#1The Netherlands Marco Keim CEO Rutger Zomer CFO AEGON Analyst & Investor Conference - London - January 13, 2016 Analyst & Investor Conference#22 Today's storyline Achievements since 2010 Priorities going forward Financial targets . All financial targets have been met Successful growth of fee-based businesses Strong growth of profitable residential mortgage business • Simplify and digitize products and processes leading to operational efficiency Improve customer experience and capture more of the value chain • Optimize portfolio across business lines . Expense savings on existing book of at least EUR 50 million by 2018 Generate cash flows of EUR 250 million annually Resume remittances in 2016 • Maintain RoC of 10% Aegon Analyst & Investor Conference#33 Achievements on previous targets Analyst & Investor Canterence#4All targets have been met 2015 Target Delivery Stable RoC of ~8%* Stable earnings from 2010 Key drivers Margin on investments Strict management on expenses, mainly related to the insurance business Growth fee based business Increase fee business Especially driven by new initiatives Stable cash flows of EUR 250 million Cash flows have been generated, but not all upstreamed due to conversion to Solvency II regime 4 Excluding the impact of the accounting changes implemented in 2014 and leverage benefit at holding Aegon Analyst & Investor Conference#55 Progress made towards our strategic objectives since 2013 Loyal Customers Optimized Portfolio Operational Excellence Empowered Employees Growth digital sales Successful launch of MijnAegon (currently ~750K customers) TKP customers increased from 1.2 to 2.8 million Growth of Knab and TKP platforms Launch of Dutch Mortgage Fund Reached agreement on OPTAS Leading market position PPI Cross-channel distribution Improving data quality & reporting Rationalization of products and systems Integration salesforce workflow Significant improvement on engagement and empowerment Focus on learning and developments via various programs Aegon Analyst & Investor Conference#66 Challenges emerging Analyst & Investor Canterence#77 Challenges are emerging in a changing environment Market trends Increased competition as a result of blurring boundaries in the financial services industry A tightened regulatory environment that increases complexity and reduces returns Persistently low interest rates هرا Business model Shift from pure risk carrier to a service provider Dynamic pricing Straight-through processing and operational excellence Technological trends New technologies enable more interaction with customers Customer data driving more relevant propositions (products, services and pricing) Evolving to meet new challenges 3 Customer trends Customers expect transparent, simple, superior service and fair products Customer demand shifting towards digital first, multi- channel access and personalized offerings Customers are more and more self directed Aegon Analyst & Investor Conference#88 Priorities going forward Analyst & Investor Canterence#99 · · Executing on strategy Capturing more of the value chain and fulfill customer promise Increase direct contact in omni- channel distribution Ongoing shift from DB to DC Considering options for commercial line non-life business Increase fee-based business Launch Algemeen Pensioen Fonds (STAP) Loyal Customers Optimized Portfolio • • · • • Reduce expenses through sourcing and digitizing across the business Simplify products and processes More engagement from digital interaction and data insights Increase efficiency in cooperation with distribution partners (e.g. Skydoo) Continue to attract and retain talent Focus on learning & development via talent review, management drives and education programs Operational Excellence 000 Empowered Employees Aegon Analyst & Investor Conference#1010 Reducing expenses existing book by EUR 50 million Expenses Life & Savings, Pensions & Non-Life (in EUR milion) -480 -100 ~20 ~400 ~50 ~350 M 2010 Cost Investments 2015 Cost savings savings 2018 Strategy for further EUR 50 million cost savings on existing book applies for following main categories: Operations IT Support Commerce costs Aegon Analyst & Investor Conference#11Distribution mix changes over time Sales mix* (in %) 20 20 D2C 25% ~40 6 00 58 -45 D2C >40% Total D2C sales to increase significantly from 2015 to 2018 mainly driven by sales of general insurance, as well as mutual funds and Banksparen products through Aegon Bank and Knab Broker channel to remain the primary channel due to Aegon's focus on pensions and residential mortgages Digital 15 ~10 2015 2018 Own / tied agents Brokers Large pension consultants Other 11 * Sales mix includes mortgages for 10% (standardized production) Note: 2015 numbers are forecasted 2015 sales numbers Aegon Analyst & Investor Conference#1212 Share of DC in sales mix to grow significantly Life sales mix (in %) -2/3 ~1/3 ● ~1/3 • -2/3 • Dutch pension market moving from defined benefit (DB) to defined contribution (DC) solutions - Preference corporate customers Higher capital requirements for DB under Solvency II Low interest rates Growth of DC primarily fuelled by PPI Aegon is market leader in this market and the largest insurance company among pension administrators In addition, additional revenues are captured through Aegon Asset Management / TKPI, which is part of Aegon Asset Management Selectively offering DB products New DB business subject to strict return hurdles 2015 ■ DC DB Medium term - ~60% of DB renewals and new production are converted into DC contracts in the medium term Shift from DB to DC in the mix of liabilities materializes over time, given the relatively long duration of the DB business Aegon Analyst & Investor Conference#1313 Aegon Bank large driver for fee business growth in the Netherlands Knab and mortgages contribute to fee business growth in the Netherlands and match both sides of the balance sheet with retail products • Increasing share of fee business from the Dutch mortgage fund Extending fee business at Aegon Bank contributes to bank's RoC to become mid-to-high single digit by 2018 Development customers Knab and Aegon Bank AuM (Number of customers and EUR billion) Development mortgage portfolio (EUR billion) 300000 200000 10.4 9.1 8.3 100000 7.5 1.7 3.7 1.3 1.4 1.5 22.8 24.3 24.5 20.9 19.0 16.5 0 2013 2014 2015 2018 2010 2011 2012 2013 2014 2015 Aegon Aegon Bank AuM Knab customers ■General account Fee 2018 Analyst & Investor Conference#14Diversified funding supports strong mortgage origination capabilities Competitive advantages: . Strong position with Independent Financial Advisors Straight through processing Nominal mortgage amounts per FY 2015 (in EUR billion) ~6* Comments EGON Bank knab • Mostly short interest rate reset periods • Offering products to clients on both sides of the balance sheet • Leading mid-office capabilities Active in all maturities • One IT platform ~62 RMBS - Saecure program • Funding diversification Origination vehicle AEGON • ~8 Asset Management Aegon Hypotheken** Fee business • ~112 Life & Pension • Non-life * Bank with RMBS, Saecure 13 NHG and covered bonds 14 ** Mortgage origination vehicle since 2011. Aegon Levensverzekering (Aegon Life) was the origination vehicle prior to that • Full risk transfer Attractive fee business Long-dated assets Good match against liabilities Mostly variable rate mortgages Supports investment income Aegon Analyst & Investor Conference#1515 Cash and capital deployment Analyst & Investor Canterence#1616 Solid Solvency II capital position Year-end 2015 ratio estimated to be ~150% based on the approved partial internal model, which was granted early December of 2015 Remaining uncertainty is the extent of the loss- absorbing capacity of taxes. Potential impact on Solvency II ratio is approximately minus 5 to plus 10 percentage points Aegon is undertaking initiatives to improve the Solvency II ratio Solvency II SCR by risk type (in %) 7% 11% 15% 31% 8% 16% 12% ■Credit risk Interest rate risk ■Other market risk ■Longevity risk ■Lapse risk ■Expense risk Other risk Aegon Analyst & Investor Conference#1717 Further reduction of longevity risk Aegon absorbs longevity risk to help customers to manage the risk of outliving their assets Aegon aims to hedge a substantial part of its trend risk through a comprehensive longevity hedge program This ambition is driven by Aegon's own risk appetite, not by regulatory frameworks In Q3 2015 Aegon NL executed a (partial) index based longevity transaction covering EUR 6 billion of liabilities The first longevity hedge transaction was completed in 2012, covering EUR 12 billion of liabilities Expand the longevity transaction by covering an additional EUR 9 billion of liabilities in 2016 In principal longevity hedges are based on mitigating tail risks Aegon Analyst & Investor Conference#1818 Remittances to the group to be resumed in 2016 Capital management zones Aegon NL's Solvency II ratio is estimated to be ~150% at year-end 2015, at the high end of the target range Aegon NL to resume remittances in 2016 For the 2016-2018 period, Aegon NL aims to pay EUR 250 million annually in remittances Opportunity Assessment of accelerated growth and/or additional shareholder distribution 150% SCR Target 130% SCR Caution 120% SCR Recovery 100% SCR Regulatory Plan Capital deployment and dividends according to capital plan Capital plan and risk position re-assessed Capital plan and risk position re-assessed Remittances reduced or suspended Suspension of dividends Regulatory plan required Aegon Analyst & Investor Conference#19Solvency II sensitivities relatively limited • Analysis of capital position under Solvency II is always a combination of one-off impacts on the ratio as a result of market developments and consequences on economic earnings going forward Mortgage spread risk is caused by the mismatch with the Volatility Adjustment on the liabilities Capital deployment framework influenced both by market impacts as well as resulting changes to the annual operational free cash flows Solvency II sensitivities (in percentage points) Scenario Impact A SII OFCF (~EUR million per year) Dutch mortgage spreads Equity markets +50 bps -10% +50 -20% -3% 0 Interest rates +100 bps -2% +25 Interest rates -100 bps +2% -/-30 Credit spreads +100 bps +3% +85 Ultimate Forward Rate 3.2% -18% +30 Aegon Analyst & Investor Conference Longevity shock +10% -21% 0 19#2020 20 Drivers for OFCF movements • Main categories affecting Solvency II operational free cash flows Risk adjusted spread and UFR unwind especially sensitive to changing market conditions Release SCR existing book driven by run-off and trend DB to DC New business investments could vary depending on the chosen volume of pension buy-outs OFCF contribution from own funds or SCR Own Funds SCR New business Inforce Release of risk margin and SCR Risk adjusted spread on assets versus liabilities UFR unwind Return on own funds + + Annual Solvency II OFCF ex market impacts and one-time items of EUR 250 million Aegon Analyst & Investor Conference#21SII OFCF versus IFRS earnings The Solvency II OFCF is expected to increase over the next 5-10 years Higher release of surplus from expiring DB contracts New business shifts from DB to DC (and fee business in general) Optimize ALM Solvency II OFCF is fundamentally different from IFRS underlying earnings Difference between book yields on investments in the IFRS framework versus market consistent market yields (including UFR unwind) in a Solvency II environment Part of future IFRS earnings have already been recognized upfront in Solvency II Own Funds Estimated year-end 2015 comparison (EUR billion) 4.0 5.9 IFRS shareholders' equity* Solvency II Own Funds 21 24 * Excluding revaluation reserves and defined benefit remeasurements Aegon Analyst & Investor Conference#22Accelerating shift towards fee-based business in Dutch market Management actions Operational excellence Delivering results • . Leverage pension leadership position • Simplify and digitize products and processes leading to operational efficiency Loyal customers • Significantly grow digital sales Increase direct contact in omni-channel distribution Optimized portfolio • Strong position in pensions AEGON TKP stap Algemeen Pensioentenas . Reduce expenses by EUR 50 million by 2018 CAPPITAL Generate annual cash flows GEWOON DOOR TKP of EUR 250 million Shift new business ~2/3 mix to DC ~1/3 -2/3 -1/3 Considering options for commercial line 2015 non-life business Medium term ■ DC DB Resume dividend payments in 2016 Maintain RoC of 10% 22 22 Transition from DB to DC Grow DC pension proposition and new initiatives Aegon Analyst & Investor Conference#2323 Appendix Analyst & Investor Canterence#24Update on legacy unit-linked book Portfolio profile 1.3 million unit-linked policies sold Majority of the ~600,000 Koersplan policies were sold in the 1990's ~50% of policies have a minimum guaranteed return of 3-4% ~60% policies still in-force Actions taken Announced and implemented over EUR 0.9 billion improvements Compliance with Ombudsman, Ministry of Finance and AFM recommendations Aegon NL has implemented a number of product improvements and measures to address complaints Aegon NL actively monitors trends/developments to assess risks Recent developments Customer, political, media and regulatory attention remains Execution of unilateral compensation scheme (in agreement with public interest group 'Koersplandewegkwijt') nearly finalized Managing mass litigation processes have become part of our day-to-day business - it will take time to resolve all issues 24 24 Aegon Analyst & Investor Conference#25For questions please contact Investor Relations +31 70 344 8305 [email protected] P.O.Box 85 2501 CB The Hague The Netherlands AEGON Analyst & Investor Conference#26Disclaimer Cautionary note regarding non-IFRS measures This document includes the following non-IFRS financial measures: underlying earnings before tax, income tax and income before tax. These non-IFRS measures are calculated by consolidating on a proportionate basis Aegon's joint ventures and associated companies. The reconciliation of these measures to the most comparable IFRS measure is provided in note 3 'Segment information' of Aegon's Condensed Consolidated Interim Financial Statements. Aegon believes that these non-IFRS measures, together with the IFRS information, provide 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. Currency exchange rates This document contains certain information about Aegon's results, financial condition and revenue generating investments presented in USD for the Americas and GBP for the United Kingdom, because those businesses operate and are managed primarily in those currencies. None of this information is a substitute for or superior to financial information about Aegon 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 Aegon's counterparties; Consequences of a potential (partial) break-up of the euro or the potential exit of the United Kingdom from the European Union; The frequency and severity of insured loss events; Changes affecting longevity, 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 Aegon sells, and the attractiveness of certain products to its consumers; Regulatory changes relating to the pensions, investment, and insurance industries in the jurisdictions in which Aegon operates; Standard setting initiatives of supranational standard setting bodies such as the Financial Stability Board and the International Association of Insurance Supervisors or changes to such standards that may have an impact on regional (such as EU), national or US federal or state level financial regulation or the application thereof to Aegon, including the designation of Aegon by the Financial Stability Board as a Global Systemically Important Insurer (G-SII). Changes in customer behavior and public opinion in general related to, among other things, the type of products also Aegon sells, including legal, regulatory or commercial necessity to meet changing customer expectations; 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 Aegon'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 and liquidity of its insurance subsidiaries; 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 Aegon 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 Aegon'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 or a change by Aegon in applying such regulations and policies, voluntarily or otherwise, which may affect Aegon's reported results and shareholders' 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 and excess capital and leverage ratio management initiatives. Further details of potential risks and uncertainties affecting Aegon are described in its filings with the Netherlands Authority for the Financial Markets 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, Aegon 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 Aegon's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. 26 26 Aegon Analyst & Investor Conference