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Local knowledge. Global power.
CORPORATE RESPONSIBILITY REPORT
2006
“As a company that serves more than 40 million customers in over twenty countries around the world, AEGON has a global reach with global responsibilities.” DonalD J. SheparD, ChAIRmAN Of ThE ExECuTIvE BOARd
ABOuT AEGONAEGON is one of the world’s largest life insurance and pension companies, and a strong provider
of investment products. We empower our local business units to identify and provide products and
services that meet the evolving needs of our customers, using distribution channels best suited
to their local markets. We take pride in balancing a local approach with the power of an expanding
global operation.
With headquarters in The hague, the Netherlands, AEGON companies employ approximately
29,000 people. AEGON’s businesses serve millions of customers in over twenty markets throughout
the Americas, Europe, and Asia, with major operations in the united States, the Netherlands and
the united Kingdom.
Respect, quality, transparency and trust constitute AEGON’s core values as the company continually
strives to meet the expectations of customers, shareholders, employees and business partners.
AEGON is driven to deliver new thinking and our ambition is to be the best in the industry.
AT A GLANCE7%UK 777%%%UKUKUK
21%Netherlands 212121%%%NNNeeetherlandstherlandstherlands
1% Other countries1%1%1%%%% Other countriesOther countriesOther countries
71% Americas71%71%71% AmeriAmeriAmericccasasas
millionmillionmillionmillion
millionmillionmillionmillion
225225225225
634634634634
37373737millionmillionmillionmillion
2,1742,2,2,111777444 millionmillionmillionmillion
Rebased
75
125
100
150
175
AEGON
AEX Index
S&P 500
AEGONAEGONAEGON
AEX IndexAEX IndexAEX Index
S&P 500S&P 500S&P 500
AEGON SHARE PRICE DEVELOPMENT VERSUS INDICES
757575
125125125
100100100
150150150
175175175
Jan05JanJanJan050505
Mar05MarMarMar050505
Jun05JunJunJun050505
Sep05SepSepSep050505
Jan06JanJanJan060606
Mar06MarMarMar060606
Jun06JunJunJun060606
Sep06SepSepSep060606
�e � 06 � e��e ��e � 060606
RebasedRebasedRebasedAEGON SHARE PRICE DEVELOPMENT VERSUS INDICES Rebased
75
125
100
150
175
AEGON
DJ Stoxx 600 Insurance Index
S&P 500 Insurance Index
AEGONAEGONAEGON
DJ Stoxx 600 Insurance IndexDJ Stoxx 600 Insurance IndexDJ Stoxx 600 Insurance Index
S&P 500 Insurance IndexS&P 500 Insurance IndexS&P 500 Insurance Index
757575
125125125
100100100
150150150
175175175
Jan05JanJanJan050505
Mar05MarMarMar050505
Jun05JunJunJun050505
Sep05SepSepSep050505
Jan06JanJanJan060606
Mar06MarMarMar060606
Jun06JunJunJun060606
Sep06SepSepSep060606
Dec 06 DecDecDec 060606
RebasedRebasedRebased
operating earningS before tax geographically
amounts in eUr million and %
NET INCOME Amounts in EUR million
2006
2005
0 500 1,000 1,500 2,000 2,500 3,000
NET INCOME PER SHARE Amounts in EUR
2006
2005
0 0.40 0.80 1.20 1.60 2.00
OPERATING EARNINGS BEFORE TAX BY ACTIVITY Amounts in EUR million
Life insurance
2006
2005
(700) 0 700 1,400 2,100 2,800 3,500 0 800 1,600 2,400 3,200 4,000
INCOME BEFORE TAX GEOGRAPHICALLY Amounts in EUR million
2006
2005
General insurance
Accident & health insurance
Banking activities
Interest charges and other
Other activities
Netherlands
Americas
Other countries
UK
0 200 400 600 800 1,000
VALUE NEW BUSINESS Amounts in EUR million
2006
2005
DIVIDEND PER SHARE Amounts in EUR
2006
2005
0 0.10 0.20 0.30 0.40 0.600.50
Proposed
TOTAL ASSETS UNDER MANAGEMENT
Amounts in EUR billion
2006
2005
0 30025020015010050
(excluding off balance sheet items)
explanation Vnb /irr
Value of new business (vNB) is part of the embedded value reporting
and is considered an important supplemental measurement of the
business performance. vNB is widely used in the insurance industry to
measure how profitable new policies will be. vNB represents the
present value of future, distributable earnings that will be generated by
these new policies, sold in a defined reporting period. The vNB reflects
how much profit can be expected from new business, discounted to its
present-day value, using various assumptions for changes in interest
rates, economic circumstances and other variables.
In addition AEGON discloses its internal rate of return (IRR) on the
value of new business. IRR represents the discount rate at which the
present value of the distributable earnings from new business equals
the investment in new business; i.e. the projected return on the initial
investment in new business.
AEGON believes that the information it publishes on the vNB, along
with the other financial disclosures it regularly makes, provides
valuable, additional assistance to investors and shareholders in
helping them understand the nature of the company’s business.
vNB and IRR should not, however, be viewed as a substitute for
AEGON’s primary financial statements. The method AEGON uses to
calculate its vNB is consistent with European Embedded value
Principles and is described in more detail in the Embedded value
disclosure document available on AEGON’s website: www.aegon.com.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 �
INTRODUCTION 2 Chairman’sletter
4 Makingprogress
5 AEGON’sstrategy
6 AEGON’sstakeholdersandaimsfor2007
1.THECOMPANY 8 AEGON’sbusinesses;Globalresources
9 WhereAEGONseesfuturegrowth
2.GOVERNANCE 14 Corporategovernance;Asolidfinancialbase
15 InvestorRelations
16 CodeofConduct
17 AEGON’scommitmenttohumanrights
1 8 Limitingrisk
3.THEMARKETPLACE 20 AEGON’smarkets;Managingcustomerrelations
24 Ensuringproducttransparency
28 Investingresponsibly
30 AEGON’sbrands
31 Workingwithdistributionpartners;
Thebenefitsoftheinternet
32 AEGON’ssuppliers;Governmentsandregulators
4.THEWORKPLACE 34 AEGON’semployees
36 Payingafairwage;Employeesatisfaction
37 Healthandsafety
38 Protectingtheenvironment
5.THEWIDERCOMMUNITY 42 AEGON’slong-termcommitmenttolocalcommunities
43 Givingtogoodcauses
ADDITIONALINfORMATION 45 Summary
46 Corporateresponsibilityindicators
APPENDICES 48 AppendixI:Thescopeofthisreport
48 AppendixII:AnoverviewoftheGlobalReportingInitiative(GRI)
49 AppendixIII:GlobalReportingInitiativeIndex(G3)
55 AppendixIV:HowAEGONpromotescorporateresponsibility
initiatives
56 forward-lookingstatements
7 19 413313
IMAGES
Page7 AEGONcolleaguesworkingonaprojectatthe
company’sheadquartersinTheHague.
Page19 AEGON’sheadquartersinTaiwan.AEGONisoneof
thelargestforeign-ownedlifeinsuranceprovidersin
thecountry.
Page33 AnAEGONcolleagueworksthephonesinAEGON
Hungary’sclaimsdepartment.
Page41 Volunteerday:AEGONemployeesraisemoneyfor
goodcausesinTaiwan.
CorporateResponsibilityReport2006
CONTENTS
2 AEGON CORPORATE RESPONSIBILITY REPORT 2006
DonaldJ.Shepard
CHAIRMANOf
THEEXECUTIVEBOARD
DEARSTAKEHOLDER,Asoneoftheworld’sleadingprovidersoflong-termfinancialprotectionproducts
andservices,AEGONmakeslong-termpromisestoawiderangeofcustomers,
businesspartners,employeesandshareholders.Eachdaywetakestepstoensure
thatweareabletokeepthosepromisesthroughsoundandresponsiblebusiness
practicesandtheintegrityoftheproductsandserviceswedeliver.
AEGON’scorevaluesofrespect,quality,transparencyandtrustare
centraltothemanyconsiderationsthatguideourbusinessdecisions.
ThislatestCorporateResponsibilityReportprovidesabroadoverview
oftheinitiativesandpolicieswehaveimplementedduringthispast
yeartostrengthenourcommitmenttothemanydiversecommunities
thatAEGONservesthroughouttheUnitedStates,EuropeandAsia.
Ourindustryhaschangeddramaticallyinrecentyears.Indeveloped
countries,peopleare living longerandarehaving tomanage their
pension assets for considerably longer periodsof time than in the
past. As individuals assume greater responsibility for their own
retirement, it is important that our customers have a clear
understandingoftheirparticularneedsandavailableoptionsinorder
tomakethebestfinancialplanningdecisions.
forthisreason,AEGONiscommittedtoimprovingfinancialliteracyin
the communities in which it operates. This includes supporting
programsinourmarketsdesignedtoprovideinstructiononpersonal
finance and retirement planning. Providing clear and transparent
productsisalsoanessentialrequirementtomaintainingthetrustand
confidenceofourcustomers.
Since our last Corporate Responsibility Report, we have made
significantprogressinanumberofkeyareas.Wehaveenhancedthe
transparency of our products. We have improved levels of both
customer and employee satisfaction. And we have extended and
strengthenedtheCodeofConductthatprovidesallemployeeswith
the essential guidelines for howAEGON operates as a responsible
companyinanever-changinginternationalbusinessenvironment.
Chairman’sletter
DONALDJ.SHEPARD,CHAIRMANOfTHEEXECUTIVEBOARD
AEGON CORPORATE RESPONSIBILITY REPORT 2006 �
“Providingclearandtranparentproductsisanessentialrequirementtomaintainingthetrustandconfidenceofourcustomers.”
As a global company, AEGON also has responsibilities that extend
beyondthefinancialservicesindustry.Aswecontinuetoexpandour
internationalpresenceinthecomingyears,wewillundoubtedlyface
newchallengesandnewresponsibilities.Intheseareas,too,wehave
madeprogress.Sinceourlastreport,wehavebecomeasignatoryto
theCarbonDisclosureProject,whichencouragescompaniesaround
theworldtobemoreopenabouttheirgreenhousegasemissions.We
havealsoexpandedthenumberofSociallyResponsibleInvestment
fundsweofferintheUnitedKingdomtothree,havestrengthenedour
commitmenttopromotingandprotectingfundamentalhumanrights
inouroperationsaroundtheworldandhaveextendedAEGON’slong-
standingsupportforinternationalresearchprogramsintothecauses
andtreatmentofcancer.
Looking ahead,we are examining the possibility of a new, globally
coordinated action plan to reduce energy consumption across
AEGON’s operations internationally. Other projects include
establishing group-wide corporate responsibility standards for
suppliers in all our major procurement centers, and group-wide
principlestohelpdeterminehowAEGONexercisesitsvotingrightsas
ashareholderinothercompanies.
While we are pleased with the advances in AEGON’s record on
corporate responsibility issues, we recognize that there are areas
wherefurtherimprovementispossible.Aspartofthisprocess,weare
committedtoincorporatinginsightsandrecommendationsfromour
stakeholders that will strengthen our principles and their
implementationinourday-to-dayperformance.
Asacompany thatservesmore than40millioncustomers inover
twentycountriesaroundtheworld,AEGONhasaglobalreachwith
global responsibilities. We remain committed to fulfilling those
responsibilitiesinawaythatwillcontinuetojustifytheconfidenceof
our customers, partners, employees and shareholders, while
maintainingAEGON’s reputation as a leading contributor to sound
andresponsiblebusinesspracticesaroundtheworld.
Sincerely,
DonaldJ.Shepard
CHAIRMANOfTHEEXECUTIVEBOARD
� AEGON CORPORATE RESPONSIBILITY REPORT 2006
HOWAEGONIMPROVEDITSCORPORATERESPONSIBILITYRECORDIN2006AEGONisproudoftheprogressithasmadeoverthepastyeartoimproveits
recordoncorporateresponsibilityissues.Sinceitslastreport,AEGON:
Has rolled out a company-wide e-learning program, aimed at
increasingemployeeawarenessofitsCodeofConductandensuring
amoreeffectiveimplementationacrossallAEGONcompanies.
Hasbecomeasignatory to theCarbonDisclosureProject,which
encouragescompaniesaround theworld tobemoreopenabout
theirgreenhousegasemissions.
Has adopted a stronger and clearer position on human rights,
whichwillbeincorporatedintoitsCodeofConductin2007.
HasextendedthescopeofthisCorporateResponsibilityReportto
includeallcountryunits.
Has added another Socially Responsible Investment fund to its
rangeoffundsintheUnitedKingdom.
HasensuredamoretimelyreleaseofitsCorporateResponsibility
Report,making itavailabletoall investorsand interestedparties
ahead of the company’s 2007 annual General Meeting of
Shareholders.
Has strengthened its support for research into the causes and
treatmentofcancer.
HasremainedpartofboththeDowJonesSustainabilityandthe
fTSE4Goodindices.AEGONhasbeenincludedinbothindicesforat
leastthepastfouryears.
Has taken action to improve both customer and employee
satisfaction.
Introduction
MAKINGPROGRESS
AEGON CORPORATE RESPONSIBILITY REPORT 2006 �
AEGONisoneoftheworld’sleadinglifeinsurersandpensioncompanies.Assuch,
ithaslong-termresponsibilitiesnotonlytoitsmanycustomers,employees,
shareholdersandbusinesspartners,butalsotothewidercommunitiesinwhich
itoperates.
AEGONSErvESlOcAlNEEDSwIthGlObAlrESOurcES
Supportedbyitsglobalresourcesandbroadexpertise,AEGONrelies
on the knowledge of local management to identify and serve the
evolving needs of its customers. AEGON further seeks to deliver
innovativeproductsandservicesthroughmulti-channeldistribution
networksbestsuitedtolocalmarkets.
AEGONfOcuSESONGrOwINGItSbuSINESSESprOfItAbly
AEGONpursuesastrategyof long-termprofitabilityandsustainable
growth.AEGONaimstoachievealong-termaveragenetincomegrowth
rateof 10percentper annum. In themedium term,AEGONaims to
doubleitsvalueofnewbusinessduringtheperiod2005-2010.AEGON
setsitsreturnobjectivesrelativetotherisksofitsmarketsandwellin
excessofthecostofcapital.Disciplinedexpensemanagement,together
with the divestiture of non-core and structurally underperforming
activities,arekeytoachievingtheseobjectives.
AEGONAIMStOSEcurElEADINGMArkEtpOSItIONS
AEGONstrivesfora leadingpositionin itschosenmarketsinorder
torealizethebenefitsofscale,whileattractingandretainingquality
managementaswellasstronglocalpartners.
AEGONpurSuESGrOwthbyExpANDING
ItSINtErNAtIONAlprESENcE
AEGONpursuesgrowth incountries thatoffer long-termprofitable
growth for the products and services it provides. AEGON seeks to
expand its presence in its chosenmarkets throughorganic growth
andthroughselectacquisitionsandpartnerships.
“2006wasayearofprogressandachievementforAEGON.”
Introduction
AEGON’SSTRATEGY
AEGONiscommittedtoprinciplesofbusinesspracticethatpromote
respect,quality,transparencyandtrust.ThisfourthannualCorporate
Responsibility Report details the specific steps both senior
management and local divisions have been taking to ensure these
principles becomean integral part of thewayAEGONmanages its
operationsaroundtheworld.
from a business perspective, 2006 was a year of progress and
achievementforAEGON.Significantadvancesweremadeinenhancing
the company’s profitability, strengthening its distribution network
andexpandingitsinternationalpresence.Operatingearningsbefore
tax in 2006 rose 32 percent compared with the year before, to
EUR 2.83 billion. The value of new business (VNB), meanwhile,
increased41percenttoEUR775million,providingasolidfoundation
forfutureprofits.
AEGON’sstrategyAEGON’sbusinessstrategyisbasedonfive,clearlydefinedprinciples:
AEGONIScOMMIttEDtOItScOrEbuSINESSES
AEGON is focused on the long-term financial protection and asset
accumulationneedsofitsclients,withaprimaryfocusondelivering
lifeinsurance,pensions,savingsandinvestmentproducts.
6 AEGON CORPORATE RESPONSIBILITY REPORT 2006
Introduction
AEGON’SSTAKEHOLDERSANDAIMSfOR2007
Setoutgroup-wideprinciplesonexercisingvotingrightsrelatedto
shares AEGON owns in other companies. These principles will
operateinconjunctionwithexistingcountryunitpolicies.
Establish group-wide corporate responsibility standards for
suppliersinallitsmajorprocurementcenters.
Examinethepossibilityofanewgloballycoordinatedactionplanto
reduceenergyconsumption.
cuStOMErS
AEGON builds long-term relationships with all its customers by
deliveringproductsandservicesdesignedtoimprovetheirfinancial
security, both now and in the future. The company ensures its
customers have clear, accurate and timely information, allowing
them to choose the right products and services for their evolving
needs. AEGON shows its customers respect by honoring its
commitmentstothem,bysolicitingtheirviewsand,whereappropriate,
actinguponthem.
ShArEhOlDErS
AEGON works hard to create sustainable financial returns for its
shareholders,whilemakingsurethecompanyalsorespectsitscore
valuesandtheconcernsofallitsotherstakeholders.Open,accurate
and timely financial communication allows shareholders to make
informeddecisionsregardingtheirinvestmentsinthecompany.
EMplOyEES
AEGON provides its employees with the incentives they need to
translatethecompany’scorevaluesofrespect,quality,transparency
and trust into practice. AEGON encourages a culture in which
employees are committed to working together. Training is a high
priority for AEGON and the company provides formal skills and
developmenttrainingforemployeesatall levels.Everyemployeeis
expected to seek theopportunities, the training and the resources
necessaryforsuccess.AEGONexpectseveryonewhoworksforthe
companytodemonstrateinitiativeandcommitmentandtoactinthe
long-terminterestsofallthecompany’sstakeholders.
buSINESSpArtNErS
AEGONbuildslastingrelationshipswithbusinesspartnerswhoshare
its core values. Together, AEGON and its partnerswork to provide
quality products and services. At all times, AEGON strives to
communicateopenlyandaccuratelyandexpectsitsbusinesspartners
todothesame.
cOMMuNItIES
AEGON endeavors to establish long-term relationships within the
communities in which it operates. Through employment and
opportunitiesforpersonaldevelopment,aswellasthroughrespect
for the local environment and the financial support the company
extends to a number of good causes, AEGON hopes to enrich the
communitiesinwhichitsemployeesliveandwork.
Invest in streamlining and enhancing its corporate responsibility
informationgatheringandreporting.
Investigatepossiblemembershipofbusinessnetworkstoexchange
viewswithothercompaniesonhowtoimproveitsmanagementof
corporateresponsibilityissues.
Beginworkonatrackable,baselineindex,compiledfromexisting
surveys, to measure overall rates of customer satisfaction for
AEGONcompaniesworldwide.
In2007,AEGONwilltakefurtherstepstoimproveitsmanagementofboth
governanceandbroadercorporateresponsibilityissues.Duringtheyear,
AEGONwill:
AEGON CORPORATE RESPONSIBILITY REPORT 2006 �
ENSURINGLOCALDECISION-MAKINGINANEXPANDINGGLOBALGROUP
1
Chapterone
THECOMPANY
� AEGON CORPORATE RESPONSIBILITY REPORT 2006
“AEGONisseekingtocapitalizeonsignificantgrowthopportunitiesintheyearsahead.”
AEGON’SbuSINESSES
AEGONfocusesonalimitednumberofcorebusinesses:lifeinsurance,
pensions and investment products. In 2006, its established markets
–theUnitedStates,theNetherlandsandtheUnitedKingdom–accounted
forapproximately99percentofAEGON’soperatingearningsbeforetax.
Inrecentyears,AEGONhasbeenexpandingitsinternationalpresence
andnowhasmore than40millioncustomersaround theworld. In
additiontoitsestablishedmarkets,thecompanyisnowactiveinmore
than twenty other countries in the Americas, Europe and Asia. In
early 2007, AEGON signed new joint ventures with partners in
RomaniaandJapan.
With its headquarters in The Hague, the Netherlands, AEGON has
nearly 29,000 employees and operates an extensive and highly
diversifieddistributionnetwork, througha rangeofdifferentbrand
names.ThisnetworkensuresAEGON’sfinancialproductsreachthe
peopletheyweredesignedfor.Asoneoftheworld’sleadingfinancial
servicescompanies,AEGONisasignificantinvestorinbusinessesand
economiesaroundtheworld.
Thecompany
AEGON’SBUSINESSES;GLOBALRESOURCES
GlObAlrESOurcES,lOcAlDEcISION-MAkING
AEGON’s operating structure emphasizes the importance of local
businesseswithinaglobalgroup.Thisprincipleisalsoreflectedinthe
company’sapproachtoissuesofcorporateresponsibility.AEGONsets
outageneralcorporateresponsibilityframework,aswellasaCodeof
Conductforallcompanyemployees.Eachcountryandbusinessunit
is, however, encouraged to identify and focus on issues that are
specifictoitslocalsituation.
AllAEGON’scountryandbusinessunitsshareanumberofcommon
objectives.These includeprovidingsoundandtransparentfinancial
products that addvalue for customers, ensuringall employeesare
committed and knowledgeable, and managing the company’s
businesses with integrity and in the best interests of all AEGON’s
manystakeholders.
Thisapproachguaranteesthatlocalmanagersretaintheauthorityto
makelocaldecisionsbutstillenjoytheresourcesandadvantagesof
an expanding global operation. Determining policies and setting
specifictargetsistheresponsibilityoflocalmanagers.Thisensures
that AEGON works toward objectives that reflect local needs and
circumstances.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 �
fransvanderhorst
MANAGINGDIRECTOR
AEGONPENSIONNETWORK
Thecompany
WHEREAEGONSEESfUTUREGROWTH
whErEAEGONSEESfuturEGrOwth
foranumberofreasons,AEGONbelievesitscorebusinessesoflife
insurance, pensions and investment productswill show strong and
sustainablegrowthinthecomingyears.
Throughout thedevelopedworld, people are living longer and are
havingtomanageassetsforconsiderablylongerperiodsoftimethan
inthepast.Thisphenomenonisdrivingdemandforthetypeoflong-
termsavings,lifeinsuranceandretirementproductsinwhichAEGON
specializes.InEurope,itisestimatedthatby2050,theworking-age
populationwillhavedeclinedby20percent.Atthesametime,the
populationofover-65swillhaverisenbyastaggering80percent.1
Governmentsareincreasinglytransferringresponsibilityforpension
andothersocialprovisionsfromthepublictotheprivatesector.
Many companies are shifting their pension plans from defined
benefit to defined contribution, effectively passing responsibility
forretirementplanningtotheindividual.
Wealth in many parts of the world is increasing, enabling more
peoplethanevertosaveandplanforretirement.
In2006,AEGON launchedaseriesofglobalgrowth initiativesand,
forthefirsttime,setoutanambitiousmedium-termfinancialtarget
todoublethevalueofitsnewbusinessoverthenextseveralyears.
AEGONisseekingtocapitalizeonsignificantgrowthopportunitiesin
theyearsaheadbystrengtheningitsfocusonpensions,expandingits
internationalpresenceandextendingitsbancassurancenetwork.1Source:Eurostat.
pENSIONS
AEGONistakinganumberofstepstoenhanceitsalreadyconsiderable
presenceintheworldwidepensionbusiness.In2006,newinitiatives
helpedthecompanystrengthenitspositionintheUnitedStates,the
Netherlands and theUnited Kingdom, its three largestmarkets. In
addition, AEGON’s strategy to expand its international presence
brought benefits for its pension business. New joint ventures,
partnerships and acquisitions in countries such as Poland,Mexico,
IndiaandChinaduringtheyearsignificantlyextendedthepotential
reachofAEGON’spensionoperations.
Towardtheendof2006,AEGONalsoboughtPTEErgoHestia,oneof
Poland’s leading pension fund management companies. The
acquisitionwillhelpsupportwhathasrecentlybeenarapidexpansion
ofAEGON’spensionbusinessinCentralandEasternEurope.
Bycoordinatingproductdevelopmentandsharingexpertiseacross
its business and country units, AEGON believes it can capture a
significantshareoftheextensiveaccumulatedretirementassetsthat
willflowintotheworldpensionmarketoverthenextseveralyears.
As AEGON expands its international operations, the company is
working on strengthening AEGON Pension Network (APN), an
international network of pension providers formed in 2003 with
AEGON’sfrenchpartnerLaMondiale.APNisthefirstnetworkofits
kinddedicatedtodevelopingcross-borderpensionsolutions,acting
as a bridge between APN member companies and multinational
clients across the globe. APN members include most of AEGON’s
countryunitsandnumberofexternalpartners,notablyLaMondiale
andHDIGerling PensionsmanagementAG, Germany’s third largest
pensionprovider,whichjoinedthenetworkin2006.In2007,APNwill
berollingoutnewproductsdesignedtohelpitsmulinationalclients
track their cross-border pension risks and liabilities. APN already
providesproductsandservices,includingriskpoolingandretirement
plansforexpatriateemployees.
InDecember2006,APNpublishedthefirst-everGlobalPensions
Survey,an importantcontributiontothe internationaldebateon
thefutureofpensionfunding.Thesurveyfoundthatmulti-national
companies, confrontedby an arrayof different national pension
arrangements,are increasingly lookingto internationally-minded
providers like AEGON to help them come up with cross-border
solutions to their pension plan issues. Details of the survey,
‘BridgingPensionPlansWorldwide’,areavailableonAPN’swebsite:
www.aegonpensionnetwork.com/10-global_pensions_survey.htm.
fransvanderHorstin‘Wideningthepensionboundaries’:
“Pensionsarebecomingmoreandmoreinternational.Asaresult,weatAEGONareprovidingmoreinternationalsolutionsforourmultinationalclients.”
�0 AEGON CORPORATE RESPONSIBILITY REPORT 2006
The pensionmarket is changing fast. As companies becomemore
international, so do their pension requirements. In recent years,
manycompanieshavefoundthatrunningseparateretirementplans
for employees in each of their national subsidiaries is becoming
increasingly difficult and costly. What they want are cross-border
answerstocross-borderissues.
forthisreason,fouryearsago,AEGONsetupAEGONPensionNetwork
(APN)tohelpmultinationalcompaniesdealwiththecomplexitiesof
differentnationalpensionarrangements–justoneofthemanyways
AEGONisstrivingtocatertoitscustomers’ever-changingneeds.
“This isamassive issuefora lotofourcorporateclients,”explains
fransvanderHorst,APN’sManagingDirector.“Pensionsarebecoming
moreandmoreinternational.Asaresult,weatAEGONareproviding
more international solutions for our multinational clients. That’s
somethingwemustcontinue–itwillhelpusstayaheadofthepack.”
formultinationals, cross-borderpensionshavebecomean issueof
enormousimportance.Atatimewhenpensionliabilitiesaregrowing,
the recent introduction of new accounting rules persuaded many
companyCfOsthatchangewasoverdue.Effortshavebeenmadeto
bringEurope’sdifferentpensionregimesclosertogether.But,insuch
acomplexarea,reformhasprovedfarfromstraightforward.
APN effectively acts as a bridge between its member companies
andmultinationals across the globe, providing clients and pension
providerswithasingleofpointofcontactandanetwork thatnow
coversmorethanfifteencountriesintheAmericasandEurope.
“Ifwehaveaclient,forexample,intheUnitedStateswhoislooking
forsomeassistancewithpensionplansinHungaryorPoland,thenwe
canhelp.ThroughAPN,wecanbringtogetherthepensionprovider
andthecustomer.APNisthelink”,saysMr.VanderHorst.
“Manycompanieshavedifferentpensionplansindifferentcountries,”
headds.“Thatcanbeaverycomplexsituation.Whatthey’retelling
usisthis:‘Wehavetomakethiswork.Wecan’twaitforchangesin
regulations.Wewantsolutionsnow’.AndAPNisthereforthem.”
Wideningthepensionboundaries
Thecompany WhereAEGONseesfuturegrowth
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
INtErNAtIONAlExpANSION
In 2006, AEGON made considerable progress in expanding its
internationalbusinesses.Duringtheyear,AEGONboughta49percent
stakeinSegurosArgos,aMexicanlifeinsurer,andannouncedanew
venture with the Ranbaxy Promoter Group in India to provide life
insuranceandassetmanagementservicesthroughtheIndiangroup’s
subsidiary,Religare.AEGONalsoextendeditsoperationsinChinaand
madeacquisitionsinPoland,theNetherlandsandtheUnitedStates.
Earlyin2007,AEGONannouncedfurtherpartnershipswithBanca
Transilvania,oneofRomania’sbest-knownbanks,andwiththe
insurerSonyLifeinJapan,whichwillenableAEGONtoextendits
reachintotheworld’ssecondlargestmarketforlifeinsurance.
Mexico
Brazil
Ireland
United Kingdom
France
Spain
The Netherlands
Germany
Italy
Poland
Czech Republic Hungary
Slovakia
Thailand China
Hong Kong
Taiwan
S. Korea
Japan
Australia
Canada USA
SingaporeChile
Bermuda
AEGONAROUNDTHEWORLD
1AEGONDirectMarketingServices(ADMS)isoneoftheoperatinggroupsofAEGONUSA.
Mainmarkets
AEGONDirectMarketingServices1
Otheractivities
�2 AEGON CORPORATE RESPONSIBILITY REPORT 2006
Thecompany WhereAEGONseesfuturegrowth
bANcASSurANcE
Partnershipswithbanksacross theUnitedStates,EuropeandAsia
helpAEGONreachmillionsofcustomersitwouldn’totherwisereach.
Thesepartnershipsareakeypartofthecompany’soverallbusiness
strategy.Distributingthroughdifferentchannelsallowscustomersto
accessAEGON’sproductsinthewaythatbestsuitsthem.
InadditiontoAEGON’ssuccessfulpartnershipwithCajadeAhorrosde
Mediterráneo (CAM), new joint ventures with two additional Spanish
mutual savings banks – Caja de Badajoz and CajaNavarra – became
operationalin2006.ThesenewjointventureswillhelpextendAEGON’s
productsandservicesthroughnearly1,500bankbranchesacrossSpain.
InSpain,some70percentoflifeinsurancepoliciesaresoldthroughthe
country’sbanks.
AEGON’SMEDIuM-tErMfINANcIAltArGEt
for the first time, AEGON set itself amedium-termfinancial target in
2006,areflectionoftheconfidencethecompanyhasinitscoremarkets
and businesses. AEGON’s objective is to double the value of its new
business by 2010 to EUR 1.1 billion. further expansion in developing
markets, the strength of AEGON’s established businesses and the
prospectsforrisingdemandforpensionsandlong-termsavingsproducts
willdrivegrowthintheyearsahead.In2006,thevalueofnewbusiness
amountedtoEUR775million,anincreaseof41percentcomparedwith
thepreviousyear,puttingAEGONoncoursetomeetits2010target.
StrongergrowthwillnotonlysecureAEGON’sfinancial futurebutwill
alsobringlong-term,sustainablebenefitstoitscustomers,partnersand
shareholdersaswellas to themanycommunitiesaround theworld in
whichthecompanyoperatesandinvests.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
OPERATINGASARESPONSIBLECOMPANYINANEVER-CHANGINGBUSINESSENVIRONMENT
2
Chaptertwo
GOVERNANCE
�� AEGON CORPORATE RESPONSIBILITY REPORT 2006
Governance
CORPORATEGOVERNANCE;ASOLIDfINANCIALBASE
AEGON’sfinancialstrengthisreflectedintheratingsbelow:
rAtINGS AEGON USAAEGON
The NetherlandsAEGON Scottish
Equitable
asofMarch31,2007
S&Prating AA AA AA
S&Poutlook Stable Stable Stable
Moody’srating Aa3 Notrated A1
Moody’soutlook Stable Notrated Stable
fitchrating AA+ Notrated Notrated
fitchoutlook Stable Notrated Notrated
In 2006, AEGON paid out a total of EUR 798 million in interest
and dividends to shareholders and bondholders, an increase from
EUR701millionthepreviousyear.At itsannualGeneralMeetingof
Shareholdersin2007,AEGONwillproposeadividendofEUR0.55a
commonshare,anincreaseof22percentcomparedwiththeprevious
year’sEUR0.45,toreflectthecompany’sstrongcashflow.
cOrpOrAtEGOvErNANcE
AEGONhasawell-establishedandcomprehensivesystemofcorporate
governance. This helps strengthen overall financial management,
ensureasolidcapitalbase for thecompanyandsupportefforts to
mitigateandlimitoperationalandmarketrisk.Aspartofitsapproach
tocorporategovernance,AEGONiskeentoensurethatthehighest
ethical standards are respected throughout the company. for this
reason,sinceitslastCorporateResponsibilityReportwaspublishedin
August2006,AEGONhastakenstepstoextendtrainingonitsCode
ofConductandhasadoptedastrongerandclearerpositiononhuman
rights.AEGONbelievesthesemeasureswillreinforcethecompany’s
core values as it continues to expand into new countries and new
markets.
forfurtherdetails,refertothecorporategovernancesectionofAEGON’s
2006AnnualReport,availableatwww.aegonannualreport.com.
ASOlIDfINANcIAlbASE
AsofDecember312006,AEGON’sshareholders’equityamountedto
EUR19.1billion.Thisrepresentedsome77percentofthecompany’s
totalcapitalbase,inlinewithEUR19.3billion,or76percent,atthe
endof2005,andwellabovetheminimumrequirementof70percent
thatthecompanysetsforitself.Perpetualcapitalsecuritiesaccounted
for another 16 percent ofAEGON’s total capital base at end-2006,
while senior and dated subordinated debt made up the remaining
7percent.
Overall, this provides strong capital adequacy for AEGON’s local
operationsandasolidcapitalbaseforthecompanyasawhole. It
alsoensuresAEGON’smanycustomersaroundtheworldcanhave
confidenceinthecompany’slong-termfinancialstrength.AEGONis
committedtoabusinessstrategythatwillguaranteeitscontinuing
financialsolidity.AEGONvaluesitsmanytrustedrelationshipswithin
the global investment community and the geographical diversity
of its investor base reflects the company’s broad international
businessreach.
“AEGON’sCodeofConductprovidesbothmanagementandemployeeswithguidelinesforhowthecompanyoperatesasaresponsiblebusiness.”
Dividend paid on common shares
Interest paid on other equity instruments
Dividend paid on preferred shares
Interest on debt instruments
INTEREST AND DIVIDENDS 2006 Amounts in EUR million
391
80
204
123
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
Governance
INVESTORRELATIONS
INvEStOrrElAtIONS
Inkeepingwithitscommitmenttofurtherimprovedisclosure,AEGON
has started to report quarterly valueof newbusiness information
andinternalrateofreturnofthenewbusiness,beginningwiththe
first quarter 2006 results. Additionally, AEGON will provide
information on its various business activities in a statistical
supplementtobeincludedinitsquarterlyearningsreleasesstarting
withthefirstquarterof2007.Withtheaimofensuringequalaccess
toall relevant information,AEGONactivelymaintainscontactwith
thefinancialcommunity. Interactionswiththefinancialcommunity
includeroadshowsthroughouttheUSA,Europe,andAsia,webcasts,
press releases and regularly scheduled investor days. Moreover,
shareholders,bondholdersandpotentialinvestorsareencouragedto
learnmoreaboutAEGON’sbusinesses andmanagementdecisions
aimed at achieving its strategy of long-term profitable growth in
AEGON’smajoranddevelopingmarkets.Inkeepingwithitsongoing
determination to maintain an open dialog with the financial
community,AEGON’sprofessionalinvestorrelationsstaffisavailable
toanswerquestionsatanytime.
ShArEhOlDErSANDShArEprIcEDEvElOpMENt
AEGON’s international business activities are reflected in the
geographicaldiversityofitsinvestorbase.In2006,theAEGONshare
priceappreciated5.0percent,fromEUR13.75onDecember30,2005
toEUR14.44onDecember29,2006.Includingthedividendspaidin
2006thetotalreturn1foranAEGONcommonsharein2006was8.7
percent(2005:42.8percent).Thiscomparestototalreturns1forthe
European Insurance Index (DJStoxx600 Insurance Index) of 20.7
percent (2005: 34.6 percent) and the S&P 500 Insurance Index
(inEUR)ofminus0.5percent(2005:30.7percent).
Sharepriceinformation2(inEur)
2006 200� 200� 200� 2002
Price-high 15.56 14.25 12.98 13.47 28.89
Price-low 12.17 9.63 8.24 5.87 9.04
Price-year-end 14.44 13.75 10.03 11.73 11.79
Price/earningsratio 8.86 8.44 7.27
Sharepriceinformation2(inuSD)
2006 200� 200� 200� 2002
Price-high 18.97 16.78 16.12 14.80 26.00
Price-low 15.24 12.19 10.41 6.76 8.88
Price-year-end 18.95 16.32 13.71 14.80 12.33
1The source for the total return calculation and comparison is Bloomberg.Thecalculationassumesreinvestmentofthedividendinthestockorintheindex.
2Source:Bloomberg.
Americas
United Kingdom
Rest of Europe
The Netherlands
Rest of the world
SHAREHOLDER BASE Estimated
36%
20%
17%
26%
1 %
�6 AEGON CORPORATE RESPONSIBILITY REPORT 2006
Governance
CODEOfCONDUCT
cODEOfcONDuct
AEGON’sCodeofConductprovidesbothmanagementandemployees
with guidelines for how the company operates as a responsible
business.ThisCodesetsoutAEGON’scorevaluesanditsunderlying
principlesofbusinesspractice.AcopyoftheCodecanbefoundon
AEGON’swebsiteatwww.aegon.com/corporateresponsibility/policies.
All AEGON employees, excluding those working for joint ventures
whereAEGONdoesnothavefullmanagementcontrol,arecovered
bythisCodeofConduct.
AEGON requires all employees not only to be well informed about
thecompany’sCodeofConduct,butalsotoincorporateitintotheirday-
to-daywork.Toincreaseemployeeawarenessofthecompany’sCodeof
Conduct,AEGONhasputinplaceanintranet-basede-learningtraining
program,whichwaslaunchedlastyearacrossallbusinessunits.Training
workshopshavebeenorganizedatallAEGONcompanies.
Todate,approximately95percentofAEGONemployeesaroundthe
worldhavecompletedtheCodeofConducttraining.Giventheusual
rate of staff turnover and the number of employees absent on
maternityorlong-termleave,thesefiguresareclosetothemaximum
AEGONcanachieve.AEGONisalsoextendingtrainingontheCodeof
Conducttosome800employeesatfinancialadvicecompanyUnirobe,
whichbecameafully-ownedunitofAEGONTheNetherlandsin2006.
Seventy-fiveUnirobemanagershavealreadytakenpartinthetraining
program.
AEGON’s Code of Conduct also includes ‘whistleblower’ provisions
which allow employees to report suspected irregularities without
jeopardizingtheirposition.Inaddition,AEGONhasinplaceadetailed
procedure for reporting complaints regarding accounting, internal
financialcontrolsandauditingissues.Detailsofthisprocedurecanbe
foundonAEGON’swebsiteat:www.aegon.com/corporategovernance/
governancestructure/.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
Governance
AEGON’SCOMMITMENTTOHUMANRIGHTS
AEGON’ScOMMItMENttOhuMANrIGhtS
AEGONupholdstheUnitedNations’UniversalDeclarationofHuman
Rights.In2007,AEGONwillincorporatethisDeclarationintoitsCode
ofConduct.ThisdecisionreflectstherecentexpansionofAEGON’s
businesses into a number of developing countries as well as the
company’s desire to adopt a stronger and clearer position on this
issue.AEGONrecognizesitsresponsibilitytohelpprotectandpromote
humanrightsinallthecountriesinwhichitoperates.
DoingtherightthingAlthoughgovernmentsareprimarilyresponsibleforprotectinghuman
rights, companiesalsohavea role toplay.from2007,allAEGON’s
business activities will be guided by the United Nations’ Universal
DeclarationofHumanRights,thecorestandardsoftheInternational
Labor Organization (ILO) and the principles on human rights and
laborstandardscontainedintheUNGlobalCompact.
TheUN’sDeclarationofHumanRights,itsGlobalCompactandtheILO’s
corestandardssetoutanumberoffundamentalrightsandfreedoms.
Thesedocumentsseektoprotectpeoplearoundtheworldfromunfair
discrimination,torture,arbitraryarrestandimprisonment.Amongother
things,theyseektooutlawallformsofslaveryandchildlabor,aswellas
guaranteeingthebasicfreedomsofmovement,associationandworship
andupholdingtheprinciplesofequaltreatmentbeforethelaw.
SigninguptothesedocumentsdemonstratesAEGON’scommitment
to protect and promote human rights in all its operations around
theworld,particularlyinthosejointventureswhereitexercisesfull
managementcontrol.InotherbusinesseswhereAEGONdoesnothave
fullmanagementcontrol, thecompanystrivesalwaystoencourage
andsupportarespectforfundamentalhumanrightsandfreedoms.
Business cultures and practices, of course, vary from country to
countrybut, asa rapidlyexpanding international company,AEGON
recognizes its own responsibility for helping protect human rights
whereveritcanaroundtheworld.
AEGON’SpOlIcyONhuMANrIGhtS
“AllAEGONbusinessactivitiesareguidedbythearticlesoftheUnited
Nations’UniversalDeclarationofHumanRights,thecorestandards
oftheInternationalLaborOrganizationandtheprinciplesonhuman
rightsandlaborstandardsassetforthbytheUNGlobalCompact.
AEGON pledges that it will actively promote the human rights
principlescontainedinthispolicywithregardtobothitsownwholly-
owned companies and, wherever possible, to its business dealings
withthirdparties.”
AEGON’spolicycommitsthecompanytoupholdinghumanrightsin
areaswhereithasthemanagementcontroltomakeadifference.It
cannotbeheldresponsibleforcompaniesandjointventureswhereit
hasonlyaminorityinterest,forbusinesspartnersorforprojectsthe
companyhasinvestedin,orinsured.Whenseekingbusinesspartners,
however,AEGONendeavorstoensurethatthesepartnersliveupto
highstandardsof integrityandsoundbusinesspracticeconcerning
humanrights.
�� AEGON CORPORATE RESPONSIBILITY REPORT 2006
lIMItINGrISk
RiskisinherentinallfinancialmarketsandacentralpartofAEGON’s
businessinvolvesassessingandcalculatingthatrisk.Thecompanyis
exposed to a variety of operational and financial market risks. In
addition, like other companies, it faces risks to its reputation that
couldhaveamaterialeffectonitsfuturebusiness.
Someof theserisks,suchas thoserelatedtocurrencyrates,area
reflectionoftheinternationalnatureofAEGON’sbusinesses.froma
purely financial point of view, AEGON’s largest exposure is to
movements in world markets that can affect the value of the
company’sinvestmentsandbusinesses,itslevelofdeferredexpenses,
aswellastheliabilitiesfromproductsitsells.
financialriskscanresult frommovements incurrenciesor interest
rates,aswellasvolatilityininternationalequity,realestateorcapital
markets.AEGONseeks tomitigate these risks throughavarietyof
systematic risk management strategies and programs designed to
strengthenthecompany’slong-termfinancialstability.
In recent years, AEGONhas taken a number of steps to centralize
moreofitsriskmanagement.Thishasbecomenecessaryasregulation
in the pension and insurance industries has grownmore extensive
andmorecomplex.AEGONbelievesthatamorecentralizedapproach
will ultimately contribute to better products and services and help
reinforce long-term confidence in the company’s businesses.
furtherdetailsofAEGON’s riskandcapitalmanagementstrategies
can be found in the company’s 2006 Annual Report, available at
www.aegon.com/pressroom/publications/25088.
By definition, risks to AEGON’s reputation are more difficult to
quantify.Asanexpandinginternationalbusiness,AEGONisawareof
thelegitimateinterestthatmanystakeholderstakeinthecompany’s
operations around the world. for this reason, AEGON is currently
implementinganewinternet-basedtechnologythatwillhelpsenior
managementmonitorriskstothecompany’sreputationacrossallits
operations.ThistechnologywillenableAEGONmanagerstorespond
quicklyandefficientlytoanyrisk,eithertothecompanyasawholeor
toitsvariousbrands.
AEGONfullyexpectstobeheldaccountableforthedecisionsitmakes
andfortheimpactthosedecisionsinevitablyhaveonthecommunities
inwhichthecompanyconductsitsbusiness.AnydamagetoAEGON’s
reputationwould,ofcourse,underminethetrustthatcurrentlyexists
betweenthecompanyanditsmanycustomers,employees,business
partnersandotherstakeholders.ButAEGONbelievesthatbyfarthe
bestwaytoprotectthesolidreputationitcurrentlyenjoysistoensure
thecompanyand itsemployeescontinuetorespect itscorevalues
andprinciples.
Governance
LIMITINGRISK
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
SERVINGCUSTOMERSANDCOMMUNITIESAROUNDTHEWORLD
3
Chapterthree
THEMARKETPLACE
20 AEGON CORPORATE RESPONSIBILITY REPORT 2006
Themarketplace
AEGON’SMARKETS;MANAGINGCUSTOMERRELATIONS
“AEGONplaysanactiveroleinensuringitscustomershavetheinformationandknowledgetheyneedtomaketherightfinancialchoicesforthemselvesandtheirfamilies.”
MANAGINGcuStOMErrElAtIONS
Customer satisfaction is a high priority forAEGON.AEGON strives
always to establish long-term relationships with all its customers,
basedontrust,transparencyandanopendialog.
ManyofAEGON’s countryunits usedifferentmethods for gauging
customer satisfaction. for some of the company’s larger country
units, methods may also differ from region to region. AEGON will
begin work in 2007 on a trackable, baseline index, compiled from
existingsurveys, thatwillallow thecompany tomonitorbetter the
evolving needs of its customers. Ultimately, this exercise will help
improve and adapt the products and services AEGON provides to
millionsofpeopleindifferentcountriesaroundtheworld.Currently,
AEGON companies conduct between 15 and 20 customer surveys
eachyear.
AEGON’s country units use a variety of different tools tomeasure
levelsofcustomersatisfaction,rangingfromregularsurveystocall
centermonitoringandcustomerresponsedatabases.Thesesurveys
and other measurements showed that, overall, AEGON customer
satisfactionimprovedin2006.Thisimprovementwaslargelyaresult
ofthestepsAEGONhastakentoexplainitscostandfeestructures,to
makeitsproductseasiertounderstand,tospeedupprocessingtimes
andtoimprovetheperformanceofitscallcenters.
Customers’pensionandlong-termsavingsneedsarecomplexsince
circumstances and risk tolerance can vary widely. AEGON strives
always to deliver financial products that are tailored to individual
requirementsandcustomers’changingneeds.
AEGON’SMArkEtS
AEGON serves more than 40 million customers worldwide. The
majority of these customers are located in the company’s three
established markets: the United States, the Netherlands and the
United Kingdom. Although life insurance penetration and pension
savingsinthesecountriesarealreadyrelativelyhigh,AEGONexpects
significantgrowthindemandfortheseproductsinthecomingyears.
Currentpensionsavings inmanycountriesare inadequatetomeet
risingdemandbecauseofacombinationofchangingdemographics,
longer lifeexpectancy ratesandmovesbyvariousgovernments to
shifttheresponsibilityforretirementplanningtoindividualsandthe
privatesector.
Inthesethreemarkets,AEGONfocusesonprovidingfinancialproducts
and services to individuals, corporates and institutions. Given its
leadingposition,AEGONisabletocapitalizeonsignificantbenefitsof
scale.Inallothermarkets–suchasCanada,China,theCzechRepublic,
Hungary,Poland,Slovakia,SpainandTaiwan–AEGONfocuseschiefly
on individuals and, to a lesser extent, corporates. In2006,AEGON
paid out a total of EUR 21.2 billion in claims and benefits to its
customersaroundtheworld,up32.5percent fromEUR16.0billion
thepreviousyear.
Emergingmarkets–marketsthatthecompanyconsidersgenerallyto
havea lowpenetrationof life insuranceandpension savings – are
becoming increasingly important to AEGON. Emerging markets in
Central andEastern Europe accounted for 5.9 percent of the total
value of new business generated by AEGON in 2006, up from 4.9
percentin2005.In2006,theregiongeneratedEUR46millioninnew
business,anincreaseofmorethan70percentfromEUR27million
theyearbefore.InAsia,thevalueofnewbusinessdeclinedtoEUR58
million,down30percentfromEUR83millionin2005.Thisdecrease
wasduetoarepricingoflifeinsurancepoliciesinTaiwanafterachange
inreserverequirementsin2005.Therepricingresultedinasignificant
improvementintheregion’soverallinternalrateofreturn.
Americas
United Kingdom
The Netherlands
Asia
Central and Eastern Europe
Other European countries
VALUE NEW BUSINESS Amounts in EUR million
393
48
181
4846
58
AEGON CORPORATE RESPONSIBILITY REPORT 2006 2�
AEGON’sstrategytoimprovecustomersatisfactionisbasedonfour
maingoals:toimprovethequalityandtransparencyofitsproducts,
to use distribution means that allow customers to access those
products in a way that best suits them, to deal efficiently with
customercomplaintsandtostrengthenthefinancialliteracyofthose
buyingthecompany’sproducts.
hElpINGcuStOMErSONlOwINcOMES
AEGONiscommittedtohelpingthosecustomerswhofindthemselves
onlowincomesandunabletokeepupwiththeirpremiumpayments,
sometimes through no fault of their own.Many are serving in the
militaryonextendedcontracts,havelosttheirjobs,becomedisabled
orarethevictimsofanaccidentoranaturaldisaster.Likemanyofits
peersintheinsuranceindustry,AEGONhasanumberofcontractual
measures inplacetohelpthesecustomers, includinggraceperiods
andloans.Otheroptionsincludereducingthecoverageofaparticular
policyor,inextremecases,eventerminatingthecontractaltogether.
In addition, some AEGON units have developed products aimed
specifically at improving the living standards of people on lower
incomes, very often those most in need of financial protection.
MonumentalLife,intheUnitedStates,forexample,providesproducts
thatcoverbasicfuneralexpenses,incomeandmortgagereplacement,
education funding and supplemental retirement income, helping
improve financial security for many low and middle-income
households.AEGONDirectMarketingServices,meanwhile, offers a
rangeofadditionallifeandhealthinsuranceforlow-to-middleincome
customers, which includes affordable accidental death, term life,
creditandwholelifecover.
IntheUnitedKingdom,AEGONScottishEquitableofferspersonaland
mortgage insurance at affordable prices, as well as low-cost
‘stakeholderpensions’-savingsplansintroducedrecentlybytheUK
authoritiestoencouragelow-incomeearnerstosaveforretirement.
In Canada, meanwhile, AEGON provides a range of life insurance
productsofferingincomeprotectionforlowminimumfaceamounts,
withsimplifiedunderwritingterms,thatcanbeboughtbycustomers
under the age of 45. AEGON Canada also offers a medical
reimbursementplancalled‘CriticalAdvantage’,whichprovidesexpert
medicaladvicetocustomerswhohavebeendiagnosedwithaserious
illness.ThisplanofferscustomersalumpsumbenefitofCDN25,000
oruptoCDN1,000,000tocoverout-of-countrytreatmentcosts.
MakingthegradeTransamerica Retirement Services, part of AEGON USA, secured
eleven ‘Best in Class’ ratings from consumer research company
ChathamPartners’December2006clientsatisfactionsurvey.
“Transamerica has established itself as a customer service leader
in the retirement services industry”, said Peter Starr, President of
ChathamPartners.“Thefactthatthecompany’scustomersatisfaction
has improved in almost every area we measured is a result of its
commitmenttocontinuouslyimproveclientrelationships.”
22 AEGON CORPORATE RESPONSIBILITY REPORT 2006
trAcINGAbSENtpOlIcyhOlDErS
Occasionally,customersdonotreceivetheirfullbenefits,moreoften
than not because they have forgotten to update their contact
information. AEGON is committed to tracing all beneficiaries and
ensuringtheyreceivetheirfullentitlements.AEGONcompaniesusea
number of techniques, ranging from the more straightforward
– consulting telephone directories and government registers – to
more advanced online searches and placing advertisements in
newspapersandotherpublications.
Overall,AEGONestimatesthat,initsthreeestablishedmarketsofthe
UnitedStates,theNetherlandsandtheUnitedKingdom,some17,000
eligiblebeneficiariesdidnotinitiallyclaimtheirentitlementsin2006,
a small percentage of the company’s total customer base ofmore
than40million.IntheUnitedKingdom,approximatelyathirdofthese
customersinitiallylistedasuncontactableweresuccessfullytraced.
Themarketplace AEGON’Smarkets;Managingcustomerrelations
IntheNetherlands,theproportionwashigher,at50percent.Inthe
UnitedStates,AEGONhastakenanumberofmeasurestohelptrace
customerswhodonotclaimtheirentitlements.
WhileAEGONdoesitsbesttocontactallcustomers,thereisinevitably
anumberwhocannotbetraced.IntheUnitedStates,theNetherlands
andtheUnitedKingdom,AEGONensuresbenefitsandentitlements
forthesecustomersremainavailableforas longaspossible. Inthe
UnitedStates,whichhasthehighestnumberofsuchcustomers,all
benefitsremaininpolicyholders’accountsandarenotaddedtothe
company’s income. In the Netherlands, customers never lose their
righttoclaim,nomatterhowmanyyearslapse.IntheUnitedKingdom,
meanwhile, benefits are transferred to anexternal fundonlywhen
absentpolicyholdersreachtheageof75.
Detectivework:AEGON’steamintheNetherlandsensuresthatasmuchmoneyaspossiblegoestoitsrightfulowner.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 2�
DEAlINGEffEctIvElywIthcuStOMErcOMplAINtS
AEGONbelievesthatdealingwithcomplaintsefficientlyandopenlyis
animportantpartofensuringoverallcustomersatisfaction.AllAEGON
countryunits havea formal procedure andmost havea dedicated
structureforhandlingcustomercomplaints.Giventhewidevarietyof
customersegmentsandproducts,however,AEGONdoesnotconsider
itfeasibleatthisstagetocentralizecustomerfeedbackforallAEGON
companies. Nevertheless, where possible, AEGON companies are
working toward a more uniform approach to handling customer
feedbackandcomplaints.
AEGONconductsregularsurveystoidentifyareaswhereitisnotfully
meeting customer requirements. These surveys play a vital role in
helpingAEGONimprovethequalityofitsproducts.Asfaraspossible,
AEGONcompaniesworktoconvertlegitimateandjustifiedfeedback
andcomplaintsintopositivechangeforalltheircustomers.
DetectiveworkInrecentmonths,AEGONTheNetherlandshasdoubleditseffortsto
tracemissingpolicyholders.Thankstothecompany’sinvestigations,
the number of policyholders listed as ‘missing’ has dropped from
8percenttojust4percent.IntheNetherlands,insurancecompanies
arenotrequiredtotrackdownpolicyholderswhodon’tcomeforward
tocollecttheirbenefits.ButAEGONTheNetherlandsismakingsure
as much money as possible goes to its rightful owner. Searches
are made at local government registries, with former employers
and among other family members. Advertisements appealing for
information are even placed in some national newspapers. AEGON
TheNetherlandsmaynotbeabletotraceeverycustomer,butitdoes
makeoneguarantee: nomatter howmanyyearsgoby, customers
neverlosetherighttotheirbenefits.
Detectivework:AEGONTheNetherlandshasdoubleditseffortstotrace
missingpolicyholders.
2� AEGON CORPORATE RESPONSIBILITY REPORT 2006
ENSurINGprODucttrANSpArENcy
AEGON is committed to providing clear, transparent and sound
financial products and services that are as easy to understand as
possible.Marketing,communicationsandproductinformationare,of
course, subject to government regulation. Naturally, all AEGON
Themarketplace
ENSURINGPRODUCTTRANSPARENCY
TreatingCustomersfairly
TheUKregulator,thefinancialServicesAuthority,isalwaysinterested
inwaysofbolsteringpublicconfidenceinthecountry’sfinancialsector.
Itslatestinitiativeis:TCf,or‘TreatingCustomersfairly’.ThenewTCf
principle aims to raise standards among companies in the United
Kingdomsellingfinancialproducts.Morespecifically,regulatorswant
TCftohelpconsumersbetterunderstandtherisks,benefitsandcosts
ofthefinancialproductstheybuy,sotheydon’tendupmakingthe
wrongdecisions.
AEGONUKisbackingtheinitiative.Ithasalreadybeguntodevelopits
own‘responsibilityframework’,whichwillgivemanagersthesupport
theyneedtoimplementTCfguidelines.
“Basically,TCfboilsdowntothreequestions,”saysStevenCameron,
Head of Business Regulation at AEGON UK. “Do I really, really,
understand this product or service I’moffering to people?Would I
buy itandrecommend it tomymates?And,most importantofall,
whatwouldIsaytomyMumifsheaskedmeforhelpaftersomeone
triedtosellittoher?”
companies are expected to comply with local rules. furthermore,
AEGON and AEGON companies subscribe to voluntary industry
standards.AEGON isconstantlyworking to improveandclarify the
documentationassociatedwiththefinancialproductsitsells.
StevenCameron,HeadofBusinessRegulationatAEGONUK.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 2�
“Wethinkdemandsforgreatertransparencyareamoveintherightdirection-andwe’rehappytosupportthem.”
PointingthewayIntheNetherlands,AEGONhasprintedanddistributedmorethana
millionspecialleaflets,providingcustomerswithsimple-to-understand
financial information about the company’s products. In Dutch, the
leafletsaredubbed ‘Wegwijzer’ – ‘Signpost’.With thehelpofa few
keyquestionsandanswers,theleafletsgivecustomersalltheyneed
toknowtomaketherightdecisionaboutwhichproductstobuy.Just
onepartofAEGON’sstrategytoimproveproducttransparency,the
‘Signpost’ leaflets now cover some 50 different financial products
–andallarereproducedonthecompany’swebsite.
BackinggreatertransparencyintheNetherlandsIn2006,theDutchInsurers’Associationsetupaspecialcommission
toinvestigatecomplaintsaboutunit-linkedfundsintheNetherlands.
Most of the complaints centered on the funds’ perceived lack of
transparency.Thecommission,headedbyformergovernmentminister
JobdeRuiter,acceptedmanyofthecomplaintsandrecommended
insurerstakestepsto improvethetransparencyoftheirunit-linked
products,particularlywithregardtocostsandfees.
AEGONfullybackedtheCommission’srecommendations.Infact,the
companyhadalready implementedmanyof them,evenbefore the
findingswerepublished.In2005and2006,AEGONTheNetherlands
reviseditsentireportfolioofunit-linkedproducts,reducingcharges
tocustomersretrospectivelyandinvestingthedifference.
AEGONbookedachargeofEUR100milliontomeettheextracostof
doingthis.Thecompanyhasalsotakenstepstoimproveitsunit-linked
products,whichwillresult inanestimatedEUR100millioninlower
profitsoverthecomingyears.AEGONisnowoncoursetoimplement
recommendationsforgreatertransparencyby2007,ayearaheadof
adeadlinesetbytheDutchInsurers’Association.
“Ofcourse,anyperceived lackof transparency isnotgood for the
reputation of the insurance industry,” says Jos Streppel, CfO and
member of AEGON’s Executive Board. “But, having said that, we
acted quickly. We did a lot even before these problems emerged.
Wehavecommunicatedwithallourcustomers.Wehavegiventhem
the guarantees they need. We think these demands for greater
transparencyareamoveintherightdirection-andwe’rehappyto
supportthem.”
Josephb.M.Streppel
CfOANDMEMBER
EXECUTIVEBOARD
26 AEGON CORPORATE RESPONSIBILITY REPORT 2006
Themarketplace Ensuringproducttransparency
MODIfyINGprODuctSwhErENEcESSAry
As life insurance and investment products often span decades,
opinionsaboutriskandreturnscanchangeaftertheproductshave
been sold. Therefore,AEGON regularly reviews products thatwere
developed and marketed in former years against any changes in
social or business trends. If necessary, product specifications are
thenmodified.Often,thesemodificationsapplytoproductsthathave
been in existence for many years. Since May 2005, for example,
AEGONTheNetherlandshasmadechangestosomeonemillionunit-
linkedlifeinsurancepoliciestomeetcurrentstandardsandimprove
financialreturnsforcustomers.
IMprOvINGfINANcIAllItErAcy
AEGON plays an active role in ensuring its customers have the
information and knowledge they need to make the right financial
choicesforthemselvesandtheirfamilies.Evenincountriesthathave
long-establishedandsophisticatedtraditionsofpersonalfinance,many
people can find it hard to select the appropriate mix of savings,
investmentand insuranceproductsthatbestfitstheirneeds.AEGON
believesthatfinancialserviceprovidersandadvisorshaveanobligation
toguidecustomerstowardtherightproducts.
Inallthemarketsinwhichitoperates,AEGONisworkingtoimprove
levelsoffinancialliteracy,especiallyasregulationsinthepensionand
insuranceindustrybecomemoreextensiveandmorecomplex.
IntheUnitedStates,theNetherlandsandtheUnitedKingdom,aswell
asinmarketselsewhere,AEGONactivelypromotesprogramsdesigned
toprovideinstructionaboutlife,health,disability,pensionandlong-
termcareinsurance.
IntheUnitedKingdom,AEGONUKisbackingtheNationalStrategy
forfinancialCapability,launchedbythefinancialServicesAuthority,
thecountry’smainregulator.Meanwhile,intheUnitedStates,AEGON
USAisamajorcontributortotheLifeandHealthInsurancefoundation
for Education (LIfE), a non-profit industry organization that every
yearhelpsinstructthousandsofpeopleabouttheimportanceoflife
insurance as part of sound family financial planning. Also in the
UnitedStates,Transamericaispromotinganewinitiativetoimprove
AEGON’ScOuNtryuNItS MODIfyINGprODuctSwhErENEcESSAry
AEGONuSA AEGONfinancialPartnerssetupaprogramtoreplaceunderperformingproductsoutofthesurrenderperiodandreplacethemwithproductsthatwouldallowbetterfeaturesforitscustomers.
AEGONDirectMarketingServicesrecalledandchangedmarketingdocumentswhenacustomerpointedoutthelanguageusedinthematerialcouldbeopentomisinterpretation.
AEGONDirectMarketingServicesalsointroducedanewbenefitproductfordiabetessufferersinresponsetocustomerdemand.
AEGONcANADA AEGONCanadaalteredsomeofitslegacyproductstoincludea‘split’provisionallowingjointcoveragestobedividedbetweentwobeneficiaries.Thechangesweremadeinclosecooperationwithactuariesandthecompany’sreinsurers.
AEGONuk AEGONUKwonrecognitionforitsuseofplainEnglish.
SeveralAEGONUKannuityproductswererenamed.Theirnewnamesaredesignedtohelpcustomersrecognizethepurposeoftheproductmoreeasily.
AEGONthENEthErlANDS In2005and2006,AEGONTheNetherlandsreviseditsentireportfolioofunit-linkedproducts.Chargestocustomerswerereducedretrospectivelyandthedifferencereinvested.AEGONTheNetherlands’revisionswereapprovedandsupportedbytheinstitutionsthatoverseetheinsurancesectorintheNetherlands.
AEGONhuNGAry AEGONHungaryextendedthedurationofoneofitsunit-linkedproductsfromthreetofiveyearstoprovidethepossibilityofbetterreturnsforitscustomers.
Inresponsetosignificantfeedbackfromcustomers,AEGONHungarymodifiedsomeofthetermsofitsCascoinsuranceproduct,resultinginariseinsalesandmoresatisfiedcustomers.
AEGONpOlAND AEGONPolandbecamethefirstinsurerinthecountrytodetailalltaxes,feesandchargesinitspolicydocuments.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 2�
individuals’ financial management while its Center for Retirement
Studies provides a valuable contribution to the continuing debate
surroundingpensionissues.
Onlyinaclimatewherepeopleareabletomakeinformeddecisions
about theirfinancial investmentscancompanies likeAEGONthrive
and remain profitable. Helping people arrive at decisions that will
secure theirfinancial futuresnotonlymakesgoodbusiness sense,
butfulfillsavitalsocialresponsibilityaswell.
All AEGON’s country units commit time and resources to helping
improveawarenessofpersonalfinanceissues.Examplesinclude:
Monumental Life, in the United States, has developed special
software designed to instruct consumers about insurance,
educationandretirementneeds.
In2007,TransamericaRetirementManagementwilllaunchanew
internet-based consumer education center that will cater to the
needsofmillionsofbabyboomersintheUnitedStatesnowcoming
upforretirement.
IntheNetherlands,AEGONhasput inplaceanextensivetraining
programforsalesmenandintermediariestohelpimprovetheadvice
theygivetocustomersaboutinsuranceandlong-termsavings.
ExtendingahelpinghandInJanuary2007,theUKgovernmentlaunchedanambitiousinitiativeto
provideimpartialfinancialadvicetoanyonewhoneedsit–anditturned
tooneofAEGON’sseniorexecutivestohelpspearheadthenewproject.
TheinitiativeispartofUKgovernmenteffortstostrengthenfinancial
educationinthecountry.Inrecentyears,theUnitedKingdomhasseen
asteepriseinoverallhouseholddebt.Expertsarenowconcernedthat
manypeopleintheUnitedKingdomendupmakingbadchoicessimply
becausetheydon’thavetheinformationtheyneed–thereasonAEGON
has been striving for many years to raise awareness of personal
financeissues.
Inthislatestinitiative,theUKgovernmentaskedOttoThoresen,CEOof
AEGONUK,toheadupataskforcetolookintoprovidingquick,easy-to-
understandandaffordablefinancialadvice,especiallytothosewiththe
lowestincomes.Thenewtaskforcewillreporttogovernmentministers
onapossibleactionplanbytheendofthisyear.“for lotsofpeople,
personalfinanceisanissuethattheyfindconfusingandasaresult
theytrytoavoidthinkingabout italtogether,puttingoff important
decisionsormakingthewrongchoices,”saysMr.Thoresen.
“Muchoftheworkwewillbedoingwillaimtocatertotheneedsof
verylowincomeindividualsandfamilies–thosewhomightotherwise
nothaveaccesstosoundfinancialadvice.”OttoThoresen,CEOAEGONUK.
2� AEGON CORPORATE RESPONSIBILITY REPORT 2006
Themarketplace
INVESTINGRESPONSIBLY
INvEStINGrESpONSIbly
WithatotalEUR363billioninassetsundermanagement,AEGONis
oneoftheworld’sleadinginstitutionalinvestors.AEGONplacesgreat
importance on the responsibilities it has as an investor. Above all,
AEGONrecognizesthatpoorsocialandenvironmentalpracticescan
harm a company’s financial performance and the value of any
investmentinthatcompany.
In both the United Kingdom and the Netherlands, AEGON offers
SociallyResponsibleInvestment(SRI)funds,whichtakeintoaccount
a range of environmental, social and geographical factors before
making investments. AEGONUSAoffers similar SRI funds that are
managed by third parties. Typically, these funds invest only in
companies thathaveethically andenvironmentally soundbusiness
practices.
In 2006, SRI funds represented EUR 857 million, or 0.32 percent
ofAEGON’s total assets undermanagement (excluding off balance
sheet items), up from0.21 percent in 2005 1. The increase reflects
growing demand among many international investors for socially,
environmentallyandethicallysound investments.Thefiguresshow
thatSRIfunds,asaproportionofAEGON’sassetsundermanagement,
grewby78percentin2006.
IntheUnitedKingdom,SRIfundsaccountedfor0.96percentofall
assetsundermanagementattheendof2006,upfrom0.65percent
ayearpreviously.Overall,theamountsinvestedinUKSRIfundsrose
substantiallytooverGBP472million(EUR703million),upmorethan
61 percent from just underGBP293million (EUR429million) the
yearbefore.IntheNetherlands,meanwhile,SRIassetsincreasedto
0.31percentoftotalmanagedassets,upfrom0.28percent,whilethe
amount invested in SRI funds rose to EUR 154 million, up from
EUR140millionin2005.
AEGON’stwoethicalfundsintheUnitedKingdom–theEthicalEquity
fund and the Ethical Corporate Bond fund – specifically exclude
investmentsincompanieswithlinkstoarmsmanufacturing,nuclear
power,tobacco,gamblingandalcohol.Thefundsalsorefusetoinvest
in companies that have made substantial political donations, have
beenfinedforpollutionviolationsoroperateincountrieswithpoor
humanrights records. InMarch2007,AEGONUK launched itsnew
EthicalCautiousManagedfundinresponsetodemandfrominvestors
forlowerriskmanagedfundsinthisarea,increasingthenumberof
SRIfundsitofferstothree.
Similarly,intheNetherlands,theAEGONDuurzaamAandelenfonds–
the AEGON Sustainable Shares fund – does not invest in alcohol,
tobacco,armaments,firearmsorgambling.
1AEGONhasrestatedits2005figureforSRIfundsto0.21percentfrom0.18percenttoincludecertainUKassetsomittedfromtheoriginalcalculation.
TakinganethicalstanceIn2006,oneofAEGON’sbondmanagers,PhilipMilburn,wasnamed
InvestmentWeek’s‘UKCorporateBondManageroftheYear’forhis
managementofthecompany’sEthicalBondfund.
for the prize, Mr. Milburn was considered along with other bond
managersoverseeingboth‘ethical’and‘non-ethical’ investments. It
wasMr.Milburn’s second award in less than a year. Earlier, he had
wontheLipperCitywireCorporateBondfundManageroftheYear
forhiswork.
AEGON does not seek to place a pre-determined proportion of its
assetsinSRIfunds.WithinAEGONUK,oneofthecompany’slargest
country units, most assets are managed on behalf of individual
policyholders.Thesame, toa lesserdegree,applies toAEGONThe
Netherlands.
AEGON’sstrategyconsistsinattemptingtobalanceconsiderationfor
socialandenvironmentalfactorsandtheneedtomaximizereturns
fromthecompany’sinvestments.
As part of these investments,AEGONowns shares in a number of
othercompanies.Whendecidinghowtoexerciseitsvotingrightsin
AEGON CORPORATE RESPONSIBILITY REPORT 2006 2�
these companies and, occasionally as part of other investments,
AEGON acts in the long-term interests of its policyholders and its
shareholders.AEGONisalsomindful,however,oftheinterestsofits
fellowinvestors.
AEGON’scountryunitsintheUnitedStatesandtheUnitedKingdom
alreadyhavedetailedpolicies inplacegoverning theuseof voting
rights.AEGONTheNetherlands,meanwhile,haspublisheditspolicies
on its Dutch-language website (www.aegon.nl). A report detailing
AEGONTheNetherlands’ record as an institutional investor is also
availableonthesamewebsite.Thisrecordisupdatedatleastevery
quarter.
AEGONiscurrentlydevelopinggroup-wideprinciplesgoverningthe
useofvotingrightsthatwillapplytoallsharesthecompanyowns,
regardless ofwhere they are held. These principleswill operate in
conjunctionwithexistingcountryunitpolicies.
BeingmoreopenaboutclimatechangeAs an investor, AEGON knows that climate change could have a
significantimpactonmanyofthecompaniesinwhichitinvests.That’s
whyAEGON has decided to sign up to the fifth CarbonDisclosure
Project(CDP5).CDP5encouragescompaniesaroundtheworldtobe
moreopenabouttheirgreenhousegasemissions.
Launched inDecember2000, thisprojectbrings together someof
theworld’sleadinginstitutionalinvestors,concernedbythebusiness
implicationsofclimatechange.TheCDPhasthe largestregistryof
corporategreenhousegasemissions in theworld.More than 1,000
large corporations currently report emissions data via the CDP’s
website(www.cdproject.net).1
1Source:theCarbonDisclosureProject.
�0 AEGON CORPORATE RESPONSIBILITY REPORT 2006
Themarketplace
AEGON’SBRANDS
AEGON’SbrANDS
Brand awareness is very important to AEGON. AEGON sells its
products under a range of different brand names. This helps the
company cater to the broadest possible range of customer
requirements.AEGON’s leadingbrands includeTransamerica in the
UnitedStates,TKPPensioenandUnirobeMeeùsintheNetherlands
andAEGONScottishEquitableintheUnitedKingdom,aswellasthe
AEGONbranditself.
Giventheir importancetothebusiness,AEGONregularlymeasures
theperformanceofitsbrands.Thecompanytracksbrandawareness
andbrandpreferenceformorethan90percentofitsbrands.Over90
percentofAEGON’sbrandsarealsoregularlybenchmarkedagainst
theirpeers.
AEGONUKandAEGONDirectMarketingServicesAsiarecentlyadded
theAEGONname to its individual and corporate brands. By giving
greaterprominencetotheAEGONbrandname,thesetwocompanies
areaimingtoleveragethefinancialstrengthandglobalcredentialsof
the company as a whole in order to grow their share of local
markets.
Inearly2007,AEGONrolledoutnewlogoandwebsiteguidelinesfor
allitsAEGON-brandedentities.Thesenewguidelinesaredesignedto
ensure greater consistency and emphasize the link between the
company’s localbusinessesandtheAEGONbrand. In thecourseof
2007,eachlocalbrandwillbeformallyendorsedbyAEGONaspartof
aprocessdesignedtoenhanceconsistencyacrossallAEGON-branded
operationsaroundtheworld.
TrustingthebrandAEGON-CNOOC - AEGON’s joint venturewith the Chinese National
OffshoreOilCorporation(CNOOC)-hasbeenselectedasoneofthe
top tenmost trusted insurancebrands inChina. The top-ten list is
compiledeveryyearbyagroupofexpertsfromChinaandelsewhere.
Theexpertsweighanumberofdifferentfactorswhencomingupwith
theirlist,includingcompanyintegrity,customerserviceandefficiency
inprocessingclaims.
Key to the success was a case in Nanjing where AEGON-CNOOC
trackeddownthegrandparentsofayoung12year-oldboyandhelped
themprocessanaccidentinsuranceclaim.Tragically,theboy’sown
parents had died after a gas leak at their home just a fewweeks
before.Nobody in the familyknewtheparentshadeven takenout
accidentcoveruntilAEGON-CNOOCwasabletoinformthem.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
Themarketplace
WORKINGWITHDISTRIBUTIONPARTNERS;THEBENEfITSOfTHEINTERNET
wOrkINGwIthDIStrIbutIONpArtNErS
AEGONusesawide rangeof commercial channels todistribute its
products,includingagents,brokers,banks,directmarketing,aswell
aspartnershipswithothercompanies.AEGONhelpsitsdistributors
byprovidinglow-costadministrationandbyworkingwiththemtofind
waysofimprovingtheirbusinesses.
AEGONisalsostrivingtomakeitspaymentstructurefordistributors
astransparentaspossible.Transparencyisparticularlyimportantin
the insurance business because of the complex nature of many
transactions.
thEbENEfItSOfthEINtErNEtProvidingonlinefinancialserviceshelpsreducetransactioncostsand
improvesefficiencybycuttingdownontheneedfortravelandprinted
materials. AEGON estimates that approximately a third of its
customersusedthe internettoaccessthecompany’sproductsand
services in 2006, up from 30 percent a year ago 1, suggesting no
slowdown in the trend toward greater use of online financial
services.
1Basedondatacovering40percentofthecompany.
NearlyallAEGONcompaniesprovidepolicy informationonline.The
vast majority also provides facilities for modifying personal
informationandcontributionamountsovertheinternet.Inaddition,
almostallhaveonlinecalculationtoolsandallowcustomerstomake
applicationsandaccessquotesonline.
AEGONstrivestoensureitsonlineplatformsremainsafeandsecure
atalltimes–aprerequisiteforanyonlinefinancialservicesprovider.
MostAEGONcompaniesoperate ITfrauddetectionsystemsandall
companies use feedback loops to compliance officers in case of
securitybreaches.
Technologyprovidesausefultool,butitisnotenough.Asageneral
rule, AEGON companies operate a ‘know-your-customer’ policy.
Gettingtoknowcustomers,theirpersonalrequirementsandpractices,
givesAEGONabetterchanceofdetectingerrorsandanomaliesmore
quickly,avoidingmissellingandcounteringtheriskoffraud.
�2 AEGON CORPORATE RESPONSIBILITY REPORT 2006
Themarketplace
AEGON’SSUPPLIERS;GOVERMENTSANDREGULATORS
AEGON’SSupplIErS
In2006,AEGONpaidouta totalofEUR 1.58billion tosuppliers in
returnforawiderangeofgoodsandservices,upfromEUR1.25billion
the year before. This increase reflects the growth in AEGON’s
businesses during the year as well as a switch in some staff and
recruitmentcostsfromcompanypayrolltooutsidesuppliers.
As amatter of local practice, amajority ofAEGON’s country units
already takes environmental and health and safety factors into
accountaspartoftheselectionprocessforsuppliers.
In 2007, AEGON will establish group-wide corporate responsibility
standardsforsuppliersinitsmajorprocurementcenters,animportant
stepforthecompanyinitseffortstoensurehighethicalstandards
throughoutitssupplychains.
GOvErNMENtSANDrEGulAtOrS
Throughitsdifferentcountryunits,AEGONisanactiveandinterested
participant in discussionswith governments and regulators on the
futureofpensionfunding.Thisisbecomingincreasinglyimportantas,
facedwithagingpopulationsandshrinkingworkforces,governments
aroundtheworldconsiderhowbesttoregulatepensionsystemsfor
the long term.AEGONseeksalways tomakeaserious, responsible
andwell-balancedcontributiontothisdebate.
AEGONhaspublicpolicy representatives inboth theUnitedStates
andtheUnitedKingdom.In2006,thecompanyalsoopenedapublic
policyofficeinBrussels,areflectionofthegrowingimportanceofthe
role theEuropeanUnionCommission is playing in helping reshape
Europe’spensionindustry.InBrusselsandelsewhere,AEGONseeksto
workalongsidepolicymakersandensuretheyhavetheopportunityto
make use of the company’s considerable knowledge and expertise
whenframinglegislation.
In2006,AEGONpaida totalofEUR442million in tax.Thiswasa
decreasefromEUR680millionthepreviousyear–largelytheresult
of significantly lower tax payments in the United States. AEGON’s
effective tax rate decreased to 18 percent in 2006, down from 24
procent in 2005, mainly due to higher tax-exempt gains and a
reductioninthecorporatetaxrateintheNetherlands.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
PROMOTINGRESPECTfORPEOPLEANDTHEIRWORKENVIRONMENT
4
Chapterfour
THEWORKPLACE
�� AEGON CORPORATE RESPONSIBILITY REPORT 2006
Theworkplace
AEGON’SEMPLOYEES
AEGON’SEMplOyEES
AEGON’smostvaluableassetisthepeopleitemploys.Attheendof
2006,AEGONhadatotalof28,726employees,upfrom27,159twelve
monthspreviously.ThisincreasewasduemainlytoAEGON’saddition
of Unirobe in theNetherlands and an expansion of the company’s
businessesinAsiaandCentralandEasternEurope.
ll AEGON companies have policies that ensure non-discrimination
withintheirworkforces.Thesepoliciesareactivelyenforced.Atthe
end of 2006, 51.2 percent of AEGON’sworkforcewere female and
48.8 percent male. Of the most senior managers at AEGON,
85percentweremaleand15percentfemale.AEGONdoesnothavea
specificpolicytopromoteahigherpercentageofwomenthanmen,
but it does encourage women to apply for roles in senior
management.
ManyAEGONcompaniesallowtheiremployeestoworkpart-timeor,
where appropriate, from home. In 2006, 9.2 percent of all AEGON
employees worked part-time, up from 8.4 percent in 2005. The
remaining90.8percentworkedfull-time,downfrom91.6percentthe
previousyear.
In2006,employee turnover reached 14.0percent,up slightly from
13.8 percent in 2005 1. Of the total, 7.3 percent left the company
voluntarilytopursueopportunitieselsewhere,upfrom7.0percentin
2005. Employmentwas terminated for another 5.2 percent, either
becauseofinternalreorganizationsorindividualunderperformance.
The remaining 1.5 percent was due to ‘natural attrition’, mostly
retirement.
Overall, AEGON is satisfied with the current level of employee
turnover. There was, however, a rise in the number of voluntary
departures in 2006 from its UK operations. This was due to the
exceptionallyfavorablejobsmarketinEdinburgh,AEGONUK’smain
location. Management in the United Kingdom has introduced
measures designed to limit future departures, particularly in the
company’scustomerservicesdepartment.
1AEGONhas restated its staff turnoverfigure for2005 to reflect a change in themethodofcalculationintheUnitedKingdom,wherethecompanyrecentlyintroducedanewhumanresourcesdatabasesystem.AEGONemployeeturnoverin2005wasoriginallyestimatedat11.8percent.
ADvANcINGcArEErDEvElOpMENt
TrainingandperformanceevaluationsarehighprioritiesforAEGON.
In2006,EUR597peremployeewasspentoninternalandexternal
training, up fromEUR555 in 2005. Company employees spent an
average of 4.0 days on training in 2006, in line with 4.1 days the
previousyear.
AEGONencouragesemployeesatalllevelstotakepartinformalskills
and development programs. Some 95 percent of all employees
participateintheseprograms.Trainingsessionscovertopicssuchas
customer service, product knowledge, businesswriting, compliance
and sales. In addition, most of AEGON’s country units grant their
employees time and, occasionally, financial assistance to pursue
individualprojects,forexample,languagetrainingorhighereducation
relatedtotheirworkatAEGON.
“AEGONstressestheimportanceofrespectingtheenvironment,conservingenergyandeliminatingwaste.”
Americas
United Kingdom
The Netherlands
Asia
Central and Eastern Europe
Other countries/holding
BREAKDOWN OF THE NUMBER OF EMPLOYEES 2006
14,236
6,404
4,639
1,858
1,195
394
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
ApassporttolearningIn2006,TransamericaInsurance&InvestmentGroup(TIIG)launched
anewemployeeeducationprogram.Dubbed‘PassporttoLearning’,
theprogramoffersTIIG’semployeesinLosAngelestheopportunity
tofindoutmoreaboutthecompany’soperations.The2006agenda
included instruction on TIIG’s strategy and key initiatives, on the
company’sproducts,andasessiononinternationalbusiness.Nearly
three-quartersofemployeesattendedthisvoluntaryprogram.
Asaninternationalcompany,AEGONisalsoabletoofferitsemployees
a passport of a different kind. Every year, a number of employees
take up the opportunity to relocate to other countries, promoting
thetransferofexpertisebetweenAEGONcountryunitsandhelping
enhanceemployeeandmanagementdevelopment.
�6 AEGON CORPORATE RESPONSIBILITY REPORT 2006
Theworkplace
PAYINGAfAIRWAGE;EMPLOYEESATISfACTION
pAyINGAfAIrwAGE
In order to attract capable and talented employees andmanagers,
AEGON offers competitive compensation packages. AEGON’s total
employmentcostsin2006,foritsentireworkforceof28,726,cameto
EUR1.82billion.Thatwasanincreaseof9.6percentcomparedwith
EUR1.66billionin2005foratotalworkforceof27,159.
Thetablebelowgivesabreakdownofthesecostsbysalaryandother
expensesforeachofAEGON’smainregions.
EMplOyMENtcOStS2006AmountsinEURmillion Salaries
Other employeeexpenses tOtAl
Americas 720 200 920
TheNetherlands 223 232 455
UnitedKingdom 193 138 331
Others 46 23 69
Holding&Otheractivities 24 22 46
AEGON 1,206 615 1,821
Per employee, AEGON’s 2006 employment costs amounted to
EUR63,382,anincreaseof3.6percentfromEUR61,195in2005.
Employees’salariesmaycontainafixedandavariablecomponent.
Variable compensation may be based on individual performance,
overall countryunit performance, or a combinationof the two.On
average across the entire AEGON workforce, excluding senior and
middle management, 34 percent of total compensation is based
purelyonindividualperformance.
Typically, the proportion of pay linked to individual performance
variesaccordingtotheseniorityoftheemployee.Payformanysenior
managers, including members of the Executive and Management
Boards, is linked to theperformanceof the companyaswell as to
individual performance, ensuring a strong connection between
executiveremunerationandAEGON’soverallfinancialhealth.AEGON
regularlyconductsbenchmarkingexercises,usingoutsideconsultants,
toguaranteepayforitsseniormanagementremainscompetitive.
Naturally, pension arrangements vary from country to country.
AEGONTheNetherlandsoperatesadefinedbenefitplan,whilemost
of AEGON’s smaller units operate defined contribution plans.
AEGON USA and AEGON UK offer both. Substantially, all AEGON
employees have access to a pension plan. Details of AEGON’s
pension plans and the funding status of the company’s defined
benefitschemescanbefoundinthe2006AnnualReport,availableat
www.aegonannualreport.com.
AEGON companies provide a range of other benefits, including
disabilityinsurance(availableto100percentofallemployees),health
andaccidentinsurance(availableto96percent1)andseparatehealth
coverthatincludesemployees’families.Some89percentofAEGON
employeeshaveaccesstochildcarefacilities,whileflexibleworking
andmaternity leave programs are available to almost all company
staffmembers.
1figuresforhealthandaccidentinsurancerefertoallAEGONcountryunitswiththeexceptionofthoseintheCzechRepublic,Hungary,PolandandSlovakia.
EMplOyEESAtISfActION
AEGONbelievesthereisadirectcorrelationbetweenthequalityof
theproductsandservicesitisabletoofferandthesatisfactionofits
employees.AEGONhasintroducedanumberofmeasuresdesignedto
improveemployeesatisfaction.Theseincludeemployeerecognition
programs, introduction days and initiatives to enhance internal
communication.Employeesarealsoencouragedtobecomeinvolved
inAEGON’scommunityactivities.
Overthepasttwelvemonths,AEGONhasmadeconsiderableefforts
toaddressvariousemployeeconcernsand,particularly, to improve
internal communication, in order to improve levels of employee
satisfaction.
Onaverage,AEGONemployeesremainwiththecompanyforeight-
and-halfyears.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
Theworkplace
HEALTHANDSAfETY
hEAlthANDSAfEty
AllAEGONcompanieshaveprograms inplace to limitabsenteeism
and reduce the number of work-related injuries. In 2006, AEGON
companies’absenteerate(forillnessandotherreasons,butexcluding
maternity leave)stoodat3.1percent,upfrom2.6percent in2005,
duemainlytohigherratesofabsenteeismintheUnitedKingdomand
an expansion in theworkforce in theNetherlands. Reportedwork-
relatedinjuries,meanwhile,wereunchangedat304.
AbSENtEErAtES 2006 200� Change
AEGONGroup 3.1% 2.6% + 0.5
AEGONUSA 0.8% 1.0% - 0.2
AEGONCanada 2.9% 1.9% + 1.0
AEGONUK 6.4% 5.4% + 1.0
AEGONTheNetherlands 5.5% 5.3% + 0.2
AEGONTaiwan 0.9% 1.0% - 0.1
AEGONCEE(in2005onlyHungary) 4.6% 5.3% - 0.7
AEGONSpain 3.5% n.a. 1 n.a. 1
1n.a.–notavailable.
AEGON’ShEAlthANDSAfEtyprOGrAMSINcluDE:
InCanada,AEGONorganizestwice-a-year‘Wellnessfairs’,aswell
asall-year-roundstressmanagementcourses.
IntheNetherlands,thereareregularworkshopsformanagerson
howtodealwithsicknessintheworkplace.Inaddition,AEGONhas
medical staff based permanently at its main offices in the
Netherlands.
IntheUnitedKingdom,AEGONhason-siteoccupationalnursesto
helpcareforstaff.Lastyear,thecompanywona‘ScottishHealthat
Work’silverawardforitsefforts.
In the United States, the Employee Assistance Program (EAP)
providesarangeofservicestostaffmembersandtheir families,
includinginstructiononhealthylifestyles,self-helpresourcesand
confidentialcounseling.
�� AEGON CORPORATE RESPONSIBILITY REPORT 2006
Theworkplace
PROTECTINGTHEENVIRONMENT
prOtEctINGthEENvIrONMENt
AEGON has a corporate environmental policy (available at www.
aegon.com/corporateresponsibility/policies), which stresses the
importance of respecting the environment, conserving energy and
eliminatingwaste. TwoofAEGON’s countryunits –AEGONUKand
AEGONTheNetherlands–havebeencertifiedISO14001compliant1.
Inrecentyears,AEGONTheNetherlandshasreduceditsenergyuse
as part of broader efforts by the Netherlands to comply with the
KyototargetsforCO2emissionreductions.Thecompanywasranked
asoneofthebestperformersinreducingitsconsumptionofenergy.
In2007,aspartofitseffortstohelpconservevitalresources,AEGON
willexaminethepossibilityofanew,globallycoordinatedactionplan,
designedtoreducethecompany’soverallconsumptionofenergy.
Eachyear,AEGONmeasuresitsconsumptionofenergyandessential
raw materials as well as its production of waste and emissions of
carbondioxide.Thefigurescontainedinthissection‘Protectingthe
environment’ refer to the entire AEGON workforce but for both
2006and2005havebeencalculatedfromdatacovering lessthan
100percentofAEGONemployees.
AEGON’ScONSuMptIONOfpApEr
AEGON’ssinglemost importantrawmaterial ispaper. In2006, the
companyused5,201metrictonsofpaper,up5.8percentfrom4,914
tons in2005 2. This increasewasdue toanexpansion inAEGON’s
businesses.Paperconsumptionperemployee remainedunchanged
at 181kilograms.Useof recycledpaper,meanwhile, rosesharply to
10 percent in 2006, up from 1.5 percent the previous year, thanks
primarily to AEGON The Netherlands’ switching to 100 percent
recycledpaper.
AEGONhas taken a numberof steps to reduce its consumptionof
paperandtomakethatconsumptionmoreenvironmentallyfriendly.
In 2006, AEGON USA switched to chlorine-free paper for all its
customerstatements.AEGONTheNetherlands,meanwhile,startedto
useonlypapercertifiedbytheDutchforestryStewardshipCouncil,
the body responsible for managing the country’s woodlands and
forests.AEGONUKalso uses only chlorine-free paper.OfAEGON’s
overallpaperuse,morethan58percentwaschlorine-free.
AEGON’SuSEOfENErGy
AEGON’stwomainsourcesofenergyaregasandelectricity.In2006,
electricityuseroseto143GWh,upfrom129GWhthepreviousyear,an
increase of 10.9 percent. Gas consumption was also higher, at
4.3millioncubicmeters,up34.4percent from3.2million in2005.
AEGON emitted some 77,225 metric tons of CO2 in 2006, up
12.0percentfrom68,939tonsin20053.Peremployee,thisequates
to2.69tonsayear,upfrom2.54tons.
Theriseinenergyconsumptioncanbeattributedtothreefactors:an
increaseinthenumberofemployees,theacquisitionofamajornew
320,000squarefootfacilityatAEGONUSA’sCedarRapids,Iowa,site,
andtheexceptionallyhotsummer inEuropeandtheUnitedStates
in2006.
IntheUnitedKingdom,AEGONhasincreasedtheamountof‘green’
electricityitbuysunderanewsupplyagreementwithpowerprovider
npower,partoftheRWEGroup.forthenextfiveyears,20percentof
AEGON UK’s power will be ‘green’, double the amount under the
previousfour-yeardeal.
In2006,AEGONstartedtocollectdataonbusinesstravelwithinits
companies.Thesedataarenotcomplete,butresultsshowemployees
fromsixAEGONcountryunits–AEGONUSA,AEGONTheNetherlands,
AEGON UK, AEGON Canada, AEGON Hungary and AEGON Spain –
traveled a total of 104.3million kilometers on business during the
year. AEGON USA accounted for almost 74 percent of this travel,
unsurprisinggiventhesizeofthecountryandtheimportanceofthe
UnitedStatestoAEGONasawhole.AEGONiscommittedtoapproving
onlyessentialbusinesstravel.
1 ISO 14001, compiled and published by the International Organization forStandardization(ISO),setsoutminimumstandardsandqualityrequirements forenvironmentalmanagementsystems.Ithelpscompaniesandotherorganizationsmeasuretheirimpactontheenvironmentanddemonstratesoundenvironmentalpractice.
2 InAEGON’s2005CorporateResponsibilityReport,thefigureforthatyear’spaperconsumptionwasmisstatedas3,290tons.Thiswastheresultofatypographicalerror.
3 AccordingtoguidelineslaiddownbytheUnitedNations’EnvironmentalProgram(UNEP).
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
LittlethingscangoalongwayExperience atAEGONUSA’s headquarters at CedarRapids in Iowa
shows that sometimes even small things can make a difference.
Energy consumption at Cedar Rapids, where around 3,000 people
work, is being reducedby simply replacinghundredsof lightbulbs
withmoreefficientfluorescentlighting.Inaddition,motion-activated
switches,which shutoff lightsautomaticallywhen the room isnot
inuse,havebeenfittedinsomeofthesite’sofficesandconference
rooms.Anditdoesn’tendthere.Wateruseisalsobeingcurbed-a
little at least - by pioneering a newwaterless urinal in one of the
men’sbathrooms.
IntheUnitedKingdom,thereisasimilarattentiontodetail.Anewfive-
yearcleaningcontract,signedinApril2006,willbe‘zero-chemical’.
Moreover, in offices, wastepaper baskets have been removed and
replacedbycentral recyclingpoints forusedpaper, cupsandcans,
while250,000squarefeetofcarpettilesaretoberecycledaspartof
are-carpetingofAEGONUK’sheadquartersinEdinburgh.
Anewdealwithprintingandcopyingcompany IKONwillalsohave
benefits.Inreturnforevery100,000printsmadeonthenewmachines
itisinstallingatAEGONUKoffices,IKONhaspromisedtheywillplant
atreetohelpprotecttheenvironment.
�0 AEGON CORPORATE RESPONSIBILITY REPORT 2006
AEGON’SuSEOfwAtEr
AEGON’stotalwaterusein2006amountedto428,415cubicmeters,
up 13.5percent from377,527cubicmeters in2005.Peremployee,
waterconsumptionroseto65litersaday,upfrom60litersin2005,
butwellbelow70litersin2004.Theriseinoverallconsumptionwas
duetoanincreaseinAEGON’stotalworkforce,theadditionofthenew
facility at Cedar Rapids, Iowa, in the United States, and the hot
summerof2006.
Theworkplace Protectingtheenvironment
AEGON’SMANAGEMENtOfwAStE
Atpresent,notallAEGONbusinessesmeasurewasteproductionand
recycling.Thosethatdorepresentsome45percentofthecompany’s
workforce. Based on these figures, it is estimated that the entire
AEGONcompanyproducedatotalof4,035metrictonsofwaste in
2006,down12.3percentfrom4,601tonsin2005.Ofthis,59percent
wasrecycled,unchangedfromthepreviousyear.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
SUPPORTINGLOCALCOMMUNITIESTHROUGHLONG-TERMCOMMITMENTS
5
Chapterfive
THEWIDERCOMMUNITY
�2 AEGON CORPORATE RESPONSIBILITY REPORT 2006
Thewidercommunity
AEGON’SLONG-TERMCOMMITMENTTOLOCALCOMMUNITIES
“AEGONcompaniesaroundtheworldhavebeeninvolvedinthefightagainstcancerformanyyears.”
AEGON’SlONG-tErMcOMMItMENttOlOcAlcOMMuNItIES
AEGONhasalong-termcommitmenttothecommunitiesinwhichit
operates. In all these communities, AEGON creates jobs and
contributestosustainableeconomicgrowth,helpingprovideschooling
fordisadvantagedyoungstersandfundingresearchintothecauses
andtreatmentofseriousillnessessuchascancerandheartdisease.
In2006,TransamericaOccidentalLife InsuranceCompany(TOLIC),
partofAEGONUSA,celebrateditscentenary.fromitsbeginningsas
a small California life insurer, through the traumas of the 1918 ‘flu
epidemicwhenexecutiveshadtodipintotheirownpocketstomeet
obligations, down to the present day. Over the past one hundred
years,TOLIChasremainedcommittedtoallthelocalcommunitiesin
whichitoperates.Today,withmorethan1,700employees,TOLICisa
majorplayerintheUSandPacificRimlifeinsurancemarkets.
Overthepastyear,AEGONhasexpandeditsworkforcebymorethan
1,500people.MuchofthisincreaseisduetotheacquisitionsAEGON
madein2006,mostnotablyUnirobeintheNetherlands,aswellas
the expansion of its operations in Asia and Central and Eastern
Europe.Creatingjobsisparticularlyimportantinemergingcountries.
InHungary,AEGONaddedseveralhundredjobsin2006,particularly
by opening new call centers in a number of locations across the
countryandthroughtheexpansionofitsmortgagebusiness.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
Thewidercommunity
GIVINGTOGOODCAUSES
Lythamhavebeencollectinggifts for thesechildrenaspartof the
‘TheGivingTree’ project. InDecember 2006,more than500 such
giftsweredistributed,helpingbrightenChristmasforjustsomeofthe
UnitedKingdom’schildreninneed.
GIvINGtOGOODcAuSES
AEGONcompaniesaroundtheworldhavebeeninvolvedinthefight
againstcancerformanyyears.Theysupportaninternationalcancer
researchprogramthatbringstogetherleadingscientistsandresearch
fellows at the Johns Hopkins Oncology Center at the School of
MedicineinBaltimoreintheUnitedStates,theVrijeUniversiteit(VU)
MedicalCenterinAmsterdamandUtrecht’sUniversityMedicalCenter,
both in the Netherlands. In 2006, a total of six researchers were
workingontheprogram,threeintheUnitedStatesandthreeinthe
Netherlands.Resultsfromthisprogramhavebeenpresentedatthe
prominentAmericanAssociationforCancerResearchandatother,
renowned cancer research conferences. In addition, AEGON also
supports a separate research program into prostate cancer at the
ErasmusHospitalintheDutchcityofRotterdamandcontributesto
theAlzheimerCenterattheVUinAmsterdam.Inrecentyears,AEGON
has extended its support for cancer research into Asia by helping
fundafurtherprograminChinabetweenJohnsHopkinsandNanjing
University.
TheGivingTreeEveryChristmas,hundredsofchildrenspendtheend-of-yearholidays
inWomen’srefugesacrosstheUnitedKingdom.Inmanycases,their
mothers are sheltering at the refuges to escape abuse at home.
forthepastfiveyears,staffatAEGONUKofficesinEdinburghand
SurvivingthestormWhenHurricaneRitachangedthelandscapeandlivesofresidentsof
theGulfCoastoftheUnitedStatesforever,oneofthecommunities
hardesthitwasCameronParish inLouisiana.TheSeptember2005
stormleftonlytwoofthearea’ssixschoolsstanding.
AEGONsteppedintohelpout.Overthefollowingfewweeks,some
USD700,000wasraised,morethanathirdofitbyAEGONemployees
andagents,tohelprebuildthetown’sschools.
Ayearlater,AEGONvolunteersreturnedtoCameronParishtohelp
withlast-minuteeffortstogetthenewschoolsreadyforthestartof
thenewterm.OnaswelteringdayinAugust,thevolunteershelped
teachers, parents, students and contractors empty truckloads of
furniture,assembledesksandarrangethenewclassrooms.
CameronParish:AEGONemployeesstepintohelpoutafterHurricaneRita.
TheBreastCancerResearchTeamattheJohnsHopkinsKimmelCancerCenter.
�� AEGON CORPORATE RESPONSIBILITY REPORT 2006
Breakingthecyclefor the past ten years, AEGON in the United States has been
supporting the Living Classrooms foundation (LCf). A non-profit
organizationbasedinBaltimore,Maryland,andWashingtonDC,LCf
provideseducationalprogramsformorethan30,000disadvantaged
childrenandyoungpeople.Theprogramsteachnewskillsandhelp
developasenseofself-esteemamongchildrenwhooftenliveincity
neighborhoodsplaguedbypoverty,crimeandviolence.
Andtheneedisgreat.AlthoughMarylandisthethirdwealthieststate
inthecountry,Baltimorehasthesixthhighestpovertyrateamong
citiesofasimilarsizeandthegapbetweenrichandpoorhasbeen
wideningsteadily.IntheDistrictofColumbia,meanwhile,morethan
a third of young people under the age of eighteen currently live in
poverty 1.Everyyear,LCfhelps thousandsofcityyoungstersbreak
thedepressingcycleofpovertyandviolence.
1 Sources:USCensusBureau,2004,andTheAnnieE.Caseyfoundation,Kids Count,2006.
PledgingtohelpAEGONTransamericafoundationhaspledgedmorethanUSD800,000
to support the Kennedy Krieger foundation, which helps children
withdisordersofthebrainandspinalcordacrosstheUnitedStates.
KennedyKrieger isthehomeofthe InternationalCenterforSpinal
Cord Injury, a facility dedicated to the research and treatment of
spinalcordinjuriesandparalysisinchildren.Italsocarriesoutwork
on autism, a developmental disorder that affects as many as one
in 150 children in the country.With its support, AEGON is helping
childrenwiththesedisordersachievetheirpotentialandparticipate
asfaraspossibleinnormalfamily,schoolandcommunitylife.
The classrooms in Cameron Parish are only temporary until new,
morepermanentstructurescanbebuilt.Butthereisatleastoneitem
still standing from before the storm: the school’s mascot, a fierce-
lookingtarponfish,survivedRitaandnowtakesprideofplaceatthe
newbuilding.
AEGON’scashdonationstoavarietyofcharitablecausesamounted
toEUR9.0million in2006 1,upfromEUR8.8million in2005.The
donationsrepresent0.32percentofAEGON’snetincome,unchanged
from2005.
Everyyear,AEGONemployeesdonatetheirtimeandmoneytogood
causesaroundtheworld.Thesecausesrangefromtacklingserious
illnesses,tohelpingdisadvantagedchildrenandtheelderly.Hereare
afewoftheprojectsAEGONhassupportedduringthispastyear:
In Canada, AEGON has signed a partnership with the country’s
HeartandStrokefoundation, tohelpfundresearch intotreating
thesediseases.
EmployeesinCanadaalsoraisedhundredsofthousandsofdollars
forchildrenatriskofabuse,womenstrugglingtocopewithdrug
addictionsandtohelpimprovesocialconditionsfortheworst-off.
InPoland,AEGONishelpingsupportanorphanageinthesouthern
cityofKatowice.
In Taiwan, employees took part in efforts to raise money for the
elderly while AEGON Taiwan has set up a special fund to support
schoolingforchildrenlivinginpovertyinChina’sGuizhouprovince.
IntheUnitedStates,AEGONemployeessupportarangeofeducational
initiatives,helpingdisadvantagedyoungstersandprovidingfinancial
assistance to elementary schools in Baltimore, Charlotte and Los
Angeles,aswellassponsoringscholarshipsandprogramsinflorida.
forthepastfiveyears,AEGONemployeesinDayton,Ohio,havealso
beendonatingmoneytoalocalresidentialhomeforpeoplesuffering
withmentaldevelopmentproblems.
1 This figure excludes AEGON-CNOOC, the company’s joint venture in China, andAEGON’slong-standingfinancialcommitmenttotheKNSB,theRoyalDutchSkatingAssociation. In 2006, AEGON spent EUR 7million on sponsoring for the KNSB,some50percentofwhichwenttohelpingdevelopyoungtalentinthesportintheNetherlands.
Thewidercommunity Givingtogoodcauses
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
Additionalinformation
SUMMARY
In 2006, AEGON made significant advances in the corporate
responsibility field. Most notably, the company improved product
transparencyandfinancialliteracy,adoptedclearercommitmentsto
help protect human rights and the environment, and bolstered its
contributiontothefightagainstcancer.
Necessarily, this report can give only a brief overview of AEGON’s
achievementsin2006andonlyahandfulofthecausesthecompany
anditsemployeessupportedduringtheyear.
AEGON isproudof theseachievementsand isdeterminedtomake
furtheradvancesin2007.Progresswill,asever,dependonaclear-
mindedandopenassessmentofthoseareaswhereimprovementis
needed.forthisreason,AEGONwelcomesdialogwithallpartiesthat
have a legitimate interest in the future of the company and its
operationsaroundtheworld.
As populations age and governments, particularly in Europe, shift
more responsibility for retirement funding to individuals and the
privatesector,demandforpensionsandlong-termsavingsproducts
willcontinuetogrow.
Thisplacesanobligationoncompanies likeAEGONtoensuretheir
financialproductsarestraightforward,easytounderstand,andcater
totheever-changingneedsoftheircustomers.
AEGONiscommittedtoprinciplesofbusinesspracticethatpromoterespect,
quality,transparencyandtrustinallitsoperationsaroundtheworld.
Inrecentyears,AEGONhasexpanded its internationalpresence. In
addition to its established markets in the United States, the
NetherlandsandtheUnitedKingdom,AEGONnowhasoperationsin
more than twenty countries across the globe. This international
expansion will inevitably bring with it new challenges and new
responsibilities.
Whereveritoperates,AEGONstrivestoactinthebestinterestsofall
its stakeholders – its customers, shareholders, employees and
businesspartners,aswellastheverydiversecommunitiesitserves
aroundtheworld.
Inthedecisionsittakes,inthewayitmanagesitsbusinesses,inthe
policiesandinitiativesitpursues,AEGONremainscommittedtothe
highestpossiblestandardsofintegrityandhonesty.
As AEGON grows and expands, it is determined tomaintain these
standards and to meet new responsibilities in the years ahead,
confident it will retain the trust and support of its many
stakeholders.
�6 AEGON CORPORATE RESPONSIBILITY REPORT 2006
Additionalinformation
CORPORATERESPONSIBILITYINDICATORS
Asof31/12/2006 Unit of measurement 2006 200� 200�
Economic1
Totalincome EUR m 49,309 45,510 38,355
Totalcharges EUR m 45,951 41,915 35,585
Netincome EUR m 2,789 2,732 2,256
Operatingearningsbeforetax EUR m 2,828 2,147 1,772
Valueofnewbusinessaftertax EUR m 775 550 489
Basicearningspershare EUR 1.63 1.63 1.38
Marketcapitalization EUR m 22,844 21,986 15,574
Totaldividendpershare EUR 0.55 0.45 0.42
Totalassetsundermanagement(excludingoffbalancesheetitems) EUR m 271,668 273,622 235,354
TotalSRIassetsundermanagement2 EUR m 857 569 340
SRIassets/totalassets Percent 0.32 0.21 0.14
Employmentexpenses EUR m 1,821 1,662 1,784
Environmental3
CO2emissions(fromgasandelectricityconsumption) Metric tons 77,225 68,939 68,770
CO2emissionsperemployee Metric tons per person 2.69 2.54 2.51
Gasconsumption Million cubic meters 4.3 3.2 3.1
Electricityconsumption GWh 143 129 131
Businesstravel Million kilometers 104.3 n.a. n.a.
CO2emissionsfrombusinesstravel Metric tons 12,510 n.a. n.a.
Paperconsumption Metric tons 5,201 4,914 4,761
Paperconsumptionperemployee Kilograms 181 181 173
Useofrecycledpaper Percent 10 1.5 n.a.
Wateruse Cubic meters 428,415 377,527 441,881
Wateruseperpersonperday Liters 65 60 70
Waste4 Metric tons 4,035 4,601 3,580
Recycledwaste Percent of total waste 59 59 48
humanresources
Totalemployees 28,726 27,159 27,446
female/maleemployees Percent 51.2/48.8 52.8/47.2 52.0/48.0
female/maleseniormanagers Percent 14.9/85.1 15.4/84.6 16.3/83.7
Part-timeemployees Percent 9.2 8.4 8.0
Trainingdays Days per employee 4.0 4.1 4.0
Trainingcosts EUR m 17.1 15.1 15.8
Trainingcostsperemployee EUR per employee 597 555 574
Absenteerate Percent of workforce 3.1 2.6 n.a.
community
Donations EUR m 9.0 8.8 6.2
1 Earningsandrevenuefiguresfor2004havebeenrestatedinaccordancewithnewIfRSaccountingstandards,introducedin2005.2 SRI:SociallyResponsibleInvestments,fundsthattypicallyexcludeinvestmentsincompanieswithlinkstobusinessessuchasarmsmanufacturing,tobacco,
gamblingoralcohol.3 EnvironmentalfiguresrefertotheentireAEGONworkforce,buthavebeenextrapolatedfromdatacoveringlessthan100percentofallemployees.4 figuresforWasteandRecycledWastearebasedondatasuppliedbyAEGONcountryunitscovering45percentoftheoverallworkforcein2006,
38percentin2005and40percentin2004.
n.a.–notavailable
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
LastingvalueAEGONhasbeenincludedinboththeDowJonesSustainabilityand
fTSE4Good indices for the past several years. These indices rank
companiesaccordingtotheirabilitytomanagearangeofeconomic,
socialandenvironmentalrisks.AEGONregardsitscontinuedinclusion
inthese indicesasrecognitionoftheefforts ithasmadetodeliver
lastingvalue to itscustomers,employeesandbusinesspartnersas
wellastoitsshareholders.
hOwAEGON’ScOrpOrAtErESpONSIbIlItypErfOrMANcE
ISrAtED
The table belowdetailsAEGON’s ratings from someof the leading
corporateandsocialresponsibilityindicesandresearchfirms.
rAtINGAGENcy 2006 200�
DowJonesSustainabilityIndex included included
fTSE4Good included included
Oekom C prime no rating
SiRi1 15th 10th
1 SiRirankedAEGON’scorporateresponsibilityperformanceas15thoutofthe25largestcompaniesintheNetherlandsin2006,and10thin2005.InSiRi’sresearch,eachcompanyiscomparedtoitsworldwideindustrygrouppeers.forbothyears,AEGONrankedaboveitsworldwideindustryaverage.
�� AEGON CORPORATE RESPONSIBILITY REPORT 2006
Appendices
APPENDIXI:THESCOPEOfTHISREPORTAPPENDIXII:GLOBALREPORTINGINITIATIVE(GRI)
AppENDIxI
thEScOpEOfthISrEpOrt
Thefinancial informationcontainedinthisCorporateResponsibility
ReporthasbeentakenfromAEGON’s2006AnnualReportandrefers
to all AEGON companies. This year, for the first time, AEGON’s
CorporateResponsibilityReportcoversallAEGONcountryunits.
Unlessotherwisestated,environmentalandsocialinformationrefers
toallAEGONoperationsaroundtheworld.Onlyjointventureswhere
AEGONdoesnothavefullmanagementcontrolareexcluded.
ThisCorporateResponsibilityReportcoversthefullyear2006,unless
specifically indicated otherwise. AEGON’s previous Corporate
ResponsibilityReportwaspublishedinAugust2006.Allfinancialand
employeeinformationisidenticaltothatcontainedinAEGON’s2006
AnnualReport.
This 2006 Corporate Responsibility Report was developed by the
Group CR department, which is part of AEGON’s Group Corporate
Affairs& InvestorRelationsdivision.AEGONwelcomesopinionson
boththecontentsofthisreportandthecompany’soverallperformance
inhandlingcorporateresponsibility issues.Commentsandopinions
shouldbesentto:[email protected]
ThenewG3guidelinesoftheGlobalReportingInitiative(GRI)served
asapartialframeworkforthis2006CorporateResponsibilityReport.
furtherdetailsontheseguidelinesmaybefoundinAppendixII.
The contents of this report are also based on the result of
comprehensivereportingfromAEGONcountryunits.Thesecountry
units,throughtheircorporateresponsibilitymanagers,areresponsible
forcollectingandsubmittingallthedatausedinthisreport.
AppENDIxII
ANOvErvIEwOfthEGlObAlrEpOrtINGINItIAtIvE(GrI)
TheGlobalReportingInitiativeaimstoensurethatthereareaccepted
and comparable standards for companies that report regularly on
theireconomic,environmentalandsocialperformances.Todetermine
the indicators and benchmarks it uses, GRI relies on an extensive
network of experts in dozens of countries around the world,
representingdifferentdisciplinesandinterests.
AEGON’sCorporateResponsibilityReportcoversmostGRIindicators
relating to the company four main areas of activity in this field:
governance,themarketplace,theworkplaceandthewidercommunity.
BasedonGRIguidelinesandtheInitiative’snew,tighterG3standards,
AEGONassessestheApplicationLevelofthis2006reportas‘B’.
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
AppENDIxIII
GlObAlrEpOrtINGINItIAtIvEINDEx(G3)
Strategyandanalyses wheretofindit page
1.1 CEOstatement Chairman’sletter 2
1.2 Keyimpacts,risks,andopportunities Makingprogress:howAEGONimproveditscorporate
responsibilityrecordin2006
WhereAEGONseesfuturegrowth
Limitingrisk
4
9
18
Organizationalprofile wheretofindit page
2.1 Nameoforganization CoverofCorporateResponsibilityReport2006
2.2 Productsandservices AboutAEGON
2.3 Operationalstructure AEGON’sbusinesses 8
2.4 Locationofheadquarters AEGON’sbusinesses 8
2.5 Countrieslocated AEGON’sbusinesses 8
2.6 Natureofownershipandlegalform Website(www.aegon.com)
2.7 Markets AEGON’sbusinesses 8
2.8 Sizeofoperations AEGON’sbusinesses 8
2.9 Organizationalchanges Notapplicable
2.10 Awards Investingresponsibly
Healthandsafety
28
37
Appendices
APPENDIXIII:GLOBALREPORTINGINITIATIVEINDEX(G3)
reportingparameters wheretofindit page
3.1 Reportingperiod AppendixI–Thescopeofthisreport 48
3.2 Previousreport Chairman’sletter 2
3.3 Reportingcycle AppendixI–Thescopeofthisreport 48
3.4 Contactperson(s) AppendixI–Thescopeofthisreport 48
3.5 Processreportcontent AppendixI–Thescopeofthisreport 48
3.6 Scope AppendixI–Thescopeofthisreport 48
3.7 Scopelimitations AppendixI–Thescopeofthisreport 48
3.8 Basisforreportingonjointventures AppendixI–Thescopeofthisreport 48
3.9 Datameasurementtechniques Corporateresponsibilityindicators 46
3.10 Re-statements ProtectingtheEnvironment–AEGON’sconsumptionofpaper 38
3.11 Reportingchanges AppendixI–Thescopeofthisreport 48
3.12 StandardDisclosures AppendixIII–GRIoverviewtable 48
3.13 Policywithregardtoexternalassurance
Governance,commitmentsandEngagement wheretofindit page
4.1 Governancestructure AnnualReport,availableatwww.aegon.com
4.2 Chairofthehighestgovernancebody AnnualReport,availableatwww.aegon.com
4.3 Independentmembers AnnualReport,availableatwww.aegon.com
4.4 Mechanismsforshareholdersandemployees AnnualReport,availableatwww.aegon.com
4.5 Compensationhighestgovernancebody AnnualReport,availableatwww.aegon.com
4.6 Processestoensureconflictsofinterestareavoided Website(www.aegon.com)
4.7 Expertisehighestgovernancebody Website(www.aegon.com)
�0 AEGON CORPORATE RESPONSIBILITY REPORT 2006
4.8 Internallydevelopedstatements Website(www.aegon.com)
4.9 Proceduresofthehighestgovernancebody AnnualReport,availableatwww.aegon.com
4.10 Performanceofhighestgovernancebody AnnualReport,availableatwww.aegon.com
4.11 Precautionaryapproach CodeofConduct 16
4.12 Externallydevelopedprinciples AEGON’scommitmenttoHumanRights
Ensuringproducttransparency
Investingresponsibly
17
24
28
4.13 Membershipsofassociations Ensuringproducttransparency 24
4.14 Listofstakeholdergroups Introduction:AEGON’sstakeholders 6
4.15 Identificationandselectionofstakeholders Introduction:AEGON’sstakeholders 6
4.16 Approachestostakeholderengagement Introduction:AEGON’sstakeholders 6
4.17 Keytopicsthroughstakeholderengagement Introduction:AEGON’sstakeholders 6
Economicperformanceindicators wheretofindit page
EC1 Directeconomicvalue Website(www.aegon.com)
EC2 financialimplicationsduetoclimatechange
EC3 Coveragebenefitplanobligations AnnualReport,availableatwww.aegon.com
EC4 financialassistancereceivedfromgovernment Notapplicable
EC6 Locally-basedsuppliers
EC7 Localhiring
EC8 Infrastructureinvestments
Environmentalperformanceindicators wheretofindit page
EN1 Weightofmaterialsused Protectingtheenvironment–AEGON’sconsumptionofpaper 38
EN2 Recycledinputmaterials Protectingtheenvironment–AEGON’sconsumptionofpaper 38
EN3 Directenergyconsumption Protectingtheenvironment–AEGON’suseofenergy 38
EN4 Indirectenergyconsumption Protectingtheenvironment–AEGON’suseofenergy 38
EN5(add.) Energysavedduetoconservationandefficiency
improvements
Protectingtheenvironment–AEGON’suseofenergy 38
EN8 Totalwateruse Protectingtheenvironment–AEGON’suseofwater 40
EN11 Locationoflandinprotectedareas Notapplicable
EN12 Significantimpactsonbiodiversity Notapplicable
EN16 Directandindirectgreenhousegasemissions Protectingtheenvironment–AEGON’suseofenergy 38
EN17 Otherrelevantindirectgreenhousegasemissions Protectingtheenvironment–AEGON’suseofenergy 38
EN19 Emissionsofozone-depletingsubstances
EN20 NOx,SOxairemissions
EN21 Totalwaterdischarge
EN22 Totalweightofwaste Protectingtheenvironment–AEGON’smanagementofwaste 40
EN23 Totalspills Notapplicable
EN26 Initiativestomitigateenvironmentalimpacts Protectingtheenvironment–AEGON’suseofenergy 38
EN27 Productsreclaimedattheendoftheproducts’life Notapplicable
EN28 Monetaryvalueofsignificantfines Notapplicable
EN29(add.) Significantenvironmentalimpactsoftransport Protectingtheenvironment–AEGON’suseofenergy 38
Appendices AppendixIII:Globalreportinginitiativeindex(G3)
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
SOcIAlINDIcAtOrS
laborpracticesanddecentwork wheretofindit page
LA1 Breakdownoftotalworkforce AEGON’semployees 34
LA2 Employeeturnover AEGON’semployees 34
LA4 Employeescoveredbycollectivebargaining CorporateResponsibilityReport2005
LA5 Minimumnoticeperiod(s)regardingoperationalchanges
LA7 Ratesofinjury,occupationaldiseases,lostdays,and
absenteeism
Healthandsafety 37
LA8 Risk-controlprogramsregardingseriousdiseases Healthandsafety 37
LA10 Trainingperemployeecategory AEGON’semployees–Advancingcareerdevelopment 34
LA11(add.) Programsforskillsmanagementandlifelonglearning AEGON’semployees–Advancingcareerdevelopment 34
LA13 Genderbreakdownofgovernancebodies AEGON’semployees 34
LA14 Ratioofbasicsalaryofmentowomen
humanrights wheretofindit page
HR1 http://www.postbank.ie/Significantinvestment
agreementsthatincludehumanrightsclauses
HR2 Screeningofsuppliersonhumanrights AEGON’scommitmenttoHumanRights 17
HR4 Incidentsofdiscrimination Nonereported
HR5 Operationsidentifiedashavingriskforincidentsof
violationsoffreedomofassociationandcollective
bargaining
Noneidentified
HR6 Operationsidentifiedashavingriskforchildlabor Noneidentified
HR7 Operationsidentifiedashavingriskforforcedlabor Noneidentified
Society wheretofindit page
SO1 Impactoncommunities HowAEGON’sproductsandoperationsimpactthewider
community
41
SO2 Numberofbusinessunitsanalyzedforrisksrelated
tocorruption
AnnualReport,availableatwww.aegon.com
SO3 Employeestrainedinorganization’santi-corruption
policiesandprocedures
CodeofConduct 16
SO4 Actionstakeninresponsetoincidentsofcorruption Nonereported
SO5 Publicpolicypositionsandparticipationinpublicpolicy
development
Governmentsandregulators 32
SO8 Monetaryvalueofsignificantfines
productresponsibility wheretofindit page
PR1 Improvinghealthandsafetyimpactsacrosslifecycle Notapplicable
PR3 Productinformationandlabeling Ensuringproducttransparency 24
PR5(add.) Customersatisfaction Managingcustomerrelations 20
PR6 Marketingcommunications Ensuringproducttransparency 24
PR9 Monetaryvalueofsignificantfines
�2 AEGON CORPORATE RESPONSIBILITY REPORT 2006
SocialSupplementIndicators wheretofindit page
CSR1 Corporateandsocialresponsibility(CSR)policy CodeofConduct 16
CSR2 CSRorganization AppendixIV.HowAEGONpromotescorporateresponsibility
initiatives
54
CSR3 CSRaudits
CSR4 Managementonsensitiveissues Managingcustomerrelations
Ensuringproducttransparency
Investingresponsibly
20
24
28
CSR5 Non-compliancewithregulations Ensuringproducttransparency 24
CSR6 Stakeholderdialogue Introduction:AEGON’sstakeholders 6
INT1 InternalSCRpolicy AEGON’semployees
Payingafairwage
Healthandsafety
34
36
37
INT2 Staffturnoverandjobcreation AEGON’semployees 34
INT3 Employeesatisfaction Employeesatisfaction 36
INT4 Seniormanagementremuneration AnnualReport,availableatwww.aegon.com
INT5 Bonusesfosteringsustainablesuccess
INT6 female-malesalaryratio
INT7 Employeeprofile AEGON’semployees 34
SOC1 Charitablecontributions Givingtogoodcauses 43
SOC2 Economicvalueadded AEGONEmbeddedValueReport2006,
availableatwww.aegon.com
SUP1 Screeningofmajorsuppliers AEGON’ssuppliers 32
SUP2 SupplierSatisfaction
AM1 Assetmanagementpolicy Refertocountryunits
AM2 Assetsundermanagementwithhighsocialbenefit Investingresponsibly 28
AM3 SRIorientedshareholderactivity Investingresponsibly 28
INS1 Underwritingpolicy Managingcustomerrelations
Ensuringproducttransparency
20
24
INS2 Customerprofile
INS3 Customercomplaints Managingcustomerrelations–MakingsureAEGONdeals
effectivelywithcustomercomplaints
23
INS4 Insurancewithhighsocialbenefit Managingcustomerrelations–Helpingcustomersonlow
incomes
21
Appendices AppendixIII:Globalreportinginitiativeindex(G3) Socialindicators
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
EnvironmentalSupplementIndicators wheretofindit page
f1 Policiesappliedtocorebusinesslines Protectingtheenvironment 38
f2 Screeningofenvironmentalrisks Website(www.aegon.com)
f3 Threshold(s)forriskassessment
f4 Monitoringaspectsinriskassessmentprocess(es)
f5 Addressingrisksandopportunities Limitingrisk 18
f6 Auditsofrisksystemsandprocedures Protectingtheenvironment(ISO14001hasregularaudits) 38
f7 Interactionwithstakeholdersonrisks/opportunities Investingresponsibly 28
f8 Engagementwithcompaniesinportfolio Investingresponsibly 28
f9 Assetssubjectedtoscreening Investingresponsibly 28
f10 Sharevotingpolicy Investingresponsibly 28
f11 AssetsUnderManagementwithrighttovoteshares Investingresponsibly 28
f12 Valueofenvironmentalproductsandservices Notapplicable
f13 Valueofportfolio AnnualReportandEmbeddedValueReport,
availableatwww.aegon.com
�� AEGON CORPORATE RESPONSIBILITY REPORT 2006
Appendices AppendixIII:Globalreportinginitiativeindex(G3) Disclosureonmanagementapproach
Disclosureonmanagementapproach chapter
Materiality responsibility
Objectivesand
performance policy training Monitoring
Economic Economicperformance ExecutiveBoard A A A A
Marketpresence A A A A
Environment Paper ManagementBoard 4.5 4.5 4.5
Energy 4.5 4.5 4.5
Water 4.5 4.5 4.5
Waste 4.5 4.5 4.5
Laborrights Non-discrimination ManagementBoard 4.1 4.1 4.1
Diversity 4.1 4.1
Training 4.1 4.1 4.1
fairwages 4.2 4.2 4.2
Employeesatisfaction 4.3 4.3
Health&Safety 4.4 4.4 4.4 4.4
Humanrights Ensuringbasichuman
rightsandfreedoms
ManagementBoard 2.3 2.3
Society Customers ManagementBoard 3.2 3.2
Website
3.2
Distributionpartners 3.6 3.6 3.6
Suppliers 3.8 3.8 3.8
Governments®ulators 3.9 3.9 3.9
Communityengagement 5.1 5.1 5.1
Productresponsibility Compliance ManagementBoard 2.2 2.2 2.2 2.2
Producttransparency 3.3 3.3 3.3 3.3
financialliteracy 3.3 3.3 3.3 3.3
Investingresponsibly 3.4 3.4 3.4
AEGON CORPORATE RESPONSIBILITY REPORT 2006 ��
AppENDIxIv
hOwAEGONprOMOtEScOrpOrAtErESpONSIbIlIty
INItIAtIvES
Corporate responsibility policies and initiatives are coordinated by
GroupCR,adepartmentwithinAEGON’sGroupCorporateAffairs&
InvestorRelationsdepartment.GroupCRisledbyGuyNielsen,senior
vice president, who manages all AEGON’s corporate responsibility
processesandinitiatives.Hisresponsibilitiesincludepolicy-makingas
well as overseeing the reporting andmonitoring of the company’s
corporateresponsibilityinitiatives.
Inmattersrelatedtocorporateresponsibility,Mr.Nielsenreportsto
Johan van der Werf, a member of AEGON’s Management Board.
Mr.VanderWerfchairsaregularcommitteeoncorporateresponsibility,
whose members represent both senior management and AEGON’s
businessunits.Thiscommittee isresponsibleforenactingAEGON’s
corporateresponsibilitypoliciesandensuringoverall improvements
inthisarea.
Appendices
APPENDIXIV:HOWAEGONPROMOTESCORPORATERESPONSIBILITYINITIATIVES
InlinewithAEGON’sstrategyofencouraginglocaldecision-making,
eachcountryunitcontrols itsowncorporateresponsibilityagenda.
Country units have a Corporate Responsibility Leader, who is
responsibleforthefollowing:
Implementingallcorporateresponsibilitypoliciesandinitiatives;
EnsuringcompliancewithAEGON’sCodeofConduct;
Collatingallrelevantdataoncorporateresponsibilityissues;
Developing local corporate responsibilitypolicies andmonitoring
localactivities;
ReportingallprogresstoGroupCR.
Typically,theCorporateResponsibilityLeadermanagesthecountry
unit’scorporateresponsibilityactivitiesalongsidehisorher
otherworkresponsibilities.Corporateresponsibilityactivitiesare
thereforereflectedintheCorporateResponsibilityLeader’sjob
performancetargetsandareafactorindeterminingthatndividual’s
performance-relatedremuneration.
�6 AEGON CORPORATE RESPONSIBILITY REPORT 2006
fORWARD-LOOKINGSTATEMENTS
The statements contained in this Corporate Responsibility Report
thatarenothistoricalfactsareforward-lookingstatementsasdefined
in the US Private Securities Litigation Reform Act of 1995. The
following arewords that identify such forward-looking statements:
believe, estimate, target, intend, may, expect, anticipate, predict,
project,countingon,plan,continue,want,forecast,should,would,is
confident,will,andsimilarexpressionsastheyrelatetoourcompany.
These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to
predict.Weundertakenoobligationtopubliclyupdateorreviseany
forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements,whichmerely
reflect companyexpectationsat the timeofwriting.Actual results
maydiffermateriallyfromexpectationsconveyedinforward-looking
statementsduetochangescausedbyvariousrisksanduncertainties.
Such risks and uncertainties include but are not limited to the
following:
Changesingeneraleconomicconditions,particularlyintheUnited
States,theNetherlandsandtheUnitedKingdom;
Changes in the performance of financial markets, including
emergingmarkets,suchaswithregardto:
• The frequencyandseverityofdefaultsby issuers inourfixed
incomeinvestmentportfolios;and
• The effects of corporate bankruptcies and/or accounting
restatementsonthefinancialmarketsandtheresultingdecline
inthevalueofequityanddebtsecuritieswehold;
Thefrequencyandseverityofinsuredlossevents;
Changesaffectingmortality,morbidityandotherfactorsthatmay
impacttheprofitabilityofourinsuranceproducts;
Changesaffectinginterestratelevelsandcontinuingloworrapidly
changinginterestratelevels;
Changesaffectingcurrencyexchangerates,inparticulartheEUR/
USDandEUR/GBPexchangerates;
Increasing levels of competition in the United States, the
Netherlands,theUnitedKingdomandemergingmarkets;
Changes in lawsandregulations,particularly thoseaffectingour
operations,theproductswesell,andtheattractivenessofcertain
productstoourconsumers;
Regulatory changes relating to the insurance industry in the
jurisdictionsinwhichweoperate;
ActsofGod,actsofterrorism,actsofwarandpandemics;
Changesinthepoliciesofcentralbanksand/orgovernments;
Litigation or regulatory action that could require us to pay
significantdamagesorchangethewaywedobusiness;
Customer responsiveness to both new products and distribution
channels;
Competitive, legal, regulatory, or tax changes that affect the
distributioncostofordemandforourproducts;
Ourfailuretoachieveanticipatedlevelsofearningsoroperational
efficienciesaswellasothercostsavinginitiatives;and
The impactouradoptionofthe InternationalfinancialReporting
Standardsmayhaveonourreportedfinancialresultsandfinancial
condition.
The paper used for this Corporate Responsibility Report 2006,
9lives, is a recycled and fsc certified paper (55% recycled and
45% fsc paper). The printer’s - habo dacosta - environmental
management system meets all of the conditions documented in
the SCGm certification system for the graphic media sector, in
accordance with ISO 14001:2004.
hEAdquARTERS
aegon n.V.
AEGONplein 50
P.O. Box 85
2501 CB The hague
The Netherlands
Telephone: + 31 70 344 32 10
www.aegon.com
groUp corporate affairS & inVeStor relationS
aegon n.V.
P.O. Box 85
2501 CB The hague
The Netherlands
E-mail: [email protected]
MeDia
Telephone: + 31 70 344 83 44
fax: + 31 70 344 84 45
analyStS anD inVeStorS
Telephone: + 31 70 344 83 05
fax: + 31 70 344 84 45
aegon USa, inc.
1111, North Charles Street
Baltimore, md 21201-5574
united States of America
MeDia
Telephone: + 1 410 576 45 26
fax: + 1 410 347 86 85
analyStS anD inVeStorS
Toll free: + 1 877 548 96 68 (uSA only)
Telephone: + 1 410 576 45 77
fax: + 1 410 347 86 85
E-mail: [email protected]
COLOPhON
Consultancy and design dart design, Amsterdam (NL)
Editing and production AEGON Group Corporate Affairs and
Investor Relations (NL)
Typesetting dart design, Amsterdam (NL),
habo daCosta bv (NL)
Printing habo daCosta bv (NL)
The Corporate Responsibility Report 2006 of AEGON N.v. is published
at www.aegonannualreport.com.
CORPORATE ANd ShAREhOLdER INfORmATION