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Global approach to asset management

May 29, 2008

Aegon is to create a single, global organization for its asset management activities – a first step toward putting management of the Group on a more international footing.

The new organization – Aegon Asset Management – will group together Aegon’s current businesses in the United States, the United Kingdom, the Netherlands and elsewhere. Details of the new organization will be released at Aegon’s Analyst & Investor Conference in London on June 2 and 3.

A key part of the Group’s broader new growth strategy, Aegon Asset Management is expected to be operational by the beginning of January 2009. At present, Aegon has just over EUR 270 billion in assets under management around the world.

The move will strengthen Aegon’s overall asset management operations, enabling the Group to implement a global framework for managing general account investments, support existing pension and unit-linked activities and increase third party business flows.

As part of the Group’s new growth strategy – ‘Unlocking the Global Potential’ – Aegon will apply a similar international approach to two more of its businesses – life reinsurance and variable annuities.

CEO Alex Wynaendts said Aegon’s ambition is to create “a global asset management business able to take advantage of the positive trends in the industry”.

With the life insurance and pension sectors expected to grow rapidly in the years ahead, significant opportunities are also opening up in asset management. Already over the past few years, European-based asset managers – particularly those with a global focus – have seen their assets grow by an average of close to 20% a year.

Aegon Asset Management will be headed up by Erik van Houwelingen, a senior executive from Aegon’s operations in the Netherlands. In addition, Eric Goodman, Aegon’s Chief Investment Officer in the United States, will take charge of global general account management. Andrew Fleming, currently CEO of Aegon UK Asset Management, has meanwhile been appointed Head of European Asset Management and will oversee efforts to develop Aegon’s third party business in Europe.

Aegon Asset Management already has a solid platform: a highly diversified client and asset base, a culture of effective risk management and a track record of delivering strong investment returns.

But, until now, Aegon’s three main businesses in the United States, the United Kingdom and the Netherlands have been working independently of each other.

“We have incredible resources within this Group, including some of the most talented people in the industry,” said Mr. Van Houwelingen. “But we haven’t been making enough of our collective strength. By working more closely together, in a more coherent and integrated way, we can make the most of the tremendous potential we have.”