In 2009, AEGON retained strong financial strength ratings from Standard &Poor's, Moody's and Fitch. Consistent with the credit rating agencies' overall outlook for the industry, AEGON's financial strength ratings continue to carry a negative outlook.
Financial strength ratings are important to AEGON's core business model. The competitive position of an insurer is often determined by its ability to pay benefits and claims. The market gauges an insurer's ability to make these payments based on its financial strength ratings.
At the end of 2009, the Fitch, Moody's and Standard & Poor's (S&P) insurance financial strength ratings (IFSR) and ratings outlook for AEGON's primary life insurance companies in its leading country units were as follows:
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AEGON USA
IFSR
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AEGON The Netherlands
IFSR
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AEGON Scottish Equitable
IFSR
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AEGON N.V.
Senior debt rating
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S&P rating
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AA-
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AA-
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AA-
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A-
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S&P outlook
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Negative
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Negative
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Negative
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Negative
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Moody's rating
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A1
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NR[1]
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NR[1]
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A3
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Moody's outlook
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Negative
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Negative
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Fitch rating
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AA
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NR[1]
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NR[1]
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A
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Fitch outlook
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Negative
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Negative
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[1] NR - not rated
During 2009, Moody's lowered its senior debt rating for AEGON N.V. to A3 with a negative outlook, Fitch lowered its senior debt rating to A with a negative outlook, while Standard & Poor's lowered its senior debt rating to A-. The outlook for all three credit ratings remained negative. At the same time, Moody's, Fitch and S&P also lowered the insurance financial strength ratings of AEGON USA by one notch, to A1, AA and AA-, respectively.