AEGON Maintains Strong Capital Position Despite Fourth Quarter 2008 Loss

THE HAGUE, The Netherlands - Fourth Quarter Results in Line With Pre-announcement of February 17,
2009

- AEGON Maintains Strong Capital Position:

- Excess Capital Over AA Capital Adequacy Requirements of EUR 2.9
Billion;

- IGDa) Capital Surplus of EUR 5.6 Billion, Equivalent to a Solvency
Ratio of 183%;

- NAIC RBCb) Ratio of 350% for the US Life Insurance Operations;

- Core Capitalc) of EUR 16.2 Billion Excluding Revaluation Reserve at the
end of 2008 (EUR 9.1 Billion Including Revaluation Reserve);

- Decline in Revaluation Reserve of EUR 1.7 Billion in Q4, Driven by
Widening in Credit Spreads

- Underlying Loss Before tax of EUR 181 Million, due Mainly to Reserve
Strengthening and Accelerated Amortization of Deferred Acquisition Costs in
the US, and Lower Fees in General

- Net Loss in Q4 of EUR 1.2 Billion, Including an Extraordinary tax
Charge of EUR 300 Million

- New Life Sales in Q4 2008 of EUR 598 Million; Total Gross Deposits of
EUR 11.9 Billion; net Deposits of EUR 1.7 Billion

- Value of new Business in Q4 of EUR 233 Million, With an Internal Rate
of Return of 16.5%

Statement Alex Wynaendts, CEO

“The severe disruption in world financial markets significantly impacted
AEGON’s earnings during the fourth quarter of 2008. This challenging
environment which has persisted in the early part of 2009 confirms that our
strategic priorities of releasing capital and reducing costs, as well as
putting in place contingencies to withstand further market deterioration are
the right ones. In the fourth quarter, we released EUR 1 billion of capital
and expect to release a further EUR 1.5 billion in 2009. Our businesses in
the United States, the Netherlands and the United Kingdom are also on track
to deliver on our target of EUR 150 million in cost reductions in 2009. We
are pleased by the continued confidence of our customers as evidenced by
resilient sales and a strong increase in deposits. We believe that the solid
fundamentals of our business, combined with AEGON’s financial position and
the actions we are taking justify their continued confidence.”

KEY PERFORMANCE INDICATORS

amounts in EUR millions (except per Notes Q4 2008 Q4 2007 % At
share data) constant
currency
%

Underlying earnings before tax 1 (181) 667 N.M. N.M.

Net income 2 (1,182) 648 N.M. N.M.

New life sales 3 598 800 (25) (19)

Total deposits 4 11,933 9,594 24 17

Value of new business (VNB) 233 226 3 4

Return on equity 5 (8.7%) 12.5% N.M.

(continued)

amounts in EUR millions (except per FY 2008 FY 2007 % At
share data) constant
currency
%

Underlying earnings before tax 1,573 2,639 (40) (37)

Net income (1,082) 2,551 N.M. N.M.

New life sales 2,631 3,274 (20) (11)

Total deposits 40,751 44,528 (8) (3)

Value of new business (VNB) 837 927 (10) (2)

Return on equity 6.6% 12.5% (47)

a) The calculation of the IGD (Insurance Group Directive) capital surplus
and ratio have been changed from the disclosure in the previous quarter to
better reflect regulatory solvency requirements of local regulators and are
based on Solvency I capital requirements on IFRS for entities within the EU,
and local regulatory solvency measurements for non-EU entities. Specifically,
required capital for the life insurance companies in the US is calculated as
two times the upper end of the Company Action Level range (200%) as applied
by the National Association of Insurance Commissioners in the US b) National
Association of Insurance Commissioners Risk Based Capital c) Core capital is
the sum of shareholders’ equity and the EUR 3 billion in convertible core
capital securities from Vereniging AEGON, funded by the Dutch State

In June 2008, AEGON set out three strategic priorities:

1. To reallocate capital toward businesses with higher growth and return
prospects;

2. To improve growth and returns from existing businesses;

3. Manage AEGON as an international company.

Subsequently, at the Analyst & Investor Day on November 24, AEGON
identified and announced three priorities to counter the challenges of the
current global financial crisis and position the company for growth:

- Focus on capital preservation and accelerate the capital release
program, with a EUR 600-800 million target for Q4 2008;

- EUR 150 million cost reduction program for 2009;

- Develop contingency plans for continued deterioration in financial
markets.

As announced last June, AEGON is conducting an ongoing review of its
portfolio of businesses to ensure that they meet the criteria outlined in the
strategy. On February 17, 2009, AEGON announced that due to the market
dislocation it will downsize its institutional business (AEGON Institutional
Market Division, IMD) in the Americas, which will result in lower credit risk
in the long run and a release of capital in the near term.

AEGON and the global financial crisis

In the fourth quarter of 2008, the financial crisis accelerated and a
severe global economic downturn began to unfold. Liquidity in financial
markets was severely affected. Equity markets were down by more than 20%,
while equity market volatility rose to a historical high. Meanwhile, as
government bond yields reached historic lows, credit spreads more than
doubled across many market segments in Q4.

The downturn in financial markets has significantly impacted AEGON’s
results. Moreover, the continued deterioration in the US housing market
increased risks in mortgage backed securities, leading to impairments. Also,
corporate bonds, in particular high yield, experienced higher defaults.

In order to provide a fuller view of the possible impacts of the
financial crisis on AEGON, management disclosed updated earnings and capital
sensitivities to a possible further downturn of financial markets. In
particular, this additional information pertained to equity market exposure,
impairments and interest rate movements.

Given market developments and the ongoing uncertainty regarding the
financial and economic environment, AEGON felt it was prudent to reinforce
its capital buffer to a level substantially in excess of its AA capital
adequacy requirements. On October 28, AEGON announced that it had secured EUR
3 billion of additional core capital from Vereniging AEGON funded by the
Dutch State.

Capital preservation

As the financial crisis unfolded, acceleration of capital preservation
actions has been a priority. The actions taken and plans to be executed are
evidence of the financial flexibility within AEGON to manage through these
extraordinary times. They include:

- Releasing EUR 1.7 billion of capital in the second half year of 2008,
including EUR 1 billion in the fourth quarter, by actively reducing risks -
including investment risks, optimizing asset and liability management,
reinsurance transactions and securitization;

- Releasing an additional EUR 1.5 billion of capital in 2009 by lowering
investment risk, and transferring risk through reinsurance.

- Reducing spread-based balances within AEGON’s institutional business in
the United States by EUR 14 billion, freeing up EUR 0.6 billion of capital in
the next two years (EUR 0.3 billion in 2009, which is included in total
expected capital releases for 2009 of EUR 1.5 billion).

The capital preservation actions in Q4 2008 of EUR 1 billion are expected
to have a negative effect on earnings of EUR 60 million on an annual basis.
As these actions are largely derisking measures, they can be reversed at any
time.

As a result of actions taken, the capital position of
the company remains strong with excess capital
of EUR 2.9 billion over AA capital adequacy requirements at year-end, a
significant buffer against further market deterioration.

Cost measures

AEGON announced cost reduction measures totaling EUR 150 million in 2009.
Actions to achieve this include:

- Americas: no wage increases in 2009, staff reductions, deferred hiring,
reorganization of the agency distribution, downsizing IMD;

- The Netherlands: reduction of contract services, process reengineering,
general cost savings;

- United Kingdom: restructuring of IT and marketing and customer
services, cost containment, savings in distribution.

Capital management and capital position

AEGON capitalizes its businesses at the higher of:

- Regulatory requirements;

- AA capital adequacy requirements;

- Any self-imposed additional economic requirements under AEGON’s
economic framework.

AEGON has EUR 2.9 billion excess capital over AA capital adequacy
requirements and has an IGD capital surplus of EUR 5.6 billion, equivalent to
an IGD solvency ratio of 183% (2007: 190%). Regulatory requirements are set
by local regulators, while the IGD ratio is a European regulatory solvency
calculation. The methodology to calculate the IGD ratio has changed from the
disclosure over the third quarter results to better reflect regulatory
solvency requirements of the respective local regulators. The previously
disclosed IGD ratio included the calculation of the ratio for the businesses
outside of the EU based on EU Solvency I capital requirements. The IGD ratio
now takes into account Solvency I capital requirements on IFRS for entities
within the EU, and local regulatory solvency measurements for non-EU
entities. Specifically, required capital for the life insurance companies in
the United States is calculated as two times the upper end of the Company
Action Level range (200%) as applied by the National Association of Insurance
Commissioners in the United States. AEGON does not manage its capital base to
the IGD ratio. AEGON USA had a NAIC RBC ratio of 350%, compared with 336% at
the end of 2007.

Core capital at year-end came in at EUR 9.1 billion, consisting of EUR
6.1 billion of shareholders’ equity and EUR 3 billion of convertible core
capital securities provided by Vereniging AEGON, funded by the Dutch State.
Core capital includes a negative revaluation account on available-for-sale
assets of EUR 7.2 billion. Excluding the revaluation account, core capital
amounted to EUR 16.2 billion, 78% of the total capital base, above the
minimum target of 70%.

AEGON’s negative revaluation account increased during the fourth quarter
by EUR 1.7 billion, the result of unprecedented credit spread widening, more
than offsetting the effect of declines in government bond yields.

AEGON has not reclassified assets held as available-for-sale (AFS) to
loans or held-to-maturity assets.

Also, AEGON transferred a very limited amount of assets valued based on
market prices to mark-to-model valuations, driven by current market
developments. The mark-to-model is now 1.1% (EUR 1.1 billion) of the total
valuation of debt instruments held at fair value (2007: 0.4%). For more
details we refer to the explanatory notes on page 36.

The lower valuation of the AFS bond portfolio will only affect earnings
before tax if AEGON:

- Is forced to sell those investments at a loss; or

- Impairs certain investments because the company does not expect to
receive (part of) interest and/or principal.

AEGON’s long-term business model, and its liquidity and asset and
liability management, ensure that it is unlikely that AEGON will be forced to
sell assets at distressed prices, as reflected in the revaluation account, to
generate cash. Therefore, AEGON’s negative revaluation reserve is not a good
indication of future losses. AEGON expects impairments will be at elevated
levels in 2009, due to the economic situation.

FINANCIAL OVERVIEW

EUR millions Notes Q4 2008 Q4 2007 % At
constant
currency
%

Underlying earnings before tax by
line of business
Life and protection 121 357 (66) (71)
Individual savings and
retirement products (433) 90 N.M. N.M.
Pensions and asset
management 179 137 31 28
Institutional products 100 96 4 (6)
Life reinsurance (114) 18 N.M. N.M.
Distribution (19) (21) 10 14
General insurance (3) 13 N.M. N.M.
Interest charges and other (17) (34) 50 54
Share in net results of
associates 5 11 (55) (73)
Underlying earnings before
tax (181) 667 N.M. (140)
Over/(under) performance of fair
value items (770) (145) N.M.
Operating earnings before (951) 522 N.M. N.M.
tax

Operating earnings before tax by
line of business
Life and protection 104 346 (70) (75)
Individual savings and
retirement products (902) 79 N.M. N.M.
Pensions and asset
management 224 13 N.M. N.M.
Institutional products (54) 93 N.M. N.M.
Life reinsurance (319) 22 N.M. N.M.
Distribution (19) (21) 10 14
General insurance (3) 13 N.M. N.M.
Interest charges and other 13 (34) N.M. N.M.
Share in net results of
associates 5 11 (55) (73)
Operating earnings before (951) 522 N.M. N.M.
tax

Gains/(losses) on
investments 136 281 (52) (52)
Impairment charges (501) (17) N.M. N.M.
Other income/(charges) 38 (24) N.M. N.M.
Income before tax (1,278) 762 N.M. N.M.
Income tax 96 (114) N.M. N.M.
Net income (1,182) 648 N.M. N.M.

Net underlying earnings (69) 516 N.M. N.M.
Net operating earnings (623) 399 N.M. N.M.

Underlying earnings
geographically
Americas (234) 503 N.M. N.M.
The Netherlands 75 109 (31) (31)
United Kingdom 13 67 (81) (104)
Other countries (17) 22 N.M. N.M.
Holding and other (18) (34) 47 54
Underlying earnings before (181) 667 N.M. N.M.
tax
Operating earnings
geographically
Americas (1,167) 506 N.M. N.M.
The Netherlands 227 (39) N.M. N.M.
United Kingdom (6) 67 N.M. N.M.
Other countries (17) 22 N.M. N.M.
Holding and other 12 (34) N.M. N.M.
Operating earnings before (951) 522 N.M. N.M.
tax

Commissions and expenses 1,863 1,438 30 28
of which operating expenses 928 867 7 6

(continued)

EUR millions FY 2008 FY 2007 % At constant
currency %

Underlying earnings before tax by line of
business
Life and protection 911 1,295 (30) (25)
Individual savings and
retirement products (146) 496 N.M. N.M.
Pensions and asset
management 508 498 2 6
Institutional products 405 332 22 31
Life reinsurance (63) 114 N.M. N.M.
Distribution 1 6 (83) (83)
General insurance 45 47 (4) (2)
Interest charges and other (112) (185) 39 36
Share in net results of)
associates 24 36 (33) (33)
Underlying earnings before
tax 1,573 2,639 (40) (37)
Over/(under) performance of
fair value items (1,619) (272) N.M.
Operating earnings before (46) 2,367 N.M. N.M.
tax

Operating earnings before tax by line of
business
Life and protection 795 1,284 (38) (34)
Individual savings and
retirement products (922) 524 N.M. N.M.
Pensions and asset
management 251 181 39 47
Institutional products 8 339 (98) (98)
Life reinsurance (361) 135 N.M. N.M.
Distribution 1 6 (83) (83)
General insurance 45 47 (4) (2)
Interest charges and other 113 (185) N.M. N.M.
Share in net results of
associates 24 36 (33) (33)
Operating earnings before (46) 2,367 N.M. N.M.
tax

Gains/(losses) on
investments 35 746 (95) (97)
Impairment charges (1,038) (76) N.M. N.M.
Other income/(charges) (12) 40 N.M. N.M.
Income before tax (1,061) 3,077 N.M. N.M.
Income tax (21) (526) 96 97
Net income (1,082) 2,551 N.M. N.M.

Net underlying earnings 1,234 2,033 (39) (36)
Net operating earnings 69 1,805 (96) (96)

Underlying earnings
geographically
Americas 1,073 1,993 (46) (42)
The Netherlands 378 418 (10) (10)
United Kingdom 141 271 (48) (47)
Other countries 93 142 (35) (34)
Holding and other (112) (185) 39 37
Underlying earnings before 1,573 2,639 (40) (37)
tax
Operating earnings
geographically
Americas (587) 2,102 N.M. N.M.
The Netherlands 213 37 N.M. N.M.
United Kingdom 122 271 (55) (47)
Other countries 93 142 (35) (34)
Holding and other 113 (185) N.M. N.M.
Operating earnings before (46) 2,367 N.M. N.M.
tax

Commissions and expenses 6,109 5,939 3 9
of which operating expenses 3,272 3,237 1 7

Overview

AEGON reported a net loss for Q4 of EUR 1.2 billion. Results are in line
with preliminary results announced on February 17, 2009 and were
significantly impacted by financial markets.

Underlying earnings were down mainly due to declining financial markets,
resulting in reserve strengthening and accelerated amortization of deferred
policy acquisition costs (DPAC) in the variable annuities line of business in
the Americas and reduced fees on asset balances in general.

Net income was also down due to increased impairment charges and the
impact of financial markets on so-called fair value items, which include
certain investment classes in the Netherlands and the Americas, as well as a
number of products containing financial guarantees. Lower equity and credit
markets, as well as increased implied volatilities and lower interest rates
severely impacted the fair value of guarantees in these products. In
addition, alternative investment classes, like hedge funds and private
equity, significantly underperformed long-term expected returns.

Impairments came primarily from housing related structured assets,
corporate high-yield bonds and equity investments. The impairments on
corporate credit were driven by a number of small impairments.

Net income also includes an extraordinary tax charge of EUR 300 million,
related to intercompany reinsurance treaties between Ireland and the United
States, offsetting the tax benefit from the reported operational losses.
These reinsurance treaties are accounted for at fair value in both tax
jurisdictions, while gains in the United States are taxed at 35% and losses
in Ireland are tax deductible at 12.5%.

Underlying earnings before tax

In Q4 the underlying loss for the company amounted to EUR 181 million.

Underlying earnings in the Americas came in at a negative USD 412
million. The impact on earnings from lower equity markets of USD 839 million
mainly affected:

a) The variable annuity business (USD 587 million) due to minimum
guarantee reserves strengthening and accelerated amortization of DPAC and
lower fees;

b) The life reinsurance business as result of reserve strengthening of
variable annuity blocks of business (USD 150 million); and

c) The life business (USD 65 million).

Underlying earnings in the Americas in Q4 also included USD 230 million
of one-off charges, the most significant being an increase in the long-term
assumption for equity market volatility (USD 145 million). Earnings also
include a charge of USD 40 million related to intangible assets from the
acquisition of Merrill Lynch’s life insurance businesses, and a USD 45
million asset write-off in life reinsurance. In Q4 2007, underlying earnings
in the Americas included a positive USD 52 million from updated mortality
assumptions in the life business.

In the Netherlands, underlying earnings were down 31% to EUR 75 million.
The positive impact of an exceptional dividend received and better technical
results in the pension business in the Netherlands was more than offset by
decreases in investment income as well as charges in other lines of business.
These charges include adverse technical results in the non-life business,
system and project related one-off expenses and restructuring charges.

Underlying earnings in the United Kingdom, meanwhile, were GBP 13
million, a decline of GBP 34 million due primarily to the impact of lower
equity and credit markets on fee charges in the pension business. Other lines
of business in the United Kingdom performed well.

The decline in underlying earnings from Other countries to a loss of EUR
17 million was the result mainly of accelerated amortization of deferred
acquisition costs in Taiwan (EUR 43 million), as underlying earnings in
Central & Eastern Europe increased 87% to EUR 28 million and in Spain 11%
to EUR 10 million.

Net income

Net income includes results on so-called fair value items, which include
certain investment classes in the Netherlands and the Americas, as well as a
number of products containing financial guarantees. The total
underperformance of these fair value items amounted to EUR 770 million. The
valuation of the fair value of liability guarantees reflects decreased
interest rates, declining equity markets and sharply increased equity
volatilities, as well as discount rates including a credit spread, a
reflection of extremely dislocated and very illiquid markets.

Underperformance of fair value items

In Q4 2008, underperformance of alternative investment classes, such as
hedge funds, private equity and credit derivatives, in the Americas and the
Netherlands amounted to EUR 500 million.

Fair value items include the under/overperformance on assets held at fair
value through profit and loss and backing liabilities of a specific portfolio
of group pension contracts in the Netherlands. In Q4 these assets
underperformed long term expected returns by EUR 149 million.

In order to maintain consistency in definitions, starting in Q4 2008, the
net impact of the fair value movements of guarantees and the related hedges
in the Netherlands has been included in fair value items. Previously,
differences in fair value between guarantees and related hedges, referenced
as hedge ineffectiveness, were reported in gains/losses on investments.
Results for prior years have been adjusted (see Financial supplement Q4
2008).

Lower bond and equity markets, as well as higher volatilities and lower
interest rates negatively impacted the performance of certain products with
guarantees reported at fair value. Those negative impacts were partly offset
by a credit spread in the discount rates, a reflection of extremely
dislocated and very illiquid markets. Products with guarantees at fair value
contributed a total negative EUR 139 million to earnings. This includes
mainly:

- Net fair value losses on GMWB guarantees and related hedges in the
Americas and the United Kingdom (EUR 280 million), segregated funds in Canada
(EUR 201 million) and total return annuities (EUR 82 million);

- Partially offset by EUR 425 million positive impact from hedge
ineffectiveness in the Netherlands,.

Effectiveness of hedging was affected by extreme volatility in Q4, while
higher implied volatilities impacted the valuation of guarantees.

Gains on investments

Gains on investments of EUR 136 million include primarily gains on
derivatives considered as economic hedges at holding level and the
Netherlands as well as realized gains on the sale of bonds, offset by lower
real estate values in the Netherlands.

Impairment charges

Impairments of EUR 501 million included EUR 360 million on
bonds/mortgages, primarily structured assets (subprime bonds EUR 100 million)
and a number of corporate bonds in the Americas (EUR 158 million), as well as
equity impairments (EUR 141 million). The impairments in corporate credit
were driven by a number of small impairments. Equity investments are impaired
when market values are 20% below cost price or when they are in an unrealized
loss position for more than six months.

Tax

The tax benefit from the underlying loss, impairments and mark-to-market
losses on the fair value items is more than offset by significant additional
taxes related to cross border intercompany reinsurance transactions (EUR 300
million). These reinsurance treaties are accounted for at fair value in both
tax jurisdictions, while gains in the United States are taxed at 35% and
losses in Ireland are tax deductible at 12.5%. The driver of the tax losses
in Ireland is credit spread widening. These tax losses are largely expected
to reverse as the book matures and when credit spreads narrow.

Commissions and expenses

Commissions and expenses increased by 30% to EUR 1,863 million, primarily
due to acceleration of DPAC amortization. Operating expenses increased by 7%
to EUR 928 million, including several one-off items such as restructuring
charges, redundancy charges and provisions.

Sales

Total new life sales for the company were in line with Q3 2008, and
decreased by 19% (at constant currency) to EUR 598 million compared to Q4
2007. With the exception of the UK and Spain, all countries recorded lower
sales in Q4 compared to Q4 2007.

New life sales in the Americas were down 43% in local currency,
particularly due to lower bank-owned and corporate owned life insurance
(BOLI/COLI) sales (down 83%). Economic conditions also affected the high net
worth market as well as variable universal life sales in the middle market.

In Q4 2008 new life sales in the Netherlands decreased by 44% in local
currency, primarily due to a 57% decline in pension sales, as Q4 2007
included several large contracts, while retail life sales held up reasonably
well. New life sales in the United Kingdom increased by 5%, mainly driven by
growth in the corporate pension market and individual annuities, offset by
lower individual pension sales.

New life sales in Q4 declined 34% to EUR 58 million in Other countries.
In Central & Eastern Europe, sales of recurring premium life insurance rose
13%.

Single premium sales in Poland were sharply lower because of a decline in
equity markets, driving down total new life sales in Central & Eastern Europe
by 27%.

In Spain, sales of life insurance rose to EUR 23 million, due primarily
to extraordinary activity, following changes in pension legislation. Sales
through CAM, AEGON’s largest bank partner in Spain, tripled to EUR 77 million
(on a 100% basis), as a result of a successful strategy to increase the
insurance penetration ratio among their existing client base. In Asia, new
life sales decreased to EUR 13 million as increased sales in China were more
than offset by a decline in Taiwan.

SALES

EUR millions Notes Q4 2008 Q4 2007 % At
constant
currency
%

New life sales
Life single premiums 2,327 3,447 (32) (23)
Life recurring premiums
annualized 366 456 (20) (16)
Total recurring plus 1/10
single 598 800 (25) (19)

New premium production accident and
health insurance 161 178 (10) (18)
New premium production
general insurance 17 21 (19) (14)

Gross deposits (on and off balance)
by line of business
Fixed annuities 1,676 433 N.M. N.M.
Variable annuities 590 640 (8) (18)
Saving deposits 590 704 (16) (16)
Retail mutual funds 501 598 (16) (33)
Pensions and asset
management 2,613 3,338 (22) (28)
Institutional guaranteed
products 5,963 3,881 54 46
Life reinsurance 0 0 0 0
Total gross deposits 11,933 9,594 24 17

Net deposits (on and off balance)
by line of business
Fixed annuities 593 (759) N.M. N.M.
Variable annuities (114) (157) 27 27
Saving deposits (535) 94 N.M. N.M.
Retail mutual funds (182) 266 N.M. N.M.
Pensions and asset
management 257 1,081 (76) (86)
Institutional guaranteed
products 1,679 (325) N.M. N.M.
Life reinsurance (19) (82) 77 79
Total net deposits 1,679 118 N.M. N.M.

(continued)

EUR millions FY 2008 FY 2007 % At constant
currency %

New life sales
Life single premiums 10,532 14,414 (27) (17)
Life recurring premiums
annualized 1,578 1,833 (14) (5)
Total recurring plus 1/10
single 2,631 3,274 (20) (11)

New premium production
accident and health
insurance 614 680 (10) (4)
New premium production
general insurance 68 58 17 17

Gross deposits (on and off balance) by line
of business
Fixed annuities 4,057 1,145 N.M. N.M.
Variable annuities 2,636 2,743 (4) 3
Saving deposits 2,473 2,648 (7) (7)
Retail mutual funds 2,698 2,248 20 26
Pensions and asset
management 10,505 12,284 (14) (9)
Institutional guaranteed
products 18,380 23,458 (22) (16)
Life reinsurance 2 2 0 50
Total gross deposits 40,751 44,528 (8) (3)

Net deposits (on and off balance) by line of
business
Fixed annuities 71 (4,388) N.M. N.M.
Variable annuities (441) (596) 26 20
Saving deposits (699) 231 N.M. N.M.
Retail mutual funds 590 797 (26) (22)
Pensions and asset
management 1,769 2,527 (30) (28)
Institutional guaranteed
products 2,185 3,981 (45) (41)
Life reinsurance (61) (82) 26 21
Total net deposits 3,414 2,470 38 47

REVENUE GENERATING INVESTMENTS

At Dec. At Sep.
31 30
2008 2008 %
Revenue generating 6 331,844 350,756 (5)
investments (total)
Investments general 130,481 131,738 (1)
account
Investments for account of 105,400 121,346 (13)
policyholders
Off balance sheet investments third 95,963 97,672 (2)
parties

Deposits

Total gross on and off balance deposits for the company increased by 24%
to EUR 11.9 billion in Q4. The increase is mainly a result of the continued
growth in fixed annuity deposits and strong demand for synthetic guaranteed
investment contracts (GICs) in the Americas during Q4 2008. In the pension
business in the Americas, sales of retirement plans held up well. Variable
annuity sales as well as asset management and mutual fund sales declined due
to the volatility in the equity markets in Q4 2008. Sales of on balance
guaranteed investment contracts in Q4 2008 increased by 46% in local
currency. AEGON sees limited opportunities to grow spread-based business
profitably in the foreseeable future and announced on February 17, 2009, its
decision to downsize the portfolio of institutional spread-based products.

Gross deposits in Central & Eastern Europe increased 18%. Higher pension
deposits in all country units, reflecting growth of the business as well as
the incorporation of new acquisitions, were partly offset by lower production
of mutual funds and third party asset management products in Hungary due to
the decline of equity markets.

Deposits in Asia increased by EUR 148 million
due to the newly acquired asset management business in China.

Net deposits for the company amounted to EUR 1.7 billion as a result of
strong fixed annuity and synthetic guaranteed investment contracts deposits,
partly offset by net outflows of savings deposits in the Netherlands. In
Central & Eastern Europe, the pension business continued to report strong
net inflows.

FINANCIAL OVERVIEW, Q4 GEOGRAPHICALLY

United
Americas Kingdom
USD GBP
Underlying earnings before tax by line of business
227 18 Life and protection
(623) 0 Individual savings and retirement products
23 (23) Pensions and asset management
131 0 Institutional products
(170) 0 Life reinsurance
0 3 Distribution
0 0 General insurance
Interest charges and other
0 0 Share in net results of associates
(412) (2) Underlying earnings before tax
(1,330) (15) Over/(under) performance of fair value items
(1,742) (17) Operating earnings before tax

Operating earnings before tax by line of business
113 18 Life and protection
(1,295) 0 Individual savings and retirement products
(11) (23) Pensions and asset management
(84) 0 Institutional products
(465) 0 Life reinsurance
0 3 Distribution
0 0 General insurance
Interest charges and other
0 0 Share in net results of associates
(1,742) (2) Operating earnings before tax

(10) (16) Gains/(losses) on investments
(499) 2 Impairment charges
(1) 28 Other income/(charges)
(2,252) 12 Income before tax
393 (20) Income tax
(1,859) (8) Net income

(279) 17 Net underlying earnings
(1,136) 2 Net operating earnings

(continued)
amounts
in
million
EUR
(unless
otherwise
stated)
Holding,
other
The United Other activities & Total
Americas Netherlands Kingdom countries eliminations EUR
Underlying earnings
before tax by
line of business
Life and
protection 176 (37) 22 (40) 0 121
Individual
savings and
retirement
products (416) (20) 0 3 0 (433)
Pensions and
asset management 20 169 (12) 2 0 179
Institutional
products 100 0 0 0 0 100
Life reinsurance (114) 0 0 0 0 (114)
Distribution 0 (22) 3 0 0 (19)
General
insurance 0 (15) 0 12 0 (3)
Interest charges (17) (17)
and other
Share in net
results of
associates 0 0 0 6 (1) 5
Underlying
earnings before
tax (234) 75 13 (17) (18) (181)
Over/(under)
performance of
fair value items (933) 152 (19) 0 30 (770)
Operating
earnings before
tax (1,167) 227 (6) (17) 12 (951)

Operating earnings
before tax by
line of business
Life and
protection 96 26 22 (40) 0 104
Individual
savings and
retirement
products (885) (20) 0 3 0 (902)
Pensions and
asset management (5) 258 (31) 2 0 224
Institutional
products (54) 0 0 0 0 (54)
Life reinsurance (319) 0 0 0 0 (319)
Distribution 0 (22) 3 0 0 (19)
General
insurance 0 (15) 0 12 0 (3)
Interest charges
and other 13 13
Share in net
results of
associates 0 0 0 6 (1) 5
Operating
earnings before
tax (1,167) 227 (6) (17) 12 (951)

Gains/(losses)
on investments (10) 84 (20) (10) 92 136
Impairment
charges (355) (68) 5 (49) (34) (501)
Other
income/(charges) (1) 0 36 1 2 38
Income before
tax (1,533) 243 15 (75) 72 (1,278)
Income tax 261 (119) (26) 9 (29) 96
Net income (1,272) 124 (11) (66) 43 (1,182)

Net underlying
earnings (155) 80 19 (10) (3) (69)
Net operating
earnings (759) 129 0 (10) 17 (623)

- Underlying loss of USD 412 million, including USD 839 million impact
from steep decline in equity markets and USD 145 million impact from higher
volatility assumptions

- Continued momentum in fixed annuity deposits, driving 11% increase in
total value of new business; strong retirement plan sales; ttotal net
deposits USD 3.0 billion

- Impact of USD 1.3 billion on earnings from fair value items, due to
lower interest rates, lower equity markets, increased equity market
volatility and underperformance of alternative assets

- Impairments of USD 499 million; USD 184 million on structured assets;
USD 232 million on corporate credit

Overview

Financial markets accelerated their negative trend in the fourth quarter
and the economy showed signs of considerable contraction. Equity markets
showed a steep decline, volatilities spiked, credit risk increased and credit
spreads widened to an extent not seen before, while at the same time,
government bond yields came down to historic lows.

Results in Q4 2008 in the Americas were significantly impacted by the
financial markets turmoil. Underlying earnings were down primarily due to the
impact of a more than 20% decline in equity markets on reserve strengthening,
accelerated amortization of deferred acquisition costs and lower fees. Also,
long-term assumptions for equity market volatility were increased, resulting
in a negative impact of USD 145 million primarily in the variable annuity
line of business. In Q4 2007, underlying results in the life business
included a favorable USD 52 million contribution to earnings from the update
of mortality assumptions.

Fair value items showed a considerable underperformance of USD 1.3
billion, driven by alternative investment returns, the impact from an
increase in implied volatility and lower interest rates on fair valuation of
guarantees, hedge ineffectiveness and wider credit spreads.

Results in the Americas also included USD 499 million of impairments,
including USD 184 million of structured asset impairments, primarily
securities backed by subprime mortgages. Impairments of corporate bonds were
concentrated in the high yield portfolio and were driven by a number of small
impairments.

Sales of individual savings and retirement products rose sharply, driven
by continued demand for fixed annuities. New life sales were down in all
lines of business, however, particularly in BOLI/COLI (
bank-owned/corporate-owned life insurance). Value of new business was up 11%,
primarily due to higher fixed annuity sales.

Underlying earnings before tax

AEGON reported an underlying loss before tax in the Americas for Q4 2008
of USD 412 million:

- Earnings from Life & Protection declined 39% compared to Q4 2007 to USD
227 million. The decline in equity markets led to a charge of USD 65 million.
In Q4 2007 underlying earnings included a favorable USD 52 million from
updated mortality assumptions;

- Individual Savings & Retirement earnings were a loss of USD 623
million, due to the equity markets impact on minimum guarantee reserve
strengthening and accelerated DPAC amortization (in total USD 587 million).
Long-term assumptions for equity market volatility were increased, a one-off
negative impact of USD 135 million. Earnings also include a charge of USD 40
million related to intangible assets from the acquisition of Merrill Lynch’s
life insurance businesses;

- Pensions & Asset Management earnings decreased to USD 23 million, a
result of lower fees from declined asset balances;

- Earnings from the Institutional business were down 4% to USD 131
million on lower BOLI/COLI earnings. A decrease in short-term rates continued
to produce strong positive spreads on institutional guaranteed products;

- In the Life Reinsurance business the underlying loss amounted to USD
170 million, including a USD 150 million due to the equity markets impact on
minimum guarantee reserve strengthening, and an USD 45 million asset
write-off.

Net income

AEGON reported a net loss for Q4 of USD 1,859 million in the Americas,
including three significant items: underperformance of fair value items (USD
1.3 billion), impairment charges (USD 499 million) and a tax charge (USD 429
million).

The underperformance of fair value items comprised a number of different
elements:

- Total fair value investments underperformed by USD 531 million as a
result of alternative assets underperforming expected long-term returns and
underperformance of credit derivatives and adjustments on other
credit-related instruments;

- Lower interest rates, declining equity markets, increased equity market
volatility and widening credit spreads contributed to a USD 798 million lower
mark-to-market valuation for GMWB guarantees, total return annuities and
Canadian segregated funds. The valuation of the fair value of liability
guarantees includes sharply increased equity volatilities, as well as
discount rates including a credit spread, a reflection of extremely
dislocated and very illiquid markets.

Total impairment charges in the Americas during Q4 totaled USD 499
million. These impairments include USD 184 million of impairments on mortgage
backed securities, of which the majority is backed by subprime hybrid
adjustable rate mortgages. Net impairments on corporate bonds were USD 232
million. Other impairments include equity and commercial mortgage loan
impairments.

The tax benefit from the underlying loss, impairments and mark-to-market
losses on the fair value items was more than offset by significant additional
taxes related to cross border intercompany reinsurance transactions (USD 429
million). These reinsurance treaties are accounted for at fair value in both
tax jurisdictions, while gains in the United States are taxed at 35% and
losses in Ireland are tax deductible at 12.5%. The driver of the tax losses
in Ireland is credit spread widening. These tax losses are largely expected
to reverse as the book matures and when credit spreads narrow.

Commissions and expenses

Total commissions and expenses increased 46% in Q4, primarily due to
accelerated DPAC amortization following lower equity markets. Q4 operating
expenses were level with operating expenses last year.

Sales and deposits

Total new life sales in the Americas were down 43% in the quarter, driven
primarily by a decline in the BOLI/COLI business. Activity in the BOLI/COLI
market has declined significantly as a result of the current financial
crisis. Life reinsurance and life sales were down as well compared to last
year, but were in line with Q3 2008 sales. However, the economic downturn
continues to impact sales of both high net worth and equity-indexed universal
life products in the middle market.

Total gross deposits were up 21% compared to last year on continued
growth in fixed annuity sales (USD 2.3 billion) and strong demand for
synthetic guaranteed investment contracts. In the pension and asset
management business, sales of retirement plans came in strong, while total
pension deposits were down in particular due to lack of terminal funding
sales.

Managed assets clearly declined because of financial market turmoil,
which also affected mutual fund sales as well as variable annuity deposits.
Compared with Q4 2007 variable annuity deposits were down 17%.

Sales of accident and health products were in line with sales in Q3 2008.

Value of new business

The value of new business (VNB) in the Americas amounted to USD 167
million, and the internal rate of return (IRR) was 12.4%, both driven
primarily by strong fixed annuity production. The VNB and IRR were negatively
affected by hedge costs in the variable annuity business. Please refer to
page 28 for more detailed information on VNB.

Revenue generating investments

AEGON’s total revenue generating investments at the end of December 2008
totaled USD 286 billion, down 6% from three months earlier, on lower
financial markets.

AMERICAS - EARNINGS

USD millions Notes Q4 2008 Q4 2007 % FY 2008 FY 2007 %

Underlying earnings
before tax by line of
business
Life 159 287 (45) 769 847 (9)
Accident and health 68 86 (21) 363 428 (15)
Life and protection 227 373 (39) 1,132 1,275 (11)
Fixed annuities 86 91 (5) 368 366 1
Variable annuities (709) 52 N.M. (587) 288 N.M.
Retail mutual funds 0 6 N.M. 8 21 (62)
Individual savings
and retirement
products (623) 149 N.M. (211) 675 N.M.
Pensions and asset
management 23 36 (36) 150 166 (10)
Institutional
guaranteed products 127 107 19 544 374 45
BOLI/COLI 4 30 (87) 50 81 (38)
Institutional
products 131 137 (4) 594 455 31
Life reinsurance (170) 27 N.M. (93) 156 N.M.
Share in net results
of associates 0 1 N.M. 1 0 N.M.
Underlying earnings
before tax (412) 723 N.M. 1,573 2,727 (42)
Over/(under)
performance of fair
value items (1,330) 7 N.M. (2,434) 149 N.M.
Operating earnings
before tax (1,742) 730 N.M. (861) 2,876 N.M.

Operating earnings
before tax by line of
business
Life 70 291 (76) 593 883 (33)
Accident and health 43 91 (53) 321 443 (28)
Life and protection 113 382 (70) 914 1,326 (31)
Fixed annuities (110) 112 N.M. (68) 486 N.M.
Variable annuities (1,185) 17 N.M. (1,289) 205 N.M.
Retail mutual funds 0 6 N.M. 8 22 (64)
Individual savings
and retirement
products (1,295) 135 N.M. (1,349) 713 N.M.
Pensions and asset
management (11) 46 N.M. 91 188 (52)
Institutional
guaranteed products (76) 99 N.M. (15) 379 N.M.
BOLI/COLI (8) 34 N.M. 26 85 (69)
Institutional
products (84) 133 N.M. 11 464 (98)
Life reinsurance (465) 33 N.M. (529) 185 N.M.
Share in net results
of associates 0 1 N.M. 1 0 N.M.
Operating earnings
before tax (1,742) 730 N.M. (861) 2,876 N.M.

Gains/(losses) on
investments (10) 172 N.M. (103) 376 N.M.
Impairment charges (499) (21) N.M. (1,138) (65) N.M.
Other
income/(charges) (1) 0 N.M. 6 0 N.M.
Income before tax (2,252) 881 N.M. (2,096) 3,187 N.M.
Income tax 393 (284) N.M. 74 (1,003) N.M.
Net income (1,859) 597 N.M. (2,022) 2,184 N.M.

Net underlying
earnings (279) 555 N.M. 1,143 2,003 (43)
Net operating
earnings (1,136) 558 N.M. (491) 2,098 N.M.

Commissions and
expenses 1,451 993 46 4,961 4,569 9
of which operating
expenses 527 525 0 2,167 2,124 2

For the amounts in
euro see the
Financial Supplement.

AMERICAS - SALES

USD millions Notes Q4 2008 Q4 2007 % FY 2008 FY 2007 %

New life sales
Life single premiums 262 1,095 (76) 931 2,509 (63)
Life recurring
premiums annualized 179 252 (29) 852 1,025 (17)
Total recurring plus
1/10 single 205 362 (43) 945 1,276 (26)

Life 138 204 (32) 669 742 (10)
BOLI/COLI 15 90 (83) 36 207 (83)
Life reinsurance 52 68 (24) 240 327 (27)
Total recurring plus
1/10 single 205 362 (43) 945 1,276 (26)

New premium
production accident
and health insurance 205 249 (18) 870 898 (3)

Gross deposits (on
and off balance) by
line of business
Fixed annuities 2,328 610 N.M. 5,947 1,567 N.M.
Variable annuities 747 900 (17) 3,680 3,723 (1)
Retail mutual funds 396 796 (50) 2,813 2,865 (2)
Pensions and asset
management 2,771 3,790 (27) 12,987 13,675 (5)
Institutional
guaranteed products 8,075 5,772 40 26,945 32,097 (16)
Life reinsurance 1 0 N.M. 4 3 33
Total gross deposits 14,318 11,868 21 52,376 53,930 (3)

Net deposits (on and
off balance) by line
of business
Fixed annuities 896 (1,124) N.M. 103 (6,004) N.M.
Variable annuities (150) (249) 40 (811) (844) 4
Retail mutual funds (219) 350 N.M. 778 964 (19)
Pensions and asset
management 24 1,292 (98) 2,660 4,107 (35)
Institutional
guaranteed products 2,433 (343) N.M. 3,203 5,447 (41)
Life reinsurance (25) (112) 78 (89) (112) 21
Total net deposits 2,959 (186) N.M. 5,844 3,558 64

REVENUE GENERATING
INVESTMENTS

At Dec. At Sep.
31 30
2008 2008 %
Revenue generating 6 286,167 304,706 (6)
investments (total)
Investments general 120,790 127,130 (5)
account
Investments for 58,943 68,420 (14)
account of
policyholders
Off balance sheet 106,434 109,156 (2)
investments third
parties

For the amounts in
euro see the
Financial Supplement.

- Underlying earnings declined 31% to EUR 75 million

- Life sales down 44%, due to a standstill in group pension market;
retail sales held up well

Overview

The Netherlands reported a net income in Q4 of
EUR 124 million. Underlying earnings were down 31% to EUR 75 million compared
to Q4 2007. The positive impact of an exceptional dividend received and
better technical results in the pension business was more than offset by
decreases in investment income as well as (one-off) charges in other lines of
business. These charges include system and project related expenses,
restructuring charges and adverse technical results.

Fair value items overperformed long-term expectations by EUR 152 million.
Fair value items include:

a) Under/overperformance of assets held at fair value through profit and
loss, backing liabilities of a specific portfolio of group pension contracts
held in the general account;

b) Differences in fair value between guarantees and related hedges,
referenced as hedge ineffectiveness, previously reported in gains/losses on
investments;

c) Private equity investments.

Impairments were EUR 68 million, while investment gains amounted to EUR
84 million.

Underlying earnings before tax

- Life reported a loss of EUR 34 million on lower investment income and
higher costs, including EUR 27 million of system and project related expenses
as well as slightly lower technical results;

- In Accident and Health the underlying loss came in at EUR 3 million,
due to higher claims, lower investment income and higher expenses;

- Earnings in the Savings business came in at a loss of EUR 20 million.
Competition in the savings market is fierce, putting pressure on margins and
volumes. Q4 2007 earnings included EUR 15 million of non-recurring
accelerated amortization of deferred costs;

- Earnings from Pensions & Asset Management amounted to EUR 169 million,
the result of an exceptional EUR 75 million dividend and better technical
results of EUR 37 million;

- Earnings from Distribution include an exceptional restructuring charge
of EUR 21 million. Also, the slowdown in the real estate market led to lower
overall revenues. Earnings in Q4 2007 included a one-off charge of EUR 12
million related to the harmonization of claw back provisions of the Unirobe
Meeus Groep;

- General insurance earnings were down, mainly due to higher claims,
lower investment income and expenses to improve and grow the business.

Net income

Fair value items include the under/overperformance on assets held at fair
value through profit and loss, backing liabilities of a specific portfolio of
group pension contracts held in the general account. In Q4 these assets
underperformed long-term expected returns by EUR 149 million. Private equity
investments, included in fair value items, significantly underperformed long
term excepted return by EUR 124 million.

Also, in order to maintain consistency in definitions, starting in Q4
2008, the net impact of the fair value movements of guarantees and the
related hedges has been included in fair value items. Previously, differences
in fair value between guarantees and related hedges, referenced as hedge
ineffectiveness, were reported in gains/losses on investments. Earnings
include a EUR 425 million positive impact from hedge ineffectiveness.

The valuation of the fair value of liability guarantees includes sharply
increased interest rate and equity volatilities, as well as discount rates
including a credit spread, a reflection of extremely dislocated and very
illiquid markets.

Impairments of EUR 68 million were primarily related to equities and high
yield bonds.

Investment gains amounted to EUR 84 million and include gains on
derivatives considered as economic hedges and realized gains on the sale of
bonds, offset by lower real estate values.

Commissions and expenses

Commissions and expenses increased by 5%, due primarily to higher
operating expenses. Operating expenses increased as a result of a one-time
restructuring charge of EUR 21 million as well as a one-off EUR 27 million of
system and project related expenses, while Q4 2007 included a total EUR 27
million of one-time charges in the Savings and Distribution businesses.

Sales and deposits

Group pension sales declined significantly during the quarter - the
result of market volatility and clients’ increased reluctance to take
decisions. At the same time, the Dutch group pension market has become
increasingly competitive. Renewal rates did, however, continue to improve.
Sales figures for Q4 2007 also included several large contracts.

Sales of both single and regular premium individual life products held up
reasonably well with a decline of 13%. Lower expiring deferred annuities
resulted in lower sales of immediate annuities. Regular premium production
declined as there is less appetite in the market for universal life products.
During the year, life production increased 3%, while the Dutch life market
contracted by an estimated 1% in 2008.

Sales in accident & health were stable, mainly due to a saturated market.
Alternative disability products have been successfully introduced, and partly
offset the decline in WIA (the disability product introduced in 2006) sales
during the quarter. Sales of general insurance products were in line with Q3
2008.

Gross deposits were down by 10% compared with Q4 2007, due to fierce
competition. Net deposits showed a decline as well, as clients withdrew
balances in excess of the State guaranteed level of EUR 100,000 per account
as concerns about the stability of banks, in general, increased.

Value of new business

The value of new business (VNB) increased to
EUR 13 million and the internal rate of return improved to 10.8%, primarily
as a result of a change in business mix.

Please refer to page 28 for more detailed information on VNB.

Revenue generating investments

At the end of December 2008, revenue generating investments totaled EUR
63 billion; flat compared to September 2008 levels.

THE NETHERLANDS - EARNINGS

EUR millions Notes Q4 2008 Q4 % FY FY 2007 %
2007 2008

Underlying earnings before tax by line
of business
Life (34) 53 N.M. 43 189 (77)
Accident and health (3) 8 N.M. 23 39 (41)
Life and protection (37) 61 N.M. 66 228 (71)
Saving products (20) (14) (43) (14) 0 N.M.
Individual savings and
retirement products (20) (14) (43) (14) 0 N.M.
Pensions and asset
management 169 62 173 308 163 89
Distribution (22) (7) N.M. 3 16 (81)
General insurance (15) 5 N.M. 8 8 0
Share in net results
of associates 0 2 N.M. 7 3 133
Underlying earnings
before tax 75 109 (31) 378 418 (10)
Over/(under) performance of
fair value items 152 (148) N.M. (165) (381) 57
Operating earnings
before tax 227 (39) N.M. 213 37 N.M.

Operating earnings before tax by line
of business
Life 29 36 (19) 75 141 (47)
Accident and health (3) 8 N.M. 23 39 (41)
Life and protection 26 44 (41) 98 180 (46)
Saving products (20) (14) (43) (14) 0 N.M.
Individual savings and
retirement products (20) (14) (43) (14) 0 N.M.
Pensions and asset
management 258 (69) N.M. 111 (170) N.M.
Distribution (22) (7) N.M. 3 16 (81)
General insurance (15) 5 N.M. 8 8 0
Share in net results
of associates 0 2 N.M. 7 3 133
Operating earnings
before tax 227 (39) N.M. 213 37 N.M.

Gains/(losses) on
investments 84 132 (36) 20 465 (96)
Impairment charges (68) 0 N.M. (138) (24) N.M.
Other income/(charges) 0 0 0 0 30 N.M.
Income before tax 243 93 161 95 508 (81)
Income tax (119) 2 N.M. (1) 98 N.M.
Net income 124 95 31 94 606 (84)

Net underlying
earnings 80 96 (17) 326 339 (4)
Net operating earnings 129 (23) N.M. 139 41 N.M.

Commissions and
expenses 376 357 5 1,269 1,188 7
of which operating
expenses 297 267 11 934 843 11

THE NETHERLANDS - SALES

EUR millions Notes Q4 2008 Q4 % FY FY 2007 %
2007 2008

New life sales
Life single premiums 225 287 (22) 1,324 1,354 (2)
Life recurring
premiums annualized 18 44 (59) 86 124 (31)
Total recurring plus
1/10 single 41 73 (44) 219 260 (16)

Life 20 23 (13) 97 94 3
Pensions 21 49 (57) 122 166 (27)
Total recurring plus
1/10 single 41 73 (44) 219 260 (16)

New premium production
accident and health insurance 4 4 0 15 18 (17)
New premium production
general insurance 7 6 17 28 26 8

Gross deposits (on and off
balance) by line of business
Saving deposits 590 704 (16) 2,473 2,648 (7)
Pensions and asset
management 83 41 102 228 390 (42)
Total gross deposits 673 745 (10) 2,701 3,038 (11)

Net deposits (on and off balance) by
line of business
Saving deposits (535) 95 N.M. (699) 232 N.M.
Pensions and asset
management 14 (119) N.M. (38) (1,256) 97
Total net deposits (521) (24) N.M. (737) (1,024) 28

REVENUE GENERATING INVESTMENTS

At Dec. At
31 Sep.
30
2008 2008 %
Revenue generating
investments (total) 6 63,079 63,310 (0)
Investments general
account 32,163 31,455 2
Investments for account of
policyholders 19,133 19,566 (2)
Off balance sheet investments
third parties 11,783 12,289 (4)

- Underlying earnings before tax declined to GBP 13 million, mainly on
lower fund related charges in the pension business

- Continued strong new life sales, up 5%

- Higher margins lead to further increase in value of new business

Overview

Lower corporate bond and equity markets led to a decline in earnings from
the United Kingdom. New life sales held up well with strong sales of group
pensions, annuities and unit-linked bonds. Value of new business also
continued its recent strong growth, a result primarily of a shift in business
mix to higher margin products.

Underlying earnings before tax

Underlying earnings before tax declined in Q4 to
GBP 13 million, due primarily to the impact of lower equity and corporate
bond markets on fund related charges in AEGON’s unit linked pension business.

- Earnings from Life & Protection decreased GBP 3 million to GBP 18
million as strong underlying growth was masked by a one-off benefit in the
comparable quarter last year;

- A GBP 8 million loss from Pensions & Asset Management was the result
mainly of lower fund related charges;

- Distribution activities saw an increase in earnings to GBP 3 million as
a result of cost containment and a release of incentive payments reserves.

Net income

Lower underlying earnings, underperformance of fair value items and
losses on investments are the main drivers of the net loss of GBP 8 million
in Q4. The fair value increase of guarantees embedded in the ‘Five-for Life’
variable annuity product resulted, net of hedging, in a loss of GBP 15
million. In addition, losses on investments amounted to GBP 16 million, an
accounting loss on a derivative instrument for which hedge accounting could
no longer be applied.

Commissions and expenses

Total commissions and expenses were down 2% due to a change in business
mix. Operating expenses increased by 5% to GBP 114 million, mainly as a
result of investments in the business and restructuring costs. As part of the
group-wide cost savings program, operating expenses are expected to be
reduced in 2009.

Sales and deposits

In Q4 2008, AEGON had a 10% market share in the life market in the United
Kingdom (9% for full year 2008). New life sales continue to be strong in Q4,
up 5% at GBP 289 million. Higher sales of annuities and group pensions were
partly offset by weaker individual pension sales.

- Life annualized premium production increased 35% to GBP 66 million,
mainly as a result of continued strong sales of annuities in Q4, as AEGON
continued its focus on the rapidly-growing at-retirement market;

- Sales of pensions declined 2% in Q4 to GBP 223 million, mainly due to
lower individual pension sales. However, sales of group pensions and
unit-linked bonds continued to be strong (see Financial Supplement for more
detail).

Total deposits declined to GBP 152 million as continued turmoil on world
financial markets resulted in lower sales of retail mutual funds and third
party managed assets.

Value of new business

The value of new business (VNB) increased 25% to GBP 50 million, as
margins showed further improvement in Q4. AEGON’s strategy in the United
Kingdom is to move more of its business to high-margin areas, such as
annuities. As a result, the internal rate of return on new business in the
United Kingdom rose to 14.0%.

Please refer to page 28for more detailed information on VNB.

Revenue generating investments

At the end of December 2008, revenue generating investments totaled GBP
47.1 billion, a decline of 1% from GBP 47.6 billion at the end of Q3 2008.
The decrease reflects mainly the weakness in equity markets.

UNITED KINGDOM - EARNINGS

GBP millions Notes Q4 Q4 % FY 2008 FY 2007 %
2008 2007

Underlying earnings before tax by
line of business *)
Life 18 21 (14) 46 54 (15)
Life and protection 18 21 (14) 46 54 (15)
Pensions and asset
management (8) 36 N.M. 68 138 (51)
Distribution 3 (10) N.M. (1) (7) 86
Share in net results of
associates 0 0 0 0 1 N.M.
Underlying earnings
before tax 13 47 (72) 113 186 (39)
Over/(under) performance of
fair value items (15) 0 N.M. (15) 0 N.M.
Operating earnings
before tax (2) 47 N.M. 98 186 (47)

Operating earnings before tax by
line of business
Life 18 21 (14) 46 54 (15)
Life and protection 18 21 (14) 46 54 (15)
Pensions and asset
management (23) 36 N.M. 53 138 (62)
Distribution 3 (10) N.M. (1) (7) 86
Share in net results of
associates 0 0 0 0 1 N.M.
Operating earnings
before tax (2) 47 N.M. 98 186 (47)

Gains/(losses) on
investments (16) 1 N.M. (17) (5) N.M.
Impairment charges 2 (2) N.M. (18) (3) N.M.
Other income/(charges) 9 28 (17) N.M. (14) 5 N.M.
Income before tax 12 29 (59) 49 183 (73)
Income tax attributable to
policyholder return (28) 18 N.M. 14 (5) N.M.
Income before income
tax on shareholders
return (16) 47 N.M. 63 178 (65)
Income tax on
shareholders return 8 (3) N.M. 1 5 (80)
Net income (8) 44 N.M. 64 183 (65)

Net underlying earnings 17 43 (60) 104 188 (45)
Net operating earnings 2 43 (95) 89 188 (53)

Commissions and
expenses 173 177 (2) 662 647 2
of which operating
expenses 114 109 5 414 391 6

For the amounts in euro see
the Financial Supplement.

UNITED KINGDOM - SALES

GBP millions Notes Q4 Q4 % FY 2008 FY 2007 %
2008 2007

New life sales 10
Life single premiums 1,548 1,555 (0) 6,470 6,984 (7)
Life recurring premiums
annualized 134 120 12 575 484 19
Total recurring plus
1/10 single 289 276 5 1,222 1,183 3

Life 66 49 35 251 210 20
Pensions 223 227 (2) 971 973 (0)
Total recurring plus
1/10 single 289 276 5 1,222 1,183 3

Gross deposits (on and off
balance) by line of business
Pensions and asset
management 152 343 (56) 542 903 (40)
Total gross deposits 152 343 (56) 542 903 (40)

Net deposits (on and off balance) by
line of business
Pensions and asset
management 11 144 (92) (322) 282 N.M.
Total net deposits 11 144 (92) (322) 282 N.M.

REVENUE GENERATING INVESTMENTS

At At
Dec. Sep.
31 30
2008 2008 %
Revenue generating
investments (total) 6 47,122 47,565 (1)
Investments general
account 4,964 4,678 6
Investments for account of
policyholders 39,869 40,587 (2)
Off balance sheet investments
third parties 2,289 2,300 (0)

For the amounts in euro see the
Financial Supplement.

- Underlying loss before tax of EUR 17 million - including a DPAC charge
of EUR 43 million

- Continued strong pension deposits in Central & Eastern Europe and
retail mutual fund sales in China

Overview

Earnings from Other countries were affected by an accelerated DPAC
amortization and equity impairments in Taiwan. Deposits rose sharply, a
result of the new asset management joint venture in China and continued
strong growth in the company’s pension business in Central & Eastern Europe.
Life sales were 34% lower, as declining equity markets impacted single
premium unit-linked sales in Poland and sales in Asia.

Underlying earnings before tax

Underlying earnings before tax from Other countries declined to a
negative of EUR 17 million in Q4.

- Earnings from Life & Protection were severely impacted by an
accelerated amortization of deferred acquisition costs in Taiwan of EUR 43
million, a reflection of a decline in interest rates and equity markets.
Central & Eastern Europe and Spain, however, contributed resilient positive
results;

- The asset management joint venture in China performed well. As a
result, earnings from mutual funds increased to EUR 2 million;

- Earnings from General insurance were higher because of lower claims and
a EUR 2 million reserve release in Hungary;

- Earnings from associate companies declined as a higher contribution
from CAM, AEGON’s Spanish associate, were more than offset by additional
start-up costs at AEGON’s joint ventures in India and a lower contribution
from La Mondiale, AEGON’s French partner.

Net income

The net loss of EUR 66 million in Q4 for Other countries includes an
equity impairment of EUR 45 million, more than offsetting positive results in
Central & Eastern Europe and Spain. Sales of investments resulted in losses
on investments of EUR 10 million.

Commissions and expenses

Commissions and expenses rose 45% in Q4 to
EUR 175 million.

- Operating expenses increased 25% as a result of continued growth in
AEGON’s pension business in Central & Eastern Europe and further investment
in the company’s bank distribution operations in Spain;

- Commissions, meanwhile, were down 24%;

- Accelerated amortization of DPAC in Taiwan lead to an additional
one-time amortization of EUR 43 million;

- Deferred expenses declined, primarily because of lower production in
Taiwan.

Excluding the DPAC charge in Taiwan, commissions and expenses increased
only 9% to EUR 132 million.

Sales and deposits

New life sales in Q4 2008 declined 34% to EUR 58 million.

- In Central & Eastern Europe, sales of recurring premium life insurance
rose 13% thanks to particularly strong performances in the Czech Republic and
Slovakia. Single premium sales in Poland were sharply lower, however, because
of the declining equity market. Total new life sales in Central & Eastern
Europe amounted to EUR 22 million, down 27%;

- In Spain, sales of life insurance rose to EUR 22 million, due primarily
to the extraordinary activity in AEGON’s Spanish life business, following
changes in pension legislation;

- AEGON’s largest bank partner in Spain, which is an associate and
therefore not consolidated, tripled sales to EUR 77 million (on a 100%
basis), as a result of a successful strategy to increase the insurance
penetration ratio among their existing client base;

- In Asia, new life sales decreased to EUR 13 million as increased sales
in China were more than offset by a decline in Taiwan.

Gross deposits rose 77% in Q4 2008 to EUR 394 million. Net deposits were,
although down 24%, positive at EUR 90 million. The increase in gross deposits
reflects:

- The continued strong performance of AEGON’s asset management joint
venture in China.

- Strong growth in the company’s pension business in Central & Eastern
Europe.

General insurance

Non-life sales in Hungary declined to EUR 11 million as a result of
continued focus on writing profitable business in an increasingly competitive
environment.

Value of new business

The value of new business (VNB) from Other countries decreased by 36% to
EUR 36 million primarily as a result of lower sales. In Asia, the decrease in
VNB was mainly a reflection of lower sales. In Central & Eastern Europe, VNB
declined on the back of lower sales in Hungary and Poland,
as weak equity markets continued to impact sales levels. In Spain, VNB
increased mainly as a result of higher sales in CAM and positive changes in
the business mix.

The internal rate of return in Asia rose to 15.8% as a result of a change
in product mix. The reduction of the internal rate of return to 29.8% in
Central & Eastern Europe is mainly a reflection of lower sales in Poland. In
Spain, AEGON’s bank distribution partnerships continued to deliver high rates
of return.

Please refer to page 28 for more detailed VNB information.

Revenue generating investments

Continued strong growth of the underlying businesses resulted in 2008
year-end revenue generating investments of EUR 13.6 billion, a decline of 4%
from the end of Q3 2008.

OTHER COUNTRIES - EARNINGS

EUR millions Notes Q4 2008 Q4 % FY FY 2007 %
2007 2008

Underlying earnings before tax by
line of business *)
Life (41) 5 N.M. 11 53 (79)
Accident and health 1 0 N.M. 5 4 25
Life and protection (40) 5 N.M. 16 57 (72)
Variable annuities 0 0 0 (1) 0 N.M.
Saving products 0 0 0 0 (1) N.M.
Retail mutual funds 3 2 50 13 4 N.M.
Individual savings and
retirement products 3 2 50 12 3 N.M.
Pensions and asset
management 2 (1) N.M. 12 11 9
General insurance 12 8 50 37 39 (5)
Share in net results
of associates 6 8 (25) 16 32 (50)
Underlying earnings
before tax (17) 22 N.M. 93 142 (35)

Gains/(losses) on
investments (10) 1 N.M. (10) 14 N.M.
Impairment charges (49) 0 N.M. (68) 0 N.M.
Other income/(charges) 1 1 0 1 0 N.M.
Income before tax (75) 24 N.M. 16 156 (90)
Income tax 9 (32) N.M. (25) (83) 70
Net income (66) (8) N.M. (9) 73 N.M.

Net underlying
earnings (10) (10) 0 64 60 7
Net operating earnings (10) (10) 0 64 60 7

Commissions and
expenses 175 121 45 494 372 33
of which operating
expenses 66 53 25 211 177 19

*) In Other countries, underlying
earnings equals operating earnings.

OTHER COUNTRIES - SALES

EUR millions Notes Q4 2008 Q4 % FY FY 2007 %
2007 2008

New life sales 10
Life single premiums 69 199 (65) 445 1,013 (56)
Life recurring
premiums annualized 52 69 (25) 189 252 (25)
Total recurring plus
1/10 single 58 88 (34) 233 353 (34)

Life 58 88 (34) 232 352 (34)
Saving products 0 0 0 1 1 0
Total recurring plus
1/10 single 58 88 (34) 233 353 (34)

New premium production
accident and health insurance 2 1 100 6 6 0
New premium production
general insurance 10 15 (33) 40 32 25

Gross deposits (on and
off balance)
Variable annuities 10 18 (44) 126 22 N.M.
Retail mutual funds 173 43 N.M. 779 154 N.M.
Pensions and asset
management 211 162 30 737 579 27
Total gross deposits 394 223 77 1,642 755 117

Net deposits (on and
off balance)
Variable annuities 5 17 (71) 113 20 N.M.
Retail mutual funds (56) 18 N.M. 59 93 (37)
Pensions and asset
management 141 83 70 397 368 8
Total net deposits 90 118 (24) 569 481 18

REVENUE GENERATING
INVESTMENTS

At Dec. At
31 Sep.
30
2008 2008 %
Revenue generating 6 13,609 14,154 (4)
investments (total)
Investments general 6,243 5,399 16
account
Investments for account of 2,067 2,600 (21)
policyholders
Off balance sheet investments 5,299 6,155 (14)
third parties

FINANCIAL OVERVIEW, FULL YEAR GEOGRAPHICALLY

United
Americas Kingdom
USD GBP
Underlying earnings before tax by
line of business
1,132 46 Life and protection
(211) 0 Individual savings and retirement products
150 53 Pensions and asset management
594 0 Institutional products
(93) 0 Life reinsurance
0 (1) Distribution
0 0 General insurance
Interest charges and other
1 0 Share in net results of associates
1,573 98 Underlying earnings before tax
(2,434) (15) Over/(under) performance of fair value items
(861) 83 Operating earnings before tax

Operating earnings before tax by
line of business
914 46 Life and protection
(1,349) 0 Individual savings and retirement products
91 53 Pensions and asset management
11 0 Institutional products
(529) 0 Life reinsurance
0 (1) Distribution
0 0 General insurance
Interest charges and other
1 0 Share in net results of associates
(861) 98 Operating earnings before tax

(103) (17) Gains/(losses) on investments
(1,138) (18) Impairment charges
6 (14) Other income/(charges)
(2,096) 49 Income before tax
74 15 Income tax
(2,022) 64 Net income

1,143 104 Net underlying earnings
(491) 89 Net operating earnings

(continued)
amounts
in
million
EUR
(unless
otherwise
stated)
Holding,
other
The United Other activities & Total
Americas Netherlands Kingdom countries eliminations EUR
Underlying earnings
before tax by
line of business
Life and
protection 771 66 58 16 0 911
Individual
savings and
retirement
products (144) (14) 0 12 0 (146)
Pensions and
asset management 103 308 85 12 0 508
Institutional
products 405 0 0 0 0 405
Life reinsurance (63) 0 0 0 0 (63)
Distribution 0 3 (2) 0 0 1
General
insurance 0 8 0 37 0 45
Interest charges
and other (112) (112)
Share in net
results of
associates 1 7 0 16 0 24
Underlying
earnings before
tax 1,073 378 141 93 (112) 1,573
Over/(under)
performance of
fair value
items (1,660) (165) (19) 0 225 (1,619)
Operating
earnings before
tax (587) 213 122 93 113 (46)

Operating earnings
before tax by
line of business
Life and
protection 623 98 58 16 0 795
Individual
savings and
retirement
products (920) (14) 0 12 0 (922)
Pensions and
asset management 62 111 66 12 0 251
Institutional
products 8 0 0 0 0 8
Life reinsurance (361) 0 0 0 0 (361)
Distribution 0 3 (2) 0 0 1
General
insurance 0 8 0 37 0 45
Interest charges
and other 113 113
Share in net
results of
associates 1 7 0 16 0 24
Operating
earnings before
tax (587) 213 122 93 113 (46)

Gains/(losses)
on investments (71) 20 (21) (10) 117 35
Impairment
charges (776) (138) (22) (68) (34) (1,038)
Other
income/(charges) 4 0 (17) 1 0 (12)
Income before
tax (1,430) 95 62 16 196 (1,061)
Income tax 51 (1) 18 (25) (64) (21)
Net income (1,379) 94 80 (9) 132 (1,082)

Net underlying
earnings 780 326 131 64 (67) 1,234
Net operating
earnings (335) 139 112 64 89 69

NET UNDERLYING EARNINGS GEOGRAPHICALLY

EUR millions Notes Q4 2008 Q4 % FY 2008 FY %
2007 2007

Americas (155) 387 N.M. 780 1,464 (47)
The Netherlands 11 80 96 (17) 326 339 (4)
United Kingdom 19 61 (69) 131 275 (52)
Other countries (10) (10) 0 64 60 7
Holding and other (3) (18) 83 (67) (105) 36
Net underlying earnings (69) 516 N.M. 1,234 2,033 (39)

OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS

EUR millions

Operating earnings before tax (951) 522 N.M. (46) 2,367 N.M.
(Over)/under performance of
fair value items - Americas 933 (3) N.M. 1,660 (109) N.M.
(Over)/under performance of
fair value items - The
Netherlands 11 (152) 148 N.M. 165 381 (57)
(Over)/under performance of
fair value items - United
Kingdom 19 - N.M. 19 - N.M.
(Over)/under performance of
fair value items - Holding
and other (30) - N.M. (225) - N.M.
Underlying earnings before
tax (181) 667 N.M. 1,573 2,639 (40)

Net underlying earnings (69) 516 N.M. 1,234 2,033 (39)

AMERICAS - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS

USD millions

Over/(under) performance of fair value
items by line of business
Life and protection (114) 8 N.M. (218) 51 N.M.
Individual savings and
retirement products (672) (15) N.M. (1,138) 38 N.M.
Pensions and asset management (34) 11 N.M. (59) 22 N.M.
Institutional products (215) (3) N.M. (583) 9 N.M.
Life reinsurance (295) 6 N.M. (436) 29 N.M.
Total over/(under) (1,330) 7 N.M. (2,434) 149 N.M.
performance of fair value
items

Total over/(under) performance of
fair value items in EUR (933) 3 N.M. (1,660) 109 N.M.

THE NETHERLANDS - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS

EUR millions 11

Over/(under) performance of fair value
items by line of business
Life and protection 63 (17) N.M. 32 (48) N.M.
Pensions and asset management 89 (131) N.M. (197) (333) 41
Total over/(under)
performance of fair value
items 152 (148) N.M. (165) (381) 57

UNITED KINGDOM - OVER/UNDER PERFORMANCE OF FAIR VALUE ITEMS

GBP millions

Over/(under) performance of fair value
items by line of business
Pensions and asset management (15) - 0 (15) - 0
Total over/(under)
performance of fair value
items (15) - 0 (15) - 0

EXPLANATION
Certain assets held by AEGON Americas and AEGON The Netherlands are
carried at fair value, and managed on a total return basis, with no
offsetting changes in the valuation of related liabilities. These
include assets such as hedge funds, private equities, real estate
limited partnerships, convertible bonds and structured products.
Underlying earnings exclude any over- or underperformance compared
to management’s long-term expected return on these assets. Based on
current holdings and asset class returns, the long-term expected
return on an annual basis is 8-10%, depending on the asset class,
including cash income and market value changes. The expected
earnings from these assets classes are net of DPAC where
applicable.

In addition, certain products offered by AEGON Americas contain
guarantees and are reported on a fair value basis, including the
segregated funds offered by AEGON Canada and the total return
annuities and guarantees on variable annuities of AEGON USA. The
earnings on these products are impacted by movements in equity
markets and risk free interest rates. Short-term developments in
the financial markets may therefore cause volatility in earnings.
Included in underlying earnings is a long-term expected return on
these products and any over- or underperformance compared to
management’s expected return is excluded from underlying earnings.
The fair value movements of certain guarantees and the fair value
change of derivatives that hedge certain risks on these guarantees
of AEGON the Netherlands and AEGON UK are excluded from underlying
earnings.

The Holding includes certain issued bonds that are held at fair
value through profit or loss. The interest rate risk on these bonds
is hedged using swaps. The change in AEGON’s credit spread resulted
in a gain of EUR 30 mln in Q4 2008 on the fair value movement on
these bonds.

SALES

EUR millions Q4 2008 Q4 % FY 2008 FY 2007 %
2007

New life sales 598 800 (25) 2,631 3,274 (20)
Gross deposits (on and off
balance) 11,933 9,594 24 40,751 44,528 (8)

New life sales
Life single premiums 2,327 3,447 (32) 10,532 14,414 (27)
Life recurring premiums
annualized 366 456 (20) 1,578 1,833 (14)
Total recurring plus 1/10
single 598 800 (25) 2,631 3,274 (20)

Life 265 322 (18) 1,101 1,294 (15)
Saving products 0 0 0 1 1 0
Pensions 283 368 (23) 1,341 1,589 (16)
BOLI/COLI 11 64 (83) 25 151 (83)
Life reinsurance 39 46 (15) 163 239 (32)
Total recurring plus 1/10
single 598 800 (25) 2,631 3,274 (20)

New premium production
accident and health
insurance 161 178 (10) 614 680 (10)
New premium production
general insurance 17 21 (19) 68 58 17

Gross deposits (on and off
balance)
Fixed annuities 1,676 433 N.M. 4,057 1,145 N.M.
Variable annuities 590 640 (8) 2,636 2,743 (4)
Saving products 590 704 (16) 2,473 2,648 (7)
Retail mutual funds 501 598 (16) 2,698 2,248 20
Pensions and asset
management 2,613 3,338 (22) 10,505 12,284 (14)
Institutional guaranteed
products 5,963 3,881 54 18,380 23,458 (22)
Life reinsurance 0 0 0 2 2 0
Total gross deposits 11,933 9,594 24 40,751 44,528 (8)

Net deposits (on and off
balance) by line of business
Fixed annuities 593 (759) N.M. 71 (4,388) N.M.
Variable annuities (114) (157) 27 (441) (596) 26
Saving deposits (535) 94 N.M. (699) 231 N.M.
Retail mutual funds (182) 266 N.M. 590 797 (26)
Pensions and asset
management 257 1,081 (76) 1,769 2,527 (30)
Institutional guaranteed
products 1,679 (325) N.M. 2,185 3,981 (45)
Life reinsurance (19) (82) 77 (61) (82) 26
Total net deposits 1,679 118 N.M. 3,414 2,470 38

EMPLOYEE NUMBERS At At
At Dec. 31 At
Dec.
31
2008 2007

Number of employees 31,425 30,414

VALUE OF NEW BUSINESS AND IRR
VNB VNB VNB VNB
EUR EUR EUR EUR
EUR Notes Q4 2008 Q4 % FY 2008 FY %
millions, 2007 2007
after tax

Americas 124 104 19 412 425 (3)
The Netherlands 13 10 30 43 51 (16)
United Kingdom 60 56 7 234 230 2

Asia 5 21 (76) 20 78 (74)
Central and Eastern Europe 13 19 (32) 74 72 3

Other
European
Countries 18 16 13 54 71 (24)
Total 233 226 3 837 927 (10)

IRR % IRR%

Americas 12.4 13.1
The Netherlands 10.8 9.8
United Kingdom 14.0 13.4
Asia 15.8 14.6
Central and
Eastern
Europe 29.8 49.4
Other
European
Countries 48.3 39.4
Total 16.5 18.0

MODELED NEW BUSINESS, APE AND DEPOSITS

Premium Premium
business business
APE APE
EUR Notes Q4 2008 Q4 % FY 2008 FY %
millions 2007 2007
12
Americas 279 385 (28) 1,097 1,362 (19)
The Netherlands 75 77 (3) 300 278 8
United Kingdom 341 387 (12) 1,514 1,704 (11)
Asia 14 41 (66) 63 168 (63)
Central and
Eastern
Europe 26 30 (13) 109 122 (11)
Other
European
Countries 74 63 17 237 234 1
Total 809 982 (18) 3,321 3,869 (14)

Deposit business Deposit business
Deposits Deposits

Americas 8,718 6,874 27 30,151 36,337 (17)
Asia 4 5 (20) 24 7 N.M.
Central and
Eastern
Europe 19 9 111 65 27 141
Other
European
Countries 0 2 N.M. 10 10 0
Total 8,742 6,890 27 30,249 36,381 (17)

VNB/PVNBP SUMMARY
Premium Premium
business business
VNB PVNBP VNB/ VNB/ APE VNB PVNBP VNB/ VNB/
PVNBP PVNBP APE
EUR Notes Q4 % % FY 2008 % %
millions 2008
13
Americas 55 1,414 3.9 19.5 193 5,496 3.5 17.6
The Netherlands 13 476 2.7 16.8 43 2,324 1.9 14.4
United Kingdom 60 2,288 2.6 17.7 234 10,322 2.3 15.5
Asia 4 66 6.4 30.5 19 344 5.6 30.5
Central and
Eastern
Europe 9 158 6.0 36.8 48 674 7.2 44.3
Other
European
Countries 18 554 3.2 23.9 54 1,884 2.8 22.6
Total 159 4,956 3.2 19.6 592 21,043 2.8 17.8

Deposit Deposit
business business
VNB PVNBP VNB/ VNB/ VNB PVNBP VNB/ VNB/
PVNBP Deposits PVNBP Dep-
13 osits
Americas 70 10,143 0.7 0.8 219 34,251 0.6 0.7
Asia 0 23 1.3 7.8 1 179 0.4 2.7
Central and
Eastern
Europe 4 166 2.4 20.4 25 835 3.0 39.4
Other
European
Countries 0 0 1.7 1.7 0 10 3.3 3.3
Total 74 10,331 0.7 0.8 246 35,275 0.7 0.8

Notes:

1) Certain assets held by AEGON Americas and AEGON The Netherlands are
carried at fair value, and managed on a total return basis, with no
offsetting changes in the valuation of related liabilities. These
include assets such as hedge funds, private equities, real estate
limited partnerships, convertible bonds and structured products.
Underlying earnings exclude any over- or underperformance compared to
management’s long-term expected return on these assets. Based on
current holdings and asset class returns, the long-term expected
return on an annual basis is 8-10%, depending on the asset class,
including cash income and market value changes. The expected earnings
from these assets classes are net of DPAC where applicable.

In addition, certain products offered by AEGON Americas contain
guarantees and are reported on a fair value basis, including the
segregated funds offered by AEGON Canada and the total return
annuities and guarantees on variable annuities of AEGON USA. The
earnings on these products are impacted by movements in equity
markets and risk free interest rates. Short-term developments in the
financial markets may therefore cause volatility in earnings.
Included in underlying earnings is a long-term expected return on
these products and any over- or underperformance compared to
management’s expected return is excluded from underlying earnings.
The fair value movements of certain guarantees and the fair value
change of derivatives that hedge certain risks on these guarantees of
AEGON the Netherlands and AEGON UK are excluded from underlying
earnings.

The Holding includes certain issued bonds that are held at fair value
through profit or loss. The interest rate risk on these bonds is
hedged using swaps. The change in AEGON’s credit spread resulted in a
gain of EUR 30 mln in Q4 2008 on the fair value movement on these
bonds.
2) Net income refers to net income attributable to equity holders of
AEGON N.V.
3) New life sales is defined as new recurring premiums + 1/10 of single
premiums.
4) Deposits on and off balance sheet.
5) Return on equity is calculated by dividing the net underlying
earnings after cost of leverage by the average shareholders’ equity
excluding the preferred shares and the revaluation reserve.
6) As of 2008, real estate for own use (both general account and for
account of policyholders) has been reclassified from revenue
generating investments to other assets.
7) Capital securities that are denominated in foreign currencies are,
for purposes of calculating the capital base ratio, revalued to the
period-end exchange rate.
All ratios exclude AEGON’s revaluation reserve.
9) Included in other non-operating income/(charges) are charges made to
policyholders with respect to income tax.
There is an equal and opposite tax charge which is reported in the
line Income tax attributable to policyholder return.
10) Includes production on investment contracts without a discretionary
participation feature of which the proceeds are
not recognized as revenues but are directly added to our investment
contract liabilities.
11) In order to maintain consistency in definitions, starting in the
fourth quarter 2008, the net impact of the fair value movements of
guarantees and the related hedges in the Netherlands has been
excluded from underlying earnings. Previously, differences in fair
value between guarantees and related hedges, referenced as hedge
ineffectiveness, were reported in gain/losses on investments. Results
from previous years have been adjusted.
12) APE = recurring premium + 1/10 single premium.
13) PVNBP: Present Value New Business Premium.

CONDENSED CONSOLIDATED BALANCE SHEET
At Dec. 31 At Dec. 31
2008 2007
EUR millions %

Investments general account 130,481 132,861 (2)
Investments for account of
policyholders 105,400 142,384 (26)
Investments in
associates 595 472 26
Deferred expenses and
rebates 12,794 11,488 11
Other assets and
receivables 27,766 18,484 50
Cash and cash
equivalents 10,223 8,431 21
Total assets 287,259 314,120 (9)

Shareholders’ equity 6,055 15,151 (60)
Convertible core capital
securities 3,000 0 0
Other equity
instruments 4,699 4,795 (2)
Minority
interest 6 16 (63)
Group equity 13,760 19,962 (31)
Insurance contracts general
account 97,377 88,496 10
Insurance contracts for account
of policyholders 60,808 78,394 (22)
Investment contracts general
account 36,231 36,089 0
Investment contracts for account of
policyholders 45,614 63,756 (28)
Other
liabilities 33,469 27,423 22
Total equity and
liabilities 287,259 314,120 (9)

CAPITAL BASE

Group equity 13,760 19,962 (31)
Trust pass-through
securities 161 143 13
Subordinated
borrowings 41 34 21
Senior debt related to
insurance activities 69 1,255 (95)
Total capital base 14,031 21,394 (34)

CONDENSED CONSOLIDATEDINCOME STATEMENT

EUR millions (except Notes Q4 2008 Q4 2007 % FY 2008 FY 2007 %
per share data)

Premium income 5,228 6,678 (22) 22,409 26,900 (17)
Investment income 2,644 2,633 0 9,965 10,457 (5)
Fee and commission
income 437 495 (12) 1,703 1,900 (10)
Other revenues 1 2 (50) 5 14 (64)
Total revenues 8,310 9,808 (15) 34,082 39,271 (13)
Income from reinsurance
ceded 483 355 36 1,633 1,546 6
Results from financial
transactions (7,629) (971) N.M. (28,195) 4,545 N.M.
Other income 1 2 (50) 6 214 (97)
Total income 1,165 9,194 (87) 7,526 45,576 (83)

Benefits and expenses 1,758 8,256 (79) 6,970 41,763 (83)
Impairment charges (53) 38 N.M. 526 117 N.M.
Interest charges and
related fees 743 149 N.M. 1,113 474 135
Other charges 0 0 0 2 181 (99)
Total charges 2,448 8,443 (71) 8,611 42,535 (80)

Share in net results of
associates 5 11 (55) 24 36 (33)
Income before tax (1,278) 762 N.M. (1,061) 3,077 N.M.
Income tax 96 (114) N.M. (21) (526) 96
Net income attributable
to equity holders of
AEGON N.V. (1,182) 648 N.M. (1,082) 2,551 N.M.

Net income per common
share
Basic earnings per share (0.82) 0.40 N.M. (0.92) 1.47 N.M.
Dilluted earnings per
share (0.82) 0.40 N.M. (0.92) 1.47 N.M.

THE HAGUE, The Netherlands, March 12 /PRNewswire/ –

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

At Dec. 31 At Dec. 31

2008 2007

EUR millions Notes

Shareholders’ equity at January 1 15,151 18,605

Net income (1,082) 2,551

Movements in foreign currency

translations reserve (170) (1,445)

Movements in revaluation reserves (6,651) (2,164)

Total recognized net income for the

period (7,903) (1,058)

Dividends paid on ordinary shares (548) (583)

Preferred dividend (112) (85)

Repurchased and sold own shares (217) (1,438)

Coupons on perpetuals (net of tax) (189) (175)

Coupons on convertible core capital

securities (121) 0

Other changes (6) (115)

Shareholders’ equity at end of period 6,055 15,151

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

EUR millions Notes Q4 2008 Q4 % FY 2008 FY 2007 %
2007

Cash flow from operating
activities (451) 1,567 N.M. 1,323 (1,340) 199

Cash flow from investing
activities
Purchase and disposal of
intangible assets (6) (4) (50) (12) (10) (20)
Purchase and disposal of
equipment and other
assets (25) (26) 4 65 (48) N.M.
Purchase, disposal and
dividends of subsidiaries
and associates (287) (954) 70 (451) (2,621) 83
(318) (984) 68 (398) (2,679) 85

Cash flow from financing
activities
Issuance and purchase of
share capital 0 (773) N.M. (217) (1,438) 85
Dividends paid 0 105 N.M. (660) (668) 1
Issuance, repayment and
coupons of convertible
capital securities 3,000 0 N.M. 3,000 0 N.M.
Issuance, repayment and
coupons of perpetuals (67) (67) 0 (368) 510 N.M.
Issuance, repayment and
finance interest on
borrowings (1,014) (188) N.M. (294) 897 N.M.
1,919 (923) N.M. 1,461 (699) N.M.

Net increase/(decrease)
in cash and cash
equivalents 1,150 (340) N.M. 2,386 (4,718) N.M.

AMOUNTS PER COMMON SHARE

Notes Q4 2008 Q4 % FY 2008 FY 2007 %
2007

Net income in EUR 1 (0.82) 0.40 N.M. (0.92) 1.47 N.M.
Net income fully diluted
in EUR 1 (0.82) 0.40 N.M. (0.92) 1.47 N.M.

Net income in USD (1.20) 0.57 N.M. (1.35) 2.01 N.M.
Net income fully diluted.
in USD (1.20) 0.57 N.M. (1.35) 2.01 N.M

Net operating earnings in
EUR 1 (0.44) 0.23 N.M. (0.15) 0.99 N.M.
Net operating earnings
fully diluted in EUR 1 (0.44) 0.23 N.M. (0.15) 0.99 N.M.

Net operating earnings in
USD (0.66) 0.33 N.M. (0.22) 1.35 N.M.
Net operating earnings
fully diluted in USD (0.66) 0.33 N.M. (0.22) 1.35 N.M.

At At
At Dec. At
31 Dec.
31
2008 2007

Shareholders’ equity in EUR 2 2.60 8.69 (70)

Shareholders’ equity in USD 2 3.62 12.79 (72)

NET INCOME PER COMMON SHARE CALCULATION

EUR millions (except per Notes Q4 2008 Q4 % FY 2008 FY 2007 %
share data) 2007

Net income (1,182) 648 N.M. (1,082) 2,551 N.M.
Preferred dividend 0 0 0 (112) (85) (32)
Coupons on perpetuals (49) (51) 4 (189) (175) (8)
Net income / (loss) attributable (1,231) 597 N.M. (1,383) 2,291 N.M.
to ordinary shareholders

Weighted average number of 1,515 1,561 (3) 1,507 1,561 (3)
common shares outstanding
Net income per share (0.82) 0.40 N.M. (0.92) 1.47 N.M.

Quarterly net income per
common share

first quarter 0.07 0.42 (83) 0.07 0.42 (83)
second quarter 0.08 0.34 (76) 0.15 0.76 (80)
third quarter (0.25) 0.31 N.M. (0.10) 1.07 N.M.
fourth quarter (0.82) 0.40 N.M. (0.92) 1.47 N.M.

SEGMENT REPORTING

EUR millions Notes Q4 2008 Q4 2007 % FY 2008 FY 2007 %

Operating earnings before
tax geographically
Americas (1,167) 506 N.M. (587) 2,102 N.M.
The Netherlands 227 (39) N.M. 213 37 N.M.
United Kingdom (6) 67 N.M. 122 271 (55)
Other countries (17) 22 N.M. 93 142 (35)
Holding and other
activities 8 (46) N.M. 95 (195) N.M.
Eliminations 4 12 (67) 18 10 80
Total operating earnings
before tax (951) 522 N.M. (46) 2,367 N.M.

Revenues geographically
Americas 3,566 4,510 (21) 13,267 16,340 (19)
The Netherlands 1,473 1,374 7 6,675 6,373 5
United Kingdom 2,629 3,144 (16) 11,777 13,692 (14)
Other countries 608 741 (18) 2,264 2,798 (19)
Holding and other
activities 85 88 (3) 256 244 5
Eliminations (51) (49) (4) (157) (176) 11
Total revenues 8,310 9,808 (15) 34,082 39,271 (13)

Revenues
Life insurance gross
premiums 4,590 6,080 (25) 19,795 24,210 (18)
Accident and health
insurance 503 475 6 1,997 2,122 (6)
General insurance 135 123 10 617 568 9
Total gross premiums 5,228 6,678 (22) 22,409 26,900 (17)
Investment income 2,644 2,633 0 9,965 10,457 (5)
Fee and commission income 437 495 (12) 1,703 1,900 (10)
Other revenues 1 2 (50) 5 14 (64)
Total revenues 8,310 9,808 (15) 34,082 39,271 (13)

INVESTMENTS GEOGRAPHICALLY

United
Americas Kingdom
USD GBP At December 31, 2008
Investments
1,436 39 Shares
83,846 4,915 Bonds
19,194 10 Loans
15,635 0 Other financial assets
679 0 Investments in real estate
120,790 4,964 Investments general account
0 17,360 Shares
0 12,675 Bonds
58,943 2,381 Separate accounts and investment funds
0 6,376 Other financial assets
0 1,077 Investments in real estate
58,943 39,869 Investments for account of policyholders

179,733 44,833 Investments on balance sheet
106,434 2,289 Off balance sheet investments third parties
286,167 47,122 Total revenue generating investments *)

Investments
94,444 4,859 Available-for-sale
19,194 10 Loans
0 0 Held-to-maturity
65,416 38,887 Financial assets at fair value through profit or loss
679 1,077 Investments in real estate
179,733 44,833 Total investments on balance sheet

INVESTMENTS GEOGRAPHICALLY

United
Americas Kingdom
USD GBP At December 31, 2007
Investments
2,386 48 Shares
98,834 4,104 Bonds
19,813 5 Loans
12,890 0 Other financial assets
755 0 Investments in real estate
134,678 4,157 Investments general account
0 23,291 Shares
0 13,360 Bonds
81,663 2,820 Separate accounts and investment funds
0 4,785 Other financial assets
0 1,839 Investments in real estate
81,663 46,095 Investments for account of policyholders

216,341 50,252 Investments on balance sheet
109,658 2,863 Off balance sheet investments third parties
325,999 53,115 Total revenue generating investments *)

Investments
104,391 4,080 Available-for-sale
19,813 5 Loans
0 0 Held-to-maturity
91,382 44,328 Financial assets at fair value through profit or loss
755 1,839 Investments in real estate
216,341 50,252 Total investments on balance sheet

(continued)

amounts
in
million
EUR
(unless
otherwise
stated)
Holding,
other
activities &
The United Other elimin- Total
At December 31, Americas Netherlands Kingdom countries ations EUR
2008
Investments
Shares 1,031 1,297 41 183 50 2,602
Bonds 60,247 18,298 5,161 4,827 20 88,553
Loans 13,792 10,416 10 1,116 0 25,334
Other financial
assets 11,235 112 0 117 0 11,464
Investments in
real estate 488 2,040 0 0 0 2,528
Investments
general account 86,793 32,163 5,212 6,243 70 130,481
Shares 0 6,416 18,225 167 (9) 24,799
Bonds 0 11,675 13,307 330 0 25,312
Separate accounts
and investment
funds 42,353 0 2,500 1,420 0 46,273
Other financial
assets 0 1,042 6,693 150 0 7,885
Investments in
real estate 0 0 1,131 0 0 1,131
Investments for
account of
policyholders 42,353 19,133 41,856 2,067 (9) 105,400

Investments on
balance sheet 129,146 51,296 47,068 8,310 61 235,881
Off balance sheet
investments third
parties 76,478 11,783 2,403 5,299 0 95,963
Total revenue
generating
investments *) 205,624 63,079 49,471 13,609 61 331,844

Investments
Available-for-sale 67,862 19,110 5,101 2,602 72 94,747
Loans 13,792 10,416 10 1,116 0 25,334
Held-to-maturity 0 0 0 2,269 0 2,269
Financial assets
at fair value
through profit or
loss 47,004 19,730 40,826 2,323 (11) 109,872
Investments in
real estate 488 2,040 1,131 0 0 3,659
Total investments
on balance sheet 129,146 51,296 47,068 8,310 61 235,881

amounts
in
million
EUR
(unless
otherwise
stated)
Holding,
other
activities &
The United Other elimin- Total
At December 31, Americas Netherlands Kingdom countries ations EUR
2007
Investments
Shares 1,621 1,997 66 181 70 3,935
Bonds 67,138 18,225 5,595 3,951 22 94,931
Loans 13,459 8,517 7 571 0 22,554
Other financial
assets 8,756 66 0 98 0 8,920
Investments in
real estate 513 2,008 0 0 0 2,521
Investments
general account 91,487 30,813 5,668 4,801 92 132,861
Shares 0 9,736 31,757 212 (24) 41,681
Bonds 0 10,628 18,216 248 0 29,092
Separate accounts
and investment
funds 55,474 0 3,845 2,165 0 61,484
Other financial
assets 0 990 6,525 104 0 7,619
Investments in
real estate 0 0 2,508 0 0 2,508
Investments for
account of
policyholders 55,474 21,354 62,851 2,729 (24) 142,384

Investments on
balance sheet 146,961 52,167 68,519 7,530 68 275,245
Off balance sheet
investments third
parties 74,491 13,476 3,903 3,355 0 95,225
Total revenue
generating
investments *) 221,452 65,643 72,422 10,885 68 370,470

Investments
Available-for-sale 70,913 19,163 5,563 2,310 98 98,047
Loans 13,459 8,517 7 571 0 22,554
Held-to-maturity 0 0 0 1,876 0 1,876
Financial assets
at fair value
through profit or
loss 62,076 22,479 60,441 2,773 (30) 147,739
Investments in
real estate 513 2,008 2,508 0 0 5,029
Total investments
on balance sheet 146,961 52,167 68,519 7,530 68 275,245

*) As of 2008, real estate for own use (both general account and for
account of policyholders) has been reclassified from revenue generating
investments to other assets. The comparative 2007 information has been
adjusted accordingly.

ASSETS AND CAPITAL GEOGRAPHICALLY
amounts
in
million
EUR
(unless
otherwise
stated)
United
Americas Kingdom The United Other Total
USD GBP Americas Netherlands Kingdom countries EUR

At December
31, 2008
Assets
business
216,558 52,038 units 155,607 63,811 54,633 10,473 284,524

Other 2,735
assets

Total assets on 287,259
balance sheet

Capital in
10,617 1,257 units 7,629 2,954 1,320 1,948 13,851

Total
capital
base 14,031

Other net
liabilities (180)

Total 13,851

At December
31, 2007

Assets
business
243,946 55,495 units 165,713 62,009 75,668 9,205 312,595

Other 1,525
assets

Total assets on 314,120
balance sheet

Capital in
19,056 2,166 units 12,945 3,079 2,954 1,413 20,391

Total
capital
base 21,394

Other net
liabilities (1,003)

Total 20,391

RECONCILIATION NON-GAAP MEASURES TO INCOME BEFORE TAX

EUR millions Notes Q4 2008 Q4 2007 % FY 2008 FY 2007 %

Net operating earnings (623) 399 N.M. 69 1,805 (96)
Income tax on operating
earnings (328) 123 N.M. (115) 562 N.M.
Operating earnings
before tax (951) 522 N.M. (46) 2,367 N.M.
Net gains and losses on
investments 136 281 (52) 35 746 (95)
Other income 1 2 (50) 6 214 (97)
Impairment charges (501) (17) N.M. (1,038) (76) N.M.
Other charges 1 0 N.M. (1) (182) 99
Policyholder tax 36 (26) N.M. (17) 8 N.M.
Income before tax (1,278) 762 N.M. (1,061) 3,077 N.M.

Currencies
Income statement items: average rate 1 EUR = USD 1.4660 (2007: USD
1.3683).
Income statement items: average rate 1 EUR = GBP 0.7961 (2007: GBP
0.6838).
Balance sheet items: closing rate 1 EUR = USD 1.3917 (2007: USD 1.4721).
Balance sheet items: closing rate 1 EUR = GBP 0.9525 (2007: GBP 0.7334).

Notes:
1) After deduction of preferred dividend and coupons on perpetuals.
2) Shareholders’ equity per share is calculated after deduction of the
preferred share capital of EUR 2.1 billion (at Dec. 31, 2007:
EUR 2.1 billion) and considering the number of treasury shares. The
number of common shares used in the calculation of
shareholders’ equity per share is 1,515 million (at Dec. 31, 2007:
1,500 million).

The interim condensed consolidated financial statements included in
Appendix III have been prepared in accordance with IAS 34 ‘Interim financial
reporting’. It does not include all of the information required for full
financial statements and should therefore be read together with the 2007
consolidated financial statements of AEGON N.V. as included in AEGON’s Annual
Report over 2007.

The interim condensed consolidated financial statements included in
Appendix III have been prepared in accordance with the historical cost
convention as modified by the revaluation of investment properties and those
financial instruments (including derivatives) and financial liabilities that
have been measured at fair value.

As of January 1, 2008, AEGON reclassified, on the face of its balance
sheet, the real estate for own use from Investments general account and
Investments for account of policyholders to Other assets and receivables. In
addition, AEGON reclassified cash flows from real estate held for own use as
cash flows from operating activities to investing activities, to the extent
that they relate to real estate that is occupied by AEGON’s own employees.
The comparative 2007 information has been adjusted accordingly. This change
reduced Investments general account by EUR 330 million and Investments for
account of policyholder by EUR 141 million with an offsetting increase in
Other assets and receivables of EUR 471 million.

All other accounting policies and methods of computation applied in the
interim financial statements are the same as those applied in the 2007
consolidated financial statements, which were prepared in accordance with the
International Financial Reporting Standards (IFRS) as adopted by the European
Union. For AEGON this is equal to IFRS as published by the International
Accounting Standards Board.

The published figures in these interim financial statements are
unaudited.

Condensed consolidated income statement

The result from financial transactions in 2008 amounted to a loss of EUR
28.2 billion compared to a gain of EUR 4.5 billion in 2007. This decrease
primarily reflects losses on investments for account of policyholders. These
losses are offset by a decrease in the benefits and expenses line which
decreases from an amount of EUR 41.8 billion in 2007 to EUR 7.0 billion in
2008.

Capital and funding

The capital management section, on page 3 provides information on
issuances, repurchases and repayments of debt and equity securities during
the current interim reporting period.

Investment impairments

Page 6 of the results release includes information on net impairments
recognized in Q4 of 2008.

Condensed consolidated statement of
changes in equity

Page 3 of the results release includes information on the movements in
shareholder’s equity.

Critical accounting estimates

Fair value measurement

Fair value measurement of financial assets and liabilities has been
subject of industry-wide discussions between preparers, regulators and users
of financial statements. The distressed markets in the second half of 2008
resulted in challenges related to the fair value measurement of financial
instruments because of far less liquidity in the market, forced sales
resulting from deleveraging activities and asset/liability programs.

The table below shows a detailed breakdown of debt instruments held at
fair value (amounts in EUR million):

Financial Assets 2008
Quotations Valuation Total
in active technique
market and not based
valuation on market
technique observable
based on inputs
market
observable
inputs
Debt instruments held at fair
value:
Assets Backed Securities -
Housing -Related 1,565 312 1,877
Assets Backed Securities - Other 5,982 182 6,164
Residential Mortgage Backed
Securities 4,592 331 4,923
Commercial Mortgage Backed
Securities 4,643 74 4,717
Financial 23,287 95 23,382
Industrial 26,233 54 26,287
Utility 6,463 0 6,463
Sovereign exposure 20,934 18 20,952
Total 93,699 1,066 94,765

Financial Assets 2007 Quotations Valuation Total
in active technique
market and not based
valuation on market
technique observable
based on inputs
market
observable
inputs
Debt instruments held at fair
value:
Assets Backed Securities -
Housing -Related 2,934 13 2,947
Assets Backed Securities - Other 7,387 180 7,567
Residential Mortgage Backed
Securities 5,331 0 5,331
Commercial Mortgage Backed
Securities 4,902 1 4,903
Financial 25,228 122 25,350
Industrial 26,464 34 26,498
Utility 6,420 3 6,423
Sovereign exposure 19,428 26 19,454
Total 98,094 379 98,473

Equity market sensitivities

Fluctuations in the equity markets have affected AEGON’s profitability,
capital position and sales of equity related products in the past and may
continue to do so. Exposure to equity markets exists in both assets and
liabilities. Equity exposure exists through direct equity investments,
guarantees on minimum return or accumulation guarantees in insurance and
investment contracts and impact on fee income related to charges on
policyholder account balances.

A significant assumption related to estimated gross profits on variable
annuities and variable life insurance products in the United States and some
of the smaller country units, is the annual long-term growth rate of the
underlying assets. As equity
markets do not move in a systematic manner, assumptions as to the
long-term growth rate are made after considering the effects of short-term
variances from the long-term assumptions (a reversion to the mean
assumption). The reconsideration of this assumption may affect the original
DPAC or VOBA amortization schedule, referred to as DPAC or Value of Business
Acquired (VOBA) unlocking. The difference between the original DPAC or VOBA
amortization schedule and the revised schedule, which is based on estimates
of actual and future gross profits, is recognized in the income statement as
an expense or a benefit in the period of determination. At September 30,
2008, the reversion to the mean assumptions for variable
products, primarily variable annuities in the United States were: gross
long-term equity growth rate of 9%; gross short-term growth rate of 15%. The
reversion period for the short-term rate is five years. The significant
decreases in equity markets in Q4 2008 (S&P 500: -23%) resulted in a 25%
gross short-term growth rate. This rate was unlocked to a 15% annual
short-term growth rate which led to a pre tax charge of approximately USD 566
million.

The results of equity sensitivity tests are non-linear. The main reason
for this is due to equity options sold to clients that are embedded in some
of AEGON’s products and that more severe scenarios could cause accelerated
DAC amortization and guaranteed minimum benefits provisioning, while moderate
scenarios may not.

Estimated Estimated effects
Sensitivity analysis 2008 . effects on on
net income equity
EUR millions
Immediate change of

Equity increase 20% 354 536
Equity decrease 20% (764) (840)

Guarantees valuation

Guarantees embedded in certain pension, life and variable annuity
contracts of AEGON USA and AEGON The Netherlands are measured at fair value.
These contracts include long-term guarantees that are embedded in the
contracts which for accounting purposes are valued separately.

For financial reporting purposes AEGON distinguishes between the
following types of minimum guarantees:

- Financial guarantees: these guarantees are treated as bifurcated
embedded derivatives, valued at fair value and presented as derivatives;

- Total return annuities: these guarantees are not bifurcated from their
host contracts, valued at fair value and presented as part of insurance
contracts;

- Life contingent guarantees in the US: these guarantees are not
bifurcated from their host contracts, valued in accordance with insurance
accounting and presented together with insurance liabilities; and

- Life contingent guarantees in The Netherlands: these guarantees are not
bifurcated from their host contracts, valued at fair value and presented
together with the underlying insurance contracts which are also valued at
fair value.

Fair value movements of guarantees and related hedges are recognized in
operating earnings; the fair value movements are excluded from underlying
earnings.

Fair value guarantees contributed a net loss before tax of EUR 139
million (Q4 2007: EUR 134 million) to operating earnings. In Q4 2008 the
total guarantee reserves increased by EUR 3.0 billion including an offset
related to the impact of credit spread. Hedges offset related to this
increase amounted to EUR 2.9 billion.

Business combinations

On February 26, 2008, AEGON has entered into an agreement to acquire 100%
of Ankara Emeklilik Anonim Sirketi (Ankara Emeklilik), a Turkish life
insurance and pension provider, from Polis Bakim ve Yardim Sandigi. The
transaction, subject to regulatory approval in Turkey, was closed in the
third quarter of 2008. Ankara Emeklilik has a well-established presence in
the Turkish life insurance and private pension market, with over 54,000
pension fund members and approximately EUR 35 million in assets under
management (Source: Pension Monitoring Center - February 18, 2008). Ankara
Emeklilik sells its products and services through a variety of different
channels and has an agreement in place to distribute through a nationwide
network of 236 branches belonging to Sekerbank.

On April 21, 2008, AEGON and China’s Industrial Securities have completed
the establishment of their asset management joint venture following the
recent final approval by the regulatory authorities. Under the agreement,
AEGON has acquired a 49% interest in Industrial Fund Management Company
(IFMC), a Chinese mutual fund manager with approximately EUR 3 billion assets
under management as of March 31, 2008. Industrial Securities, one of China’s
leading securities companies, will retain the remaining 51% of IFMC. The
initial agreement was announced on May 28, 2007. The joint venture will be
renamed AEGON Industrial Fund Management Company. Both shareholders will be
equally represented in the Board of Directors. The current management team,
led by CEO Yang Dong, will continue to lead AEGON Industrial FMC with the
objective of becoming one of the top players in the Chinese fund management
market. Over the past two years, assets under management have increased from
EUR 600 million to EUR 3 billion.

On June 30, 2008, AEGON completed the 100% purchase of the registered
capital of UNIQA Asset Management Company and Heller-Saldo 2000 Pension Fund
Management Company, both Hungarian entities, from UNIQA Insurance Company.

The agreement was signed on February 21, 2008 and it was subject to
regulatory approval which was subsequently received. Following the
acquisition, assets under management increased by approximately EUR 300
million (Source: Hungarian Financial Supervisory Authority (HFSA) 3Q 2007
figures).

On June 30, 2008, AEGON Hungary Pension Fund merged with ‘Uniqa and
Public Service Pension Fund’. As a result of the merger, AEGON is the second
largest pension fund provider in Hungary.

In July 2008, AEGON finalized the acquisition of the Turkish life
insurance and pension provider Ankara Emeklilik.

On September 30, 2008, AEGON has signed an agreement to create a new
joint venture with Caja Navarra to distribute health products.

In Q3 2008, AEGON Religare started life operations in India. AEGON and
Ranbaxy Promoter group jointly entered the life insurance business in India.
AEGON holds a 26% stake in the life company.

In October 2008, AEGON signed an agreement to acquire a 50% stake in
Brazilian life insurer Mongeral SA Seguros e Prevedencia, further
strengthening the company’s position in the fast-growing Latin American
market.

On October 31, 2008, AEGON has completed the acquisition of a 50% stake
in the life insurance and pension company of the Catalan-based savings bank
Caixa Terrassa. The partnership gives AEGON access for the first time to
Catalonia, one of Spain’s wealthiest regions with a population of more than
seven million people.

In December 2008, AEGON has completed the acquisition of the Polish
pension company PTE Skarbiec Emerytura SA, after receiving final regulatory
approval. AEGON initiated the transaction in June 2007 as part of a broader
strategy to strengthen the company’s businesses in Central & Eastern Europe.

On June 30, 2008, AEGON completed the planned merger of its pension fund
management company PTE AEGON with BRE Bank’s PTE Skarbiec-Emerytura. As part
of the merger agreement, AEGON acquired BRE Bank’s shareholding in the newly
combined pension fund. With the acquisition, AEGON became Poland’s fifth
largest pension fund manager, with a market share of approximately 6%. The
combined fund has some 800,000 members and more than EUR 1.8 billion in
assets under management.

Commitments and contingencies

There have been no material changes in contingent assets and liabilities
reported in the 2007 consolidated financial statements of AEGON.

Capital management

On December 1, 2008 AEGON completed the transaction to secure EUR 3
billion in additional core capital from Vereniging AEGON, funded by the Dutch
State. The additional capital for AEGON is part of broader support that the
Dutch government agreed to make available to fundamentally sound and viable
banks and insurers in the Netherlands.

AEGON accessed the capital through its largest shareholder, Association
AEGON, which was set up precisely for the purpose of protecting the long-term
interest of the company’s stakeholders.

The additional funds from Vereniging AEGON strengthened AEGON’s capital
buffer - an important safeguard against any further downturn in global equity
and credit markets.

In return for the additional capital, AEGON issued special non-voting
securities to Vereniging AEGON. Vereniging AEGON will use income from these
securities to service its loan from the Dutch State. Of the total EUR 3
billion, AEGON has the right to return EUR 1 billion to the State at any
point before December 1, 2009 should financial markets improve and the
company decides it no longer needs this extra EUR 1 billion in capital.

Importantly, this arrangement will ensure there is no change to AEGON’s
overall ownership structure and will avoid dilution of voting rights for
existing shareholders. The Dutch State will not become a shareholder in
AEGON, but the government has appointed two representatives to the company’s
Supervisory Board.

Events after the balance sheet date

In January 2009, AEGON has agreed to acquire Banca Transilvania’s 50%
shareholding in BT AEGON, the two companies’ jointly-owned Romanian pension
business. AEGON will pay approximately EUR 11 million for the stake, which
will give AEGON full control of the pension business.

AEGON and Banca Transilvania (BT) will remain partners. As part of the
transaction, the two companies will sign a distribution agreement covering
both life insurance and pension products.

As an international life insurance, pension and investment company based
in The Hague, AEGON has businesses in over twenty markets in the Americas,
Europe and Asia. AEGON companies employ approximately 31,500 people and have
over 40 million customers across the globe.

Key figures 2008 2007

Underlying earnings
before tax EUR 1.57 billion EUR 2.64 billion
New life sales EUR 2.63 billion EUR 3.27 billion

Gross deposits EUR 40.75 billion EUR 44.53 billion

Revenue generating EUR 332 billion EUR 370 billion
investments
(At December 31)

Financial supplement:

AEGON’s Q4 2008 Financial supplement is available on
www.aegon.com.

Video interview Alex Wynaendts: available on www.aegon.com at 7.45
a.m.

Record date:

The record date for attending and voting at the Annual General Meeting of
Shareholders of AEGON N.V. is March 23, 2009.

Disclaimers

Cautionary note regarding non-GAAP measures

This press release includes certain non-GAAP financial measures: net
operating earnings, operating earnings before tax, (net) underlying earnings
and value of new business. The reconciliation of net operating earnings and
operating earnings before tax to the most comparable IFRS measures is
provided on page 35. A reconciliation of (net) underlying earnings to
operating earnings before tax is provided on page 26.

Value of new business is not based on IFRS, which are used to report
AEGON’s quarterly statements and should not be viewed as a substitute for
IFRS financial measures.

AEGON believes that these non-GAAP measures, together with the IFRS
information, provide a meaningful measure for the investment community to
evaluate AEGON’s business relative to the businesses of our peers.

Local currencies and constant currency exchange rates

This press release contains certain information about our results and
financial condition in USD for the Americas and GBP for the United Kingdom,
because those businesses operate and are managed primarily in those
currencies. Certain comparative information presented on a constant currency
basis eliminates the effects of changes in currency exchange rates. None of
this information is a substitute for or superior to financial information
about us presented in EUR, which is the currency of our primary financial
statements.

Forward-looking statements

The statements contained in this press release that are not historical
facts are forward-looking statements as defined in the US Private Securities
Litigation Reform Act of 1995. The following are words that identify such
forward-looking statements: believe, estimate, target, intend, may, expect,
anticipate, predict, project, counting on, plan, continue, want, forecast,
should, would, is confident, will, and similar expressions as they relate to
our company. These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to predict.
We undertake no obligation to publicly update or revise any forward-looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which merely reflect company expectations at the
time of writing. Actual results may differ materially from expectations
conveyed in forward-looking statements due to changes caused by various risks
and uncertainties. Such risks and uncertainties include but are not limited
to the following:

- Changes in general economic conditions, particularly in the United
States, the Netherlands and the United Kingdom;

- Changes in the performance of financial markets, including emerging
markets, such as with regard to:

- The frequency and severity of defaults by issuers in our fixed income
investment portfolios; and

- The effects of corporate bankruptcies and/or accounting restatements on
the financial markets and the resulting decline in the value of equity and
debt securities we hold;

- The frequency and severity of insured loss events;

- Changes affecting mortality, morbidity and other factors that may
impact the profitability of our insurance products;

- Changes affecting interest rate levels and continuing low or rapidly
changing interest rate levels;

- Changes affecting currency exchange rates, in particular the EUR/USD
and EUR/GBP exchange rates;

- Increasing levels of competition in the United States, the Netherlands,
the United Kingdom and emerging markets;

- Changes in laws and regulations, particularly those affecting our
operations, the products we sell, and the attractiveness of certain products
to our consumers;

- Regulatory changes relating to the insurance industry in the
jurisdictions in which we operate;

- Acts of God, acts of terrorism, acts of war and pandemics;

- Changes in the policies of central banks and/or governments;

- Litigation or regulatory action that could require us to pay
significant damages or change the way we do business;

- Customer responsiveness to both new products and distribution channels;

- Competitive, legal, regulatory, or tax changes that affect the
distribution cost of or demand for our products;

- Our failure to achieve anticipated levels of earnings or operational
efficiencies as well as other cost saving initiatives; and

- The impact our adoption of the International Financial Reporting
Standards may have on our reported financial results and financial condition.

Further details of potential risks and uncertainties affecting the
company are described in the company’s filings with Euronext Amsterdam and
the US Securities and Exchange Commission, including the Annual Report on
Form 20-F. These forward-looking statements speak only as of the date of this
document. Except as required by any applicable law or regulation, the company
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein to
reflect any change in the company’s expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based.

Group Corporate Communications & Investor Relations

Media relations
Phone: +31-(0)70-344-8956
E-mail: gcc-ir@aegon.com

Investor relations
Phone: +31-(0)70-344-8305
or 877-548-9668 - toll free USA only
E-mail: ir@aegon.com

Media conference call
8:00 am CET
Audio webcast on www.aegon.com

Analyst & investor call
3:00 pm CET
Audio webcast on www.aegon.com
Call-in numbers (listen only):
USA: +1-480-629-1990
UK: +44-208-515-2301
NL: +31-20-796-5332

Website: www.aegon.com

Source: AEGON N.V.