Aegon N.V. — Earnings Release 2014

May 15, 2014

Aegon delivers strong earnings and sales growth in Q1 2014

o Solid business growth drives higher underlying earnings before tax

• Underlying earnings up 7% to EUR 498 million, driven by growth, higher equity markets and lower holding leverage cost, partly offset by unfavorable exchange rates
• Fair value items loss of EUR 116 million, mainly due to hedging programs without accounting match
• Net income up strongly to EUR 392 million
• Return on equity increases to 8.4%

o Strong sales growth driven by pensions, variable annuities and asset management

• Gross deposits up 35% to EUR 13.5 billion, driven by pensions and variable annuities in US and asset management; net deposits impacted by transfer of Polish pension assets and replacement of a large investment mandate
• Life sales down 8% to EUR 459 million; growth in US more than offset by lower UK sales post-RDR
• Increase of 17% to EUR 279 million in accident and health and general insurance sales
• Market consistent value of new business remains strong at EUR 223 million

o Active capital management lowers funding costs

• Redemption and refinancing of debt supports achieving leverage goals by year-end 2014
• Holding excess capital of EUR 1.7 billion following deleveraging; solvency ratio remains at 212%
• Operational free cash flows of EUR 331 million

Statement of Alex Wynaendts, CEO

"Aegon delivered again a strong set of results, maintaining the positive momentum of previous quarters. Pensions, variable annuities and asset management all drove strong sales as many new and current customers placed their trust in Aegon. This is the result of ongoing improvements to products, service levels and operations that the group is implementing to enhance customer engagement.

"We are executing on our objective to reduce outstanding debt, which further strengthens our balance sheet and reduces funding costs. At the same time, we continue to make the necessary investments to accelerate the use of digital technology to get closer to our customers and to further enhance efficiencies across our organization. Aegon's strong performance gives us every confidence in our business and its continued ability to gain and retain customers and achieve a leadership position in each of our chosen markets."

Key performance indicators
amounts in EUR millions b)	Notes	Q1 2014	Q4 2013	%	Q1 2013	%
Underlying earnings before tax	1	498	473	5	464	7
Net income		392	157	150	224	74
Sales	2	2,086	1,741	20	1,738	20
Market consistent value of new business	3	223	268	(17)	232	(4)
Return on equity	4	8.4%	7.7%	9	7.8%	8

Media relations Investor relations Robin Boon Willem van den Berg +31 (0) 70 344 8956 +31 (0) 70 344 8305 gcc@aegon.com ir@aegon.com

STRATEGIC HIGHLIGHTS

• o Retiready launched to address retirement needs of growing non-advised market in UK
• o Fitch rates Aegon UK AA- and S&P affirms rating and revises outlook to Stable
• o Capital management actions reduce interest expenses, improving financial flexibility

Aegon's ambition

Aegon continues to pursue its strategic aim to be a leader in all of its chosen markets, supported by four strategic objectives embedded in all Aegon businesses: Optimize portfolio; Deliver operational excellence; Enhance customer loyalty; and Empower employees. These provide the strategic framework for the company's ambition to become the most-recommended life insurance and pension provider by customers and business partners, as well as the most-preferred employer in the sector.

Optimize portfolio

In Spain, Aegon reached an agreement to exit its life and pensions partnership with Caja de Badajoz and sell its 50% interest in the joint venture to Caja3. The sale is expected to result in a book gain of approximately EUR 7 million. It is anticipated that the transaction will close during the third quarter of 2014. Aegon's share in underlying earnings before tax of the joint venture totaled EUR 3 million in 2013. The transaction with Caja3 is part of Aegon's restructuring of its business in Spain, a result of the ongoing consolidation within the banking sector. Aegon maintains a long-term commitment to Spain and has reinforced its market position last year with an exclusive strategic partnership with Banco Santander to distribute life and general insurance products through its extensive network of over 4,500 bank branches.

In the United Kingdom, Aegon launched Retiready, the final piece of the award-winning Aegon Retirement Choices platform. Retiready is a new digital service designed to empower customers without a financial advisor to prepare for their retirement and take control of their financial future. The service encourages customers to consider their retirement ambitions, shows how incremental pension contribution adjustments can make a significant difference and then provides a range of options, including a simple pension and individual savings account, to address retirement needs. Retiready rounds out Aegon's platform offering in the United Kingdom and highlights Aegon's commitment to addressing the retirement needs of this important market.

Deliver operational excellence

Aegon's focus on operational excellence is about finding the most efficient and most effective way to use the resources within the organization. Often this results in cost savings that can be invested back into the business to improve the customer experience and drive growth. Other times, the result is a new structure that improves cooperation and innovation.

Aegon is a major provider of residential mortgages loans in the Netherlands and, as part of its SAECURE program, recently executed a transaction that provides funding for approximately 8,000 mortgages. Strong investor demand for these securities, based in part, on Aegon's proven underwriting criteria and highly rated customer service, allowed Aegon to issue approximately EUR 1.4 billion of Dutch RMBS securities at the tightest pricing since the financial crisis.

Fitch Ratings has assigned a financial strength rating of AA- to Aegon UK. Fitch considers Aegon UK core to the Aegon group, citing the company's strong position in the UK corporate and individual pensions markets, and its material contribution to the group's results. Standard & Poor's has also recognized Aegon's UK businesses, recently changing the outlook on its A+ rating of Aegon UK from Negative to Stable. S&P specifically noted Aegon UK's strategic importance to the Aegon group and early signs of success in executing the business transformation program.

Enhance customer loyalty

Aegon believes that creating a customer-centric culture will enable it to grow further by responding to changing markets and customer behaviors. A key element of Aegon's strategy is to get closer to its customers by increasing innovation at all levels of the organization.

In the United States, a new tool called Your Financial Life was added to Transamerica.com to help those that are at or near retirement plan for the future, learn about their options and connect with others. Aegon believes that there is no such thing as a "typical" retirement and recognizes that the process of retiring can be confusing, and at times, a bit overwhelming. Your Financial Life on Transamerica.com improves the customer experience by providing a one-stop retirement resource.

In the Netherlands, Aegon recently launched Mijn Aegon, an online portal that allows customers to easily access all of their Aegon products in one overview. Using Mijn Aegon, customers can quickly view the status of their pension, their mortgage and the coverage provided under their personal and home insurance policies. Over 350,000 customers have already registered to use Mijn Aegon.

Empower employees

Aegon continues to implement processes and programs to help employees better understand how they contribute to the company's strategy and to recognize individual and team efforts that directly support Aegon's four strategic objectives.

In the United States, Transamerica has introduced a program to recognize the contributions made by employees in moving Aegon forward in each of its four strategic objectives. Employees can nominate other employees or teams that have demonstrated above-and-beyond effort on a specific project or a high degree of consistency in delivering value services in connection with Aegon's four strategic objectives.

The results from Aegon's third annual global employee survey show that initiatives like these are making employees feel more engaged with Aegon's strategy and more empowered to contribute to Aegon's success. Survey results continued to improve and Aegon is now consistently tracking above the financial services sector average for employee engagement and at the high performance norm for enablement.

Capital management actions improve financial flexibility

Aegon completed the redemption of USD 550 million perpetual capital securities in March, reducing outstanding debt and interest expenses. In April, Aegon issued EUR 700 million of subordinated debt, which is expected to be Tier 2 compliant under Solvency II. The 30-year securities are callable after ten years and pay a fixed coupon of 4%. The company subsequently called for the redemption of USD 1,050 million 7.25% perpetual capital securities, effective June 15, 2014. The redemption and refinancing of debt will help the company achieve its goal of a leverage ratio of 26% to 30% and a fixed charge cover of 6 to 8 times by year-end 2014.

Agreement reached over Dutch harbor workers' pension capital

On April 14, 2014, Aegon announced that it had reached an agreement with the foundation representing Dutch harbor workers and employers (BPVH) on removing restrictions on the capital of the harbor workers' former pension fund Optas. The agreement ends a dispute that began when the Optas pension fund was transformed into an insurance company, that was subsequently acquired by Aegon in 2007. Aegon and BPVH will file a request with the Dutch court to remove the current restriction on Optas' capital. Subject to required court approval, Aegon will make a payment of EUR 80 million to the foundation, offer more favorable pension conditions to the harbor workers and will contribute up to EUR 20 million over the coming years to help mitigate the effect of an announced reduction in the tax-free pension allowance in the Netherlands.