Exhibit 99.1
[AEGON]
614198
PRESS RELEASE
FIRST SIX MONTHS 2003 EARNINGS OF EUR 859 MILLION INCREASE 13% OVER FIRST HALF
2002; NET INCOME PER SHARE EUR 0.55
INTERIM DIVIDEND OF EUR 0.20 DECLARED
SECOND QUARTER 2003 NET INCOME EUR 466 MILLION; NET INCOME PER SHARE EUR 0.30
The Hague, The Netherlands, 7 August 2003.
- ------------------------------------------
Chairman's statement
- --------------------
Donald J. Shepard, Chief Executive Officer and Chairman of the Executive Board,
said: "Our second quarter results reflect a modest improvement in our
businesses. The relative recovery in the equity markets, the continued
improvement in the level of corporate bond defaults and the actions we've taken
to improve profitability have had a positive impact on our results. However, the
low interest rate environment continues to compress margins and the euro /
dollar exchange rate has also affected our earnings. In line with our strategy
to concentrate on our core lines of business, we have successfully completed the
divestiture of most of Transamerica's commercial finance business. An interim
dividend of euro 0.20 has been declared."
HIGHLIGHTS - Second quarter and first half 2003
(amounts in millions, except per share data)
First
Second six Second Second First six First six (DELTA)
quarter months quarter quarter months months Constant
2003 2003 2003 2002 2003 2002 exch. rates
USD USD EUR EUR % EUR EUR % %
- --------------------- -----------------------------------------------------------------------
572 1,048 Income before tax 505 145 248 949 990 -4 9
528 949 Net income 466 146 219 859 763 13 28
0.33 0.61 Net income per share 0.30 0.10 200 0.55 0.53 4 19
5,194 11,260 Premium income 4,537 5,247 -14 10,190 11,219 -9 2
2,499 4,683 Investment income 2,202 2,364 -7 4,238 4,857 -13 3
7,796 16,147 Total revenues 6,830 7,708 -11 14,613 16,266 -10 2
1,560 2,888 Commissions and expenses 1,376 1,407 -2 2,614 2,657 -2 16
722 1,409 New life production 635 624 2 1,275 1,290 -1 11
6,790 14,577 Gross deposits (1) 5,935 8,819 -33 13,192 17,509 -25 -10
15,549 Shareholders' equity (2) 13,607 14,231 -4 3
274,848 Total assets (2) 240,525 238,206 1
1) Annuity, GIC and savings deposits are not included in revenues
2) Amounts reported for 2002 are as of December 31, 2002
AEGON reports net income of EUR 466 million for the second quarter of 2003,
compared to EUR 146 million for the same period of 2002. For the first six
months of 2003 net income totaled EUR 859 million versus EUR 763 million for the
same period of the prior year, an improvement of 13% resulting from improved
insurance activities and higher results at Transamerica Finance Corporation.
Excluding currency influence, net income increased 28% while total new life
production increased 11%, with a 14% increase in the Americas, 5% increase in
the UK and 29% decrease in the Netherlands. Gross annuity and GIC
deposits, excluding currency influence, were 8%
lower, which is in line with lowered expectations due mainly to changes in
product features, benefits and distribution costs.
Outlook 2003
- ------------
AEGON is not providing an earnings forecast. While the company believes the long
term outlook is positive, market conditions remain uncertain.
Key points for the second quarter 2003
- --------------------------------------
o Standardized new life production increased 18% in the Americas and 6% in
the UK and was down 10% in the Netherlands compared to the second quarter
of 2002. Total deposits decreased 18% in the Americas compared to the
second quarter of 2002. Lower variable annuity sales (39%) were due mainly
to product feature changes. Lower fixed annuity sales (12%) reflect lower
interest rates, product feature changes and lower distribution costs.
o Bond default provisions in the USA were increased by USD 144 million
compared to USD 335 million during the second quarter of 2002. Actual
defaults for the second quarter were slightly less than the first quarter
of 2003 (USD 134 million compared to USD 149 million).
o There were no charges for DPAC unlocking or additions to guarantee
provisions related to the equity markets. During the second quarter of
2002, EUR 318 million in DPAC unlocking was taken and EUR 171 million was
added to the guarantee provisions.
o Net income for Transamerica Finance Corporation for the second quarter was
USD 109 million compared to USD 26 million in the second quarter of 2002.
Increased earnings were primarily driven by higher gross margins due to
lower funding costs, lower expenses and lower credit losses. In addition,
deferred income of USD 35 million (after tax) was realized as a contract
with a major client was terminated.
Key points for the first six months 2003
- ----------------------------------------
o Lower charges related to DPAC amortization of EUR 153 million, lower
additions to guarantee provisions of EUR 114 million and lower additions to
the bond default reserve of EUR 112 million positively affected earnings
compared with the first six months of 2002.
o Currency exchange rates negatively impacted net earnings by 15% compared to
the first six months of 2002, driven mainly by the lower US dollar exchange
rate.
o EUR 310 million was released as indirect investment income from the
revaluation account to income before tax compared with EUR 416 million for
the first six months of 2002. The revaluation account balance at June 30,
2003 was EUR 2,529 million. Realized gains of EUR 1,550 million and
unrealized gains of EUR 979 million account for the total.
o Net income for the first six months of 2003 for Transamerica Finance
Corporation was USD 187 million (USD 50 million for the first half of
2002). Compared to the first six months of 2002, business conditions in all
segments were more favorable. In addition to lower funding costs, lower
expenses and lower credit losses, and the recognition of deferred income
from the termination of a major client contract, several one-time tax
benefits totaling USD 31 million were realized.
o Earnings per share of EUR 0.55 for the first half year 2003 are 4% higher
than the first half of 2002 after the preferred share dividend and the
adjustment for the 2002 stock dividend.
REPORT OF THE COUNTRY UNITS
- ---------------------------
The Americas
Net income totaled USD 282 million compared to USD 35 million in the second
quarter of 2002. Income before tax for the six months of 2003 totaled USD 752
million compared to USD 591 million during the same period last year. The
largest influences on the increase in earnings before tax are due to the lower
additions to the asset default provision (USD 124 million) and lower DPAC
amortization and GMB provisioning (USD 238 million), offset by lower employee
pension
plan income (USD 42 million) and lower indirect income and investment yields
(USD 179 million).
Commissions and expenses show a 4% increase compared to the first six months of
2002. Excluding commissions and net DPAC amortization, actual operating expenses
increased USD 107 million. Reflected in the year-to-date 2003 expenses is USD 42
million less in employee pension plan income and USD 27 million related to a
coinsurance agreement that was cancelled and USD 12 million higher expenses
related to acquired businesses. Excluding these items, expenses were up 3% from
first half 2002 and in line with pricing allowables.
Traditional life production (standardized new premium) increased 13% over the
first six months of 2002 to USD 404 million. Strong traditional universal and
term life sales in our Agency group continue to drive the production. Earnings
of USD 344 million were 15% lower than the same period last year and reflect
lower investment yields. Indirect yield was USD 25 million lower compared to the
first six months of 2002.
Fixed annuity deposits were down 17% compared to the first half of 2002 as a
result of reductions in crediting rates and adjustments to commission
structures. Surrenders are at historically low levels reflecting the overall
decline in interest rates and the continued uncertainty in the financial
markets. Earnings of USD 127 million were 12% above comparable prior year. The
favorable impact of USD 97 million lower credit losses in 2003 was somewhat
offset by the decline in indirect income and lower investment yields. The
pricing spread on the total annuity book increased 3 basis points during the
second quarter to 163 basis points, despite the drop in yields.
Variable annuity deposits decreased 1% over the first half of 2002 but declined
46% when compared to first quarter 2003. The decrease from first quarter 2003 is
due to the discontinuance of the guaranteed minimum income benefit (GMIB)
feature. Earnings of USD 8 million were USD 235 million higher than the first
six months of 2002. Results through June 30, 2002 included DPAC unlocking and
guarantee reserve strengthening that occurred as a result of the severe decline
in the stock market during the second quarter of 2002.
GICs and funding agreement account balances rose 5% to USD 29.3 billion
reflecting strong international funding agreement sales. Earnings declined 15%
to USD 106 million due to lower indirect yield income (USD 21 million).
Life for account of policyholders sales remain challenging due to the continued
uncertainty in the equity markets. Earnings of USD 50 million for the first six
months of 2003 were equal to the same period last year.
Off-balance sheet production was USD 10.9 billion, a 15% increase compared to
the first half 2002. Mutual fund sales of USD 3.8 billion and synthetic GIC
sales of USD 7.1 billion were 11% and 18% higher, respectively, compared to the
same period last year. Fee income increased USD 9 million due to higher assets
under management and lower expenses.
Accident and health premiums were equal to the first six months of 2002.
Earnings of USD 107 million were 12% lower than first half 2002 due to reduced
indirect investment income, and a one-time foreign currency gain that was
included in the first quarter of 2002.
The Netherlands
Income before tax totaled EUR 361 million, a 4% increase compared to the first
six months of 2002. Earnings reflect a reduction in additions to guarantee
provisions, which was offset by additions to credit provisions, increased
employee pension related costs and higher DPAC amortization. Net income for the
second quarter 2003 of EUR 149 million was 10% above the first quarter and
brought the six months after tax results to EUR 285 million. Provisions for
guarantees were increased by EUR 22 million and credit provisions were increased
by EUR 15
million. Employee pension premiums increased EUR 32 million compared to the same
period last year while lower production resulted in lower loadings of EUR 8
million.
Commissions and expenses increased 72% to EUR 505 million partly due to the
consolidation of Meeus. Additional employee pension costs of EUR 32 million,
lower deferral of policy acquisition costs and higher DPAC amortization are the
primary drivers of the increase in commissions and expenses compared to the
first six months of 2002. Also included in expenses are EUR 26 million of
investment costs that are now recognized on a gross instead of net basis. This
amount in expenses is offset by an equal amount in revenues. Excluding these
items, expenses were up 4% from first half 2002.
Traditional life results of EUR 278 million were in line with the first six
months of 2002, influenced by investment income, which was up 10%.
Life for account of policyholders results were EUR 46 million, 142% higher than
in the same period last year. The substantial increase in earnings is due to
lower additions to the provision for guarantees.
Overall life production lagged 29% behind the first six months of 2002 as a
result of continued volatility in placing group pension business and uncertainty
surrounding both the equity markets and the fiscal status of company savings
plans. New individual life production equals the first six months of 2002.
Off-balance sheet production increased 143% to EUR 1,109 million due to the
addition of significant new clients and accounts from the group pensions target
group.
Savings account balances, compared to year-end 2002, slightly decreased (-4%) to
a total of EUR 6.1 billion at the end of the second quarter 2003.
United Kingdom
Net income was GBP 41 million compared to GBP 66 million for the first half of
2002. The reduction in net income is primarily due to lower levels of management
and fund related fees as a direct result of the lower equity markets, lower
levels of experience profits, lower indirect yield and investment income.
Commissions and expenses increased to GBP 188 million up GBP 52 million due to
inclusion of the operating costs of the acquired distribution companies, growth
in our protection businesses, the resumption of contributions to the pension
scheme of GBP 8 million and accelerating depreciation charges on IT costs.
Traditional life production (standardized new premium) increased 19% over the
first six months in 2002 with strong growth in our protection business and
increasing volumes of annuity business from our own maturing pension book.
Earnings were GBP 8 million lower due to reduced levels of investment income as
well as lower levels of experience profits.
Life for account of policyholders production (standardized new premiums)
increased 3% over the same period in 2002. Earnings on this business line have
been adversely affected by the fall in equity markets.
Off-balance sheet production was GBP 169 million, a 21% increase from the same
period in 2002 representing our continued success to securing fixed interest
mandates.
While the current economics of the UK market are challenging, it is one of the
largest long-term savings markets in the world and offers solid growth
prospects. AEGON is committed to building upon the AEGON UK group's strong and
growing market presence in the UK market as evidenced by the recent significant
investment in distribution.
Other countries
Net income from other countries was EUR 29 million, a 53% increase compared to
the first six months of 2002. Traditional life and general insurance results
contributed to the increase. Hungary had one of its most successful quarters in
terms of earnings and moved forward with the preparations for the start-up of
our operations in Slovakia. Standardized new life production in other countries
increased from EUR 55 million to EUR 163 million in the first half, largely
driven by continued strong production growth in Taiwan. In Spain income before
tax increased considerably compared to prior year to EUR 18 million.
REPORT OF THE HOLDING COMPANY
- ----------------------------
Capital and funding
Shareholders' equity was EUR 13,607 million compared to EUR 14,231 million at
December 31, 2002. The decrease of EUR 624 million is largely due to negative
currency exchange rate differences of EUR 1,045 million offset by net income of
EUR 812 million (excluding the preferred dividend). A reduction in the
revaluation account of EUR 69 million and a goodwill charge of EUR 273 million,
mainly as a result of the consolidation of Meeus in the Netherlands, contributed
to the remaining decrease in shareholders' equity
There were no material developments in the capital base during the second
quarter of 2003. At June 30, 2003, equity capital represented 71% of our total
capital base, while senior and dated subordinated debt comprised 19% of our
total capital base. Capital securities accounted for the remaining 10%. The
ratio of shareholders' equity to total capital remains stable at approximately
the same level as it was at year-end 2002 and at March 31, 2003. Currency
exchange rate translations do not affect the solvency at the operating units.
AEGON is committed to maintaining a strategy that ensures financial strength and
flexibility.
Dividends
An interim dividend of EUR 0.20 per common share has been declared. The interim
dividend will be paid in cash or stock at the election of the shareholder. The
interim dividend in shares, if elected, will be 5% higher than the value of the
interim cash dividend, or EUR 0.21 per common share of EUR 0.12 par value. AEGON
shares will be quoted ex-dividend on August 11, 2003. The dividend will be
payable as of September 19, 2003.
AEGON recognizes the importance of offering its shareholders a stable and
adequate dividend, which is supported by the company's cash flow and capital
position. AEGON is considering proposing a full year dividend of EUR 0.40 per
common share.
Disclaimer
- ----------
The statements contained in this press release that are not historical facts are
forward-looking statements as defined in the U.S. Private Securities Litigation
Reform Act of 1995. Words such as "believe", "estimate", "intend", "may",
"expect", "anticipate", "predict", "project", "counting on", "plan", "continue",
"want", "forecast", "should", "would", "is confident" and "will" and similar
expressions as they relate to us are intended to identify such forward-looking
statements. These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to predict. We
undertake no obligation to publicly update or revise any forward-looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates.
All forward-looking statements are subject to various risks and uncertainties
that could cause actual results to differ materially from expectations,
including, but not limited to, the following:
o Changes in general economic conditions, particularly in the United States,
the Netherlands and the United Kingdom;
o Changes in the performance of financial markets, including emerging markets,
including:
o The frequency and severity of defaults by issuers in our fixed income
investment portfolios; and
o The effects of corporate bankruptcies and/or accounting restatements on
the financial markets and the resulting decline in value of equity and
debt securities we hold;
o The frequency and severity of insured loss events;
o Changes affecting mortality, morbidity and other factors that may affect
the profitability of our insurance products;
o Changes affecting interest rate levels and continuing low interest rate
levels;
o Changes affecting currency exchange rates, including the EUR/USD and
EUR/GBP exchange rates;
o Increasing levels of competition in the United States, the Netherlands, the
United Kingdom and emerging markets;
o Changes in laws and regulations, particularly those affecting our operations,
the products we sell and the attractiveness of certain products to our
consumers;
o Regulatory changes relating to the insurance industry in the jurisdictions
in which we operate;
o Acts of God, acts of terrorism and acts of war;
o Changes in the policies of central banks and/or foreign governments;
o Litigation or regulatory action that could require us to pay significant
damages or change the way we do business;
o Customer responsiveness to both new products and distribution channels;
o Competitive, legal, regulatory, or tax changes that affect the distribution
cost of or demand for our products;
o Our failure to achieve anticipated levels of earnings or operational
efficiencies as well as other cost saving initiatives.
- --------------------------------------------------------------------------------
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 on the first 6 months 2003 earnings and embedded value 2002
will be held this morning at AEGON's headquarters in The Hague at 10.30 MET DST
(09.30 BST; 4.30 a.m. ET). This press conference will be webcast live on AEGON's
website homepage (www.aegon.com).
Investor conference call
- ------------------------
An investor conference call on the first six months earnings exclusively will be
--------------------------------------------
held today at 15.00 MET DST (14.00 BST; 09.00 a.m. ET). We kindly request that
all questions on embedded value be deferred to the Embedded Value Conference
dedicated to this subject on Friday 8 August 2003. See details below.
The phone number to listen in on the conference call are as follows:
+31 45 631 6905 (The Netherlands)
+44 208 515 2326 (United Kingdom)
+1 416 646 3096 (United States and Canada)
Embedded Value Conference
- -------------------------
On Friday 8 August 2003 AEGON will host a conference for analysts and investors
on its embedded value 2002, which will be webcast live on AEGON's website
homepage (www.aegon.com). Viewers of the webcast will be able to participate in
the question and answer session by e-mailing questions. The link to this webcast
will be available from 10.45 MET DST (09.45 BST; 04.45 a.m. ET).
Highlights
amounts in millions
USD EUR EUR
- ----------------------------- --------------------------- --------------------------
First six months Second quarter First six months
- ----------------------------- --------------------------- --------------------------
2003 2002 % 2003 2002 % 2003 2002 %
Income by product segment
665 670 -1 Traditional life 302 322 -6 602 747 -19
127 113 12 Fixed annuities 55 -4 115 126 -9
106 125 -15 GICs and funding agreements 55 68 -19 96 139 -31
192 183 5 Life for account policyholders 81 26 174 204 -15
8 -227 Variable annuities 11 -286 7 -253
22 3 Fee business 17 -1 20 3
- ---------------------- --------------------------------------------------------------------- -----------------------
1,120 867 29 Life insurance 521 125 1,014 966 5
119 139 -14 Accident and health insurance 53 62 -15 108 155 -30
48 31 55 General insurance 28 17 65 43 34 26
- ---------------------- --------------------------------------------------------------------- -----------------------
1,287 1,037 24 Total insurance activities 602 204 195 1,165 1,155 1
2 19 -89 Banking activities 2 12 -83 2 21 -90
-241 -167 44 Interest charges and other -99 -71 39 -218 -186 17
- ---------------------- --------------------------------------------------------------------- -----------------------
1,048 889 18 Income before tax 505 145 949 990 -4
-286 -254 13 Corporation tax -135 -28 -259 -283 -8
187 50 Transamerica Finance Corporation 96 29 169 56
- ---------------------- --------------------------------------------------------------------- -----------------------
949 685 39 Net income 466 146 219 859 763 13
====================================================================================================================================
Income geographically
752 591 27 Americas 349 46 681 658 3
399 312 28 The Netherlands 192 110 75 361 348 4
94 130 -28 United Kingdom 42 50 -16 85 145 -41
44 23 91 Other countries 21 10 110 40 25 60
- ---------------------- --------------------------------------------------------------------- -----------------------
1,289 1,056 22 Income before tax business units 604 216 180 1,167 1,176 -1
-241 -167 44 Interest charges and other -99 -71 39 -218 -186 17
- ---------------------- --------------------------------------------------------------------- -----------------------
1,048 889 18 Income before tax 505 145 949 990 -4
-286 -254 13 Corporation tax -135 -28 -259 -283 -8
187 50 Transamerica Finance Corporation 96 29 169 56
- ---------------------- --------------------------------------------------------------------- -----------------------
949 685 39 Net income 466 146 219 859 763 13
====================================================================================================================================
3,936 3,273 20 Gross margin 1,881 1,552 21 3,563 3,647 -2
2,888 2,384 21 Commissions and expenses 1,376 1,407 -2 2,614 2,657 -2
Amounts per common share of EUR 0.12
0.61 0.48 27 Net income /1/ 0.30 0.10 0.55 0.53 4
0.61 0.47 30 Net income fully diluted /1/ 0.30 0.09 0.55 0.52 6
As at As at As at As at
June 30, Dec. 31, June 30, Dec. 31,
2003 2002 2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
8.91 8.64 3 Shareholders' equity /2/ 7.80 8.24 -5
9.34 9.18 2 Shareholders' equity after full conversion /2/ 8.17 8.75 -7
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
Number of employees 29,148 25,638 14
Outstanding common shares: /3/
- Number of common shares (millions) 1,501 1,491 1
- Weighted average number (millions) 1,471 1,448 2
====================================================================================================================================
/1/ Based on the weighted average number of common shares, adjusted for stock dividend and repurchased own shares.
/2/ Based on the number of common shares outstanding at the end of the period, adjusted for stock dividend and repurchased own
shares.
/3/ Adjusted for stock dividend.
Revenues and production
amounts in millions
USD EUR EUR
- --------------------------- ------------------------- ---------------------------
First six months Second quarter First six months
- --------------------------- ------------------------- ---------------------------
2003 2002 % 2003 2002 % 2003 2002 %
Revenues
1,085 782 39 Life general account single premiums 480 424 13 982 871 13
3,028 2,693 12 Life general account recurring premiums 1,240 1,350 -8 2,740 3,001 -9
2,685 2,800 -4 Life policyholders account single premiums 1,113 1,614 -31 2,430 3,120 -22
2,560 2,032 26 Life policyholders account recurring premiums 917 952 -4 2,317 2,265 2
- -------------------- ------------------------------------------------------------------- -----------------------
9,358 8,307 13 Total life insurance gross premiums 3,750 4,340 -14 8,469 9,257 -9
1,417 1,383 2 Accident and health insurance premiums 580 712 -19 1,282 1,541 -17
485 378 28 General insurance premiums 207 195 6 439 421 4
- -------------------- ------------------------------------------------------------------- -----------------------
11,260 10,068 12 Total gross premiums 4,537 5,247 -14 10,190 11,219 -9
4,680 4,341 8 Investment income insurance activities /1/ 2,201 2,367 -7 4,235 4,837 -12
204 170 20 Income from banking activities 91 97 -6 185 190 -3
- -------------------- ------------------------------------------------------------------- -----------------------
16,144 14,579 11 Total revenues business units 6,829 7,711 -11 14,610 16,246 -10
3 18 -83 Income from other activities 1 -3 3 20 -85
- -------------------- ------------------------------------------------------------------- -----------------------
16,147 14,597 11 Total revenues 6,830 7,708 -11 14,613 16,266 -10
=================================================================================================================================
Revenues by product segment
13,746 12,328 12 Life insurance 5,821 6,527 -11 12,440 13,737 -9
1,673 1,667 0 Accident and health insurance 693 875 -21 1,514 1,858 -19
521 414 26 General insurance 224 212 6 471 461 2
204 170 20 Banking activities 91 97 -6 185 190 -3
3 18 -83 Other activities 1 -3 3 20 -85
- -------------------- ------------------------------------------------------------------- -----------------------
16,147 14,597 11 Total revenues 6,830 7,708 -11 14,613 16,266 -10
=================================================================================================================================
Investment income for the account
6,062 -5,725 of policyholders 7,035 -7,361 5,486 -6,380
=================================================================================================================================
Standardized new premium production
life insurance
3,449 3,360 3 Single premiums 1,406 1,864 -25 3,121 3,744 -17
1,064 822 29 Recurring premiums annualized 495 438 13 963 916 5
1,409 1,158 22 Total recurring plus 1/10 single 635 624 2 1,275 1,290 -1
=================================================================================================================================
Deposits
3,350 4,019 -17 Fixed annuities 1,443 2,036 -29 3,032 4,479 -32
5,554 5,994 -7 GICs and funding agreements 2,539 3,303 -23 5,026 6,679 -25
3,990 4,024 -1 Variable annuities 1,201 2,498 -52 3,611 4,484 -19
- -------------------- ------------------------------------------------------------------- -----------------------
12,894 14,037 -8 Total 5,183 7,837 -34 11,669 15,642 -25
1,683 1,675 0 Savings deposits 752 982 -23 1,523 1,867 -18
- -------------------- ------------------------------------------------------------------- -----------------------
14,577 15,712 -7 Total production on balance sheet 5,935 8,819 -33 13,192 17,509 -25
=================================================================================================================================
Net deposits
1,231 2,534 -51 Fixed annuities 385 1,095 -65 1,114 2,824 -61
1,476 2,187 -33 GICs and funding agreements 710 1,103 -36 1,336 2,437 -45
1,965 1,334 47 Variable annuities 308 944 -67 1,778 1,487 20
- -------------------- ------------------------------------------------------------------- -----------------------
4,672 6,055 -23 Total 1,403 3,142 -55 4,228 6,748 -37
-496 118 Savings deposits -146 173 -449 131
- -------------------- ------------------------------------------------------------------- -----------------------
4,176 6,173 -32 Total net deposits 1,257 3,315 -62 3,779 6,879 -45
==============================================================================================================================---
14 223 -94 Investment contracts 5 97 -95 13 248 -95
==============================================================================================================================---
Off balance sheet production
7,061 5,990 18 Synthetic GICs 3,251 3,777 -14 6,390 6,675 -4
Mutual funds/Collective Trusts and
5,461 4,120 33 other managed assets 2,417 2,240 8 4,942 4,591 8
- -------------------- ------------------------------------------------------------------- -----------------------
12,522 10,110 24 Total production off balance sheet 5,668 6,017 -6 11,332 11,266 1
==============================================================================================================================---
343 373 -8 /1/Of which indirect income on shares 184 201 -8 310 416 -25
and real estate
Americas
amounts in millions
USD USD EUR
- --------------------------- -------------------------- ------------------------
Second quarter First six months First six months
- --------------------------- -------------------------- ------------------------
2003 2002 % 2003 2002 % 2003 2002 %
Income by product segment
170 177 -4 Traditional life 344 407 -15 311 453 -31
63 -1 Fixed annuities 127 113 12 115 126 -9
62 63 -2 GICs and funding agreements 106 125 -15 96 139 -31
26 22 18 Life for account policyholders 50 50 0 46 56 -18
12 -256 Variable annuities 8 -227 7 -253
6 -2 Fee business 10 1 9 1
- --------------------- ----------------------------------------------------------------------- ----------------------
339 3 Life insurance 645 469 38 584 522 12
57 52 10 Accident and health insurance 107 122 -12 97 136 -29
- --------------------- ----------------------------------------------------------------------- ----------------------
396 55 Total insurance 752 591 27 681 658 3
352 291 21 of which general account 684 767 -11 619 854 -28
44 -236 of which policyholders account/2/ 68 -176 62 -196
- --------------------- ----------------------------------------------------------------------- ----------------------
396 55 Income before tax 752 591 27 681 658 3
-114 -20 Corporation tax -225 -198 14 -204 -220 -7
- --------------------- ----------------------------------------------------------------------- ----------------------
282 35 Net income 527 393 34 477 438 9
===================================================================================================================================
Revenues
243 199 22 Life general account single premiums 430 392 10 389 437 -11
1,176 1,087 8 Life general account recurring premiums 2,319 2,202 5 2,099 2,454 -14
134 332 -60 Life policyholders account single premiums 265 478 -45 240 533 -55
211 147 44 Life policyholders account recurring premiums 450 314 43 407 350 16
- --------------------- ----------------------------------------------------------------------- ----------------------
1,764 1,765 0 Total life insurance gross premiums 3,464 3,386 2 3,135 3,774 -17
604 612 -1 Accident and health insurance premiums 1,241 1,243 0 1,123 1,385 -19
- --------------------- ----------------------------------------------------------------------- ----------------------
2,368 2,377 0 Total gross premiums 4,705 4,629 2 4,258 5,159 -17
1,846 1,794 3 Investment income insurance activities/1/ 3,547 3,563 0 3,210 3,970 -19
- --------------------- ----------------------------------------------------------------------- ----------------------
4,214 4,171 1 Total revenues 8,252 8,192 1 7,468 9,129 -18
===================================================================================================================================
Investment income for the account
3,744 -3,500 of policyholders 3,201 -3,596 2,897 -4,007
===================================================================================================================================
Gross margin, commissions and expenses
1,353 1,022 32 Gross margin 2,607 2,381 9 2,360 2,653 -11
957 967 -1 Commissions and expenses 1,855 1,790 4 1,679 1,995 -16
===================================================================================================================================
Standardized new premium production
life insurance
323 519 -38 Single premiums 625 844 -26 566 941 -40
262 199 32 Recurring premiums annualized 482 394 22 436 439 -1
295 250 18 Total recurring plus 1/10 single 545 478 14 493 533 -8
===================================================================================================================================
Deposits
1,645 1,879 -12 Fixed annuities 3,350 4,019 -17 3,032 4,479 -32
2,885 3,037 -5 GICs and funding agreements 5,554 5,994 -7 5,026 6,679 -25
1,404 2,285 -39 Variable annuities 3,990 4,024 -1 3,611 4,484 -19
- --------------------- ----------------------------------------------------------------------- ----------------------
5,934 7,201 -18 Total production on balance sheet 12,894 14,037 -8 11,669 15,642 -25
===================================================================================================================================
Off balance sheet production
3,693 3,452 7 Synthetic GICs 7,061 5,990 18 6,390 6,675 -4
Mutual funds/Collective Trusts and
1,581 1,739 -9 other managed assets 3,862 3,469 11 3,495 3,866 -10
- --------------------- ----------------------------------------------------------------------- ----------------------
5,274 5,191 2 Total production off balance sheet 10,923 9,459 15 9,885 10,541 -6
===================================================================================================================================
65 83 -22 /1/ Of which indirect income on shares and real estate. 65 164 -60 59 183 -68
/2/ Includes also variable annuities and fee business.
The Netherlands
amounts in millions
EUR EUR
- --------------------------- -------------------------
Second quarter First six months
- --------------------------- -------------------------
2003 2002 % 2003 2002 %
Income by product segment
145 131 11 Traditional life 278 276 1
21 -46 Life for account policyholders 46 19 142
10 0 0 Fee business 10 0 0
- --------------------- ----------------------------------------------------------------------- ----------------------
176 85 107 Life insurance 334 295 13
2 4 -50 Accident and health insurance 8 15 -47
12 9 33 General insurance 17 17 0
- --------------------- ----------------------------------------------------------------------- ----------------------
190 98 94 Total insurance 359 327 10
159 144 10 of which general account 303 308 -2
31 -46 of which policyholders account 56 19 195
2 12 -83 Banking activities /2/ 2 21 -90
- --------------------- ----------------------------------------------------------------------- ----------------------
192 110 75 Income before tax 361 348 4
-43 -18 139 Corporation tax -76 -74 3
- --------------------- ----------------------------------------------------------------------- ----------------------
149 92 62 Net income 285 274 4
====================================================================================================================================
Revenues
200 154 30 Life general account single premiums 440 324 36
66 72 -8 Life general account recurring premiums 356 370 -4
132 280 -53 Life policyholders account single premiums 253 696 -64
267 272 -2 Life policyholders account recurring premiums 954 877 9
- --------------------- ----------------------------------------------------------------------- ----------------------
665 778 -15 Total life insurance gross premiums 2,003 2,267 -12
34 30 13 Accident and health insurance premiums 114 113 1
122 115 6 General insurance premiums 269 260 3
- --------------------- ----------------------------------------------------------------------- ----------------------
821 923 -11 Total gross premiums 2,386 2,640 -10
483 355 36 Investment income insurance activities /1/ 843 726 16
91 97 -6 Income from banking activities 185 190 -3
- --------------------- ----------------------------------------------------------------------- ----------------------
1,395 1,375 1 Total revenues 3,414 3,556 -4
====================================================================================================================================
Investment income for the account
599 -921 of policyholders 373 -672
====================================================================================================================================
Gross margin, commissions and expenses
508 253 101 Gross margin 866 642 35
316 143 121 Commissions and expenses /3/ 505 294 72
====================================================================================================================================
Standardized new premium production
life insurance
295 407 -28 Single premiums 612 955 -36
46 42 10 Recurring premiums annualized 87 112 -22
75 83 -10 Total recurring plus 1/10 single 148 208 -29
====================================================================================================================================
Deposits
752 982 -23 Savings deposits 1,523 1,867 -18
- --------------------- ----------------------------------------------------------------------- ----------------------
752 982 -23 Total production on balance sheet 1,523 1,867 -18
====================================================================================================================================
5 97 -95 Investment contracts 13 248 -95
====================================================================================================================================
Off balance sheet production
948 146 Mutual funds and other managed assets 1,109 456 143
- --------------------- ----------------------------------------------------------------------- ----------------------
948 146 Total production off balance sheet 1,109 456 143
====================================================================================================================================
124 108 15 /1/ Of which indirect income on shares and real estate 250 227 10
/2/ Includes income on off balance sheet type products.
/3/ Includes the effect of a change in presentation of investment costs from a net basis to a gross
basis.
United Kingdom
amounts in millions
GBP GBP EUR
- --------------------------- -------------------------- -------------------------
Second quarter First six months First six months
- --------------------------- -------------------------- -------------------------
2003 2002 % 2003 2002 % 2003 2002 %
Income by product segment
0 0 0 Traditional life -1 7 -114 -1 11 -109
29 32 -9 Life for account policyholders 61 84 -27 89 135 -34
0 0 0 Fee business -2 -1 -100 -3 -1
- --------------------- ----------------------------------------------------------------------- ----------------------
29 32 -9 Life insurance 58 90 -36 85 145 -41
0 0 0 of which general account -1 7 -1 11
29 32 -9 of which policyholders account /2/ 59 83 -29 86 134 -36
- --------------------- ----------------------------------------------------------------------- ----------------------
29 32 -9 Income before tax 58 90 -36 85 145 -41
-9 -8 13 Corporation tax -17 -24 -29 -25 -39 -36
- --------------------- ----------------------------------------------------------------------- ----------------------
20 24 -17 Net income 41 66 -38 60 106 -43
====================================================================================================================================
Revenues
43 33 30 Life general account single premiums 99 65 52 145 105 38
29 23 26 Life general account recurring premiums 50 40 25 73 64 14
604 603 0 Life policyholders account single premiums 1,320 1,163 13 1,929 1,873 3
290 296 -2 Life policyholders account recurring premiums 582 586 -1 850 944 -10
- --------------------- ----------------------------------------------------------------------- ----------------------
966 955 1 Total gross premiums 2,051 1,854 11 2,997 2,986 0
41 18 128 Investment income insurance activities /1/ 74 42 76 108 68 59
- --------------------- ----------------------------------------------------------------------- ----------------------
1,007 973 3 Total revenues 2,125 1,896 12 3,105 3,054 2
====================================================================================================================================
Investment income for the account
2,036 -1,524 of policyholders 1,506 -1,010 2,201 -1,627
====================================================================================================================================
Gross margin, commissions and expenses
126 113 12 Gross margin 246 226 9 359 364 -1
97 81 20 Commissions and expenses 188 136 38 274 219 25
====================================================================================================================================
Standardized new premium production
life insurance
578 551 5 Single premiums 1,319 1,133 16 1,928 1,825 6
103 97 6 Recurring premiums annualized 190 194 -2 278 312 -11
161 152 6 Total recurring plus 1/10 single 322 307 5 471 495 -5
====================================================================================================================================
Off balance sheet production
42 115 -63 Mutual funds and other managed assets 169 140 21 247 226 9
- --------------------- ----------------------------------------------------------------------- ----------------------
42 115 -63 Total production off balance sheet 169 140 21 247 226 9
====================================================================================================================================
0 1 -100 /1/ Of which indirect income on shares and real estate
estate 0 2 -100 0 3 -100
/2/ Includes also fee business.
Other countries
amounts in millions
EUR EUR
- --------------------------- -------------------------
Second quarter First six months
- --------------------------- -------------------------
2003 2002 % 2003 2002 %
Income by product segment
7 2 Traditional life 14 7 100
-5 -3 -67 Life for account of policyholders -7 -6 -17
2 1 100 Fee business 4 3 33
- --------------------- ----------------------------------------------------------------------- ----------------------
4 0 0 Life insurance 11 4 175
1 2 -50 Accident and health insurance 3 4 -25
16 8 100 General insurance 26 17 53
- --------------------- ----------------------------------------------------------------------- ----------------------
21 10 110 Total insurance 40 25 60
24 12 100 of which general account 43 28 54
-3 -2 -50 of which policyholders account /2/ -3 -3 0
- --------------------- ----------------------------------------------------------------------- ----------------------
21 10 110 Income before tax 40 25 60
-6 -3 100 Corporation tax -11 -6 83
- --------------------- ----------------------------------------------------------------------- ----------------------
15 7 114 Net income 29 19 53
====================================================================================================================================
Revenues
3 1 Life general account single premiums 8 5 60
99 60 65 Life general account recurring premiums 212 113 88
3 7 -57 Life policyholders account single premiums 8 18 -56
53 49 8 Life policyholders account recurring premiums 106 94 13
- --------------------- ----------------------------------------------------------------------- ----------------------
158 117 35 Total life insurance gross premiums 334 230 45
17 17 0 Accident and health insurance premiums 45 43 5
85 80 6 General insurance premiums 170 161 6
- --------------------- ----------------------------------------------------------------------- ----------------------
260 214 21 Total gross premiums 549 434 26
34 33 3 Investment income insurance activities /1/ 74 73 1
- --------------------- ----------------------------------------------------------------------- ----------------------
294 247 19 Total revenues 623 507 23
====================================================================================================================================
Investment income for the account
40 -79 of policyholders 15 -74
====================================================================================================================================
Gross margin, commissions and expenses
87 74 18 Gross margin 172 150 15
66 64 3 Commissions and expenses 132 125 6
====================================================================================================================================
Standardized new premium production
life insurance
5 10 -50 Single premiums 15 23 -35
69 26 165 Recurring premiums annualized 162 53
69 27 156 Total recurring plus 1/10 single 163 55 196
====================================================================================================================================
Off balance sheet production
48 18 167 Mutual funds and other managed assets 91 43 112
- --------------------- ----------------------------------------------------------------------- ----------------------
48 18 167 Total production off balance sheet 91 43 112
====================================================================================================================================
1 1 0 /1/ Of which indirect income on shares and real estate 1 3 -67
/2/ Includes also fee business.
Explanatory notes
Accounting principles applied in this interim report are the same as those
applied in the annual accounts 2002. 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 and capital geographically
amounts in million EUR (unless otherwise stated)
United
Americas Kingdom The United Other Total Total
USD GBP As at June 30, 2003 Americas Netherlands Kingdom countries EUR USD
- -----------------------------------------------------------------------------------------------------------------------------------
Investments
113,173 1,058 Fixed income 99,040 11,732 1,527 1,667 113,966 130,229
3,536 84 Equities and real estate 3,094 5,062 121 116 8,393 9,591
116,709 1,142 Total general account 102,134 16,794 1,648 1,783 122,359 139,820
- -----------------------------------------------------------------------------------------------------------------------------------
12,924 16,356 Fixed income 11,310 11,330 23,595 356 46,591 53,239
28,039 13,652 Equities and real estate 24,538 6,920 19,694 191 51,343 58,670
40,963 30,008 Total account policyholders 35,848 18,250 43,289 547 97,934 111,909
- -----------------------------------------------------------------------------------------------------------------------------------
157,672 31,150 Total insurance activities 137,982 35,044 44,937 2,330 220,293 251,729
- - Banking activities - 6,935 - - 6,935 7,925
58,233 887 Off balance sheet assets 50,961 8,714 1,279 455 61,409 70,172
- -----------------------------------------------------------------------------------------------------------------------------------
215,905 32,037 Total assets business units 188,943 50,693 46,216 2,785 288,637 329,826
Other investments 24 27
- -----------------------------------------------------------------------------------------------------------------------------------
Total group 288,661 329,853
===================================================================================================================================
165,454 31,618 Assets business units 144,792 44,022 45,612 2,691 237,117 270,954
Other assets 3,408 3,894
-----------------------
Total assets on balance sheet 240,525 274,848
16,903 2,050 Capital in units 14,792 2,543 2,958 420 20,713 23,669
Total capital base 19,277 22,028
Other net liabilities 1,436 1,641
-----------------------
Total 20,713 23,669
===================================================================================================================================
As at June 30, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
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 December 31, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
Investments
105,544 980 Fixed income 100,643 10,792 1,507 1,611 114,553 120,132
3,460 88 Equities and real estate 3,299 4,943 135 133 8,510 8,924
109,004 1,068 Total general account 103,942 15,735 1,642 1,744 123,063 129,056
- -----------------------------------------------------------------------------------------------------------------------------------
11,952 15,401 Fixed income 11,397 11,139 23,675 312 46,523 48,789
23,274 12,940 Equities and real estate 22,193 5,934 19,892 186 48,205 50,552
35,226 28,341 Total account policyholders 33,590 17,073 43,567 498 94,728 99,341
- -----------------------------------------------------------------------------------------------------------------------------------
144,230 29,409 Total insurance activities 137,532 32,808 45,209 2,242 217,791 228,397
- - Banking activities - 7,167 - - 7,167 7,516
51,008 806 Off balance sheet assets 48,639 1,689 1,239 471 52,038 54,572
- -----------------------------------------------------------------------------------------------------------------------------------
195,238 30,215 Total assets business units 186,171 41,664 46,448 2,713 276,996 290,485
Other investments 378 397
- -----------------------------------------------------------------------------------------------------------------------------------
Total group 277,374 290,882
===================================================================================================================================
149,948 29,864 Assets business units 142,985 42,750 45,910 2,541 234,186 245,591
Other assets 4,020 4,216
-----------------------
Total assets on balance sheet 238,206 249,807
16,518 2,028 Capital in units 15,751 2,605 3,117 399 21,872 22,937
Total capital base 20,058 21,035
Other net liabilities 1,814 1,902
-----------------------
Total 21,872 22,937
===================================================================================================================================
Summarized consolidated income statements
amounts in millions
USD EUR EUR
- --------------------------- ------------------------------ ----------------------------
First six months Second quarter First six months
- --------------------------- ------------------------------ ----------------------------
2003 2002 % 2003 2002 % 2003 2002 %
Revenues
11,260 10,068 12 Gross premiums 4,537 5,247 -14 10,190 11,219 -9
4,683 4,359 7 Investment income 2,202 2,364 -7 4,238 4,857 -13
204 170 20 Income from banking activities 91 97 -6 185 190 -3
- --------------------- -------------------------------------------------------------------- -------------------------
16,147 14,597 11 Total revenues 6,830 7,708 -11 14,613 16,266 -10
Benefits and expenses
1,114 773 44 Premiums to reinsurers 487 431 13 1,008 861 17
10,305 9,717 6 Benefits paid and provided 4,148 5,157 -20 9,326 10,828 -14
102 97 5 Profit sharing and rebates 44 51 -14 92 108 -15
2,888 2,384 21 Commissions and expenses for own account 1,376 1,407 -2 2,614 2,657 -2
356 327 9 Interest 156 175 -11 322 365 -12
334 410 -19 Miscellaneous income and expenditure 114 342 -67 302 457 -34
- --------------------- -------------------------------------------------------------------- -------------------------
15,099 13,708 10 Total benefits and expenses 6,325 7,563 -16 13,664 15,276 -11
1,048 889 18 Income before tax 505 145 949 990 -4
-286 -254 13 Corporation tax -135 -28 -259 -283 -8
187 50 Transamerica Finance Corporation 96 29 169 56
- --------------------- -------------------------------------------------------------------- -------------------------
949 685 39 Net income 466 146 219 859 763 13
- -----------------------------------------------------------------------------------------------------------------------------------
Income statement items: average rate 1 EUR = USD 1.1050 (2002: USD 0.8974).
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,
2003 2002 2002 2002 2003 2002
USD USD % USD EUR EUR EUR %
- ------------------------------------------------------------------------------------------------------------------------------------
147,772 136,969 8 Investments 131,999 134,364 129,318 130,608 -1
3,601 3,729 -3 Group companies and participations 2,975 3,028 3,151 3,556 -11
111,909 99,341 13 Investments for the account of policyholders 99,997 101,789 97,934 94,728 3
11,566 9,768 18 Other assets 9,549 9,720 10,122 9,314 9
- ---------------------- ---------------------------------------------------------------------------------------------------
274,848 249,807 10 Total assets 244,520 248,901 240,525 238,206 1
15,549 14,924 4 Total shareholders' equity/1/ 13,407 13,647 13,607 14,231 -4
2,248 2,106 7 Capital securities 2,005 2,041 1,967 2,008 -2
662 646 2 Subordinated loans 628 639 579 616 -6
3,569 3,359 6 Senior debt related to insurance activities 3,239 3,297 3,124 3,203 -2
- ---------------------- ---------------------------------------------------------------------------------------------------
22,028 21,035 5 Total capital base 19,279 19,624 19,277 20,058 -4
115,013 107,926 7 Technical provisions/2/ 102,477 104,313 100,650 102,914 -2
Technical provisions with investments for
111,909 99,341 13 the account of policyholders/3/ 99,997 101,789 97,934 94,728 3
25,898 21,505 20 Other liabilities/4/ 22,767 23,175 22,664 20,506 11
- ---------------------- ---------------------------------------------------------------------------------------------------
274,848 249,807 10 Total shareholders' equity and liabilities 244,520 248,901 240,525 238,206 1
- ------------------------------------------------------------------------------------------------------------------------------------
/1/Shareholders' equity January 1 15,923 14,231 15,923
Net income excluding preferred dividend 762 812 1,517
Dividend paid - - -731
Paid in surplus / Issuance of new shares - - 2,053
Currency exchange rate differences -1,392 -1,045 -2,100
Goodwill -9 -273 -70
Repurchased and sold own shares - 19 0
Change revaluation account -1,646 -69 -2,042
Other changes 9 -68 -319
- ------------------------------------------------------------------------------------------------------------------------------------
15,549 14,924 Shareholders' equity end of period/5/ 13,407 13,647 13,607 14,231
- ------------------------------------------------------------------------------------------------------------------------------------
% %
- ------------------------------------------------------------------------------------------------------------------------------------
44,482 42,014 6 /2/Of which fixed annuities 37,246 37,913 38,927 40,063 -3
27,837 25,961 7 /2/Of which GICs and funding agreements 26,755 27,234 24,361 24,755 -2
-16,783 -15,938 5 /2/Of which deferred policy acquisition costs -15,266 -15,539 -14,687 -15,198 -3
37,698 32,458 16 /3/Of which variable annuities 32,522 33,105 32,990 30,951 7
7,012 6,674 5 /4/Of which savings accounts 6,712 6,832 6,136 6,364 -4
2,890 2,725 6 /5/Including revaluation account 3,561 3,625 2,529 2,598 -3
1,771 2,156 -18 of which realized gains 3,032 3,086 1,550 2,056 -25
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Balance sheet items: closing rate 1 EUR = USD 1.1427 (2002: 0.9824; year-end 2002: USD 1.0487).
Summarized information Transamerica Finance Corporation
amounts in millions
USD USD EUR
- ----------------------------- -------------------------- -------------------------
Second quarter First six months First six months
- ----------------------------- -------------------------- -------------------------
2003 2002 % INCOME STATEMENT 2003 2002 % 2003 2002 %
Revenues
155 166 -7 Finance charges 305 335 -9 276 374 -26
104 103 1 Leasing revenues 208 205 1 188 228 -18
121 57 112 Real estate information services 188 116 62 170 129 32
48 36 33 Other revenues 82 69 19 74 77 -4
- ---------------------- ----------------------------------------------------------------------- ----------------------
428 362 18 Total revenues 783 725 8 708 808 -12
Expenses
48 64 -25 Interest and debt expense 95 134 -29 86 149 -42
82 75 9 Salaries and other employee expenses 162 153 6 147 171 -14
50 52 -4 Depreciation on equipment held for lease 100 105 -5 90 117 -23
65 114 -43 Miscellaneous income and expenditure 157 236 -33 142 263 -46
- ---------------------- ----------------------------------------------------------------------- ----------------------
245 305 -20 Total expenses 514 628 -18 465 700 -34
183 57 Income before tax 269 97 177 243 108 125
-67 -22 Corporation tax -68 -29 134 -61 -32 91
- ---------------------- ----------------------------------------------------------------------- ----------------------
116 35 Net income from operations 201 68 196 182 76 139
====================================================================================================================================
Net income by segment
70 31 126 Commercial lending 140 66 112 127 73 74
3 -2 Leasing 8 -1 7 -1
54 9 Real estate information services 72 16 65 18
-11 -3 Other -19 -13 -46 -17 -14 -21
- ---------------------- ----------------------------------------------------------------------- ----------------------
116 35 Net income from operations 201 68 196 182 76 139
====================================================================================================================================
Income reported by AEGON
116 35 Net income from operations 201 68 196 182 76 139
-7 -9 -22 Funding costs on the related raised debt -14 -18 -22 -13 -20 -35
- ---------------------- ----------------------------------------------------------------------- ----------------------
109 26 Net income reported by AEGON 187 50 169 56
====================================================================================================================================
Income statement items: average rate 1 EUR = USD 1.1050 (2002: USD 0.8974).
As at As at As at As at As at As at
June 30, Dec. 31, June 30, June 30, June 30, Dec. 31,
2003 2002 2002 2002 2003 2002
USD USD % BALANCE SHEET USD EUR EUR EUR %
- ------------------------------------------------------------------------------------------------------------------------------------
5,841 6,007 -3 Finance receivables 6,367 6,481 5,111 5,728 -11
90 102 -12 Equipment 105 107 79 97 -19
2,221 2,485 -11 Other assets 2,399 2,442 1,944 2,370 -18
- ---------------------- --------------------------------------------------------------------------------------------------
8,152 8,594 -5 Total assets 8,871 9,030 7,134 8,195 -13
1,717 1,627 6 Accounts payable and other liabilities 1,685 1,715 1,503 1,551 -3
5,578 6,052 -8 Debts 6,257 6,369 4,881 5,771 -15
857 915 -6 Shareholders' equity 929 946 750 873 -14
- ---------------------- --------------------------------------------------------------------------------------------------
8,152 8,594 -5 Total liabilities and shareholders' equity 8,871 9,030 7,134 8,195 -13
====================================================================================================================================
Balance sheet items: closing rate 1 EUR = USD 1.1427 (2002: 0.9824; year-end 2002: USD 1.0487).
Results by segment twelve months cumulative
amounts in million EUR (unless otherwise stated)
United
Americas Kingdom July 1, 2002 - June 30, 2003 The United Other Total Total
USD GBP Americas Netherlands Kingdom countries EUR USD
- ------------------------------------------------------------------------------------------------------------------------------------
Net income
1,085 114 Life insurance 1,022 640 173 27 1,862 1,970
218 - Accident and health insurance 207 19 - 5 231 243
- - General insurance - 24 - 47 71 76
- - Banking activities - -11 - - -11 -9
Interest charges and other -345 -370
- ------------------------------------------------------------------------------------------------------------------------------------
Income before tax
1,303 114 business units 1,229 672 173 79
Income before tax 1,808 1,910
-253 -27 Corporation tax business units -223 -138 -41 -17
Corporation tax -329 -366
- ---------------------------------------------------------------------------------------------------------------
1,050 87 Net income business units 1,006 534 132 62
Transamerica Finance Corporation 164 185
---------------------
Net income 1,643 1,729
====================================================================================================================================
4,902 480 Gross margin business units 4,646 1,549 728 351
Gross margin 6,977 7,349
3,599 366 Commissions and expenses business units 3,417 877 555 272
Commissions and expenses 5,169 5,439
Net income per share 1.06 1.12
====================================================================================================================================
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 business units 5,610 1,383 699 299
Gross margin 7,686 6,883
3,438 225 Commissions and expenses business units 3,840 569 364 235
Commissions and expenses 5,051 4,524
Net income per share 1.40 1.24
====================================================================================================================================