Consolidated cash flow statement
of AEGON Group

for the year ended December 31


Amounts in EUR million

Note

2007

2006

Adjusted 1

2005

Adjusted 1

Income before tax

3,077

3,971

2,796

Results from financial transactions

(4,545)

(9,397)

(12,820)

Amortization and depreciation

1,446

1,916

1,792

Impairment losses

73

33

(2)

Income from associates

(36)

(32)

(20)

Other

133

7

334

Adjustments of non-cash items

(2,929)

(7,473)

(10,716)

Insurance and investment liabilities

4,046

1,354

4,355

Insurance and investment liabilities for account of policyholders

7,809

12,086

13,940

Accrued income and prepayments

(629)

(3,119)

(1,937)

Accrued expenses and other liabilities

(2,069)

2,729

(3,309)

Release of cash flow hedging reserve

25

(130)

63

Changes in accruals

9,182

12,920

13,112

Purchase of investments (other than money market investments)

(70,162)

(63,989)

(64,310)

Purchase of derivatives

(701)

(1,009)

(76)

Disposal of investments (other than money market investments)

67,150

64,046

61,943

Disposal of derivatives

(324)

855

35

Net purchase of investments for account of policyholders

(4,866)

(5,361)

(1,628)

Net change in cash collateral

(577)

5,774

(822)

Net purchase of money market investments

(1,256)

(1,623)

(57)

Cash flow movements on operating items not reflected in income

(10,736)

(1,307)

(4,915)

Tax paid

(98)

(442)

(680)

Other

148

185

(683)

Net cash flows from operating activities

(1,356)

7,854

(1,086)

Purchase of individual intangible assets (other than VOBA and future servicing rights)

(10)

(10)

(17)

Purchase of equipment

(75)

(62)

(80)

Acquisition of subsidiaries and associates

(2,625)

(143)

(174)

Disposal of individual intangible assets (other than VOBA and future servicing rights)

–

1

–

Disposal of equipment

31

19

9

Disposal of subsidiaries and associates

9

11

319

Dividend received from associates

7

4

3

Other

–

(19)

–

Net cash flows from investing activities

(2,663)

(199)

60

Issuance of share capital

1

2

2

Issuance of perpetuals

745

638

1,457

Issuance and purchase of treasury shares

(1,439)

(262)

74

Proceeds from TRUPS, subordinated loans and borrowings

4,872

1,554

1,038

Repayment of perpetuals

–

–

(950)

Repayment of TRUPS, subordinated loans and borrowings

(3,986)

(2,109)

(1,573)

Dividends paid

(668)

(471)

(272)

Coupon on perpetuals

(235)

(204)

(192)

Other

11

(22)

(2)

Net cash flows from financing activities

(699)

(874)

(418)

Net increase/(decrease) in cash and cash equivalents 2

(4,718)

6,781

(1,444)

Net cash and cash equivalents at the beginning of the year

12,391

6,068

6,804

Effects of changes in exchange rate

(288)

(458)

708

Net cash and cash equivalents
at the end of the year

note 13

7,385

12,391

6,068

  1. In 2007, AEGON changed its accounting policy regarding the valuation of minimum guarantees applied by the AEGON The Netherlands. Further reference is made to note 2.2.1A.
  2. Included in net increase/(decrease) in cash and cash equivalents are interest received (EUR 8,715 million; 2006: EUR 9,458 million and 2005: EUR 9,099 million), dividends received (EUR 886 million; 2006: EUR 1,192 million and 2005: EUR 870 million) and interest paid (EUR 422 million; 2006: EUR 411 million and 2005: EUR 348 million).

The cash flow statement is prepared according to the indirect method.