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## Strategy for achieving top-line growth 

In a challenging market for life insurance and pension products, AEGON The Netherlands is confident of its ability to grow its business in the long term, and expects to gain market share in some areas. High quality value-added products and services, supported by a low level of operating costs provide us with a healthy competitive position. While our existing customers already form a good basis from which to grow, we are extending our customer reach by adding distribution and database capabilities and building stronger relationships with intermediaries. As we have done in the past, we continue to focus on market or product segments we believe will provide opportunities for profitable growth in the future. 

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## Internal reorganization of AEGON UK 

## AEGON UK’s strategy for long-term growth 

When AEGON acquired Scottish Equitable in 1994, we came in believing that the United Kingdom offered substantial long-term growth potential. Today, our opinion has not changed and AEGON UK is wholly committed to the development of its business. The United Kingdom is one of the largest savings markets in which AEGON operates. However, recent regulatory changes, including price capping of certain products, coupled with the presence of a high exposure to equities in many product areas, has presented significant challenges to the life industry. Our strategy is to create a core of quality financial products and services and to strengthen further our position as one of the leading companies in the industry. A key aspect of our strategy is to expand our product range, while building strong relationships with our distribution partners. 

In October 2003, we announced a new structure for AEGON UK, which is an important development in the continued enhancement of our services and of the lowering of our cost levels. The new structure included the creation of AEGON UK Life and Pensions, and this new unit has brought together Scottish Equitable, Scottish Equitable International, AEGON Individual Protection and AEGON UK Services into one organization. 

AEGON UK has made significant investments in the development of new technology platforms. This has made our processing more cost effective and reduced significantly our ‘time to market’ for product and service enhancements. In addition, it has allowed us to step up our delivery in the important area of e-commerce, particularly in the corporate pensions market. For example, corporate customers are now able to benefit from SmartScheme, an online solution, which makes managing a group pension scheme less time consuming and more cost effective for employers than ever before. 

## Asset management in AEGON UK 

With over GBP 30 billion of assets under management, our in-house investment manager, AEGON Asset Management UK, is one of the UK’s leading providers of institutional and retail fund services. 

We have developed a market-leading ‘open architecture’ approach for our life and pension products, which include access at a competitive cost to ten carefully selected external fund managers, our investment partners. Market developments mean we are more committed than ever to advancing the development of this approach. 

Providing a genuine choice of internal and external asset management capabilities means that we can offer investment solutions tailored to suit anyone from the most cautious investor to the most ambitious. 

## AEGON’s expansion into the IFA market 

Independent financial advisors (IFAs) have long been the primary channel through which we have provided our pension and life products. We remain committed to the advice-based sales channel and we are confident that depolarization will reaffirm the position of that channel. One of our key aims is to establish 

