Mr. Wynaendts addressed Aegon’s annual Analyst & Investor Conference in New York City in early December.
Aegon’s strategy is to favor regions and markets that offer higher growth and returns in the longer term in order to achieve a greater geographical balance, Mr. Wynaendts said. The measures in the US and Asia are part of Aegon’s strategy to strengthen its position in its core businesses - life insurance, pensions and asset management.
In the US, Aegon intends to increase its market share in the Life and Protection segment, as well as to move toward more fee-based products in the Individual Savings and Retirement markets and pursue growth opportunities in the Employee Solutions and Pensions segments. Mark Mullin, a member of the Management Board and CEO of Aegon Americas, outlined recent activities concerning the winding-down of non-core activities in the United States and the consolidation of operations to improve efficiencies across the organization.
Aegon announced a new organizational structure for its operations in Asia under the leadership of a newly-established CEO position for Asia. Until now, a number of Aegon’s businesses in Asia were managed from the US. Under the new structure, all Asian based insurance businesses will be managed as one regional division headquartered in Hong Kong. Douglas Henck, who has held a number of senior management positions in the insurance sector over the past twenty-five years, mostly in Asia, has been appointed as CEO of Aegon Asia. The aim is to leverage product and distribution expertise, capture efficiencies, and pursue organic growth of Aegon’s franchise in Asia. The integration will be carried out during 2011.
“We are making solid progress towards its ambition of securing a leadership position for Aegon in all of its chosen markets in the coming five years,” Mr. Wynaendts said. “The steps we are taking are aimed at sharpening its focus on the clear opportunities for its core business, implementing significant cost efficiencies in the United States, Europe and in Asia for the benefit of its customers, business partners and shareholders. This is a unique time for its business given the trends in almost every market which make clear the increasing need for individuals to take responsibility for their long-term financial security. We are determined to make the most of the significant opportunities from a position of strength, operational excellence and recognized expertise.”
