In control statement

report of the executive board

AEGON’s internal audit function is responsible for ensuring that the design and operation of the Group’s internal controls are both appropriate and effective. As part of this process, the internal audit departments carry out annual risk assessments.

In addition, AEGON also has a Group Risk and Capital Committee, which monitors AEGON’s overall exposure to risk and makes recommendations for possible remedial action should it deem this risk to be excessive. This Committee is also responsible for ensuring that risk is properly measured and managed at country unit level. The Group Risk and Capital Committee reports its findings regularly to AEGON’s Executive and Supervisory Boards.

AEGON’s Executive Board documents and evaluates the effectiveness of internal controls over the Group’s financial reporting process. As part of this, AEGON applies criteria established under ‘Internal Control – Integrated Framework’, the Treadway Commission’s Committee of Sponsoring Organizations (COSO).

On the basis of this, AEGON’s Executive Board makes the following statement regarding the Group’s financial reporting risks:

• AEGON’s risk management and control systems provide reasonable assurance that the Group’s financial reporting does not contain any material inaccuracies;
• AEGON’s risk management and control systems functioned properly in 2007;
• There are no indications to suggest that AEGON’s risk management and control systems will not continue to function properly in 2008.

The risk management and control systems provide reasonable assurance regarding the reliability of financial reporting and the preparation and fair presentation of its published financial statements; however, cannot provide absolute assurance that a misstatement of AEGON’S financial statements would be prevented or detected.

The Hague, March 5, 2008

The Executive Board