UK performance summary

AEGON UK new business growth shows resilience in first quarter

AEGON NV has today reported on its results for the first quarter of 2009.

Within this, AEGON today reports resilient business performance for its UK operations for the first quarter of 2009, despite challenging market conditions.

New life and pensions business lower by 6%

• AEGON UK reports total new life and pensions business for the first quarter 6% lower than the same period in 2008 at £275m annual premium income compared with £291m. This figure reflects variable annuity sales.
• This level of new life and pensions business compares very well with our UK peer group over the first quarter. Across the sector new business levels have fallen compared with the same period in 2008.
• Growth was strongest in the core areas of annuities (new business increased by 56% over the quarter compared with 2008 from £355m to £555m SP) and in group pensions.
• AEGON increased its market share in the UK life and pensions market over 2008, reaching 10% market share in the fourth quarter, and we expect this to increase further in the early part of 2009.
• There was increasing demand for AEGON’s 5 for Life variable annuity product with sales growing from £23m in 2008 to £102m single premium during the first three months of 2009.

Increased profitability of new business

• Value of new business, the measure that reflects the value attributed to new business volumes and is a key measure of profitable growth, rose over the quarter by 30% compared with the first quarter 2008, to £51.7m This reflects a trend towards higher margin business.
• Underlying earnings, a measure which is significantly impacted by the ongoing levels of bond and equity markets, were 81% lower at £6.6m compared with the first quarter 2008.

AEGON UK chief executive Otto Thoresen says,

“AEGON UK’s new business levels remained resilient during the first three months despite very challenging economic conditions and our performance compares well against that of our competitors.

“AEGON is now clearly positioned as one of the key players in the UK life and pensions sector. Our strategy to diversify our business across a broader product range has enabled us to maintain good momentum through difficult markets. While customers may be reluctant to make investment and savings decisions due to the prevailing economic conditions, our annuity business and corporate pensions businesses continue to deliver growth.

“We are investing in our brand and in the weeks ahead our partnership with British Tennis will bring AEGON to new audiences through our sponsorship of the Queen’s Club tournament. The demographic trends of people living longer, and living for longer in retirement, mean it is more important than ever that people save for the future. We see considerable potential for growth in the market and AEGON is in a strong position to move forward.”

Read our UK performance summary for details of our 2008 results.

AEGON UK key facts and figures as at 31 December 2008

Financial strength

We're currently rated AA - (very strong) by independent analysts Standard & Poor's, one of the highest financial strength ratings available.