Despite the financial crisis, AEGON believes that the insurance and pension industry offers prospects for strong, sustainable growth in the years ahead.
‘Unlocking the Global Potential’ is designed to ensure AEGON is well positioned to take advantage of new opportunities opening up in the industry.
Living longer
In many parts of the world, particularly in Europe, North America and Japan, people are living longer, healthier lives. Governments are no longer able to afford the generous state pensions that were once commonplace. As a result, demand for private pensions, life insurance and other long-term savings and investment products is rising.
At the same time, the growing number of people entering retirement has led to a shift in focus, away from simply saving toward how to use those savings to ensure a comfortable old age. Fifty years ago, according to United Nations’ World Population estimates, just one in ten Europeans was over the age of 65. By 2020, it will be one in five.
Emerging markets
In other parts of the world, new markets are emerging – in China, India and the countries of Central & Eastern Europe. Here, growth stems from a combination of recent economic expansion, political reform and rising levels of personal wealth. The potential size of some of these markets is enormous.
By the middle of this century, it is estimated that there will be almost 340 million people in China over the age of 65 – roughly equal to the total populations of the United States, the United Kingdom and the Netherlands combined.
International business
AEGON is well placed to capitalize on these opportunities. The company has a significant presence in the United States, the world’s biggest life insurance and pension market. And, over the past several years, AEGON has expanded its international businesses.
Today, AEGON is present in six countries in Central & Eastern Europe as well as China, India and Taiwan in Asia, and Mexico in Latin America. In China alone, AEGON has businesses in provinces that cover a population of more than 300 million people.