Refining long-term strategy

Refining AEGON's long-term strategy

In June 2008, AEGON set out an ambitious five-year plan to increase returns and grow the company's businesses. This plan - 'Unlocking the Global Potential' - is based on three strategic objectives:

 

  • 1. To reallocate capital toward businesses with higher growth and return prospects
  • 2. To improve growth and returns from AEGON's existing businesses
  • 3. To manage AEGON as an international company.

 

As part of these objectives, AEGON's aim has been to further reduce risk and lessen the company's overall exposure to fluctations in world financial markets.

 

In 2009, 'Unlocking the Global Potential' was refined to take into account the change in market conditions since the global financial crisis.

 

As part of this approach, AEGON intends to:

 

  • Maintain efforts to direct capital to areas that offer higher returns and strong growth prospects. For the time being, AEGON will not enter new countries, but instead will concentrate efforts on strengthening its position in markets where the company already has developing operations.
  • Focus on improving growth and returns from existing businesses, with an added emphasis on continuing measures to reduce risk and lower operating costs.
  • Maintain the objective of managing AEGON as a single, international company.

 

As a result of measures implemented in 2009, AEGON marked an important milestone at the end of November with the repayment of one-thire of the EUR 3 billion of capital support the company received from the Dutch government at the height of the financial crisis.  AEGON's priority is to repay the remaining EUR 2 billion as soon as it is feasible and responsible to do so.   

 

Read more about AEGON's long-term strategy and the company's response to the global financial crisis.

 

Adapting to the crisis - AEGON has worked throughout the crisis to retain the trust and confidence of its customers, shareholders and other stakeholders by maintaining open and transparent financial communication, and by continuing to provide a range of products and services suited to the changing economic circumstances. Throughout 2009, AEGON's country and business units continued with initiatives designed to explain to customers, investors and employees both the impact of the crisis and the steps the company has taken to deal with its effects.

In some cases, AEGON companies have either introduced new products or modified existing ones to meet customers' changing needs. As part of this approach, AEGON has extended its variable annuities business, using the company's existing expertise in the United States to offer products to customers in the United Kingdom, Japan, France and the Netherlands. Variable annuities provide savers a guaranteed income in retirement as well as investment gains when financial markets rise.

 

Given the current uncertain market environment, AEGON companies launched a number of initiatives in 2009 aimed at helping customers to:

 

  • Better manage their retirement planning
  • Renew confidence in the financial markets
  • Reduce anxiety associated with fluctuations in financial markets

 

And, avoid taking action that might have a negative, long-term effects on the value of their savings and investments.