Chairman’s letter

Companies operating in today’s global environment are no longer measured simply by their ability to capture opportunities and remain competitive, but by how they fulfill their larger responsibilities. At AEGON, we believe those responsibilities include keeping promises – certainly those made to our customers, but also to our shareholders, employees, business partners and to the many communities in which we operate.

In recent years, corporate responsibility has gained increasing importance, reflecting both the core values companies adhere to and how companies conduct their operations in their various markets. Consequently, a company’s financial performance is evaluated in the context of its commitment and response to any number of social, economic and environmental issues.

In our industry, more people around the world than ever before are now relying on the private sector to help them secure sound financial futures, both before and during a longer period of retirement. Faced with aging populations and shrinking workforces, governments in many countries are no longer able to afford the generous state pension benefits that were once common. New systems are being introduced that place responsibility for retirement planning on individuals and their pension providers.

These changes present exciting new business opportunities for AEGON, both in the Group’s more established markets and in the new, emerging economies of Asia and Central and Eastern Europe. With new opportunities, of course, come new responsibilities: a responsibility to provide reliable and transparent financial products that help our customers plan for the future; a responsibility to ensure that we invest shareholder funds with due diligence, balancing a need for profit with consideration for social and environmental factors; a responsibility to provide our customers and shareholders with the information they require to make the right decisions for themselves and their families; a responsibility to support policies and initiatives that help protect the environment and provide our employees with an enjoyable and rewarding place to work.

In recent years, AEGON has made a number of notable improvements to its corporate responsibility reporting. This 2007 report – AEGON’s fifth to date – sets out some of the policies and specific initiatives we are currently pursuing to ensure that we continue to meet our larger responsibilities in the years ahead. As we continue to expand our businesses, we remain committed to our fundamental values of Respect, Quality, Transparency and Trust.

AEGON’s core business is to provide long-term financial protection. When we sell a life insurance policy or a pension, we recognize that we are making a long-term promise to that customer. Clearly, that person must have the confidence that AEGON will be there to honor that promise whenever the time comes. In this regard, AEGON’s success will ultimately be measured not only by how many policies we sell, but also by our ability to fulfill the many promises we make each and every day.

I hope that AEGON’s 2007 corporate responsibility helps to provide a better understanding of the steps we are taking to safeguard the trust and confidence of our many stakeholders around the world.

Retirement

In April this year, I will be retiring as chairman of AEGON’s Executive Board after a career that began with our US company Life Investors thirty-eight years ago. The Supervisory Board announced last November its selection of my successor, Alexander Wynaendts, a member of AEGON N.V.’s Executive Board and currently the Chief Operating Officer. These past several years, I have worked closely with Alex and have always been impressed by his strong commitment to responsible business practice, as well as his keen understanding of the challenges of operating in diverse international markets. His broad experience and international outlook will be of enormous benefit to AEGON in the coming years. I have enjoyed working with Alex and our other Executive Board colleague Jos Streppel, as well as members of the Group’s Management Board, to improve AEGON’s financial position, strengthen our existing businesses and expand internationally where we believe we can achieve long-term growth and provide lasting value. I wish to express my gratitude to the Supervisory Board for having given me the opportunity to lead AEGON during what continues to be an exciting time for our business. I am also grateful to the many people of AEGON around the world whose dedication to their work is key to creating the better futures our customers have come to expect and deserve.

Donald J. Shepard

CHAIRMAN OF THE EXECUTIVE BOARD

“This is a time of great opportunity not only for AEGON but for the whole of the life insurance and pension industry. AEGON now operates in over twenty markets around the globe, 24 hours a day. In the months and years ahead, I will be working to identify ways to unlock the benefits of being a global company. This applies as much to our corporate responsibility policies as it does to our overall business strategy. Through the financial products we offer, the jobs we provide, and the investments we make, AEGON is determined to make a difference in the lives of the customers we serve and in the communities where we operate.” Alexander Wynaendts Chief Operating Officer and Member of the Executive Board