Supplemental offering circular EUR 450,000,000 perpetual ... - Aegon

OTHER COUNTRIES
HUNGARY
Income before tax
ÁB-AEGON’s income before tax of HUF 16.6 billion for 2003 showed a 16% increase compared to 2002.
The increase in income before tax came from life business, with 15% growth, and from the non-life business,
which showed 20% growth. For both businesses, the main reasons for the increase are the premium income
growth and cost efficiencies. Additionally, in non-life, the favorable claim payments were partially offset by
a strengthening of technical provisions. The fee income from managed assets rose by 40% to HUF 2.8
billion, reflecting the increase in the pension fund portfolio and assets under management.
Premiums to reinsurers increased by more than 8%, or HUF 0.1 billion. This increase was consistent with
the development of premium income. Claim payments increased by HUF 2.8 billion, mainly due to
maturities of life policies in the run-off portfolio. Non-life claims developed favorably in 2003 and were
HUF 0.5 billion lower than in 2002. Commissions increased by HUF 1 billion, due to high pension fund and
non-life sales.
As a result of expense control and technical innovations, expenses decreased by HUF 0.2 billion, or 2%,
compared with 2002, despite 5% inflation.
Revenues
Total revenues increased by HUF 5.1 billion compared to 2002. Premium income increased by HUF 5.1
billion. Life premium income increased by HUF 2.8 billion, mainly due to higher sales of unit-linked
products, while non-life premium income increased by HUF 2.3 billion. The non-life growth was due
primarily to a HUF 1.5 billion increase in the household portfolio and a HUF 0.8 billion increase in the car
insurance and other non-life product lines. The measures taken to protect the existing portfolio as well as the
increased number of agents were the main factors in the increase in premium income.
Investment income decreased by HUF 0.9 billion, mainly due to the maturity of high yield long-term bonds.
In the second half of the year, as a result of monetary interventions, market yields increased substantially,
affecting the investment performance and the market value of the portfolio.
Fee income increased by 40%, or HUF 0.8 billion, from 2002, due to a 31% increase in assets under
management and the increase in the number of participants in the pension funds managed by ÁB-AEGON.
SLOVAKIA
AEGON’s life operations in Slovakia started in September 2003 as planned. Total premium income was
SKK 5 million, whereas commissions and expenses were SKK 206 million.
SPAIN
Income before tax
AEGON Spain reported income before tax of EUR 36 million for 2003, a significant increase compared to
2002.
Pre-tax results in the life business generated income before tax of EUR 4 million, an increase of EUR 15
million compared to last year’s loss of EUR 11 million. The main reason for the increase was the absence of
the negative effects of the previous year. These negative effects were mainly caused by the losses of
MoneyMaxx, because of low production resulting from the situation in the equity markets, and accelerated
amortization of DPAC.
Non-life business reported income before tax of EUR 32 million in 2003, compared to EUR 23 million in
2002, mainly due to an increase in revenues and a decrease in claims. The non-life claims ratio improved in
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