AGN.AS

Aegon aims to pay out a sustainable dividend to allow equity investors to share in Aegon's performance, which can grow over time if Aegon's performance so allows. Aegon's plans for returning capital to shareholders are based on: the actual and expected capital position of its operating units, the expected levels of capital generation and free cash flow, and the expected allocation of capital to invest in Aegon's strategy and in the quality of its balance sheet. Capital remittances from Aegon's local units After investment in new business to generate organic growth, the expected capital generation in Aegon's operating units is available for distribution to the Company, while maintaining a capital and liquidity position in the operating units in line with Aegon's capital management and liquidity risk policies in addition to adhering to local regulatory and statutory requirements and restrictions. Prior to any remittances, an assessment has to be performed. Capital return to shareholders Aegon uses cash flows from its operating units to pay unallocated holding expenses, including funding costs. The remaining cash flow is available to execute Aegon's strategy and to fund dividends on its shares, subject to maintaining the Company's capital and liquidity in line with its capital management and liquidity risk policies. Aegon takes into account the applicable laws, the actual and expected capital positions of its operating units, Cash Capital at Holding balances, leverage ratios and strategic considerations when declaring or proposing dividends on common shares. Depending on circumstances, future prospects and other considerations, Aegon's Board of Directors has discretion to deviate from the aforementioned capital and liquidity measures. While Aegon uses dividend as the primary means to distribute capital to Aegon's shareholders, share buy-back programs are also recognized as an appropriate means to return capital. If Aegon decides to distribute (interim) dividends, it is Aegon's intention to pay these dividends in cash. However, Aegon's Board of Directors will have the discretion to make dividend payments solely in stock or offer the holder of common shares a choice between cash or stock dividends, if appropriate under the prevailing circumstances. Governance Under Bermuda law and Aegon's Bye-laws, the Board of Directors may, before declaring any dividend, set aside such sums as it thinks proper as reserves which shall, at the discretion of the Board of Directors, be applicable for any purpose of Aegon. Aegon may make one or more dividend distributions to the holders of common shares. The decision to declare an interim dividend is at the full discretion of Aegon's Board of Directors. The Board of Directors determines the dividend payment date and the dividend record date for the common shares and also determines the currency or currencies in which the dividends are paid. Under normal circumstances, Aegon expects to propose a final dividend at the Annual General Meeting of Shareholders and to declare an interim dividend when announcing its second quarter results. Depending on circumstances, future prospects and other considerations, Aegon's Board of Directors may choose to deviate from this approach. There is no requirement or assurance that Aegon will declare and pay any dividends.