An introduction to Aegon. The Hague, December 2015

Transcription

1 An introduction to Aegon The Hague, December 2015

2 Overview Aegon at a glance Our strategy Our value chain In brief International presence Appendix 2

3 Aegon at a glance Focus History Employees Life insurance, pensions & asset management Our roots date back to first half of 19 th century Around 28,000 employees As per September 30, 2015 Underlying earnings before tax Full year % UK NL 10% New Markets EUR 1.9 bln Americas 56% Revenue-generating investments As per September 30, 2015 Paid out in claims and benefits Full year % EUR 635 billion EUR 34 billion 3

4 Helping people secure their financial future since 1844 Aegon s roots date back to the first half of the 19 th century Dutch insurers Ago and Ennia join forces; Aegon established International expansion Executing our ambitious customer-centric transformation < Transform Tomorrow Americas 4 strategic objectives United Kingdom Spain, Portugal & France Central & Eastern Europe Asia 4

5 5 Aegon s purpose is to help people take responsibility for their financial future

6 Key trends in our operating environment in many of our markets Increased regulation Changing demographics people are living longer and are changing the way they buy financial products Low interest rates New digital technologies for longer than at any time since at least the 1940s Changing capital requirements lead to new opportunities and risks for our business 6 to strengthen consumer protection

7 Our products and services have never been more needed Protection We protect what s important to our customers: their families, their health and their homes. Accumulation We help them save and invest for the future. At & after retirement We provide them with a stable income in retirement, helping to meet costs of care and securing their families future. Supporting people throughout their working lives and into retirement 7

8 A clear framework to address global trends and developing customers needs Purpose Help people take responsibility for their financial future Company values Working together Bringing Clarity Exceeding Expectations Strategic Objectives Ambition Leader in all of our chosen markets 8

9 The customer is at the heart of everything we do Sales & distribution Online & direct channels Financial intermediaries, brokers, banks Worksite marketing Pay-in phase Deposits & premiums Invested to secure expected benefits Pay-out phase Pensions, annuities, life insurance claims Lump sum or regular payments 9

10 How we create and share value Public services Suppliers Investors Employees Customers Local communities Capital Talent Trust Protection Benefits Profits Society 10

11 How we create and share value as a provider of financial services By putting our customers at the center of everything we do: Individual policyholders, corporate clients and pension & investment funds By improving our products, services and distribution, enhancing the customer experience Through a strong link between products, pricing and risk management By helping those who don t have easy access to insurance: Supporting people who might otherwise find themselves vulnerable and uninsured 11

12 Aegon research confirms that we can add value to our customers needs Aegon Retirement Readiness Index (ARRI) Netherlands 5.8 Japan 4.8 United States United Kingdom 6.0 India 7.0 There is a strong need for people to save for their retirement. This is underlined by Aegon s Retirement Readiness score of just 5.9 out of 10. Improvements in life expectancy lead people to believe they will live well into their 80s, setting the expectation that retirement will last longer than childhood. This requires a robust approach for financial planning. Global Retirement Readiness Score 5.9 Promoting health and vitality is essential in helping people to achieve and enjoy their aspirations of an active retirement. 12

13 How we create and share value as an investor By securing the right financial returns: Assets under administration of almost EUR 635 billion* By investing in sustainable economic growth: Taking environmental, social and governance factors into account Through investments that make a difference: Impact investments of EUR 4.6 billion in 2014 By making the companies we invest in accountable: Actively exercising rights and responsibilities inherent to stock ownership 13 * As per September 30, 2015

14 How we create and share value as an employer By creating jobs and providing employment: Around 28,000 employees worldwide* By investing in our workforce, one of our most valuable assets: Strengthening employee engagement the more motivated employees, the better our service to customers By developing skills and broadening of our talent mix: Talent management programs and training for employees at all levels within the company By offering a pleasant and productive place to work: Promoting workforce diversity 14 * As per September 30, 2015

15 How we create and share value in our communities By making donations to good causes Our three target areas are: health, welfare and literacy By a volunteering program Giving employees paid time-off to volunteer to local community projects By working closely with suppliers and local businesses Working with suppliers who share our basic values By taking a responsible approach to tax Compliance and tax optimization 15

16 Aegon in brief Net Promoter Score Impact investments (in EUR millions) Our shareholder base 1.6% 0.6% % % % Affordable housing EUR 4,612 million 14% 47% International dev. banks US 1 st quartile Green bonds NL 2 nd quartile 3 rd quartile 4 th quartile 47.2% Renewable energy Sustainable timber Care homes elderly 3,566 UK Rest of Europe Rest of the world 19% Preferred employer Our global workforce 0.8% 0.5% Supporting our local communities (in EUR millions) Significant improvement in our levels of employee engagement < 20years years years years > 65 years 22.6% 42.7% 33.5% In 2014, Aegon and Transamerica employees gave up the equivalent of > 8 working years to do volunteer work

17 Upcoming events Aegon s May international June presence Annual General Meeting of Shareholders The Hague May 20, 2015 JP Morgan insurance conference London June 2, 2015 Goldman Sachs conference London June 15,

18 A strong international presence in more than 20 countries Aegon businesses US Netherlands United Kingdom Central & Eastern Europe Spain Ireland Hong Kong Singapore Joint ventures Brazil China France India Japan Mexico Portugal Aegon Direct Affinity Marketing Services Australia China Indonesia Japan Thailand 18

19 In the Americas, Transamerica is Aegon s main brand Transamerica s history dates back to the early 20 th century Transamerica Corporation was established in 1928 In 1999, Aegon acquired Transamerica Two main brands, ONE Aegon Early 1900s Transform Tomorrow : Amadeo Giannini created the Bank of Italy in San Francisco, with the goal to make financial services available to everyone. In 1928, Giannini merged with Bank of America. Two years later, Occidental Life was acquired through Transamerica. In 1956, the banking and life business were separated, with the latter taking the Transamerica name. In 1972, the Transamerica Pyramid claimed its place in the San Francisco skyline. In 1999, Transamerica became part of Aegon. One of the world s leading financial services companies

20 Aegon in the Americas: helping customers build a future they can count on Two divisions focused on serving the pre- and post-retirement markets Life & Protection Investments & Retirement Approximately 12,000 employees Operations in the United States and Latin America In the US, among the top 10 largest providers of variable annuities, universal life and term life Primary sponsor of US professional golfers Zach Johnson, Tom Watson, Azahara Muñoz, and Kyle Stanley 20

21 Transamerica s Investment & Retirement division Servicing customers to and through retirement 3,300 I&R employees with a national footprint Actively serving 25,000+ plan sponsors Enhancing distribution Introducing new investment solutions Better connecting with our customers Revenue generating investments of USD 294 billion (At September 30, 2015) 21

22 Transamerica s Life & Protection division Protecting families and their dreams Providing life insurance, supplemental health & worksite products Top 10 player Diverse & targeted distribution to better align with customers High quality, low risk earnings Stable market with solid earnings growth 22

23 Aegon is one of the leading brands in the Dutch financial sector One of the largest providers of life insurance and pensions, with multi-channel distribution Independent intermediaries Banks Online & direct marketing Aegon the Netherlands is headquartered in The Hague and has offices in Leeuwarden and Groningen Approximately 4,400 employees In the Netherlands, Aegon is the number 1 provider of group pensions and the number 5 in individual life insurance Primary sponsor of the Dutch Rowing Association and sponsor partner of Ajax one of the best-known names in world soccer 23

24 24 How Aegon the Netherlands helps customers build their future

25 Aegon UK enables customers to create the tomorrow they want Aegon UK is focusing on: Retirement Workplace savings Protection Aegon UK is helping people take responsibility for their financial future since 1831 with the foundation of Scottish Equitable Around 2,400 employees A leading position for its award-winning retirement platform with GBP 5.3 billion* in assets under administration Lead sponsor partner of British tennis and playing an active role in its local communities with the Aegon Breakfast Club 25 * As per September 30, 2015

26 Integrated solution to and through retirement in the UK At-retirement Capabilities for adviser market Non-advised Self service Workplace savings Gated solutions for employees Flexible retirement options Advisor-led shared online experience Guarantees of income in retirement Auto-enrolment convenience Online set-up and contributions Member engagement tools Role-specific user experience Investor support tools Rewarding consolidation of assets Online library and mgt. information Consolidated and valuation of assets Options for building up savings Single investment & trading platform Online award-winning at-retirement platform to optimize retirement investments by offering a compelling solution to advisers, employers, and their employees 26

27 Substantial growth potential in Central & Eastern Europe Today present in: Czech Republic Hungary Poland Romania Slovakia Turkey Ukraine Aegon entered Hungary in 1992; providing a springboard for further expansion in the region Around 2,500 employees Providing life insurance, pensions, savings and investments products and general insurance Focused on growth by strengthening services provided to customers including innovative online solutions Successful Aegon Direct portal for non-life in Hungary 27

28 Spain, Portugal & France key markets with strong partnerships Offering life insurance, pensions, general insurance, and accident and health cover through different distribution channels Aegon has been active in Spain for over thirty years and has established a reputation as a preferred provider of protection products Distribution through strong partnerships with banks Banco Santander in Spain & Portugal Liberbank in Spain La Banque Postale in France for asset management Online distribution is increasingly important in order to connect with customers; in addition, a newly developed professional advisory channel helps to identify customers needs and offer them the best possible solutions In 2015, Aegon Spain partnered up with UNICEF to raise funds for infant mortality 28

29 Asia, a key long-term growth market for Aegon Aegon s regional office in Hong Kong oversees and supports operations throughout the region: Aegon Sony Life (50%; Japan) Aegon Life Insurance Company (49%; India) Aegon THTF (50%; China) Transamerica Life Bermuda Aegon Direct & Affinity Marketing Services Asia is among the world s fastest developing regions and presents significant growth opportunities for Aegon Approximately 1,100 employees In Asia, Aegon offers mainly life insurance products and variable annuities through multiple distribution channels Aegon businesses Joint ventures Aegon Direct Affinity Marketing Services Leading position in India with online insurance 29

30 Aegon Asset Management: a global investment manager United States The Netherlands United Kingdom Hungary France Spain Global investment manager USA, Netherlands, United Kingdom, France, Central & Eastern Europe, Spain and Asia China Global platform of solutions & strategies Including: fixed income, equities, real estate, multi asset and solutions Assets under management of EUR 342 billion at the end of the third quarter of 2015 Offices in: US New York Chicago San Francisco Cedar Rapids Baltimore St. Petersburg Europe London Edinburgh The Hague Groningen Budapest Madrid Asia Hong Kong Shanghai 200 dedicated investment professionals worldwide Active asset management for institutional, wholesale and retail clients 30

31 Aegon Asset Management at a glance Assets under management of EUR 342 billion By client By asset class By country 1% 25% 39% 3% 5% 2% 13% 4% 13% 36% 22% 36% 77% 24% 31 General account (EUR 133 billion) Institutional/wholesale/retail (EUR billion) Affiliate sales (EUR 85.6 billion) AuM at September 30, 2015 * Represents 49% of 26.8 bn ** Represents 25% of bn (LBPAM) Fixed income (EUR billion) Equity (EUR 44.1 billion) Real estate (EUR 4.7 billion) Mortgage loans (EUR 11.2 billion) Other (EUR 17.7 billion) USA (EUR billion) The Netherlands (EUR 81.8 billion) UK (EUR 75.5 billion) Asia (EUR 13.1billion*) France (EUR 44.3 billion**) CEE (EUR 1.7 billion) Spain (EUR 1.8 billion)

32 Variable Annuities Europe: helping people to take control of their retirement Increasing longevity and aging populations Financial market volatility Opportunity for Aegon to help people take responsibility for their financial future Need for longterm protection Need for accumulation products Reduced safety nets from government, employers and family Need for financial guarantees Variable annuities: income and capital guarantees 32

33 Upcoming events Appendix May Annual General Meeting of Shareholders The Hague May 20, 2015 June JP Morgan insurance conference London June 2, 2015 Goldman Sachs conference London June 15,

34 Aegon s Management Board Alex Wynaendts CEO Aegon N.V. Mark Mullin CEO Aegon Americas Darryl Button CFO Aegon N.V. Tom Grondin CRO Aegon N.V. Marco Keim CEO Aegon NL Adrian Grace CEO Aegon UK Gábor Kepecs 34 CEO Aegon CEE

35 Building on leading market positions United States of America # 4 Individual life # 7 Variable annuities # 8 Pensions 1) Brazil # 11 Life insurance The Netherlands # 1 Group pensions # 5 Individual life # 4 Accident & health # 4 Mortgages United Kingdom #2 Individual and work-based pensions business 2) #3 Protection and other business 3) Central & Eastern Europe # 1 Household in Hungary # 5 Life in Hungary # 4 Pensions Romania # 5 Pensions Slovakia # 7 Life in Ukraine # 10 Life in Turkey # 10 Life in Poland China # 13 of foreign-owned life insurers in China India # 1 Most recommended life insurance brand 4) Japan # 2 Variable annuities 35 Source: Aegon - Rankings are based on various external sources and Aegon s best estimates 1) DC, number of participants 2) + 3) ABI Rankings by Class based on Total UK Gross Premiums in ) By Moutshut.com

36 Aegon s product overview Main business lines Americas Netherlands United Kingdom New markets Life insurance & savings Pensions General insurance, including accident & health - Third party asset management 36 Please note: the number of ticks reflects the importance of the product group for Aegon in a particular market

37 Aegon s international structure Aegon N.V. Americas Netherlands United Kingdom New markets United States Life & protection Investments & Retirement Latin America Brazil (JV with Mongeral, 50%) Mexico (JV with Seguros Argos, 49%) Life & Savings Pensions Non-life insurance Distribution Life insurance Pensions Distribution Central & Eastern Europe Czech Republic Hungary Poland Romania Slovakia Turkey Ukraine Asia China (JV with Tsinghua Tongfang, 50%) India (JV with BCCL; 49%) Japan (JV with Sony Life, 50%; SA Re. 50%) Spain & Portugal Aegon Asset Management Partnership with La Banque Postale in France for asset management ADAMS (Aegon Direct and Affinity Marketing Services) TLB (Transamerica Life Bermuda; Singapore, Hong Kong) Variable Annuities Europe 37