Introduction to Aegon - August 2017

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Presentation of Aegon's business, including history, markets, performance, sustainability and more.

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  • Our two main brands are Aegon and Transamerica.
    Aegon USA has recently grouped its various businesses under a single brand name: Transamerica.
    Transamerica’s roots date back to the 1800s.
    Aegon USA was formed in 1989 bringing together three insurance groups owned by Aegon N.V.; Life Investors (Cedar Rapids), Monumental Life (Baltimore); and National Old Line (Little Rock).
    Important US acquisitions in the last 15 years:
    Providian in 1997
    Transamerica in 1999
    JC Penney in 2001
    Merrill Lynch Life in 2007
  • Our business in the Americas is focused on helping its customers build a future they can count on.
    Transamerica’s key businesses are life insurance, investments and retirement.
    Aegon Americas includes operations in the United States, Canada*), and Latin America – in two business divisions:
    Life & Protection
    Investments & Retirement
    Aegon in the Americas employs approximately 12,000 employees.
    In the US, Transamerica is under the top 10 of largest providers of variable annuities, universal life and term life.


    *) Aegon has reached an agreement to sell its Canadian life insurance, asset management and mutual fund operations to Wilton Re pending regulatory approval.
  • In the Americas, Aegon works mainly under the Transamerica brand.
    At Aegon Americas, the purpose of helping people take responsibility for their financial future is fulfilled in two ways:
    By protecting individuals and families (life insurance, supplemental health and many other protection solutions); and
    By helping people save, invest and protect their wealth to and through retirement (mutual funds, variable annuities, retirement plans and planning).

  • Introduction to Aegon - August 2017

    1. 1. Helping people achieve a lifetime of financial security An introduction to Aegon The Hague, August 2017
    2. 2. 2 Aegon at a glance Key facts & figures 3 Our strategy Helping people achieve a lifetime of financial security 5 Our value chain Creating a positive impact 10 International presence Businesses in more than 20 countries 18 Americas Serving the pre- and post-retirement markets 21 Europe One of the leading brands in the financial services industry 23 Asia A key long-term growth market 28 Aegon Asset Management A global investment manager 30 Aegon’s Management Board 32 An introduction to Aegon Content
    3. 3. 3Aegon at a glance Aegon at a glance € 1.9 billion 2016 Underlying earnings before tax 60% Americas 32% Europe 1% Asia 7% AAM Life insurance, pensions & asset management >26 million customers 2016 Total sales of €12 billion1) 2016 Over 29,000 employees June 30, 2017 Revenue-generating investments € 817 billion June 30, 2017 € 59 billion paid in claims & benefits 2016 1) Sales represents new life sales + accident & health premiums + general insurance premiums + 1/10 of gross deposits
    4. 4. 4Aegon at a glance For more than 170 years Customers at the heart of everything we do <1900 Aegon’s roots date back to the first half of the 19th century 1983: Joining forces Merger of Dutch insurers Ago and Ennia; Aegon established >1983 International expansion to over 20 markets in the Americas, Europe and Asia Recent history Executing our ambitious customer- centric Transform Tomorrow strategy
    5. 5. 5 Customers at the heart of our business New technologies and digital transformation Changing demographics; individuals having greater responsibility for their financial security Persistently low interest rates Economic and financial uncertainty Increased regulation of financial services industry Attracting and retaining talented employees Our strategy Our operating environment
    6. 6. 6 From working life …through guidance and advice… …into retirement Our strategy To help people achieve a lifetime of financial security Living up to our purpose
    7. 7. 7Our strategy Providing financial solutions that have never been more needed To be a trusted partner at every stage of life Protection We protect what’s important to our customers, their families, their health and their homes Accumulation We help our customers save and invest for the future At & after retirement We provide our customers with a stable income in retirement, helping to meet costs of care and securing their families’ future
    8. 8. 8Our strategy To continue for the next 170 years and beyond A clear and steady strategy Purpose Ambition Commitment Values To be a trusted partner for financial solutions at every stage of life To help people achieve a lifetime of financial security Working together Exceeding expectations Bringing clarity To act responsibly and to create positive impact for all our stakeholders Loyal customers Operational excellence Optimize portfolio Empowered employees Our strategic objectives support our ambition to be a trusted partner for financial solutions
    9. 9. 9 Customers Sales & distribution Pay-in phase Pay-out phase We develop products and services, and seek to build a lifelong relationship with our customers. We price our products and services by assessing risks such as movements in financial markets, and changes in mortality and morbidity We offer our products directly to our customers or through brokers, banks and other intermediaries who receive a fee or commission from us or our customers. As an insurer, we underwrite our products and services to ensure we can assess and manage risk, and meet our obligations. Customers make deposits or pay premiums on our products, which we then invest to pay benefits when the time comes. As the money we receive is often spread over a number of years, whereas most marketing and sales costs are immediate, these costs are included on our balance sheet and gradually reduced, or amortized, over time. Products such as pensions and annuities mature and enter a pay-out phase. With life insurance, this happens when a claim is made. Beneficiaries receive either a lump sum or a series of regular payments over a specified period of time. Our value chain Putting the customer at the heart of everything we do Aegon’s business model
    10. 10. 10 Output Benefits* €59 billion in 2016 Salaries €2.3 billion in salaries and additional benefits Returns €1.17 billion total return to investors Revenues €4.3 billion in commissions and payments for goods & services Community investment €759 million in local taxes and community investment Stakeholders Customers Employees Investors Business partners Society Input Premiums & deposits Talent and time Capital Distribution Our value chain How we create a positive impact at every stage of our business Our value chain Asset mgt Advice & guidance To help people achieve a lifetime of financial security Protection & guarantees Product administration * Full year 2016 numbers; Source: Aegon 2016 Review
    11. 11. 11 • By ensuring that customer-centricity is part of our DNA • By being accessible online • By providing optimal products and services • Through innovative new platforms Our value chain …for our customers How we create and share value… Serving over 26million customers globally 96% of Aegon businesses offer products & services online €59billion paid out in policyholder claims and benefits in 2016
    12. 12. 12 • 86,000 people surveyed since 2012 - In 15 countries • ARRI assesses how well workers view their level of retirement preparedness • ARRI increased slightly from 5.8 in 2016 to 5.9 in 2017 - Still at a level that indicates that people are not doing enough to prepare for retirement Our value chain Source: The Aegon Retirement Readiness Survey Note: The ARRI ranks retirement readiness on a scale from 0 to 10. A high index score is considered to be between 8 and 10, a medium score between 6 and 7.9, and, a low score being less than 6. For more information about the ARRI please click here. Research shows that preparedness for retirement is still low Aegon Retirement Readiness Index (ARRI) 5.2 4.9 5.8 5.9 5.8 5.9 2012 2013 2014 2015 2016 2017 Aegon Retirement Readiness Index Global score by year
    13. 13. 13 • By providing worthwhile employment • By embracing diversity • By enabling professional development • By helping colleagues with their own financial futures Our value chain …for our employees How we create and share value… 97%of our workforce take part in standardized performance appraisals1) Over €600per employee spent on training in 2016 23,353hours granted to employees for volunteer activities in 2016 Source: Aegon 2016 Review 1) Senior management – 97%; middle management – 97%; other grades – 100%
    14. 14. 14 • Through shareholder engagement • By returning capital to our shareholders • By addressing underperformance • By developing long-term value Our value chain …for our investors How we create and share value €24.2 billion Total capitalization at the end of second quarter 2017 AA-financial strength rating by Standard & Poor’s International shareholder base; traded in Amsterdam & New York
    15. 15. 15 • Through our joint ventures and strategic partners • Through customer insight • With our distribution partners • Through our investments in start-ups Our value chain …for our business partners How we create and share value… Strong & complementary joint venture partners “Omni-channel” approach towards our customers 17Investments in start-ups by our dedicated investment fund Transamerica Ventures at June 30, 2017
    16. 16. 16 • By supporting local communities - Providing support through community investments to vulnerable people • By encouraging our employees to add value via volunteer work • By our sport sponsorships - We are promoting a healthy lifestyle Our value chain …in our local communities How we create and share value… 95%of our businesses offer inclusive insurance products €8.8million donations made to charities and other good causes in 2016 €1.03million is value of voluntary work undertaken by our employees in 2016
    17. 17. 17Our value chain In brief How we create and share value 4,800 1,600 119 309 14.4 213 43.3 106 57.4 Affordable housing International dev. banks Green bonds Renewable energy Sustainable timber Care homes elderly Micro-finance Social Green RMBS €7.2 billion impact investments EUR millions, 2016 49% 20% 10% 15% 6% Americas NL UK Rest of Europe Rest of the world Our shareholder base May 2017 In 2016, the value of voluntary work undertaken by employees was EUR 1.03 million 6.3 6.1 8.6 8.8 2013 2014 2015 2016 Supporting our local communities EUR millions
    18. 18. 18 Aegon’s international presence International presence
    19. 19. 19International presence In more than 20 countries A strong international presence Aegon businesses or Aegon Insights Joint ventures
    20. 20. 20International presence Our global reporting structure United Kingdom & Ireland  Life  Pensions Europe Spain & Portugal  Strategic partnerships with Banco Santander and Liberbank (Spain) The Netherlands  Life & Savings  Pensions  Non-life  Distribution Central & Eastern Europe  Czech Republic  Hungary  Poland  Romania  Slovakia  Turkey Americas United States  Life  Accident & health  Retirement plans  Mutual funds  Variable annuities  Fixed annuities  Stable Value Solutions Latin America  Strategic partnerships (Brazil, Mexico) Aegon Asset Management  Americas  Netherlands  United Kingdom  Rest of the world  Strategic partnerships (China, France) Asia  In Hong Kong and Singapore: high net worth businesses  Aegon Insights  Strategic partnerships (China, India & Japan)
    21. 21. 21Americas 1) Sales represents new life sales + accident & health premiums + general insurance premiums + 1/10 of gross deposits A few key indicators The Americas at a glance 174 218 280 50 393 172 96 1 Life Accident & health Retirement plans Mutual funds Variable annuities Fixed annuities Stable Value Solutions Latin America $ 1.4 billion 2016 Underlying earnings before tax by line of business 6.2 5.8 6.0 2014 2015 2016 $ 6.0 billion 2016 Sales1) $ 474 billion Revenue-generating investments June 30, 2017
    22. 22. 22Americas Transamerica is Aegon’s main brand in the US The Americas at a glance Operations in the United States, Brazil & Mexico In the US, among the top 10 largest providers of variable annuities, universal life and term life Over 11,300 employees June 30, 2017 Diverse & targeted distribution to better align with its 13 million customers in the US1) Primary sponsor of US professional golfer Zach Johnson 1) Source 2016 Review
    23. 23. 23Europe A few key indicators Europe at a glance 1) Sales represents new life sales + accident & health premiums + general insurance premiums + 1/10 of gross deposits 378 216 34 27 Life Pensions Non-life Other € 655 million 2016 Underlying earnings before tax by line of business 1.4 1.6 1.7 2014 2015 2016 € 1.7 billion 2016 Sales1) € 265 billion Revenue-generating investments June 30, 2017
    24. 24. 24Europe One of the leading brands in the Dutch financial sector Europe at a glance Primary sponsor of Dutch Rowing Association Headquartered in The Hague; offices in Leeuwarden and Groningen Over 4,400 employees June 30, 2017 In the Netherlands, Aegon is the #1 provider of group pensions and the #6 in individual life Using a variety of distribution channels to help customers access products and services as best suits their needs
    25. 25. 25Europe Aegon UK enables customers to create the tomorrow they want Europe at a glance Aegon UK’s main offices are in Edinburgh and London Approximately 3,400 employees June 30, 2017 In the UK, Aegon focuses on retirement, workplace savings and protection Leading position for award-winning retirement platform with GBP 107 billion1) in assets under administration Lead sponsor partner of British tennis 1) June 30, 2017
    26. 26. 26Europe Growth potential in Central & Eastern Europe Europe at a glance Present in Czech Republic, Hungary, Poland, Romania, Slovakia & Turkey Over 2,300 employees June 30, 2017 #1 In household insurance in Hungary Successful Aegon Direct portal for non- life in Hungary Aegon Czech Republic is sponsor of ice speed skater Martina Sáblíková
    27. 27. 27Europe Spain & Portugal – key markets with strong partnerships Europe at a glance 600 employees June 30, 2017 In Spain, Aegon has established a reputation as a preferred provider of protection products Online distribution is increasingly important in order to connect with customers in Spain & Portugal Distribution through strong partnerships with banks: Banco Santander & Liberbank
    28. 28. 28Asia A few key indicators Asia at a glance 1) Sales represents new life sales + accident & health premiums + general insurance premiums + 1/10 of gross deposits 61 1 -39 High net worth businesses Aegon Direct & Affinity Marketing Services Strategic partnerships $ 23 million 2016 Underlying earnings before tax by line of business 252 269 194 2014 2015 2016 $ 194 million 2016 Sales1) $ 8.9 billion Revenue-generating investments June 30, 2017
    29. 29. 29Asia A key long-term growth market for Aegon Asia at a glance Active with TLB, Aegon Insights, and joint ventures in China, India, Japan, serving more than 650,000 customers in 20161) Approximately 1,500 employees June 30, 2017 (Excluding agents) Leading position in India with online insurance Aegon’s digital business GoBear, Asia's only impartial metasearch engine for financial products, Is one of Asia's fastest-growing fintech startups Aegon’s regional office in Hong Kong oversees and supports operations throughout the region 1) Source 2016 Review
    30. 30. 30Aegon Asset Management A few key indicators Aegon Asset Management at a glance 55 14 30 -4 54 Americas Netherlands UK Rest of the world Strategic partnerships € 149 million 2016 Underlying earnings before tax by region 1.9 3.4 4.6 2014 2015 2016 € 4.6 billion 2016 Sales € 309 billion Total assets under management June 30, 2017
    31. 31. 31Aegon Asset Management A global investment manager for institutional, wholesale and retail clients Aegon Asset Management at a glance Businesses and partnerships in US, the Netherlands, UK, France, Central & Eastern Europe and Asia Approximately 250 dedicated investment professionals worldwide June 30, 2017 A robust investment performance track record underlined by numerous industry awards, including various Morningstar awards Global platform of solutions & strategies, including fixed income, equities, real estate and multi asset solutions Operating under five brands catering for distinctive customer value propositions
    32. 32. 32 Alex Wynaendts Chief Executive Officer Allegra van Hövell-Patrizi Chief Risk Officer Mark Mullin CEO Americas Marco Keim CEO Continental Europe Adrian Grace CEO UK Carla Mahieu Global Head HR Onno van Klinken General Counsel Sarah Russell CEO Asset Management Mark Bloom Chief Technology Officer Appendix – Management Board Note: Executive Board consists of Chief Executive Officer and Chief Financial Officer. Aegon’s Management Board Chief Financial Officer Matt Rider
    33. 33. 33Appendix – strategy support Conduct research, educate the public and lead a global dialogue on retirement security Committed to financial education Helping people achieve a lifetime of financial security Publication of original research regarding: retirement, longevity, population aging, healthcare coverage and health & wellness International presence Established Centers for longevity and retirement in the Netherlands, the US and Brazil Research publication The Centers for longevity and retirement are a collaboration of experts from Aegon’s businesses in Europe, the Americas and Asia Partnering up Building relationships with respected partners in the field of longevity, retirement and health Leveraging expertise

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