This release and its attachment contain a summary of the effect on Aegon’s shareholders’ equity and net income of the application of US GAAP, which differ in certain respects from those generally accepted in the Netherlands (Dutch accounting principles). The information contained herein does not affect the results published on 6 March 2003.
In 2002, net income in accordance with Dutch accounting principles was EUR 1,547 million while net income in accordance with US GAAP was a loss of EUR 2,230 million. The largest part of the difference is explained by:
Impairment on shares
Under DAP, Aegon held a positive revaluation account at December 31, 2002 of EUR 2,598 million. This is after a charge of EUR 1,057 million (2001: EUR 36 million) reflecting impairment losses on shares due to an other than temporary decline in market value. Under US GAAP these impairment losses are charged to net income.
Change in treatment of goodwill
Effective 1 January 2002 under US GAAP (SFAS 142) goodwill is no longer amortized but is tested for impairment annually. In accordance with the transitional rules of SFAS 142, an impairment charge of EUR 1,295 million was recorded during the first six months of 2002, primarily related to the Transamerica non-insurance business (refer to Form 6-K). This is in accordance with the estimate already given in the 2001 Form 20-F.
The total charge in 2002 for goodwill impairment under US GAAP amounted to EUR 1,965 million (2001: EUR 496 million amortized). The impairment of EUR 670 million in the second half of 2002 pertains to the Aegon USA insurance operations. The goodwill write-offs were already taken against shareholders’ equity in 2000 for the Transamerica Finance Corporation and in 1999 for the Aegon USA insurance operations.
For an overview refer to the attached Information (see related documents) based on US Accounting Principles as has been published by Aegon since 1986. On 29 March Aegon’s 2002 Annual Report will be available on this site.
