## Increase returns: strategic objectives 

## Delivering operational excellence 

■ Continue to be cost-effi cient. 

■ Decrease costs per policy. 

■ Make distibution more effective and more effi cient. 

■ Achieve signifi cant improvement in levels of customer service. 

## Increase returns 

AEGON’s aim is to increase returns from its existing businesses. This is achieved through delivering operational excellence, improved customer loyalty, and stronger employee engagement. AEGON expects its focus on increasing returns to support an improvement in the company’s overall return on equity over the medium term and to improve normalized cash flows from their current level of between EUR 1 billion and EUR 1.2 billion a year. 

## Steps AEGON is taking 

■ Restructuring of UK businesses to improve returns, lower costs and refocus on opportunities for growth in key At Retirement and Workplace Savings markets. 

■ Restructuring of businesses and introduction of a more streamlined organization in the United States. 

■ Continue to implement cost savings measures across the company. 

■ Reorganization of sales division in the Netherlands. 

■ Improving and strengthening customer service – and continuing to compete on customer service. 

## Restructuring AEGON’s US and UK businesses 

During 2010, AEGON announced a restructuring of some of its operations in both the United States and the United Kingdom. This was part of broader efforts to reduce costs, improve returns and increase the company’s focus on its core businesses – life insurance, pensions and asset management. 

## Enhancing customer loyalty 

■ Improve knowledge of customer requirements, and use this knowledge to drive innovation. 

■ Compete on customer service, not on price. 

■ Further build on AEGON and Transamerica brand names. 

## United Kingdom 

■ AEGON expects restructuring in the United Kingdom to reduce costs, improve returns and refocus the company on opportunities for growth in the At Retirement and Workplace Savings markets, where AEGON already has leading positions. 

■ By the end of 2011, AEGON expects a 25% reduction in run-rate of costs in its UK life insurance and pension business. 

■ AEGON has withdrawn from the UK bulk annuities market and sold its third party pension administration and employee benefi ts software businesses. 

■ At the same time, AEGON will retain its life insurance and protection business in the United Kingdom to support new opportunities in the At Retirement market. 

■ The company is further streamlining its management and organizational structure in the United Kingdom – a step that will lead to the loss of a number of positions over the course of 2011. 

## Empowering AEGON’s employees 

■ Implement global talent management program. 

■ Roll out employee engagement plan. 

