EX-99.1 3 dex991.txt EXHIBIT-99.1 Exhibit 99.1 [GRAPHIC REMOVED HERE] 284761 PRESS RELEASE HALF YEAR NET INCOME IS EUR 763 MILLION, A DECREASE OF 34% HALF YEAR NET INCOME PER SHARE IS EUR 0.55, A DECREASE OF 37% AN INTERIM DIVIDEND OF EUR 0.37 IS DECLARED HIGHLIGHTS
(amounts in millions, except per share data) ---------------------------------------------------- ---------- -------- --- --------- --------- --- Second First six Second Second First six First six quarter months quarter quarter months months 2002 2002 2002 2001 2002 2001 USD USD EUR EUR % EUR EUR % 149 889 Income before tax 145 842 -83 990 1,598 -38 145 685 Net income 146 626 -77 763 1,161 -34 0.10 0.49 Net income per share 0.11 0.46 -76 0.55 0.87 -37 4,838 10,068 Premium income 5,247 5,127 2 11,219 10,958 2 2,176 4,359 Investment income 2,364 2,531 -7 4,857 4,900 -1 7,102 14,597 Total revenues 7,708 7,758 -1 16,266 16,051 1 1,289 2,384 Commissions and expenses 1,407 1,139 24 2,657 2,180 22 574 1,158 New life production 624 771 -19 1,290 1,414 -9 8,101 15,712 Gross deposits (1) 8,819 7,662 15 17,509 15,532 13 13,407 Shareholders' equity (2) 13,647 15,292 -11 244,520 Total assets (2) 248,901 264,061 -6
1) Annuity, GIC and savings deposits are not included in revenues 2) Amounts reported for 2001 are as of December 31, 2001 Chairman's statement -------------------- AEGON's Executive Board Chairman, Donald J. Shepard said: "Nearly three weeks ago we issued the first profit warning in AEGON's history. We believe this was a necessary and prudent action, which was reflective of unprecedented adverse developments in the financial markets. Most importantly, however, our core business remains strong with generally positive new business development. I would like to emphasize that, without these adverse financial market developments, we would have been slightly ahead of our initial forecast." Earnings outlook 2002 --------------------- As announced on July 22, due to continued deteriorating financial market conditions and a weakened US dollar, AEGON expects its full year 2002 earnings to be 30% to 35% lower compared to the 2001 earnings. This outlook is based on information from the second quarter and barring unforeseen financial market circumstances. The forecast includes an average EUR/USD rate for the full year of EUR 0.95. Key points second quarter 2002 ------------------------------ o Total deposits for the second quarter increased by 15% to EUR 8.8 billion. New (standardized) life production decreased 19% to EUR 624 million. Off balance sheet production of mutual funds and synthetic GICs increased 12% to EUR 6 billion. o In the Americas, variable annuity deposits increased by 74%, fixed annuity deposits increased 22%, GICs and funding agreements increased 11%. In The Netherlands savings account balances increased by 6%. o Bond default provisions in the USA have been strengthened by USD 335 million (EUR 371 million) due to higher bond default levels, compared to USD 26 million in the second quarter of 2001. The balance of the USA default provisions at June 30 was USD 299 million. o Declining equity markets triggered higher DPAC amortization ("unlocking") in the USA of USD 250 million (EUR 279 million) and in the UK of GBP 24 million (EUR 39 million). See attached discussion re: DPAC `unlocking'. o Provisions for variable and unit-linked products with guaranteed minimum benefits were strengthened due to declining returns on credit and equity markets. In the USA this accounted for an additional provision of USD 50 million (EUR 56 million) and EUR 115 million in the Netherlands. Key points first six months 2002 -------------------------------- o Results include USD 97 million (EUR 108 million) pretax earnings from the acquired JC Penney insurance operations. The first six months of 2001 included USD 9 million. o Comparative results for the first half 2001 included EUR 40 million (USD 36 million) of income before tax from the divested operations in Mexico. o Additions to the provisions for bond defaults in the USA amount to USD 417 million (EUR 465 million) for the first six months. Default losses charged against the provision amount to USD 416 million. o At June 30, 2002 shareholders' equity totaled EUR 13,647 million compared to EUR 15,292 million at December 31, 2001. The EUR 1,645 million decrease is due primarily to exchange rate differences of EUR 1,392 million and investment losses of EUR 759 million, offset by net income of EUR 763 million. The Hague, August 8, 2002 -------------------------------------------------------------------------------- Inquiries: AEGON N.V. Group Communications Investor Relations Phone : +31 (0)70 344 83 44 NL +31 (0)70 344 83 05 USA +1 410 576 45 77 Web site: www.aegon.com ----------------------- ---------------------------------------------------------------------------- Press conference ---------------- A press conference will be held this afternoon at AEGON's headquarters in The Hague at 13.30 MET DST (12.30 GMT; 7.30 ET). This press conference will be webcast live on AEGON's website homepage (www.aegon.com). ------------- Conference call --------------- An investor conference call will be held this afternoon at 16.00 MET DST (15.00 GMT; 10:00 ET). The numbers to call to listen in on the conference call are as --------- follows: + 31 (0)45 6316904 (Netherlands) + 44 (0)20 8515 2306 (United Kingdom) EARNINGS REPORT Report of the Executive Board ----------------------------- Net income in the first six months of 2002 was EUR 763 million, a decrease of 34% compared to the same period last year. First half year results were adversely affected in the second quarter by additional strengthening of provisions for bond defaults (EUR 465 million), accelerated amortization of deferred policy acquisition costs (DPAC) (EUR 318 million) and increased provisions for policyholders pertaining to products with minimum benefit guarantees (EUR 171 million). Comparison with the prior year's earnings is positively influenced by the earnings from the acquired JC Penney insurance operations, which is partially offset by a loss of earnings on the divested operations in Mexico. Total revenues increased just 1% and gross margin declined by 3% during the first six months of 2002. The decline in gross margins is due primarily to lower investment returns, higher bond default provisions and increased provisions for guaranteed benefits. Commissions and expenses were 22% above last year, which includes the higher DPAC amortization on variable annuities in the USA, the unit-linked accounts in the UK, as well as the expenses of acquired operations, including the insurance operations of JC Penney. The Americas Net income in the second quarter amounts to USD 35 million compared to USD 358 million in the same period last year. Net income in the first six months totals USD 393 million compared to USD 696 million the prior year. Depressed equity and credit markets led to an addition to asset default provisions (USD 417 million), higher variable annuity DPAC amortization (USD 250 million) and an increase in benefit guarantee provisions (USD 50 million) during the first six months. The acquired JC Penney insurance operations had positive impact of USD 97 million on pretax earnings. In the second quarter total revenues were up 8% driven by the inclusion of the acquired operations of JC Penney. Standardized new premium life production decreased 19% to USD 250 million due to lower production in Canada and the divestiture of our operations in Mexico. Standardized life production in the USA increased 9%. Notwithstanding significant growth in the general account asset base, investment income remained level as a result of lower yields. Substantial progress has been made in the reduction of operating expenses. Total operating expenses increased by 16% in the first six months. When adjusted for the acquired businesses, including the JC Penney insurance operations, operating expenses for AEGON USA decreased by 7% through realization of administrative and marketing efficiencies. Traditional life results for 2002 include USD 92 million of additional bond defaults compared to USD 6 million for 2001, while results on fixed annuities include USD 208 million of additional bond defaults compared to USD 15 million the prior year. The negative impact of the additional defaults in 2002 is partially offset by lower DPAC amortization for fixed annuities, partly reflecting lower lapse rates which improved from 15% to 10%. GICs and funding agreements include USD 92 million of additional bond defaults compared to USD 20 million the prior year. Life for the account of policyholders reflects lower fee income. Variable annuity results include USD 250 million of additional DPAC amortization and an additional USD 50 million for guaranteed benefits provisions. Fee business results reflect the divested operations in Mexico and lower mutual fund income. Accident and health results increased due to the acquired operations of JC Penney. Income before tax for AEGON's activities in Canada amounts to CAD 62 million for the first six months, a decrease of 5% compared to the first six months of the prior year. The Netherlands Net income in the Netherlands in the second quarter amounted to EUR 92 million compared to EUR 175 million in the second quarter last year. Net income in the first six months totals EUR 274 million compared to EUR 347 million in the first six months of the prior year. Depressed equity markets led to an increase of EUR 115 million in the provisions for guarantees in unit-linked products. Life sales in retail markets were under pressure, caused by fiscal changes and developments on equity markets; sales in life pensions were positive. Standardized new life production for the first half was stable at EUR 208 million, while off-balance sheet production increased 65% to EUR 456 million. Savings deposits and investment contracts were lower at EUR 1,867 million and EUR 248 million, respectively. Total gross premiums increased 6% to EUR 2,640 million. Operating expenses were lower by 2% compared to the same period in 2001. Traditional life results for the first six months 2002 reflect lower investment income. Results of Life for the account of policyholders reflect the additional EUR 115 million for guaranteed benefit provisions. Accident and health results and general insurance results are according to expectation, while banking activities reflect lower spread on savings accounts. United Kingdom Net income in the United Kingdom in the second quarter amounted to GBP 24 million compared to a net income of GBP 44 million in the second quarter last year. Net income in the first six months totals GBP 66 million compared to GBP 83 million in the first six months of the prior year. Depressed equity markets led to lower asset management fees and other fund related fees as well as an additional DPAC amortization of GBP 24 million on unit-linked business. Standardized new life production decreased 6% to a total of GBP 307 million for the first half year, while off-balance sheet production increased 25% to GBP 140 million. Other countries Net income in other countries was EUR 19 million compared to EUR 27 million for the first six months of the year 2001. The shortfall was due primarily to lower traditional life results in Spain. Transamerica Finance Corporation Net income increased to USD 50 million, up 35% over the first six months of 2001. Assets are USD 2.5 billion lower than the prior year, including the divestiture of certain lines of business. In addition, lower expenses and lower bad debt charges have contributed to higher operating earnings. Funding costs are lower due to the lower asset base. Capital gains During the first six months of 2002 EUR 416 million was released as indirect return to income before tax. This compares to EUR 370 million for the same period last year. The revaluation account balance as of June 30, 2002 was EUR 3,625 million, of which realized gains of EUR 3,086 million and unrealized gains of EUR 539 million. The amount of realized gains was decreased as a result of a release of indirect return by EUR 416 million and by realized losses of EUR 559 million, of which EUR 466 million in the second quarter. Capital and funding At June 30, 2002 shareholders' equity totaled EUR 13,647 million compared to EUR 15,292 million at December 31, 2001. The EUR 1,645 million decrease is due primarily to the of exchange rate differences of EUR 1,392 million and investment losses of EUR 759 million, offset by net income of EUR 763 million. Interim dividend An interim dividend of EUR 0.37 per share has been declared, which is the same as the interim dividend for 2001. This is projected to be one half of the full year dividend. The interim dividend will be paid entirely in cash or stock at the option of the shareholder. During the period beginning August 12, 2002 through September 9, 2002 shareholders may express their preference for payment either in cash or stock. AEGON shares will be quoted ex-dividend as of August 12, 2002. The value of the stock dividend will be based upon the average price of the AEGON share on Euronext Amsterdam for the five-day trading period from September 10 through September 16, 2002. Interim cash or stock dividends will be payable as of September 20, 2002. Disclaimer The figures contained herein are based on Dutch Accounting Principles. The statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are made based upon management's current expectations and beliefs concerning future developments and their potential effects upon the company. There can be no assurance that future developments affecting the company will be those anticipated by management. Actual results may differ materially from those included in the forward-looking statements. These forward-looking statements involve risks and uncertainties including, but not limited to, the following: (1) changes in general economic conditions, including the performance of financial markets and interest rates; (2) customer responsiveness to both new products and distribution channels; (3) competitive, legal, regulatory, or tax changes that affect the distribution costs of or demand for the company's products; (4) acts of God; (5) terrorism and acts of war; (6) mortality, morbidity and other factors that may affect the profitability of the company's insurance products; and (7) the company's failure to achieve anticipated levels of earnings or operational efficiencies, as well as other cost saving initiatives. DPAC `unlocking' Deferred Policy Acquisition Costs (DPAC) includes first year commissions and other direct policy acquisition expenses. These expenses are deferred and then amortized in relation to the profit or premium stream of the underlying insurance contract. Deferred policy acquisition costs related to insurance contracts with fixed premiums are amortized as a percentage of premiums over the life of the contract. For flexible insurance contracts, variable annuities, unit linked products and fixed annuities, the amortization of DPAC is generally in proportion to the expected gross profit stream over the entire life of the underlying contracts. Assumptions about the future profits over the life of the contract are based on best estimates supported by historical experience and management judgement. Variable annuity and unit-linked products are primarily invested in equity securities. The company earns asset-based fees on fund values of the underlying contracts. These earnings are used to cover expenses (including DPAC amortization). If the equity market performs worse than expected, as is the situation with a prolonged decline, then actual and future earnings will be less than estimated. In that case the DPAC amortization is revised to maintain the matching principle. The difference between the original DPAC amortization schedule and this revised schedule was charged to the income statement in the second quarter. For these products, this is referred to as DPAC `unlocking' and is applicable under US GAAP and applied by AEGON under its accounting principles. It is important to recognize that this is not an issue of recoverability, as defined by an unsupportable DPAC balance in excess of estimated future gross profits. As explained in the previous paragraph, the process of DPAC `unlocking' is intended to provide a relatively stable relationship between fees earned and expenses (including DPAC amortization) incurred. Our coverage of estimated gross profits to the DPAC balance remains quite strong. Deferred policy acquisition costs as at June 30, 2002 Amounts in EUR million
Country Units ------------------------------------------------------------------------------------ Product Units The Americas The Netherlands The United Kingdom Other Countries Grand Total --------------------- ------------------------------------------------------------------------------------ Traditional 5,165 274 118 73 5,630 Fixed ann. 1,905 - - - 1,905 Fixed GIC's 85 - - - 85 Policyholder 799 803 3,636 23 5,261 Variable ann. 1,395 - - - 1,395 Fee income 97 - - - 97 A & H 1,131 35 - - 1,166 ------------------------------------------------------------------------------------------------------------ 30/06/02 10,577 1,112 3,754 96 15,539 ------------------------------------------------------------------------------------------------------------ of which VOBA 4,684 - 1,361 - 6,045 ------------------------------------------------------------------------------------------------------------
Highlights
amounts in millions USD EUR EUR ----------------------------- --------------------------- -------------------------- First six months Second quarter First six months ----------------------------- --------------------------- -------------------------- 2002 2001 % 2002 2001 % 2002 2001 % Income by product segment 670 766 -13 Traditional life 322 454 -29 747 854 -13 113 239 -53 Fixed annuities -4 126 126 266 -53 125 118 6 GICs and funding agreements 68 69 -1 139 131 6 183 285 -36 Life for account policyholders 26 164 -84 204 318 -36 -227 69 Variable annuities -286 42 -253 77 3 38 -92 Fee business -1 23 3 42 -93 ---------------------- --------------------------------------------------------------------- ----------------------- 867 1,515 -43 Life insurance 125 878 -86 966 1,688 -43 139 68 Accident and health insurance 62 42 48 155 76 31 31 0 General insurance 17 20 -15 34 34 0 ---------------------- --------------------------------------------------------------------- ----------------------- 1,037 1,614 -36 Total insurance activities 204 940 -78 1,155 1,798 -36 19 31 -39 Banking activities 12 20 -40 21 35 -40 -167 -211 -21 Interest charges and other -71 -118 -40 -186 -235 -21 ---------------------- --------------------------------------------------------------------- ----------------------- 889 1,434 -38 Income before tax 145 842 -83 990 1,598 -38 -254 -429 -41 Corporation tax -28 -254 -89 -283 -478 -41 50 37 35 Transamerica Finance Corporation 29 38 -24 56 41 37 ---------------------- --------------------------------------------------------------------- ----------------------- 685 1,042 -34 Net income 146 626 -77 763 1,161 -34 ==================================================================================================================================== Income geographically 591 1,041 -43 Americas 46 613 -92 658 1,160 -43 312 411 -24 The Netherlands 110 232 -53 348 458 -24 130 163 -20 United Kingdom 50 95 -47 145 182 -20 23 30 -23 Other countries 10 20 -50 25 33 -24 ---------------------- --------------------------------------------------------------------- ----------------------- 1,056 1,645 -36 Income before tax business units 216 960 -78 1,176 1,833 -36 -167 -211 -21 Interest charges and other -71 -118 -40 -186 -235 -21 ---------------------- --------------------------------------------------------------------- ----------------------- 889 1,434 -38 Income before tax 145 842 -83 990 1,598 -38 -254 -429 -41 Corporation tax -28 -254 -89 -283 -478 -41 50 37 35 Transamerica Finance Corporation 29 38 -24 56 41 37 ---------------------- --------------------------------------------------------------------- ----------------------- 685 1,042 -34 Net income 146 626 -77 763 1,161 -34 ==================================================================================================================================== 3,273 3,390 -3 Gross margin 1,552 1,981 -22 3,647 3,778 -3 2,384 1,956 22 Commissions and expenses 1,407 1,139 24 2,657 2,180 22 Amounts per common share of EUR 0.12 0.49 0.78 -37 Net income 1 0.11 0.46 -76 0.55 0.87 -37 0.49 0.78 -37 Net income fully diluted 1 0.11 0.47 -77 0.55 0.87 -37 As at As at As at As at June 30 Dec. 31 June 30 Dec. 31 2002 2001 2002 2001 ------------------------------------------------------------------------------------------------------------------------------------ 9.52 9.65 -1 Shareholders' equity 2 9.69 10.95 -12 10.05 10.11 -1 Shareholders' equity after full conversion 2 10.23 11.47 -11 ==================================================================================================================================== ------------------------------------------------------------------------------------------------------------------------------------ Number of employees 25,638 26,844 -4 Outstanding common shares: - Number of common shares (millions) 1,433 1,417 1 - Weighted average number (millions) 1,393 1,325 5 ====================================================================================================================================
1 Based on the weighted average number of common shares. 2 Based on the number of common shares outstanding at the end of the period, adjusted for repurchased own shares. Revenues and production
amounts in millions USD EUR EUR ----------------------------- --------------------------- ----------------------- First six months Second quarter First six months ----------------------------- --------------------------- ----------------------- 2002 2001 % 2002 2001 % 2002 2001 % Revenues 782 918 -15 Life general account single premiums 424 539 -21 871 1,023 -15 2,693 2,461 9 Life general account recurring premiums 1,350 1,279 6 3,001 2,742 9 2,800 3,047 -8 Life policyholders account single premiums 1,614 1,589 2 3,120 3,395 -8 2,032 2,069 -2 Life policyholders account recurring premiums 952 1,007 -5 2,265 2,305 -2 ---------------------- ---------------------------------------------------------------------- ----------------------- 8,307 8,495 -2 Total life insurance gross premiums 4,340 4,414 -2 9,257 9,465 -2 1,383 978 41 Accident and health insurance premiums 712 526 35 1,541 1,090 41 378 362 4 General insurance premiums 195 187 4 421 403 4 ---------------------- ---------------------------------------------------------------------- ----------------------- 10,068 9,835 2 Total gross premiums 5,247 5,127 2 11,219 10,958 2 4,341 4,360 0 Investment income insurance activities 1 2,367 2,514 -6 4,837 4,858 0 170 173 -2 Income from banking activities 97 100 -3 190 193 -2 ---------------------- ---------------------------------------------------------------------- ----------------------- 14,579 14,368 1 Total revenues business units 7,711 7,741 0 16,246 16,009 1 18 38 -53 Income from other activities -3 17 20 42 -52 ---------------------- ---------------------------------------------------------------------- ----------------------- 14,597 14,406 1 Total revenues 7,708 7,758 -1 16,266 16,051 1 =============================================================================================================================== Revenues by product segment 12,328 12,680 -3 Life insurance 6,527 6,825 -4 13,737 14,128 -3 1,667 1,113 50 Accident and health insurance 875 605 45 1,858 1,240 50 414 402 3 General insurance 212 211 0 461 448 3 170 173 -2 Banking activities 97 100 -3 190 193 -2 18 38 -53 Other activities -3 17 -118 20 42 -52 ---------------------- ---------------------------------------------------------------------- ----------------------- 14,597 14,406 1 Total revenues 7,708 7,758 -1 16,266 16,051 1 =============================================================================================================================== Investment income for the account -5,725 -4,817 -19 of policyholders -7,361 2,223 - -6,380 -5,367 -19 =============================================================================================================================== Standardized new premium production life insurance 3,360 3,845 -13 Single premiums 1,864 2,192 -15 3,744 4,284 -13 822 885 -7 Recurring premiums annualized 438 552 -21 916 986 -7 1,158 1,269 -9 Total recurring plus 1/10 single 624 771 -19 1,290 1,414 -9 =============================================================================================================================== Deposits 4,019 2,996 34 Fixed annuities 2,036 1,756 16 4,479 3,338 34 5,994 5,738 4 GICs and funding agreements 3,303 3,130 6 6,679 6,393 4 4,024 3,142 28 Variable annuities 2,498 1,517 65 4,484 3,501 28 ---------------------- ---------------------------------------------------------------------- ----------------------- 14,037 11,876 18 Total 7,837 6,403 22 15,642 13,232 18 1,675 2,064 -19 Savings deposits 982 1,259 -22 1,867 2,300 -19 ---------------------- ---------------------------------------------------------------------- ----------------------- 15,712 13,940 13 Total production on balance sheet 8,819 7,662 15 17,509 15,532 13 =============================================================================================================================== Net deposits 2,534 877 Fixed annuities 1,095 664 65 2,824 977 2,187 2,536 -14 GICs and funding agreements 1,103 1,242 -11 2,437 2,826 -14 1,334 352 Variable annuities 944 16 1,487 392 ---------------------- ---------------------------------------------------------------------- ----------------------- 6,055 3,765 61 Total 3,142 1,922 63 6,748 4,195 61 118 710 -83 Savings deposits 173 474 -64 131 791 -83 ---------------------- ---------------------------------------------------------------------- ----------------------- 6,173 4,475 38 Total net deposits 3,315 2,396 38 6,879 4,986 38 =============================================================================================================================== 223 463 -52 Investment contracts 97 267 -64 248 516 -52 =============================================================================================================================== Off balance sheet production 5,990 5,452 10 Synthetic GICs 3,777 3,592 5 6,675 6,075 10 Mutual funds/Collective Trusts and 4,120 3,172 30 other managed assets 2,240 1,763 27 4,591 3,534 30 ---------------------- ---------------------------------------------------------------------- ----------------------- 10,110 8,624 17 Total production off balance sheet 6,017 5,355 12 11,266 9,609 17 =============================================================================================================================== 373 332 12 1 Of which indirect income on shares and real estate 201 192 5 416 370 12
Americas
amounts in millions USD USD EUR --------------------------- -------------------------- ------------------------- Second quarter First six months First six months --------------------------- -------------------------- ------------------------- 2002 2001 % 2002 2001 % 2002 2001 % Income by product segment 177 251 -29 Traditional life 407 478 -15 453 533 -15 -1 110 Fixed annuities 113 239 -53 126 266 -53 63 61 3 GICs and funding agreements 125 118 6 139 131 6 22 30 -27 Life for account policyholders 50 54 -7 56 60 -7 -256 37 Variable annuities -227 69 -253 77 -2 18 Fee business 1 34 -97 1 38 -97 --------------------- ----------------------------------------------------------------------- ---------------------- 3 507 -99 Life insurance 469 992 -53 522 1,105 -53 52 28 86 Accident and health insurance 122 48 136 54 0 1 - General insurance 0 1 - 0 1 - --------------------- ----------------------------------------------------------------------- ---------------------- 55 536 -90 Total insurance 591 1,041 -43 658 1,160 -43 291 451 -35 of which general account 767 884 -13 854 985 -13 -236 85 of which policyholders account 1 -176 157 -196 175 --------------------- ----------------------------------------------------------------------- ---------------------- 55 536 -90 Income before tax 591 1,041 -43 658 1,160 -43 -20 -178 -89 Corporation tax -198 -345 -43 -220 -384 -43 --------------------- ----------------------------------------------------------------------- ---------------------- 35 358 -90 Net income 393 696 -44 438 776 -44 ==================================================================================================================================== Revenues 199 194 3 Life general account single premiums 392 445 -12 437 496 -12 1,087 958 13 Life general account recurring premiums 2,202 1,959 12 2,454 2,183 12 332 272 22 Life policyholders account single premiums 478 478 0 533 533 0 147 216 -32 Life policyholders account recurring premiums 314 409 -23 350 455 -23 --------------------- ----------------------------------------------------------------------- ---------------------- 1,765 1,640 8 Total life insurance gross premiums 3,386 3,291 3 3,774 3,667 3 612 422 45 Accident and health insurance premiums 1,243 853 46 1,385 950 46 0 2 - General insurance premiums 0 3 - 0 3 - --------------------- ----------------------------------------------------------------------- ---------------------- 2,377 2,064 15 Total gross premiums 4,629 4,147 12 5,159 4,620 12 1,794 1,799 0 Investment income insurance activities 3,563 3,568 0 3,970 3,976 0 --------------------- ----------------------------------------------------------------------- ---------------------- 4,171 3,863 8 Total revenues 8,192 7,715 6 9,129 8,596 6 ==================================================================================================================================== Investment income for the account -3,500 1,548 of policyholders -3,596 -3,079 -17 -4,007 -3,431 -17 ==================================================================================================================================== Gross margin, commissions and expenses 1,022 1,254 -19 Gross margin 2,381 2,430 -2 2,653 2,707 -2 967 718 35 Commissions and expenses 1,790 1,389 29 1,995 1,547 29 ==================================================================================================================================== Standardized new premium production life insurance 519 429 21 Single premiums 844 813 4 941 906 4 199 264 -25 Recurring premiums annualized 394 461 -15 439 514 -15 250 307 -19 Total recurring plus 1/10 single 478 542 -12 533 605 -12 ==================================================================================================================================== Deposits 1,879 1,536 22 Fixed annuities 4,019 2,996 34 4,479 3,338 34 3,037 2,726 11 GICs and funding agreements 5,994 5,738 4 6,679 6,393 4 2,285 1,311 74 Variable annuities 4,024 3,142 28 4,484 3,501 28 --------------------- ----------------------------------------------------------------------- ---------------------- 7,201 5,573 29 Total production on balance sheet 14,037 11,876 18 15,642 13,232 18 ==================================================================================================================================== Off balance sheet production 3,452 3,160 9 Synthetic GICs 5,990 5,452 10 6,675 6,075 10 Mutual funds/Collective Trusts and 1,739 1,399 24 other managed assets 3,469 2,722 27 3,866 3,033 27 --------------------- ----------------------------------------------------------------------- ---------------------- 5,191 4,559 14 Total production off balance sheet 9,459 8,174 16 10,541 9,108 16 ====================================================================================================================================
1 Includes also variable annuities and fees. The Netherlands
amounts in millions EUR EUR --------------------------- ------------------------- Second quarter First six months --------------------------- ------------------------- 2002 2001 % 2002 2001 % Income by product segment 131 146 -10 Traditional life 276 290 -5 -46 49 Life for account policyholders 19 96 -80 --------------------- --------------------------------------------------- ---------------------- 85 195 -56 Life insurance 295 386 -24 4 8 -50 Accident and health insurance 15 18 -17 9 9 0 General insurance 17 19 -11 --------------------- --------------------------------------------------- ---------------------- 98 212 -54 Total insurance 327 423 -23 144 163 -12 of which general account 308 327 -6 -46 49 of which policyholders account 19 96 -80 12 20 -40 Banking activities 1 21 35 -40 --------------------- --------------------------------------------------- ---------------------- 110 232 -53 Income before tax 348 458 -24 -18 -57 -68 Corporation tax -74 -111 -33 --------------------- --------------------------------------------------- ---------------------- 92 175 -47 Net income 274 347 -21 ==================================================================================================================================== Revenues 154 254 -39 Life general account single premiums 324 407 -20 72 96 -25 Life general account recurring premiums 370 403 -8 280 125 Life policyholders account single premiums 696 453 54 272 294 -7 Life policyholders account recurring premiums 877 892 -2 --------------------- --------------------------------------------------- ---------------------- 778 769 1 Total life insurance gross premiums 2,267 2,155 5 30 27 11 Accident and health insurance premiums 113 98 15 115 110 5 General insurance premiums 260 245 6 --------------------- --------------------------------------------------- ---------------------- 923 906 2 Total gross premiums 2,640 2,498 6 355 382 -7 Investment income insurance activities 726 742 -2 97 100 -3 Income from banking activities 190 193 -2 --------------------- --------------------------------------------------- ---------------------- 1,375 1,388 -1 Total revenues 3,556 3,433 4 ==================================================================================================================================== Investment income for the account -921 426 of policyholders -672 118 ==================================================================================================================================== Gross margin, commissions and expenses 253 368 -31 Gross margin 642 738 -13 143 136 5 Commissions and expenses 294 280 5 ==================================================================================================================================== Standardized new premium production life insurance 407 540 -25 Single premiums 955 982 -3 42 59 -29 Recurring premiums annualized 112 109 3 83 113 -27 Total recurring plus 1/10 single 208 207 0 ==================================================================================================================================== Deposits 982 1,259 -22 Savings deposits 1,867 2,300 -19 --------------------- --------------------------------------------------- ---------------------- 982 1,259 -22 Total production on balance sheet 1,867 2,300 -19 ==================================================================================================================================== 97 267 -64 Investment contracts 248 516 -52 ==================================================================================================================================== Off balance sheet production 146 56 Mutual funds and other managed assets 456 277 65 --------------------- --------------------------------------------------- ---------------------- 146 56 Total production off balance sheet 456 277 65 ====================================================================================================================================
1 Includes income on off balance sheet type products. United Kingdom
amounts in millions GBP GBP EUR --------------------------- -------------------------- ------------------------- Second quarter First six months First six months --------------------------- -------------------------- ------------------------- 2002 2001 % 2002 2001 % 2002 2001 % Income by product segment 0 6 - Traditional life 7 8 -13 11 13 -15 32 52 -38 Life for account policyholders 84 104 -19 135 168 -20 0 0 Fee business -1 1 -1 1 --------------------- ----------------------------------------------------------------------- ------------------- 32 58 -45 Life insurance 90 113 -20 145 182 -20 0 6 - of which general account 7 8 -13 11 13 -15 32 52 -38 of which policyholders account 1 83 105 -21 134 169 -21 --------------------- ----------------------------------------------------------------------- ---------------------- 32 58 -45 Income before tax 90 113 -20 145 182 -20 -8 -14 -43 Corporation tax -24 -30 -20 -39 -49 -20 --------------------- ----------------------------------------------------------------------- ---------------------- 24 44 -45 Net income 66 83 -20 106 133 -20 ==================================================================================================================================== Revenues 33 36 -8 Life general account single premiums 65 53 23 105 86 22 23 23 0 Life general account recurring premiums 40 26 54 64 41 56 603 694 -13 Life policyholders account single premiums 1,163 1,477 -21 1,873 2,370 -21 296 260 14 Life policyholders account recurring premiums 586 544 8 944 874 8 --------------------- ----------------------------------------------------------------------- ---------------------- 955 1,013 -6 Total gross premiums 1,854 2,100 -12 2,986 3,371 -11 18 19 -5 Investment income insurance activities 42 39 8 68 63 8 --------------------- ----------------------------------------------------------------------- ---------------------- 973 1,032 -6 Total revenues 1,896 2,139 -11 3,054 3,434 -11 ==================================================================================================================================== Investment income for the account -1,524 150 of policyholders -1,010 -1,272 21 -1,627 -2,041 20 ==================================================================================================================================== Gross margin, commissions and expenses 113 126 -10 Gross margin 226 245 -8 364 393 -7 81 68 19 Commissions and expenses 136 132 3 219 211 4 ==================================================================================================================================== Standardized new premium production life insurance 551 701 -21 Single premiums 1,133 1,447 -22 1,825 2,322 -21 97 99 -2 Recurring premiums annualized 194 182 7 312 292 7 152 169 -10 Total recurring plus 1/10 single 307 327 -6 495 524 -6 ==================================================================================================================================== Off balance sheet production 115 49 Mutual funds and other managed assets 140 112 25 226 179 26 --------------------- ----------------------------------------------------------------------- ---------------------- 115 49 Total production off balance sheet 140 112 25 226 179 26 ====================================================================================================================================
1 Includes also fee income. Other countries
amounts in millions EUR EUR --------------------------- ------------------------- Second quarter First six months --------------------------- ------------------------- 2002 2001 % 2002 2001 % Income by product segment 2 11 -82 Traditional life 7 18 -61 -3 -5 -40 Life for account of policyholders -6 -6 0 1 2 -50 Fee business 3 3 0 --------------------- --------------------------------------------------- ---------------------- 0 8 - Life insurance 4 15 -73 2 2 0 Accident and health insurance 4 4 0 8 10 -20 General insurance 17 14 21 --------------------- --------------------------------------------------- ---------------------- 10 20 -50 Total insurance 25 33 -24 12 23 -48 of which general account 28 36 -22 -2 -3 -33 of which policyholders account 1 -3 -3 0 --------------------- --------------------------------------------------- ---------------------- 10 20 -50 Income before tax 25 33 -24 -3 -4 -25 Corporation tax -6 -6 0 --------------------- --------------------------------------------------- ---------------------- 7 16 -56 Net income 19 27 -30 ==================================================================================================================================== Revenues 1 2 -50 Life general account single premiums 5 34 -85 60 49 22 Life general account recurring premiums 113 115 -2 7 22 -68 Life policyholders account single premiums 18 39 -54 49 43 14 Life policyholders account recurring premiums 94 84 12 --------------------- --------------------------------------------------- ---------------------- 117 116 1 Total life insurance gross premiums 230 272 -15 17 16 6 Accident and health insurance premiums 43 42 2 80 75 7 General insurance premiums 161 155 4 --------------------- --------------------------------------------------- ---------------------- 214 207 3 Total gross premiums 434 469 -7 33 41 -20 Investment income insurance activities 73 77 -5 --------------------- --------------------------------------------------- ---------------------- 247 248 0 Total revenues 507 546 -7 ==================================================================================================================================== Investment income for the account -79 6 of policyholders -74 -13 ==================================================================================================================================== Gross margin, commissions and expenses 74 84 -12 Gross margin 150 156 -4 64 64 0 Commissions and expenses 125 123 2 ==================================================================================================================================== Standardized new premium production life insurance 10 21 -52 Single premiums 23 74 -69 26 31 -16 Recurring premiums annualized 53 71 -25 27 33 -18 Total recurring plus 1/10 single 55 78 -29 ==================================================================================================================================== Off balance sheet production 18 29 -38 Mutual funds and other managed assets 43 45 -4 --------------------- --------------------------------------------------- ---------------------- 18 29 -38 Total production off balance sheet 43 45 -4 ====================================================================================================================================
1 Includes also fee income. Explanatory notes As of 2002, in line with accounting guidelines, shareholders dividend is not accrued until it is declared. All other accounting principles applied in this interim report are the same as those applied in the annual accounts 2001. The published figures are unaudited. Traditional life includes income on traditional and fixed universal life products. Life insurance with investments for account of policyholders includes income on variable universal life, unitised pension (UK), other unit-linked products with investments for account of policyholders and with profit fund in the UK. Fee business includes income on off balance sheet type products. Gross margin is calculated as the sum of income before tax and commissions and expenses. Investments, assets, liabilities geographically
amounts in million EUR (unless otherwise stated) United Americas Kingdom The United Other Total Total USD GBP As at June 30, 2002 Americas Netherlands Kingdom countries EUR USD --------------------------------------------------------------------------------------------------------------------------------- Investments 99,330 848 Fixed income 101,110 13,140 1,313 1,491 117,054 114,994 4,150 81 Equities and real estate 4,224 4,835 126 152 9,337 9,172 103,480 929 Total general account 105,334 17,975 1,439 1,643 126,391 124,166 ---------------------------------------------------------------------------------------------------------------------------------- 12,201 13,457 Fixed income 12,419 9,369 20,831 317 42,936 42,180 24,658 16,561 Equities and real estate 25,100 7,915 25,637 201 58,853 57,817 36,859 30,018 Total account policyholders 37,519 17,284 46,468 518 101,789 99,997 ---------------------------------------------------------------------------------------------------------------------------------- 140,339 30,947 Total insurance activities 142,853 35,259 47,907 2,161 228,180 224,163 - - Banking activities - 7,568 - - 7,568 7,435 47,301 733 Off balance sheet assets 48,149 1,055 1,134 291 50,629 49,738 ---------------------------------------------------------------------------------------------------------------------------------- 187,640 31,680 Total assets business units 191,002 43,882 49,041 2,452 286,377 281,336 Other investments 405 398 ---------------------------------------------------------------------------------------------------------------------------------- Total group 286,782 281,734 ================================================================================================================================== 146,075 31,113 Assets business units 148,692 44,776 48,162 2,307 243,937 239,644 Other assets 4,964 4,876 ------------ -------- Total assets on balance sheet 248,901 244,520 14,016 1,833 Capital in units 14,267 2,898 2,837 309 20,311 19,954 Total capital base 19,624 19,279 Other net liabilities 687 675 ------------ ------- Total 20,311 19,954 ================================================================================================================================== As at June 30, 2001 ---------------------------------------------------------------------------------------------------------------------------------- Investments 88,722 777 Fixed income 104,624 12,927 1,287 1,304 120,142 101,880 3,947 87 Equities and real estate 4,655 6,001 145 163 10,964 9,298 92,669 864 Total general account 109,279 18,928 1,432 1,467 131,106 111,178 ---------------------------------------------------------------------------------------------------------------------------------- 11,903 13,421 Fixed income 14,037 6,631 22,253 322 43,243 36,670 28,013 17,874 Equities and real estate 33,034 11,365 29,638 234 74,271 62,982 39,916 31,295 Total account policyholders 47,071 17,996 51,891 556 117,514 99,652 ---------------------------------------------------------------------------------------------------------------------------------- 132,585 32,159 Total insurance activities 156,350 36,924 53,323 2,023 248,620 210,830 - - Banking activities - 6,360 - - 6,360 5,393 41,912 746 Off balance sheet assets 49,425 3,250 1,238 207 54,120 45,894 ---------------------------------------------------------------------------------------------------------------------------------- 174,497 32,905 Total assets business units 205,775 46,534 54,561 2,230 309,100 262,117 Other investments 504 427 ---------------------------------------------------------------------------------------------------------------------------------- Total group 309,604 262,544 ================================================================================================================================== 137,383 32,332 Assets business units 162,008 45,263 53,609 2,154 263,034 223,053 Other assets 4,099 3,476 ------------ ------- Total assets on balance sheet 267,133 226,529 12,249 1,572 Capital in units 14,444 4,125 2,607 218 21,394 18,142 Total capital base 22,350 18,953 Other net liabilities -956 -811 ------------ ------- Total 21,394 18,142 ================================================================================================================================== As at December 31, 2001 ---------------------------------------------------------------------------------------------------------------------------------- Investments 92,709 805 Fixed income 105,195 12,102 1,323 1,401 120,021 105,774 4,170 89 Equities and real estate 4,732 5,599 147 155 10,633 9,371 96,879 894 Total general account 109,927 17,701 1,470 1,556 130,654 115,145 ---------------------------------------------------------------------------------------------------------------------------------- 12,232 14,009 Fixed income 13,879 6,024 23,022 354 43,279 38,142 26,477 16,879 Equities and real estate 30,044 12,014 27,739 196 69,993 61,685 38,709 30,888 Total account policyholders 43,923 18,038 50,761 550 113,272 99,827 ---------------------------------------------------------------------------------------------------------------------------------- 135,588 31,782 Total insurance activities 153,850 35,739 52,231 2,106 243,926 214,972 - - Banking activities - 7,047 - - 7,047 6,210 44,931 813 Off balance sheet assets 50,982 1,319 1,336 247 53,884 47,488 ---------------------------------------------------------------------------------------------------------------------------------- 180,519 32,595 Total assets business units 204,832 44,105 53,567 2,353 304,857 268,670 Other investments 464 409 ---------------------------------------------------------------------------------------------------------------------------------- Total group 305,321 269,079 ================================================================================================================================== 140,285 32,236 Assets business units 159,180 44,834 52,976 2,400 259,390 228,600 Other assets 4,671 4,117 ------------ ------- Total assets on balance sheet 264,061 232,717 13,920 1,771 Capital in units 15,795 3,654 2,910 374 22,733 20,035 Total capital base 22,045 19,428 Other net liabilities 688 607 ------------ ------- Total 22,733 20,035 ==================================================================================================================================
Summarized consolidated income statements
amounts in millions USD UR EUR ------------------------------- --------------------------- ---------------------- First six months Second quarter First six months ------------------------------- --------------------------- ---------------------- 2002 2001 % 2002 2001 % 2002 2001 % Revenues 10,068 9,835 2 Gross premiums 5,247 5,127 2 11,219 10,958 2 4,359 4,398 -1 Investment income 2,364 2,531 -7 4,857 4,900 -1 170 173 -2 Income from banking activities 97 100 -3 190 193 -2 -------------------- --------------------------------------------------------------------- ----------------------- 14,597 14,406 1 Total revenues 7,708 7,758 -1 16,266 16,051 1 Benefits and expenses 773 754 3 Premiums to reinsurers 431 376 15 861 840 3 9,717 9,721 0 Benefits paid and provided 5,157 5,094 1 10,828 10,831 0 97 109 -11 Profit sharing and rebates 51 60 -15 108 121 -11 2,384 1,956 22 Commissions and expenses for own account 1,407 1,139 24 2,657 2,180 22 327 377 -13 Interest 175 220 -20 365 420 -13 410 55 Miscellaneous income and expenditure 342 27 457 61 -------------------- --------------------------------------------------------------------- ----------------------- 13,708 12,972 6 Total benefits and expenses 7,563 6,916 9 15,276 14,453 6 889 1,434 -38 Income before tax 145 842 -83 990 1,598 -38 -254 -429 -41 Corporation tax -28 -254 -283 -478 -41 50 37 35 Transamerica Finance Corporation 29 38 -24 56 41 37 -------------------- --------------------------------------------------------------------- ----------------------- 685 1,042 -34 Net income 146 626 -77 763 1,161 -34 --------------------------------------------------------------------------------------------------------------------------------- Income statement items: average rate 1 EUR = USD 0.89740 (2001: USD 0.89750)
Condensed consolidated balance sheets
amounts in millions As at As at As at As at As at As at June 30 Dec. 31 June 30 June 30 June 30 Dec. 31 2002 2001 2001 2001 2002 2001 USD USD % USD EUR EUR EUR % --------------------------------------------------------------------------------------------------------------------------------- 131,999 121,764 8 Investments 116,998 137,970 134,364 138,165 -3 2,975 2,891 3 Group companies and participations 1,955 2,305 3,028 3,280 -8 99,997 99,827 0 Investments for the account of policyholders 99,652 117,514 101,789 113,272 -10 9,549 8,235 16 Other assets 7,924 9,344 9,720 9,344 4 -------------------- -------------------------------------------------------------------------------------------------- 244,520 232,717 5 Total assets 226,529 267,133 248,901 264,061 -6 13,407 13,477 -1 Total shareholders' equity 1 13,262 15,639 13,647 15,292 -11 2,005 1,852 8 Capital securities 1,801 2,124 2,041 2,101 -3 628 590 6 Subordinated (convertible) loans 593 699 639 670 -5 3,239 3,509 -8 Senior debt related to insurance activities 3,297 3,888 3,297 3,982 -17 -------------------- -------------------------------------------------------------------------------------------------- 19,279 19,428 -1 Total capital base 18,953 22,350 19,624 22,045 -11 102,477 94,520 8 Technical provisions 2 89,943 106,065 104,313 107,251 -3 Technical provisions with investments for 99,997 99,827 0 the account of policyholders 3 99,652 117,514 101,789 113,272 -10 22,767 18,942 20 Other liabilities 4 17,981 21,204 23,175 21,493 8 -------------------- -------------------------------------------------------------------------------------------------- 244,520 232,717 5 Total shareholders' equity and liabilities 226,529 267,133 248,901 264,061 -6 --------------------------------------------------------------------------------------------------------------------------------- 1 Shareholders' equity January 1 12,844 15,292 12,844 Retained earnings 614 763 1,252 Issuance of new shares 1,685 0 1,685 Currency exchange rate differences 916 -1,392 386 Goodwill -207 -9 -286 Repurchased and sold own shares -36 0 -21 Change revaluation account -393 -1,015 -1,537 Sale Mexico - 0 602 Other changes 216 8 367 --------------------------------------------------------------------------------------------------------------------------------- 13,407 13,477 Shareholders' equity end of period 5 13,262 15,639 13,647 15,292 --------------------------------------------------------------------------------------------------------------------------------- % % --------------------------------------------------------------------------------------------------------------------------------- 37,246 33,639 11 2 Of which fixed annuities 30,919 36,461 37,913 38,170 -1 26,755 24,626 9 2 Of which GICs and funding agreements 23,922 28,210 27,234 27,943 -3 -15,266 -14,511 5 2 Of which deferred policy acquisition costs -14,509 -17,110 -15,539 -16,466 -6 32,522 34,131 -5 3 Of which variable annuities 35,558 41,931 33,105 38,728 -15 6,712 5,690 18 4 Of which savings accounts 5,248 6,189 6,832 6,456 6 3,561 4,089 -13 5 Including revaluation account 4,905 5,784 3,625 4,640 -22 3,032 3,438 -12 of which realized gains 4,288 5,057 3,086 3,901 -21 ---------------------------------------------------------------------------------------------------------------------------------
Balance sheet items: closing rate 1 EUR = USD 0.98240 (2001: 0.84800; year-end 2001: USD 0.88130 Summarized information Transamerica Finance Corporation
amounts in millions USD USD EUR ------------------------- --------------------------- ------------------------- Second quarter First six months First six months ------------------------- --------------------------- ------------------------- 2002 2001 % INCOME STATEMENT 2002 2001 % 2002 2001 % Revenues 166 221 -25 Finance charges 335 444 -25 374 495 -24 103 106 -3 Leasing revenues 205 223 -8 228 249 -8 57 66 -14 Real estate information services 116 124 -6 129 138 -7 36 60 -40 Other revenues 69 135 -49 77 150 -49 ------------------ ----------------------------------------------------------------------- -------------------- 362 453 -20 Total revenues 725 926 -22 808 1,032 -22 Expenses 64 105 -39 Interest and debt expense 134 241 -44 149 269 -45 75 84 -11 Salaries and other employee expenses 153 163 -6 171 181 -6 52 58 -10 Depreciation on equipment held for lease 105 111 -5 117 124 -6 114 171 -33 Miscellaneous income and expenditure 236 352 -33 263 392 -33 ------------------ ----------------------------------------------------------------------- -------------------- 305 418 -27 Total expenses 628 867 -28 700 966 -28 57 35 63 Income before tax 97 59 64 108 66 64 -22 11 Corporation tax -29 3 -32 3 ------------------ ----------------------------------------------------------------------- -------------------- 35 46 -24 Net income from operations 68 62 10 76 69 10 ================================================================================================================================= Net income by segment 31 18 72 Commercial lending 66 35 89 73 39 87 -2 -3 -33 Leasing -1 -11 -91 -1 -13 -92 9 20 -55 Real estate information services 16 23 -30 18 26 -31 -3 11 Other -13 15 -14 17 ------------------ ----------------------------------------------------------------------- -------------------- 35 46 -24 Net income from operations 68 62 10 76 69 10 ================================================================================================================================= Income reported by AEGON 35 46 -24 Net income from operations 68 62 10 76 69 10 -9 -12 -25 Funding costs on the related raised debt -18 -25 -28 -20 -28 -29 ------------------ ----------------------------------------------------------------------- -------------------- 26 34 -24 Net income reported by AEGON 50 37 35 56 41 37 ================================================================================================================================= Income statement items: average rate 1 EUR = USD 0.89740 (2001: USD 0.89750) As at As at As at As at As at As at June 30 Dec. 31 June 30 June 30 June 30 Dec. 31 2002 2001 2001 2001 2002 2001 USD USD % BALANCE SHEET USD EUR EUR EUR % --------------------------------------------------------------------------------------------------------------------------------- 6,367 6,931 -8 Finance receivables 7,776 9,170 6,481 7,865 -18 105 114 -8 Equipment 80 94 107 129 -17 2,399 2,864 -16 Other assets 3,507 4,136 2,442 3,250 -25 ------------------ ------------------------------------------------------------------------------------------------- 8,871 9,909 -10 Total assets 11,363 13,400 9,030 11,244 -20 1,685 1,642 3 Accounts payable and other liabilities 1,800 2,123 1,715 1,863 -8 6,257 7,145 -12 Debts 8,279 9,763 6,369 8,108 -21 929 1,122 -17 Shareholders' equity 1,284 1,514 946 1,273 -26 ------------------ ------------------------------------------------------------------------------------------------- 8,871 9,909 -10 Total liabilities and shareholders' equity 11,363 13,400 9,030 11,244 -20 =================================================================================================================================
Balance sheet items: closing rate 1 EUR = USD 0.98240 (2001: 0.84800; year-end 2001: USD 0.88130) Results by segment twelve months cumulative
amounts in million EUR (unless otherwise stated) United Americas Kingdom July 1, 2001 - June 30, 2002 The United Other Total Total USD GBP Americas Netherlands Kingdom countries EUR USD ---------------------------------------------------------------------------------------------------------------------------------- Net income 1,364 208 Life insurance 1,524 715 335 23 2,597 2,324 220 - Accident and health insurance 246 33 - 9 288 258 0 - General insurance 0 35 - 32 67 60 - - Banking activities - 31 - - 31 28 Interest charges and other -348 -311 ---------------------------------------------------------------------------------------------------------------------------------- Income before tax 1,584 208 business units 1,770 814 335 64 Income before tax 2,635 2,359 -459 -60 Corporation tax business units -513 -191 -97 -11 Corporation tax -723 -647 ------------------------------------------------------------------------------------------------------------ 1,125 148 Net income business units 1,257 623 238 53 Transamerica Finance Corporation 87 77 ---------------------- Net income 1,999 1,789 ================================================================================================================================== 5,022 433 Gross margin 5,610 1,383 699 299 7,686 6,883 3,438 225 Commissions and expenses 3,840 569 364 235 5,051 4,524 Net income per share 1.44 1.29 ================================================================================================================================== United Americas Kingdom July 1, 2000 - June 30, 2001 The United Other Total Total USD GBP Americas Netherlands Kingdom countries EUR USD ---------------------------------------------------------------------------------------------------------------------------------- Net income 1,949 231 Life insurance 2,117 759 374 32 3,282 2,934 106 - Accident and health insurance 115 40 - 5 160 142 2 - General insurance 3 38 - 29 70 63 - - Banking activities - 59 - - 59 51 Interest charges and other -506 -455 ---------------------------------------------------------------------------------------------------------------------------------- Income before tax 2,057 231 business units 2,235 896 374 66 Income before tax 3,065 2,735 -682 -63 Corporation tax business units -741 -207 -102 -13 Corporation tax -916 -818 ------------------------------------------------------------------------------------------------------------ 1,375 168 Net income business units 1,494 689 272 53 Transamerica Finance Corporation 70 64 ---------------------- Net income 2,219 1,981 ================================================================================================================================== 4,866 452 Gross margin 5,377 1,434 733 290 7,364 6,573 2,809 221 Commissions and expenses 3,142 538 359 224 4,299 3,838 Net income per share 1.68 1.50 ==================================================================================================================================