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The Netherlands Report of the Executive board
AEGON The Netherlands continued to experience tough market conditions in 2007, though the company did report an increase in its value of new business and internal rates of returns, due primarily to recent changes to the company’s business mix and a continued focus on writing profitable business. Operating earnings before tax totaled EUR 362 million in 2007, down 24% from a pro forma figure for the previous year of EUR 474 million. The pro forma figure is explained in the footnote on page 23. Net income was 57% lower at EUR 606 million. Most of the decline can be attributed to fair value movements of guarantee provisions and a decrease in the value of certain fair-value investments during the year. Operating earnings in 2007 also included two separate one-off charges. AEGON The Netherlands’ value of new business rose 6% over the year to EUR 51 million, due mainly to higher volume sales from AEGON The Netherlands’ group pension business. The internal rate of return on new business continued to improve, rising to 10.7% in 2007, up from 9.8% the year before. Background AEGON THE NETHERLANDS AEGON’s history in the Netherlands goes back to the burial funds of the mid-nineteenth century. Today, AEGON The Netherlands is one of the country’s leading providers of life insurance and pensions, with millions of customers and approximately 6,200 employees. AEGON The Netherlands has its headquarters in The Hague, but also has offices in Leeuwarden, Groningen and Nieuwegein.
Organizational structure AEGON The Netherlands operates through a number of well known brands, including TKP Pensioen, OPTAS and Unirobe Meeùs Groep. In addition, AEGON itself is one of the most widely recognized brand names in the Dutch financial services sector. AEGON The Netherlands’ primary subsidiaries are:
In recent years, AEGON The Netherlands has taken significant steps to reorganize its businesses as part of broader efforts to improve overall efficiency and customer service. The company has combined its various business units into a single structure. By bringing together product knowledge, administration, IT and other back office support, AEGON The Netherlands has created a more effective and better structured organization. AEGON The Netherlands’ companies are present in five lines of business:
Sales and distribution AEGON The Netherlands operates through three sales organizations, each focusing on a separate segment of the Dutch market. Corporate and Institutional Clients serves large corporations and financial institutions such as company and industry pension funds. AEGON Bank meanwhile sells mainly to individuals both directly and through tied agents. Lastly, AEGON Intermediary focuses on independent agents and retail sales organizations in the Netherlands. Business overview Life and protection AEGON The Netherlands provides a range of life insurance and personal protection products and services, including traditional, universal and term life, endowment and annuity insurance as well as funeral insurance and accident and health cover. Life and protection is AEGON The Netherlands’ most important line of business, accounting for 63% of its operating earnings before tax in 2007. Individual savings and retirement AEGON The Netherlands provides a variety of individual savings and retirement products. These include the so-called ‘Levensloop’ (or Life Cycle) savings plans. Pensions and asset management Pensions and asset management is one of AEGON The Netherlands’ most important lines of business. In 2007, it accounted for 30% of the company’s operating earnings before tax. For many company and industry pension funds, AEGON The Netherlands provides a variety of pensions for both individuals and corporate customers and has a full range of pension solutions and administration-only services. Distribution AEGON The Netherlands offers financial advice covering areas such as insurance, pensions, mortgages, financing, savings and investment products. The company also has a real estate management business and acts as a broker for both residential and commercial property. In 2007, AEGON The Netherlands’ distribution business accounted for 4% of its operating earnings before tax. General insurance AEGON The Netherlands offers a limited range of general insurance products through its subsidiary AEGON Schadeverzekering. These are aimed at both the corporate and retail markets. They include house, car and fire insurance. In 2007, general insurance accounted for approximately 2% of AEGON The Netherlands’ operating earnings before tax. |
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