Dividend policy and payments

AEGON recognizes the importance of a clear, stable and coherent dividend policy. Dividend payments to shareholders depend on the company's cash flow and capital position.

AEGON's policy is that the total dividend for the year should be composed of two parts:

• An interim dividend, announced at the same time as the company's second quarter results in August
• A final dividend, proposed in February with AEGON's fourth quarter results and voted on at the annual General Meeting of Shareholders, usually in April.

Payment of the interim and final dividends is made in either cash or stock.

Though the company's capital position remains strong, cash flows during the year were adversely affected by higher than average impairments. As a result, AEGON did not declare either an interim or a final dividend for 2009.