## United States 

■ AEGON is discontinuing sales of executive non- qualifi ed benefit plans and associated Bank-Owned and Corporate-Owned Life Insurance (BOLI-COLI) in the United States. Most of this business’ operations are located in Dallas, Texas. 

■ AEGON’s operations in Louisville, Kentucky will be consolidated with locations elsewhere in the United States. In addition, some back offi ce activities in Cedar Rapids, Iowa, will be consolidated or outsourced. 

■ These measures will result in the loss of between 400 and 500 jobs over the next years, equivalent to approximately 5% of AEGON’s US workforce. Organizational changes will result in annual cost savings of approximately USD 70 million. 

## Optimize ONE AEGON 

Key to AEGON’s long-term strategy is to manage AEGON as one company. This goal has been part of AEGON’s strategy since mid-2008, and is aimed at ensuring the company makes the most of its worldwide resources. In the past two years, AEGON has taken a more integrated approach to areas such as asset management, human resources, risk and capital, and sustainability. AEGON expects this approach will bring greater efficiency and a better transfer of knowledge and best practice within the organization. As part of this approach, AEGON’s objective is to standardize best practice in a number of areas, including product innovation, distribution, brand management, underwriting, risk management and IT infrastructure. 

## Steps AEGON is taking 

■ Using expertise in the United States to support new variable annuity products in the United Kingdom, the Netherlands, France and Japan. 

■ AEGON Asset Management fully operational as one global business since beginning of 2010, bringing together asset management businesses in the United States, the United Kingdom, the Netherlands, Asia and Central & Eastern Europe. 

■ Greater efficiency with establishment of a single European Data Center covering both the Netherlands and the United Kingdom. 

■ Integration of Asian operations as one regional division headquartered in Hong Kong. 

■ Move towards a more coordinated approach to underwriting and risk and capital management. 

■ Appointment of new senior management in the past two years, with new CEOs appointed in the Netherlands, the United States, the United Kingdom and Asia, and the appointment of a new CEO of AEGON Asset Management. 

■ More integrated approach with the appointments of AEGON’s global heads of Human Resources, Sustainability and Brand & Customer Strategy. 

■ Introduction of consistent performance management across the organization and greater alignment of management compensation with strategic objectives. 

## Asia 

In 2010 AEGON announced a new organizational structure for its operations in Asia under the leadership of a newly-established CEO position for Asia. Whereas a number of AEGON’s businesses in Asia had previously been managed from the United States, under the new structure all Asian based insurance businesses will be managed as one regional division headquartered in Hong Kong. 

The aim of the integration is to leverage product and distribution expertise, capture efficiencies, and pursue organic growth of AEGON’s franchise in Asia. The integration, which will be carried out during 2011, is in line with AEGON’s strategy to achieve a greater geographical balance in favor of those regions and markets that offer higher growth and returns in the longer-term. Mr. Douglas Henck, a US citizen who has held a number of senior management positions in the international insurance world over the last 25 years, mostly in Asia, has been appointed CEO of AEGON Asia. 

