AEGON Reduces Costs of Unit Linked Insurance in the Netherlands
September 19 2008 - 2:00AM
PR Newswire (US)
THE HAGUE, The Netherlands, September 19 /PRNewswire-FirstCall/ --
Based on industry-wide recommendations of the Dutch Ombudsman for
Financial Services, AEGON will reduce the costs of its unit linked
insurance policies sold in the Netherlands. In recent years, AEGON
has made substantial improvements by reducing costs and premiums to
unit linked products. The value of these improvements total EUR 380
million before tax. AEGON will implement further product
improvements that have a value of EUR 140 million before tax. This
additional amount will be reflected in AEGON's profit and loss
statement over the remainder of the life of affected policies. As a
result of these measures, costs of unit linked insurance policies
sold by AEGON in the Netherlands will be consistent with the
recommendations of the Ombudsman and a recent settlement within the
industry. Over 75% of AEGON's unit linked insurance customers have
benefitted from previous product improvements. Currently, more than
70% of all customers are charged less than 3% of costs. AEGON's
unit linked portfolio consists of 1.3 million policies, of which
50% have a guaranteed minimum return. AEGON has previously
provisioned EUR 255 million for these guarantees. AEGON is one of
the world's largest life insurance and pension groups, and a strong
provider of investment products. AEGON empowers local business
units to identify and provide products and services that meet the
evolving needs of customers, using distribution channels best
suited to local markets. AEGON takes pride in balancing a local
approach with the power of an expanding global operation. With
headquarters in The Hague, the Netherlands, AEGON companies employ
approximately 30,000 people worldwide. AEGON's businesses serve
millions of customers in over twenty markets throughout the
Americas, Europe, and Asia, with major operations in the United
States, the Netherlands and the United Kingdom. Respect, quality,
transparency and trust constitute AEGON's core values as the
company continually strives to meet the expectations of customers,
shareholders, employees and business partners. AEGON is driven to
deliver new thinking with the ambition to be the best in the
industry. Group Corporate Communications & Investor Relations
Media relations Investor relations Phone: +31(0)70-344-83-44 Phone:
+31(0)70-344-8305 E-mail: or +1-877-548-9668 - toll free USA only
Website: http://www.aegon.com/ E-mail: DATASOURCE: AEGON N.V.
CONTACT: Group Corporate Communications & Investor Relations,
Media relations Investor relations: Phone: +31(0)70-344-83-44,
E-mail: ; Investor relations: Phone: +31(0)70-344-8305 or
+1-877-548-9668 - toll free USA only, E-mail:
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