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LA MONDIALE and Aegon strengthen partnership by an increase of capital in LA MONDIALE PARTICIPATIONS

Paris, The Hague, December 2, 2004

Aegon's stake in LA MONDIALE PARTICIPATIONS, a subsidiary of LA MONDIALE Mutuelle, will increase from 20% to 35% through an increase of capital.

The expanded partnership announced today allows both groups to take advantage of the acknowledged growth opportunities in the French and European pension markets.

Since its establishment, the partnership between Aegon and LA MONDIALE has led to several significant developments, including the creation of the first specialized European group pension network (Aegon Pension Network) to respond to the strong growth of the European pension markets, and the development of a specialized platform in Luxemburg aimed at expatriates.

Utilizing the extensive expertise of Aegon, LA MONDIALE was also the first in France to successfully develop a new distribution channel, commonly known as worksite marketing, which targets individual employees at their places of employment with pensions and long-term savings products.

"This enhanced partnership with LA MONDIALE reaffirms our common vision of the business opportunities in the European pension markets", said Aegon's chairman of the Executive Board Donald J. Shepard. "Providing innovative pension solutions that meet the changing needs in France and throughout Europe is a top priority for both LA MONDIALE and Aegon."

Patrick Peugeot, chairman and CEO of LA MONDIALE, commented: "This agreement enables us to share our respective experiences in the area of pensions and to develop profitable activities together. LA MONDIALE Mutuelle remains a 65% shareholder of LA MONDIALE PARTICIPATIONS."

About LA MONDIALE

LA MONDIALE is a French mutual life insurance company. The group specializes in the areas of pensions and life insurance. Ranked 8th in the French life insurance market in 2003, the company has developed a broad distribution strategy which relies on its own networks, in addition to partnerships. The group is active in France, the French overseas territories, in Luxemburg and in Spain. LA MONDIALE is one of the most financially strong life insurers in France and has been rated A+ by Standard & Poor's and Fitch Ratings.

LA MONDIALE PARTICIPATIONS was created in 1999 by LA MONDIALE Mutuelle in order to hold its activities with a non-mutual character:

  •  LA MONDIALE Partenaire is the leader in France in the distribution of specialized savings products through third-party distributors, such as banks and financial advisor networks. LA MONDIALE Partenaire currently holds EUR 13 billion in assets under management;
  • Arial Assurance is number one in France in group retirement plans for large corporations, with EUR 872 million premium income in 2003. AG2R, the largest corporate accident and health insurer, is a strategic partner of LA MONDIALE and maintains a 50% stake in Arial;
  • LA MONDIALE EUROPARTNER (Luxemburg) is a European specialized platform, providing pensions for expatriates, with EUR 750 million assets under management.

The establishment of LA MONDIALE PARTICIPATIONS has allowed the group to develop itself, while maintaining full autonomy of the mutual. Additionally, it provides access to a broader range of financial means: retained earnings, subordinated debt, and minority shareholder funding