/FIRST ADD -- PHW019 -- AEGON Reports on First Quarter 2004
Results/ The Netherlands (2003 adjusted for comparison) amounts in
millions EUR First three months 2004 2003 % Income by product
segment Traditional life 44 38 16 Life for account of policyholders
13 (6) Fee business 11 5 120 Life insurance 68 37 84 Accident and
health insurance 6 6 0 General insurance 8 5 60 Insurance income 82
48 71 of which general account 58 49 18 of which policyholders
account (1) 24 (1) Insurance income 82 48 71 Banking activities (2)
5 0 Income before realized gains and losses on shares and real
estate 87 48 81 Realized gains and losses on shares and real estate
43 (104) Income before tax 130 (56) Corporation tax (28) (8) Net
income 102 (64) Revenues Life general account single premiums 182
240 (24) Life general account recurring premiums 355 290 22 Life
policyholders account single premiums 144 121 19 Life policyholders
account recurring premiums 625 687 (9) Total life insurance gross
premiums 1,306 1,338 (2) Accident and health insurance premiums 91
80 14 General insurance premiums 149 147 1 Total gross premiums
1,546 1,565 (1) Investment income insurance activities 288 112 157
Fees and commissions 74 74 0 Income from banking activities 73 94
(22) Total revenues 1,981 1,845 7 Investment income for account of
policyholders 462 (226) Gross margin, commissions and expenses
Gross margin 339 287 18 Commissions and expenses 252 239 5
Standardized new premium production life insurance Single premiums
297 317 (6) Recurring premiums annualized 37 41 (10) Total
recurring plus 1/10 single 67 73 (8) Deposits Savings deposits 138
771 (82) Total production on balance sheet 138 771 (82) Off balance
sheet production Mutual funds and other managed assets 245 161 52
Total production off balance sheet 245 161 52 (1) Includes also fee
business. (2) Includes income on off balance sheet type products.
The Netherlands Income before realized gains and losses on shares
and real estate totaled EUR 87 million in the first quarter of
2004, an 81% increase compared to the same period in 2003. The
increase is largely the result of lower additions to provisions for
credit risk and minimum guarantees, as well as higher investment
income. Net income of EUR 102 million for the first quarter of
2004, which includes realized gains and losses on shares and real
estate, improved substantially compared to a loss of EUR 64 million
in the same period last year when adjusted for comparability.
Traditional/Account of Policyholders Traditional life income before
realized gains and losses on shares and real estate of EUR 44
million in the first quarter of 2004 increased from the prior year.
This was a result of higher investment income and improved
mortality experience. Life for account of policyholders income
before realized gains and losses on shares and real estate amounted
to EUR 13 million, compared to a loss of EUR 6 million last year,
primarily as a result of lower additions to the provision for
guaranteed benefits, partly offset by higher amortization of DPAC
due to a higher than expected lapse rate. Overall standardized new
life production showed a decline of 8% to EUR 67 million, primarily
due to lower individual life production. Fee business Income before
realized gains and losses on shares and real estate on fee business
increased 120% to EUR 11 million. This increase is largely due to
better results in the asset management business and the
distribution units, as well as higher results due to TKP Pension.
Off balance sheet production rose 52% to EUR 245 million, compared
to EUR 161 million in the first quarter of 2003. Non-life insurance
Accident and health income before realized gains and losses on
shares and real estate was EUR 6 million and flat compared to the
same period the prior year. General insurance reported an increase
of EUR 3 million to EUR 8 million mainly due to favorable claims
experience, higher investment income and cost containment. Banking
activities Savings account balances at the end of the first quarter
2004, compared to year-end 2003, were slightly lower at EUR 5.6
billion. The decline in account balances reflects AEGON's focus on
profitability in a competitive market. New deposits amounted to EUR
138 million, an 82% decrease compared to the first quarter the
prior year. Withdrawal rates have declined significantly compared
to the first quarter of the prior year. Income before realized
gains and losses on shares and real estate from banking activities
increased to EUR 5 million, reflecting lower expenses and interest
charges, partly offset by lower investment income. Commissions and
expenses Commissions and expenses increased 5% to EUR 252 million
compared to the first quarter of the prior year. While commissions
declined in the first quarter due to lower production, this was
more than offset by lower deferral of DPAC and higher DPAC
amortization. Operating expenses, which exclude DPAC amortization
and commissions, were equal to last year. United Kingdom (2003
adjusted for comparison) amounts in millions GBP EUR First three
months First three months 2004 2003 % 2004 2003 % Income by product
segment (4) (1) Traditional life (6) (2) 35 32 9 Life for account
of policyholders 51 48 6 1 (2) Fee business 2 (3) 32 29 10
Insurance income 47 43 9 (4) (1) of which general account (6) (2)
36 30 20 of which policyholders account (1) 53 45 18 Income before
realized gains and 32 29 10 losses on shares and real estate 47 43
9 Realized gains and losses on 0 (4) shares and real estate 0 (5)
32 25 28 Income before tax 47 38 24 (9) (7) (29) Corporation tax
(13) (11) 18 23 18 28 Net income 34 27 26 Revenues Life general
account 35 56 (38) single premiums 51 83 (39) Life general account
36 21 71 recurring premiums 53 32 66 Life policyholders account 660
716 (8) single premiums 972 1,069 (9) Life policyholders account
307 292 5 recurring premiums 451 437 3 1,038 1,085 (4) Total gross
premiums 1,527 1,621 (6) Investment income 23 16 44 insurance
activities 34 24 42 19 13 46 Fees and commissions 28 20 40 1,080
1,114 (3) Total revenues 1,589 1,665 (5) Investment income for
account 250 (530) of policyholders 368 (792) Gross margin,
commissions and expenses 137 120 14 Gross margin 202 179 13 105 91
15 Commissions and expenses 155 136 14 Standardized new premium
production life insurance 724 741 (2) Single premiums 1,065 1,107
(4) 104 87 20 Recurring premiums annualized 152 129 18 176 161 9
Total recurring plus 1/10 single 259 240 8 Off balance sheet
production Mutual funds and other 26 127 (80) managed assets 38 190
(80) 26 127 (80) Total production off balance sheet 38 190 (80) (1)
Includes also fee business. United Kingdom Income before realized
gains and losses on shares and real estate increased 10% to GBP 32
million in the first quarter of this year compared to GBP 29
million in the first quarter of 2003. Net income, which includes
realized gains and losses on shares and real estate, amounted to
GBP 23 million, an increase of 28% compared to the same period last
year. The increase in net income was primarily due to higher
management fees on equity linked funds as a result of higher
average daily equity markets. On a net basis, there were no
realized gains or losses in the first quarter of 2004 while in the
first quarter of 2003 AEGON UK showed a realized net loss of GBP 4
million. Traditional/Account of Policyholders Standardized new life
production in the first quarter of 2004 increased 9% to GBP 176
million compared to GBP 161 million in the same period of the prior
year. The increase is primarily driven by higher recurring and
single premiums in group pensions business. Income before realized
gains and losses on shares and real estate from life for account of
policyholder of GBP 35 million increased 9% in the first quarter of
2004 compared to the same period in the prior year, due primarily
to the higher average level of the equity markets. Income before
realized gains and losses on shares and real estate from
traditional life amounted to a loss of GBP 4 million in the first
quarter of 2004, reflecting a GBP 5 million charge related to the
cost reduction program. Commission and expenses Commissions and
expenses increased 15% to GBP 105 million, due largely to higher
DPAC amortization, growth (including two acquisitions) in the
distribution companies and restructuring costs for the expense
management program. Before deferral of DPAC, expense savings
amounted to GBP 6 million. Other countries (2003 adjusted for
comparison) amounts in millions EUR First three months 2004 2003 %
Income by product segment Traditional life 4 7 (43) Life for
account of policyholders 2 (2) Fee business 2 2 0 Life insurance 8
7 14 Accident and health insurance 2 2 0 General insurance 13 10 30
Insurance income 23 19 21 of which general account 19 19 0 of which
policyholders account (1) 4 0 Income before realized gains and
losses on shares and real estate 23 19 21 Realized gains and losses
on shares and real estate 3 (6) Income before tax 26 13 100
Corporation tax (7) (3) 133 Net income 19 10 90 Revenues Life
general account single premiums 4 5 (20) Life general account
recurring premiums 109 113 (4) Life policyholders account single
premiums 3 5 (40) Life policyholders account recurring premiums 25
53 (53) Total life insurance gross premiums 141 176 (20) Accident
and health insurance premiums 31 28 11 General insurance premiums
90 85 6 Total gross premiums 262 289 (9) Investment income
insurance activities 34 30 13 Fees and commissions 3 3 0 Total
revenues 299 322 (7) Investment income for the account of
policyholders 12 (25) Gross margin, commissions and expenses Gross
margin 91 85 7 Commissions and expenses 68 66 3 Standardized new
premium production life insurance Single premiums 7 10 (30)
Recurring premiums annualized 66 93 (29) Total recurring plus 1/10
single 67 94 (29) Off balance sheet production Mutual funds and
other managed assets 43 48 (10) Total production off balance sheet
43 48 (10) (1) Includes also fee business. Explanatory notes 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, unitized 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 realized gains and losses on shares and real estate
and commissions and expenses. Currencies Income statement items:
average rate 1 EUR = USD 1.2506 (2003: USD 1.0730). Balance sheet
items: closing rate 1 EUR = USD 1.2224 (2003: USD 1.0895; year-end
2003: USD 1.2630). Other countries First quarter 2004 income before
realized gains and losses on shares and real estate amounted to EUR
23 million, an increase of 21% from EUR 19 million compared to the
first quarter of 2003. The increase mainly reflects improved claims
experience in Spain. Net income for the first quarter of 2004,
which includes realized gains and losses on shares and real estate,
amounted to EUR 19 million, an increase of 90% compared to the
prior year. The recognition of EUR 3 million realized gains on
shares and real estate in the first quarter of 2004 compared to a
EUR 6 million loss in the first quarter of 2003 largely accounts
for the increase in net income. Traditional/Account of
Policyholders Standardized new life production in Other countries
decreased 29% to EUR 67 million, largely driven by lower production
in Taiwan compared to the very strong first quarter of 2003. New
life production in Taiwan declined 21% to NTD 2,256 million (EUR 55
million) during the first quarter of 2004. In Hungary, new
standardized life production increased to HUF 1,257 million (EUR 5
million). In Spain, new standardized life production increased EUR
3 million to EUR 8 million. Commissions & Expenses Commissions
and expenses were up 3% to EUR 68 million for the first quarter of
2004. Summarized consolidated income statements (2003 adjusted for
comparison) amounts in millions USD EUR First three months First
three months 2004 2003 % 2004 2003 % Revenues 6,612 6,066 9 Gross
premiums 5,287 5,653 (6) 2,195 1,665 32 Investment income 1,755
1,552 13 385 310 24 Fees and commissions 308 289 7 91 101 (10)
Income from banking activities 73 94 (22) 9,283 8,142 14 Total
revenues 7,423 7,588 (2) Benefits and expenses 689 559 23 Premiums
to reinsurers 551 521 6 5,855 5,588 5 Benefits paid and provided
4,682 5,208 (10) 52 52 0 Profit sharing and rebates 42 48 (13)
Commissions and expenses 1,757 1,365 29 for own account 1,405 1,272
10 223 178 25 Interest 178 166 7 Miscellaneous income 74 202 (63)
and expenditure 59 188 (69) 8,650 7,944 9 Total benefits and
expenses 6,917 7,403 (7) 633 198 Income before tax 506 185 174
(190) (94) 102 Corporation tax (152) (88) 73 - 78 Transamerica
Finance Corporation - 73 443 182 143 Net income 354 170 108
Condensed consolidated balance sheets (2003 adjusted for
comparison) amounts in millions At At March 31 Dec.31 2004 2003 USD
USD % 155,115 153,068 1 Investments 208 3,643 (94) Group companies
and participations 130,024 126,412 3 Investments for account of
policyholders 13,135 12,389 6 Other assets 298,482 295,512 1 Total
assets 18,391 17,640 4 Total shareholders' equity (1) 2,369 2,431
(3) Capital securities 561 571 (2) Subordinated loans 3,999 4,153
(4) Senior debt related to insurance activities 25,320 24,795 2
Total capital base 119,695 118,879 1 Technical provisions (2)
Technical provisions with investments for 130,024 126,412 3 account
of policyholders (3) 23,443 25,426 (8) Other liabilities (4)
298,482 295,512 1 Total shareholders' equity and liabilities (1)
Shareholders' equity January 1 as reported Effect of SOP 03-1
implementation Realized portion of revaluation account transferred
to other surplus fund Increase in other surplus fund - transferred
from revaluation account Shareholders' equity January 1 adjusted
Net income Dividend paid Paid in surplus / Issuance of new shares
Currency exchange rate differences Goodwill Repurchased and sold
own shares Change revaluation account Sale TFC businesses Other
changes 18,391 17,640 Shareholders' equity end of period (5) %
44,718 44,906 (0) (2) Of which fixed annuities 27,955 27,209 3 (2)
Of which GICs and funding agreements (17,251) (17,260) 0 (2) Of
which deferred policy acquisition costs 43,665 42,260 3 (3) Of
which variable annuities 6,860 7,144 (4) (4) Of which savings
accounts 1,957 1,759 11 (5) Including revaluation account At At At
At March 31 March 31 March 31 Dec.31 2003 2003 2004 2003 USD EUR
EUR EUR % Investments 143,108 131,352 126,894 121,194 5 Group
companies and participations 3,715 3,410 170 2,884 (94) Investments
for account of policyholders 100,225 91,992 106,368 100,089 16
Other assets 11,427 10,488 10,745 9,809 10 Total assets 258,475
237,242 244,177 233,976 4 Total shareholders' equity (1) 14,301
13,126 15,045 13,967 8 Capital securities 2,167 1,989 1,938 1,925 1
Subordinated loans 659 605 459 452 2 Senior debt related to
insurance activities 3,272 3,003 3,271 3,288 (1) Total capital base
20,399 18,723 20,713 19,632 6 Technical provisions (2) 111,852
102,664 97,918 94,124 4 Technical provisions with investments for
account of policyholders (3) 100,225 91,992 106,368 100,089 16
Other liabilities (4) 25,999 23,863 19,178 20,131 (5) Total
shareholders' equity and liabilities 258,475 237,242 244,177
233,976 4 (1) Shareholders' equity January 1 as reported 14,231
14,132 14,231 Effect of SOP 03-1 implementation (161) (165) (161)
Realized portion of revaluation account transferred to other
surplus fund (2,056) (1,281) (2,056) Increase in other surplus fund
- transferred from revaluation account 2,056 1,281 2,056
Shareholders' equity January 1 adjusted 14,070 13,967 14,070 Net
income 170 354 1,033 Dividend paid - - (147) Paid in surplus /
Issuance of new shares - - 3 Currency exchange rate differences
(532) 463 (1,730) Goodwill (235) (89) (358) Repurchased and sold
own shares - 0 19 Change revaluation account (212) 208 851 Sale TFC
businesses - 163 307 Other changes (135) (21) (81) Shareholders'
equity end of period (5) 14,301 13,126 15,045 13,967 % (2) Of which
fixed annuities 43,551 39,973 36,582 35,555 3 (2) Of which GICs and
funding agreements 26,684 24,492 22,869 21,543 6 (2) Of which
deferred policy acquisition costs (16,633) (15,267) (14,112)
(13,666) 3 (3) Of which variable annuities 33,602 30,842 35,721
33,460 7 (4) Of which savings accounts 6,844 6,282 5,612 5,656 (1)
(5) Including revaluation account 360 330 1,601 1,393 15 REPORT OF
THE HOLDING COMPANY Capital and funding During the first quarter of
2004 shareholders' equity increased by EUR 1,078 million to EUR
15,045 million at March 31, 2004. The increase is largely due to
positive exchange rate translations of EUR 463 million, an increase
in the revaluation reserve of EUR 208 million, the EUR 163 million
book gain on the disposal of the majority of TFC's commercial
finance business, and net income of EUR 354 million. In addition, a
goodwill charge of EUR 89 million was incurred primarily as a
result of the acquisitions of distribution companies in the
Netherlands and the United Kingdom. Implementation of Statement of
Position (SOP) 03-1 in AEGON USA resulted in a decline of EUR 165
million in the opening balance of shareholders' equity on January
1, 2004. In the opening balance of January 1, 2004, the realized
part of the revaluation reserve (EUR 1,281 million) has been
transferred to Other surplus fund, due to the change in accounting
for the realized gains and losses principle on shares and real
estate and the discontinuance of the indirect income method. This
transfer had no impact on shareholders' equity. The unrealized
revaluation reserve amounted to EUR 1,601 million on March 31,
2004, compared to EUR 1,393 million at year-end 2003. At March 31,
2004, shareholders' equity represented 73% of AEGON's total capital
base, while senior and dated subordinated debt comprised 18% of the
total capital base. Capital securities accounted for the remaining
9%. AEGON manages its shareholders' equity to be at least 70% of
the total capital base. While shareholders' equity and debt were
influenced by currency exchange rates, the equity to total capital
base ratio was not materially affected as the debt is managed in
proportion to the local currency of invested capital in the
subsidiaries. Dividend The proposed 2003 dividend was approved by
the shareholders at the Annual General Meeting held on April 22,
2004. After taking into account the interim dividend of EUR 0.20,
this represents a final dividend of EUR 0.20 per common share. The
final dividend will be paid in cash or shares, at the election of
the shareholder. As elected by shareholders, 54% of the final
dividend will be paid out in AEGON shares. The final dividend in
shares is 4.9% higher than the cash dividend. The stock fraction of
51 for the share dividend was based upon the average price of the
AEGON share on the Euronext Amsterdam Stock Exchange for the five
trading days from May 4 up to and including May 10. The equivalent
cash dividend per share in US dollars is approximately USD 0.24 and
is based upon the EUR/USD exchange rate of 1.1873 on April 22,
2004. Interest charges and other Interest charges and other
increased from EUR 119 million to EUR 126 million. Holding company
expenses remained flat compared to the same period last year.
Interest charges on capital leverage decreased slightly compared to
the first three months of last year, with the effect of the lower
dollar exchange rate on interest charges related to debt
denominated in US Dollars more than off-setting the slightly higher
average interest rate on the debt. The remaining part of TFC is
consolidated as of January 1, 2004 and the result on TFC is
included in Interest charges and other. TFC's income before tax
amounted to a loss of EUR 26 million, which includes interest
charges on high-yielding TFC-related debt that proved uneconomical
to prepay at the time we sold the largest part of TFC. On an
operating basis, TFC reported income before tax of EUR 5 million in
the first quarter of this year. European Embedded Value On May 5,
2004, the CFO Forum published the European Embedded Value
Principles. AEGON believes that these principles will provide a
consistent basis of reporting companies' embedded values and lead
to greater transparency in insurance reporting. We are fully
supportive of this initiative and were actively involved in
establishing these principles. Supplemental Disclosure
Comparability Adjustments made to Certain Amounts Reported in the
2003 Financials. The adjustments made to the 2003 financial amounts
presented in this report are made for comparability purposes. The
following adjustments have been made: 1) Accounting changes adopted
as of January 1, 2004: -- Discontinuance of the indirect income
method. Gains and losses on shares and real estate are no longer
recognized in the income statement by applying the indirect income
method, but instead are recognized when realized. -- Statement of
Position (SOP) 03-1 issued by the Accounting Standards Executive
Committee (AcSEC) of the AICPA. SOP 03-1 addresses a number of
items within FAS 97, and two elements in particular have an effect
on AEGON USA, resulting in a change in the opening balance of
shareholders' equity at January 1, 2004 of EUR 165 million.
Firstly, shareholders' equity has been reduced (EUR 179 million)
related to the establishment of additional mortality based reserves
on universal life contracts. The implementation changes the timing
of the recognition of mortality profits into earnings. Secondly,
shareholders' equity has been increased (EUR 14 million) for the
SOP methodology for reserving for minimum guaranteed living and
death benefits on variable annuity and variable life contracts. The
effects of the adoption of SOP 03-1 are relevant for the Americas
and the Group totals only. 2) The consolidation of Meeus as of June
30, 2003 was applied retrospectively to January 1, 2003. This
change affects the Netherlands and the Group totals only. AEGON
reconciliation amounts in millions EUR GICs and Life for
Traditional Fixed funding account of First Quarter 2003 life
annuities agreements policyholders (1) Income before tax as
reported 300 60 41 93 Indirect income on shares and real estate,
before tax (95) 0 0 (31) SOP 03-1 (11) 0 0 (3) Meeus consolidation
- - - - Comparable income before realized gains and losses on
shares and real estate 194 60 41 59 Realized gains and losses on
shares and real estate Corporation tax Transamerica Finance
Corporation Comparable net income Variable Accident and First
Quarter 2003 annuities Fee business health insurance Income before
tax as reported (4) 3 55 Indirect income on shares and real estate,
before tax 0 0 0 SOP 03-1 0 0 0 Meeus consolidation - 5 -
Comparable income before realized gains and losses on shares and
real estate (4) 8 55 Realized gains and losses on shares and real
estate Corporation tax Transamerica Finance Corporation Comparable
net income Interest General charges First Quarter 2003 insurance
Banking and other Total Income before tax as reported 15 0 (119)
444 Indirect income on shares and real estate, before tax 0 0 0
(126) SOP 03-1 0 - 0 (14) Meeus consolidation - - - 5 Comparable
income before realized gains and losses on shares and real estate
15 0 (119) 309 Realized gains and losses on shares and real estate
(124) Corporation tax (88) Transamerica Finance Corporation 73
Comparable net income 170 GICs and Life for Traditional Fixed
funding account of Second Quarter 2003 life annuities agreements
policyholders (1) Income before tax as reported 302 55 55 81
Indirect income on shares and real estate, before tax (109) (17)
(22) (32) SOP 03-1 (11) 0 0 (2) Meeus consolidation - - - -
Comparable income before realized gains and losses on shares and
real estate 182 38 33 47 Realized gains and losses on shares and
real estate Corporation tax Transamerica Finance Corporation
Comparable net income Variable Accident and Second Quarter 2003
annuities Fee business health insurance Income before tax as
reported 11 17 53 Indirect income on shares and real estate, before
tax (1) 0 (3) SOP 03-1 0 0 0 Meeus consolidation - (5) - Comparable
income before realized gains and losses on shares and real estate
10 12 50 Realized gains and losses on shares and real estate
Corporation tax Transamerica Finance Corporation Comparable net
income Interest General charges Second Quarter 2003 insurance
Banking and other Total Income before tax as reported 28 2 (99) 505
Indirect income on shares and real estate, before tax 0 0 0 (184)
SOP 03-1 0 - 0 (13) Meeus consolidation - - - (5) Comparable income
before realized gains and losses on shares and real estate 28 2
(99) 303 Realized gains and losses on shares and real estate (159)
Corporation tax (81) Transamerica Finance Corporation 96 Comparable
net income 159 GICs and Life for Traditional Fixed funding account
of Third Quarter 2003 life annuities agreements policyholders (1)
Income before tax as reported 277 100 74 112 Indirect income on
shares and real estate, before tax (98) (14) (10) (30) SOP 03-1
(10) 0 0 (3) Meeus consolidation - - - - Comparable income before
realized gains and losses on shares and real estate 169 86 64 79
Realized gains and losses on shares and real estate Corporation tax
Transamerica Finance Corporation Comparable net income Variable
Accident and Third Quarter 2003 annuities Fee business health
insurance Income before tax as reported 14 10 80 Indirect income on
shares and real estate, before tax (1) (1) (2) SOP 03-1 0 0 0 Meeus
consolidation - - - Comparable income before realized gains and
losses on shares and real estate 13 9 78 Realized gains and losses
on shares and real estate Corporation tax Transamerica Finance
Corporation Comparable net income Interest General charges Third
Quarter 2003 insurance Banking and other Total Income before tax as
reported 17 9 (121) 572 Indirect income on shares and real estate,
before tax (1) 0 0 (157) SOP 03-1 0 0 0 (13) Meeus consolidation -
- - 0 Comparable income before realized gains and losses on shares
and real estate 16 9 (121) 402 Realized gains and losses on shares
and real estate 101 Corporation tax (111) Transamerica Finance
Corporation 43 Comparable net income 435 GICs and Life for
Traditional Fixed funding account of Fourth Quarter 2003 life
annuities agreements policyholders (1) Income before tax as
reported 339 119 43 92 Indirect income on shares and real estate,
before tax (96) (21) (17) (26) SOP 03-1 (10) 0 0 (3) Meeus
consolidation - - - - Comparable income before realized gains and
losses on shares and real estate 233 98 26 63 Realized gains and
losses on shares and real estate Corporation tax Transamerica
Finance Corporation Comparable net income Variable Accident and
Fourth Quarter 2003 annuities Fee business health insurance Income
before tax as reported 42 (24) 95 Indirect income on shares and
real estate, before tax (1) 0 (3) SOP 03-1 0 0 0 Meeus
consolidation - - - Comparable income before realized gains and
losses on shares and real estate 41 (24) 92 Realized gains and
losses on shares and real estate Corporation tax Transamerica
Finance Corporation Comparable net income Interest General charges
Fourth Quarter 2003 insurance Banking and other Total Income before
tax as reported 1 9 (90) 626 Indirect income on shares and real
estate, before tax 0 0 0 (164) SOP 03-1 0 - 0 (13) Meeus
consolidation - - - 0 Comparable income before realized gains and
losses on shares and real estate 1 9 (90) 449 Realized gains and
losses on shares and real estate (88) Corporation tax (98)
Transamerica Finance Corporation 6 Comparable net income 269 GICs
and Life for Traditional Fixed funding account of Full Year 2003
life annuities agreements policyholders (1) Income before tax as
reported 1,218 334 213 378 Indirect income on shares and real
estate, before tax (398) (52) (49) (119) SOP 03-1 (42) 0 0 (11)
Meeus consolidation - - - - Comparable income before realized gains
and losses on shares and real estate 778 282 164 248 Realized gains
and losses on shares and real estate Corporation tax Transamerica
Finance Corporation Comparable net income Variable Accident and
Full Year 2003 annuities Fee business health insurance Income
before tax as reported 63 6 283 Indirect income on shares and real
estate, before tax (3) (1) (8) SOP 03-1 0 0 0 Meeus consolidation -
- - Comparable income before realized gains and losses on shares
and real estate 60 5 275 Realized gains and losses on shares and
real estate Corporation tax Transamerica Finance Corporation
Comparable net income Interest General charges Full Year 2003
insurance Banking and other Total Income before tax as reported 61
20 (429) 2,147 Indirect income on shares and real estate, before
tax (1) 0 0 (631) SOP 03-1 0 0 0 (53) Meeus consolidation - - - 0
Comparable income before realized gains and losses on shares and
real estate 60 20 (429) 1,463 Realized gains and losses on shares
and real estate (270) Corporation tax (378) Transamerica Finance
Corporation 218 Comparable net income 1,033 (1) Reclassification
from traditional life as part of indirect income is allocated to
life for account of policyholders PRNewswire -- May 12 SECOND AND
FINAL ADD -- AEGON FIRST QUARTER 2004 RESULTS -- TO FOLLOW
DATASOURCE: AEGON Web site: http://www.aegon.com/
Copyright