Q3 2014 Results | AEX:AGN | NYSE:AEG

Outcome of annual assumptions review impacts underlying earnings
•Underlying earnings amount to EUR 291 million, impacted mainly by actuarial assumption changes
•Fair value items loss of EUR 296 million, due mostly to hedging programs and model updatesk
•Net income amounts to EUR 52 million
•Return on equity of 5.0%, or 8.5% excluding assumption changes and model updates

Double-digit sales growth demonstrates strength of franchise
•Gross deposits up 38% to EUR 15.2 billion, driven by asset management and variable annuities; net deposits up 20% to EUR 3.5 billion
•Life sales increase 34% to EUR 552 million, as a result of strong production across markets
•Accident & health and general insurance sales 40% higher to EUR 257 million, driven by US
•Profitability of sales remains strong despite lower market consistent value of new business at EUR 192 million; decline driven by lower interest rates and changes in product mix
•Total revenue-generating investments increase to EUR 538 billion

One-time items impact capital position and cash flows
•Holding excess capital of EUR 1.5 billion following payment of interim dividend
•Solvency ratio declines to 202%, mainly due to change in valuation methodology for Dutch mortgages
•Operational free cash flows excluding market impacts and one-time items of EUR 275 million

"Our earnings this quarter were significantly impacted by changes to our assumptions and updates to our actuarial models. Over the past year, as part of an ongoing commitment to deliver operational excellence, we have intensified efforts to review and enhance our models where necessary.

"At the same time, we are pleased to report another quarter of strong profitable sales growth across our businesses. The trust that new and existing customers place in Aegon is reflected in strong inflows in our asset management, variable annuity, mutual fund and retirement businesses, together with securing the largest ever buy-out contract in the Dutch pension market.

"Our continued commitment to optimizing our portfolio is demonstrated by the sale of our Canadian operations. While uncertainties due to the current regulatory environment persist, we remain focused on executing our strategy and achieving our long-term ambitions."

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