 45 18 ------------------------------------------------------------------------------------------------ ----------------- Total life insurance gross premiums 176 113 56 Accident and health insurance premiums 28 26 8 General insurance premiums 85 81 5 ------------------------------------------------------------------------------------------------ ----------------- Total gross premiums 289 220 31 Investment income insurance activities /1/ 40 40 0 ------------------------------------------------------------------------------------------------ ----------------- Total revenues 329 260 27 =============================================================================================================================== Investment income for the account of policyholders -25 5 =============================================================================================================================== Gross margin, commissions and expenses Gross margin 85 76 12 Commissions and expenses 66 61 8 =============================================================================================================================== Standardized new premium production life insurance Single premiums 10 13 -23 Recurring premiums annualized 93 27 Total recurring plus 1/10 single 94 28 =============================================================================================================================== Off balance sheet production Mutual funds and other managed assets 48 25 92 ------------------------------------------------------------------------------------------------ ----------------- Total production off balance sheet 48 25 92 =============================================================================================================================== /1/ Of which indirect income on shares and real estate 0 2 -100 /2/ Includes also fee income.
Explanatory notes The published figures are unaudited. Traditional life includes income on traditional and fixed universal life products. Life insurance with investments for account of policyholders includes income on variable universal life, unitised pension (UK), other unit-linked products with investments for account of policyholders and with profit fund in the UK. Fee business includes income on off balance sheet type products. Gross margin is calculated as the sum of income before tax and commissions and expenses. Investments, assets and capital geographically
amounts in million EUR (unless otherwise stated) United Americas Kingdom The United Other Total Total USD GBP As at March 31, 2003 Americas Netherlands Kingdom countries EUR USD ----------------------------------------------------------------------------------------------------------------------------------- Investments 109,676 1,019 Fixed income 100,666 12,498 1,479 1,637 116,280 126,687 3,520 78 Equities and real estate 3,231 4,629 113 128 8,101 8,826 113,196 1,097 Total general account 103,897 17,127 1,592 1,765 124,381 135,513 ----------------------------------------------------------------------------------------------------------------------------------- 12,788 15,812 Fixed income 11,738 11,446 22,929 312 46,425 50,580 23,722 12,122 Equities and real estate 21,773 6,035 17,578 181 45,567 49,645 36,510 27,934 Total account policyholders 33,511 17,481 40,507 493 91,992 100,225 ----------------------------------------------------------------------------------------------------------------------------------- 149,706 29,031 Total insurance activities 137,408 34,608 42,099 2,258 216,373 235,738 - - Banking activities - 6,926 - - 6,926 7,546 53,751 821 Off balance sheet assets 49,335 1,842 1,190 456 52,823 57,551 ----------------------------------------------------------------------------------------------------------------------------------- 203,457 29,852 Total assets business units 186,743 43,376 43,289 2,714 276,122 300,835 Other investments 25 27 ----------------------------------------------------------------------------------------------------------------------------------- Total group 276,147 300,862 =================================================================================================================================== 157,175 29,530 Assets business units 144,263 44,273 42,822 2,601 233,959 254,898 Other assets 3,408 3,713 -------------------- Total assets on balance sheet 237,367 258,611 16,762 2,036 Capital in units 15,385 2,316 2,953 416 21,070 22,956 Total capital base 19,119 20,830 Other net liabilities 1,951 2,126 -------------------- Total 21,070 22,956 =================================================================================================================================== As at March 31, 2002 ----------------------------------------------------------------------------------------------------------------------------------- Investments 96,878 832 Fixed income 111,047 12,777 1,358 1,467 126,649 110,488 4,311 92 Equities and real estate 4,942 5,503 149 169 10,763 9,390 101,189 924 Total general account 115,989 18,280 1,507 1,636 137,412 119,878 ----------------------------------------------------------------------------------------------------------------------------------- 12,043 14,526 Fixed income 13,805 8,096 23,697 358 45,956 40,092 27,375 17,023 Equities and real estate 31,379 9,748 27,770 220 69,117 60,298 39,418 31,549 Total account policyholders 45,184 17,844 51,467 578 115,073 100,390 ----------------------------------------------------------------------------------------------------------------------------------- 140,607 32,473 Total insurance activities 161,173 36,124 52,974 2,214 252,485 220,268 - - Banking activities - 7,092 - - 7,092 6,187 47,058 816 Off balance sheet assets 53,941 1,070 1,331 281 56,623 49,398 ----------------------------------------------------------------------------------------------------------------------------------- 187,665 33,289 Total assets business units 215,114 44,286 54,305 2,495 316,200 275,853 Other investments 436 380 ----------------------------------------------------------------------------------------------------------------------------------- Total group 316,636 276,233 =================================================================================================================================== 145,039 32,639 Assets business units 166,253 45,152 53,245 2,366 267,016 232,945 Other assets 5,102 4,451 -------------------- Total assets on balance sheet 272,118 237,396 14,224 1,806 Capital in units 16,304 3,591 2,946 388 23,229 20,265 Total capital base 22,272 19,430 Other net liabilities 957 835 -------------------- Total 23,229 20,265 =================================================================================================================================== As at December 31, 2002 ----------------------------------------------------------------------------------------------------------------------------------- Investments 105,544 980 Fixed income 100,643 10,792 1,507 1,611 114,553 120,132 3,460 88 Equities and real estate 3,299 4,943 135 133 8,510 8,924 109,004 1,068 Total general account 103,942 15,735 1,642 1,744 123,063 129,056 ----------------------------------------------------------------------------------------------------------------------------------- 11,952 15,401 Fixed income 11,397 11,139 23,675 312 46,523 48,789 23,274 12,940 Equities and real estate 22,193 5,934 19,892 186 48,205 50,552 35,226 28,341 Total account policyholders 33,590 17,073 43,567 498 94,728 99,341 ----------------------------------------------------------------------------------------------------------------------------------- 144,230 29,409 Total insurance activities 137,532 32,808 45,209 2,242 217,791 228,397 - - Banking activities - 7,167 - - 7,167 7,516 51,008 806 Off balance sheet assets 48,639 1,689 1,239 471 52,038 54,572 ----------------------------------------------------------------------------------------------------------------------------------- 195,238 30,215 Total assets business units 186,171 41,664 46,448 2,713 276,996 290,485 Other investments 378 397 ----------------------------------------------------------------------------------------------------------------------------------- Total group 277,374 290,882 =================================================================================================================================== 149,948 29,864 Assets business units 142,985 42,750 45,910 2,541 234,186 245,591 Other assets 4,020 4,216 -------------------- Total assets on balance sheet 238,206 249,807 16,518 2,028 Capital in units 15,751 2,605 3,117 399 21,872 22,937 Total capital base 20,058 21,035 Other net liabilities 1,814 1,902 -------------------- Total 21,872 22,937 ===================================================================================================================================
Summarized consolidated income statements
amounts in millions USD EUR --------------------------- --------------------------- First three months First three months --------------------------- --------------------------- 2003 2002 % 2003 2002 % Revenues 6,066 5,230 16 Gross premiums 5,653 5,972 -5 2,184 2,183 0 Investment income 2,036 2,493 -18 101 82 23 Income from banking activities 94 93 1 --------------------- ------------------------------------------------------------------------------------------------------- 8,351 7,495 11 Total revenues 7,783 8,558 -9 Benefits and expenses 559 376 49 Premiums to reinsurers 521 430 21 5,556 4,967 12 Benefits paid and provided 5,178 5,671 -9 52 50 4 Profit sharing and rebates 48 57 -16 1,328 1,095 21 Commissions and expenses for own account 1,238 1,250 -1 178 166 7 Interest 166 190 -13 202 101 100 Miscellaneous income and expenditure 188 115 63 --------------------- ------------------------------------------------------------------------------------------------------- 7,875 6,755 17 Total benefits and expenses 7,339 7,713 -5 476 740 -36 Income before tax 444 845 -47 -133 -224 -41 Corporation tax -124 -255 -51 78 24 Transamerica Finance Corporation 73 27 --------------------- ------------------------------------------------------------------------------------------------------- 421 540 -22 Net income 393 617 -36 --------------------- -------------------------------------------------------------------------------------------------------
Income statement items: average rate 1 EUR = USD 1.0730 (2002: USD 0.8758). Condensed consolidated balance sheets
amounts in millions As at As at As at As at As at As at March 31 Dec. 31 March 31 March 31 March 31 Dec. 31 2003 2002 2002 2002 2003 2002 USD USD % USD EUR EUR EUR % ----------------------------------------------------------------------------------------------------------------------------------- 143,086 136,969 4 Investments 126,445 144,940 131,332 130,608 1 3,715 3,729 0 Group companies and participations 3,043 3,488 3,410 3,556 -4 100,225 99,341 1 Investments for the account of policyholders 100,390 115,073 91,992 94,728 -3 11,585 9,768 19 Other assets 7,518 8,617 10,633 9,314 14 --------------------- ---------------------------------------------------------------------------------------------------- 258,611 249,807 4 Total assets 237,396 272,118 237,367 238,206 0 14,732 14,924 -1 Total shareholders' equity /1/ 14,482 16,600 13,522 14,231 -5 2,167 2,106 3 Capital securities 1,838 2,107 1,989 2,008 -1 659 646 2 Subordinated (convertible) loans 587 673 605 616 -2 3,272 3,359 -3 Senior debt related to insurance activities 2,523 2,892 3,003 3,203 -6 --------------------- ---------------------------------------------------------------------------------------------------- 20,830 21,035 -1 Total capital base 19,430 22,272 19,119 20,058 -5 111,579 107,926 3 Technical provisions /2/ 97,366 111,607 102,413 102,914 0 Technical provisions with investments for 100,225 99,341 1 the account of policyholders /3/ 100,390 115,073 91,992 94,728 -3 25,977 21,505 21 Other liabilities /4/ 20,210 23,166 23,843 20,506 16 --------------------- ---------------------------------------------------------------------------------------------------- 258,611 249,807 4 Total shareholders' equity and liabilities 237,396 272,118 237,367 238,206 0 -------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------- /1/ Shareholders' equity January 1 15,923 14,231 15,923 Net income excluding preferred dividend 617 370 1,517 Dividend paid - - -731 Paid in surplus / Issuance of new shares - - 2,053 Currency exchange rate differences 82 -539 -2,100 Goodwill -5 0 -70 Repurchased and sold own shares - - 0 Change revaluation account 65 -428 -2,042 Other changes -82 -112 -319 ----------------------------------------------------------------------------------------------------------------------------------- 14,732 14,924 Shareholders' equity end of period /5/ 14,482 16,600 13,522 14,231 ----------------------------------------------------------------------------------------------------------------------------------- % % ----------------------------------------------------------------------------------------------------------------------------------- 43,551 42,014 4 /2/ Of which fixed annuities 35,580 40,784 39,973 40,063 0 26,684 25,961 3 /2/ Of which GICs and funding agreements 25,866 29,649 24,492 24,755 -1 -16,338 -15,938 3 /2/ Of which deferred policy acquisition costs -14,710 -16,862 -14,996 -15,198 -1 33,602 32,458 4 /3/ Of which variable annuities 34,824 39,918 30,842 30,951 0 6,844 6,674 3 /4/ Of which savings accounts 5,809 6,659 6,282 6,364 -1 2,364 2,725 -13 /5/ Including revaluation account 4,105 4,705 2,170 2,598 -16 2,005 2,156 -7 of which realized gains 3,272 3,750 1,840 2,056 -11 -----------------------------------------------------------------------------------------------------------------------------------
Balance sheet items: closing rate 1 EUR = USD 1.0895 (2002: 0.8724; year-end 2002: USD 1.0487). Summarized information Transamerica Finance Corporation
amounts in millions USD EUR ----------------------------- ---------------------------- First three months First three months ----------------------------- ---------------------------- 2003 2002 % INCOME STATEMENT 2003 2002 % Revenues 150 169 -11 Finance charges 140 193 -27 104 102 2 Leasing revenues 97 116 -16 67 59 14 Real estate information services 62 67 -7 34 33 3 Other revenues 32 38 -16 ---------------------- ----------------------------------------------------------------------- --------------------- 355 363 -2 Total revenues 331 414 -20 Expenses 47 70 -33 Interest and debt expense 44 80 -45 80 78 3 Salaries and other employee expenses 74 89 -17 50 53 -6 Depreciation on equipment held for lease 47 61 -23 92 122 -25 Miscellaneous income and expenditure 86 139 -38 ---------------------- ----------------------------------------------------------------------- --------------------- 269 323 -17 Total expenses 251 369 -32 86 40 Income before tax 80 45 78 -1 -7 -86 Corporation tax -1 -8 ---------------------- ----------------------------------------------------------------------- --------------------- 85 33 Net income from operations 79 37 114 =================================================================================================================================== Net income by segment 70 35 100 Commercial lending 65 40 63 5 1 Leasing 5 1 18 7 Real estate information services 17 8 -8 -10 20 Other -8 -12 ---------------------- ----------------------------------------------------------------------- --------------------- 85 33 Net income from operations 79 37 =================================================================================================================================== Income reported by AEGON 85 33 Net income from operations 79 37 -7 -9 -22 Funding costs on the related raised debt -6 -10 -40 ---------------------- ----------------------------------------------------------------------- --------------------- 78 24 Net income reported by AEGON 73 27 ===================================================================================================================================
Income statement items: average rate 1 EUR = USD 1.0730 (2002: USD 0.8758)
As at As at As at As at As at As at March 31 Dec. 31 March 31 March 31 March 31 Dec. 31 2003 2002 2002 2002 2003 2002 USD USD % BALANCE SHEET USD EUR EUR EUR % ----------------------------------------------------------------------------------------------------------------------------------- 6,441 6,007 7 Finance receivables 6,745 7,732 5,912 5,728 3 98 102 -4 Equipment 110 126 90 97 -7 2,317 2,485 -7 Other assets 2,737 3,137 2,127 2,370 -10 ---------------------- ----------------------------------------------------------------------------------------------- 8,856 8,594 3 Total assets 9,592 10,995 8,129 8,195 -1 1,673 1,627 3 Accounts payable and other liabilities 1,619 1,856 1,536 1,551 -1 6,239 6,052 3 Debts 6,888 7,895 5,727 5,771 -1 944 915 3 Shareholders' equity 1,085 1,244 866 873 -1 ---------------------- ----------------------------------------------------------------------------------------------- 8,856 8,594 3 Total liabilities and shareholders' equity 9,592 10,995 8,129 8,195 -1 ===================================================================================================================================
Balance sheet items: closing rate 1 EUR = USD 1.0895 (2002: 0.8724; year-end 2002: USD 1.0487). Results by segment twelve months cumulative
amounts in million EUR (unless otherwise stated) United Americas Kingdom April 1, 2002 - March 31, 2003 The United Other Total Total USD GBP Americas Netherlands Kingdom countries EUR USD --------------------------------------------------------------------------------------------------------------------------------- Net income 749 117 Life insurance 713 549 181 23 1,466 1,509 213 - Accident and health insurance 213 21 - 6 240 241 - - General insurance - 21 - 39 60 60 - - Banking activities - -1 - - -1 0 Interest charges and other -317 -323 --------------------------------------------------------------------------------------------------------------------------------- Income before tax 962 117 business units 926 590 181 68 Income before tax 1,448 1,487 -159 -26 Corporation tax business units -140 -113 -40 -14 Corporation tax -222 -243 -------------------------------------------------------------------------------------------------------------- 803 91 Net income business units 786 477 141 54 Transamerica Finance Corporation 97 102 ------------------ Net income 1,323 1,346 ================================================================================================================================= 4,571 467 Gross margin business units 4,556 1,294 728 338 Gross margin 6,648 6,655 3,609 350 Commissions and expenses business units 3,630 704 547 270 Commissions and expenses 5,200 5,168 Net income per share 0.90 0.91 ================================================================================================================================= United Americas Kingdom April 1, 2001 - March 31, 2002 The United Other Total Total USD GBP Americas Netherlands Kingdom countries EUR USD --------------------------------------------------------------------------------------------------------------------------------- Net income 1,868 234 Life insurance 2,114 825 380 31 3,350 2,961 196 - Accident and health insurance 222 37 - 9 268 237 1 - General insurance 1 35 - 34 70 62 - - Banking activities - 39 - - 39 34 Interest charges and other -395 -348 --------------------------------------------------------------------------------------------------------------------------------- Income before tax 2,065 234 business units 2,337 936 380 74 Income before tax 3,332 2,946 -617 -66 Corporation tax business units -699 -230 -108 -12 Corporation tax -949 -839 -------------------------------------------------------------------------------------------------------------- 1,448 168 Net income business units 1,638 706 272 62 Transamerica Finance Corporation 96 85 ------------------ Net income 2,479 2,192 ================================================================================================================================= 5,254 446 Gross margin business units 5,942 1,498 723 309 Gross margin 8,115 7,176 3,189 212 Commissions and expenses business units 3,605 562 343 235 Commissions and expenses 4,783 4,230 Net income per share 1.79 1.59 =================================================================================================================================