67 Results 2012 New Markets Aegon’s operations in New Markets reported higher underlying earnings before tax  in 2012 as growth in Asset Management and Asia offset declines in Central &  Eastern Europe and Spain due to new pension legislation in Poland and changes  to Aegon’s joint venture partnerships in Spain. Net income from Aegon’s operations in New Markets increased  to EUR 249 million, driven by strong underlying earnings, the  gains on the divestments of the Banca Cívica joint venture (EUR  35 million) and Prisma (EUR 100 million). Impairment charges  were lower during the year, due to lower mortgage related  impairments in Hungary. Commission and expenses increased 5% to EUR 870 million in  2012. Operating expenses increased 6% to EUR 613 million in  2012. This was the result of higher costs in Asia and Variable  Annuities Europe driven by investments to support future  growth, the inclusion of the company’s Canadian investment  management activities within Aegon Asset Management and  recurring charges for Corporate Center expenses, partly offset  by the divestment of the Banca Cívica joint venture and the  exclusion of CAM. New life sales declined 19% to EUR 253 million in 2012. In New Markets, Aegon’s underlying earnings before tax  increased 10% to EUR 274 million in 2012. Higher underlying  earnings before tax from Aegon Asset Management and  Asia offset lower earnings from Spain, Central & Eastern Europe  and Variable Annuities Europe. New premium production from Aegon’s general insurance  business in Central & Eastern Europe was stable compared to  2011 and amounted to EUR 25 million in 2012. New premium  production from Aegon’s accident & health insurance business  increased 24% to EUR 42 million in 2012, mainly driven by  Aegon’s direct marketing unit in Asia. In 2012, gross deposits in New Markets amounted to EUR 10.9 billion, increasing substantially compared to 2011.  Gross deposits in Aegon Asset Management increased to  EUR 9.9 billion in 2012 as a result of strong institutional sales in  the United States and the Netherlands, and retail sales in the  United Kingdom. In 2012, in Central & Eastern Europe gross  deposits declined following pension legislation changes in  Hungary and Poland. Higher gross deposits in Asia, on the other  hand, were driven by variable annuity sales in Japan in 2012.  Commissions and expenses Net income Underlying earnings before tax Production ■ In Central & Eastern Europe, new life sales increased 4% to  EUR 114 million in 2012. Increased production in Poland,  Turkey, Slovakia and the Czech Republic due to distribution  improvements and product innovation offset lower production  in Hungary due to difficult market circumstances. ■ In Asia, new life sales declined to EUR 53 million in 2012.  Production in China was higher due to strong performance of  new distribution partners. This was more than offset by lower  sales in Hong Kong and Singapore following the withdrawal  of a universal life product with secondary guarantees in July  2012. ■ In 2012, new life sales in Spain declined to EUR 86 million as  the inclusion of Caixa Sabadell Vida was more than offset by  lower production at other joint venture partners in Spain, the  exclusion of new life sales from CAM and the divestment of  Banca Cívica. ■ Underlying earnings before tax from  Central & Eastern  Europe  were lower than in 2011 at EUR 85 million in 2012,  driven mainly by the negative impact of the pension  legislation changes in Poland and lower mortgage margins  in Hungary. ■ Underlying earnings before tax from Aegon’s operations in  Asia  improved to EUR 19 million in 2012 compared to an  underlying loss before tax of EUR 4 million in 2011 as higher  investment income during 2012 and a EUR 15 million higher  gain related to updated mortality assumptions more than  offset the negative impact of several small charges and  higher expenses related to business development.  ■ Underlying earnings before tax from  Spain and France decreased 22% to EUR 69 million in 2012 due to the  divestment of the joint venture with Banca Cívica in the fourth  quarter of 2012 and as underlying earnings before tax from  Aegon’s partnership with CAM were, beginning in the second  quarter of 2012, no longer included pending the exit from  this joint venture. Contributions by these partnerships in  comparable periods in 2011 amounted to EUR 25 million.  The earnings contribution from partner La Mondiale in France  remained stable compared to 2011 and amounted to  EUR 21 million. ■ Underlying earnings before tax from  Variable Annuities  Europe  amounted to nil which was mainly the result of  project spending to position the company for future growth.  ■ Underlying earnings before tax from  Aegon Asset  Management  increased to EUR 101 million, as a result of  asset growth and higher performance fees, partly offset by  the divestment of Prisma as of the fourth quarter of 2012.