AEGON N.V. Conference Call for Analysts and Investors Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Marc Thiele - UBS - Analyst : Thank you, good morning. Two questions please. One is, there was this press release a few weeks ago with -- was referring to stepping up the hedging program. Can you give us an update how the numbers on page nine may look like for the equity market sensitivities? And have you also been buying some protection on the corporate bonds? Then the second question is, can you give us some indication of what happened to some of the toxic exposures subprime, Alt-A and CDOs; have you been adding to those exposures as in the previous quarters? Have you been selling some of these exposures with a loss, or what happened in terms of the movement in that area?

Question: Marc Thiele - UBS - Analyst : Okay, thank you.

Question: Farquhar Murray - Fox-Pitt, Kelton - Analyst : Hi, there. It's Farquhar Murray from Fox-Pitt here. Two questions if I may. Firstly, just regards to the capital position, I just wonder if you could give us an update for your financial flexibility at the nine months stage. I think it's probably about EUR0.6 billion, but I'd like to confirm that. And then if you can, can you give any indication for where that will stand for 2009? And then the second question, just regards to the equity sensitivities slide, I just wonder if you could give us some color on which geographies and products are driving that increase in the sensitivity there. Thanks.

Question: Farquhar Murray - Fox-Pitt, Kelton - Analyst : Euros?

Question: Farquhar Murray - Fox-Pitt, Kelton - Analyst : And is the US -- I presume that's on variable annuities, and just on variable annuities, is there any changes in behavior that's seen from policyholders there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2008 / 9:00AM, AEGN.AS - AEGON N.V. Conference Call for Analysts and Investors

Question: Farquhar Murray - Fox-Pitt, Kelton - Analyst : Okay. Thanks very much.

Question: Ryan Palecek - Kempen & Co - Analyst : Yes, hello. Ryan Palecek from Kempen. Three questions. First of all, what is your preference for actually exiting this facility, if at all? Secondly, on the press release, I understand that the representations from the Dutch State are subject to AGM vote. Could you just talk a little bit about what would be any consequences should the AGM vote against that? And thirdly, what, if any, additional flexibility does the Vereniging offer you in terms of not necessarily being a one-for-one back-to-back on any of the costs of this facility? Thanks.

Question: Ryan Palecek - Kempen & Co - Analyst : Okay. And then could you possibly discuss some of the flexibility which the Vereniging could offer you in this deal? Is the back-to-back a certainty, or to what extent can the Vereniging cushion any of the blows of ether the cost of the facility or the 150% bullet on compensating it? The Vereniging here, as you said rightly, I think you used the words yourself back-to-back. The reason we've used the Vereniging here is that we are as Aegon in the fortunate situation that we had the Vereniging and the sole objective of the Vereniging is there to work in the interests of all stakeholders. That means shareholders obviously, but policyholders and employees. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2008 / 9:00AM, AEGN.AS - AEGON N.V. Conference Call for Analysts and Investors And as you can imagine, this is very much in line with also the long term objectives of the government, and that's why we decided that it would be a good thing to channel it through the Vereniging. But the financial arrangements are very much on a back-to-back basis.

Question: Ryan Palecek - Kempen & Co - Analyst : Okay. Thank you very much.

Question: Farooq Hanif - Morgan Stanley - Analyst : Hi, there. I have to apologize, I'm in an airport so the quality of sound might not be very good. I've got two basic questions. If you didn't pay -- declare a dividend for 2009, that would make it much easier for you to pay back the loan quickly. Could you just talk about your dividend policy? You say that you want to keep it in line with cash flow and capital, which suggests that you would pay a dividend now, but could you just talk about that? And secondly, on the marks, I think you said you've got a EUR2.5 billion increase in revaluation reserve. Could you split where -- which securities that's coming from? Thank you.

Question: Farooq Hanif - Morgan Stanley - Analyst : Okay, thank you very much.

Question: Farooq Hanif - Morgan Stanley - Analyst : Yes. Thank you very much.

Question: Duncan Russell - JP Morgan - Analyst : Good morning. Could you just elaborate on the EUR3 billion? How did you get to EUR3 billion? What were the metrics driving EUR3 billion rather than, say, EUR2 billion, or EUR4 billion? So if you could just talk about the EUR3 billion. And then the second one is -- and then talk about the timing, because obviously, why raise this money now? What's changed? Which of your stakeholders -- is it customer worry, is it regulatory agencies which are driving you to raise EUR3 billion today rather than waiting and seeing how the situation pans out? Thank you.

Question: Duncan Russell - JP Morgan - Analyst : Okay. Thank you.

Question: Corinne Cunningham - RBS - Analyst : Good morning. It's Corinne Cunningham at RBS. Just a quick point of clarification on your solvency position. I just want to check, when you calculate the Group solvency ratio, does that include or exclude any unrealized losses in the US business?

Question: Corinne Cunningham - RBS - Analyst : The unrealized losses; so, I was looking at -- for example, Aviva's put some numbers out this morning, and their group solvency calculations use local regulatory requirements and build up from there, so they are using -- in the US, they are using numbers that do not include unrealized losses on the US bond portfolio.

Question: Corinne Cunningham - RBS - Analyst : Thank you.

Question: Corinne Cunningham - RBS - Analyst : Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2008 / 9:00AM, AEGN.AS - AEGON N.V. Conference Call for Analysts and Investors

Question: Christopher Hitchings - KBW - Analyst : Hi. Thanks very much indeed; a couple of questions. Could you tell us what the regulatory capital position of the US subsidiary is, and whether or not you're going to be able to take a dividend out of the US for 2008? Second question, there's been some talk about whether or not US life companies may be able to use [TAAP] or something like that. I wonder if you've had any such discussions, or whether you intend to do it. And the third of my two questions is, could you give us some idea of what -- the cash you will receive from the government via the association, what will you actually invest it in, and what returns might we assume for our division calculations? Thank you.

Question: Christopher Hitchings - KBW - Analyst : Thank you.

Question: Ton Gietman - Petercam - Analyst : Good morning, gentlemen. I wondered, if September were the end of the year, you would have made a profit for the full year of something like EUR80 million. You would have a shareholder's equity of EUR9.4 billion. Would that qualify as a sound balance sheet to pay over 2008 dividend, or was the cash flow in 2008 enough to pay a dividend? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2008 / 9:00AM, AEGN.AS - AEGON N.V. Conference Call for Analysts and Investors

Question: Ton Gietman - Petercam - Analyst : Is it possible, going forward, because you each time refer to the cash flow you generate as one of the determinants of paying a dividend, yes or no. Could you in common cause publish what actually your cash flow generation is?

Question: Ton Gietman - Petercam - Analyst : Okay. Thank you very much.

Question: Farquhar Murray - Fox-Pitt, Kelton - Analyst : Hi, there. Farquhar from Fox-Pitt again. Sorry to bother you. Just in terms of understanding how the financial flexibility has moved. I think it's moved about EUR1 billion in the quarter given what you've said. I'm just wondering if you could give us the numerator and denominator behind the excess capital number within the business unit. And additionally, could you just give us a sense of what's driven the EUR1 billion movement, because it looks to be coming more from the capital requirement side of things than the capital availability side of the equation.

Question: Farquhar Murray - Fox-Pitt, Kelton - Analyst : Okay, I'll wait. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2008 / 9:00AM, AEGN.AS - AEGON N.V. Conference Call for Analysts and Investors