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## Over vie w 

AE GON’ s operations in Ne Markets reported higher underlying e arnings in 2010 Higher contributions from Spain and France, Variable Annuitie s Europe and the first -time inclusion of AEGON As set Management were partly o ffset by lower earnings fr om Central & Eastern Europe and higher losses from continued investments in the c omp any’s operations in Asia. Although still negativ e, net results from AE GON’s Asian operations impro ved considerably comp ared to the previous year, which included a charge relat ed to the sale of the comp an y’s activities in Taiw an. 

## Underlying e arnings bef or e tax 

Underlying e arnings before tax from New Markets incre as ed 18% compared with 2009 to EUR 200 million. The incr ease was driven b a higher contribution from Spain and France and Variable Annuities Europe, as well as the inclusion of AEGON As set Management, which added EUR 46 million in e arnings t o New Markets. E arnings fr om Central & East ern Europe decreased, while in Asia losses were higher as a result of continued inves tment s in growth o the business. 

In C entr al & Eastern Europe the life and pensions oper ations performed in-line with 2009. However, the non-lif e business reported low er earnings due to higher claims r elating to storms and floods in Hungary. AE GON’ s operations in Asia r ecorded a loss of EUR 39 million as a result of continued in vestments in the comp an y’s joint venture in China, India and Japan. E arnings fr om Spain and Fr anc e increased due to a higher c ontribution from La Mondiale Participations, AE GON’ s associate in France. 

V ariable Annuities Europe t urned to profit during the year and contributed EUR 1 million as a result of c ontinued gr owth o the business. 

## Market positions 

## CEE 

# 2 Life in Hungary 

# 4 Non-life in Hungary 

# 5 Unit-linked in Poland 

## Spain 

# 7 Life insurance 

In 2010, asset management and administration fees were reduced, due to new pension legislation in Hungary. Assets have been transferred to the Hungarian State during the first quarter of 2011. In Poland, the government has announced plans to reduce contributions to private pension funds. AEGON expects these measures to have an impact on underlying earnings of approximately EUR 25 million in 2011. 

## Net income 

In 2010, New Markets turned a net profit of EUR 91 million. A loss was reported in 2009 due to a one-off charge related to the sale of the company’s life insurance activities in Taiwan. Net income in 2010 included charges related to the Hungarian pension legislation changes of EUR 23 million and EUR 19 million related to bank tax in Hungary. 

## Operating expenses 

Operating expenses increased to EUR 562 million for 2010, as compared to EUR 227 million in 2009. The increase was mainly due to the inclusion of AEGON Asset Management and restructuring charges. 

## Sales and deposits 

New life sales during 2010 declined 4% compared with the previous year to EUR 275 million. Growth in Central & Eastern Europe - and to a lesser extent Asia - was more than offset by a decline in Spain. Strong single- premium production in the bank channel in Poland, continued growth in Hungary and a successful shift from pensions to life insurance in Turkey contributed to the 26% growth in new life sales in Central & Eastern Europe. Sales in Asia increased 6% as a result of growth in both China and India, while the decrease in Spain was mainly due to lower sales from AEGON’s partnership with CAM. 

## France 

# 10 Life insurance 

## China 

# 9 Foreign-owned life insurers 

