AEGON AROUND THE WORLD REINSURANCE CEDED PRODUCTS AND DISTRIBUTION SLOVAKIA DISTRIBUTION CHANNELS REINSURANCE CEDED AEGON GROUP ANNUAL REPORT 2003 58 AEGON entered the Spanish market in 1980 through the acquisition of Seguros Galicia. This was followed by the acquisition of Union Levantina in 1987, Union Previsora in 1988, Labor Medica in 1996, La Sanitaria in 1997, Caja de Prevision y Socorro in 1997 and Covadonga in 1999. In 2003, 24% of AEGON Spain’s premium income was derived from life insurance, 57% was derived from property and casualty insurance and 19% was derived from health insurance. ÁB-AEGON’s reinsurance partners are all large European reinsurers in the European and London markets. In accordance with ÁB-AEGON’s security guidelines, only reinsurers with  a minimum rating of A+ (Standard & Poor’s) are utilized.  The three most important programs in force in the last ten years are the Catastrophe Excess of Loss Treaty, the Motor Third Party Liability Excess of Loss Treaty and the Property per Risk Excess of Loss Treaty. ÁB-AEGON’s catastrophe cover, which protects private homeowners, is quite significant in the Hungarian market. In addition, ÁB-AEGON has smaller treaties for other business lines, such as General Third Party Liability, Marine Cargo and Life & Group Life Business. The majority  of ÁB-AEGON’s programs are non-proportional Excess of  Loss programs. On September 2, 2003, AEGON Slovakia began operations as  a branch office of AEGON Levensverzekering N.V., operating through a locally managed headquarters. AEGON Slovakia is managed by AEGON Hungary. The sales force carries out its activities in four regions — Bratislava, Trnava, Banska Bystrica and Kosice — with 20 unit managers and 250 agents. Besides its own sales network, brokers are utilized for product distribution. Over the past several years, AEGON Spain has focused its activities on the growth of its life insurance business, particularly unit-linked products. By marketing unit-linked variable life products to professionals through multiple distribution channels, AEGON Spain has made significant inroads into a market traditionally dominated by banks. With respect to life insurance, AEGON Spain’s principal lines of business are traditional life and unit-linked insurance products. Traditional life insurance comprises permanent and term life insurance. Permanent life insurance provides life-long financial protection.  The main general insurance products are motor and fire insurance. These products are distributed exclusively through the agency channel, using a network of more than 3,000 agents and brokers. AEGON Slovakia sells three basic products: endowment, term fixed and whole life insurance – both unit-linked and  non-unit-linked versions, and four riders: accidental death, accidental disability, critical illness and waiver of premium. For distribution purposes, AEGON Spain makes a distinction between individual life and group life. Individual life products are sold in urban centers by specialized agents and brokers and in rural areas by specialized agents and on a direct marketing basis using the MoneyMaxx concept. Group life products are distributed through banks and financial institutions as well as through brokers and specialized agents. AEGON Spain has both proportional and non-proportional reinsurance protection, primarily for fire and general liability insurance. In line with AEGON’s policy, AEGON Spain’s reinsurers are generally at least A-rated by Standard & Poor’s. AEGON SPAIN GENERAL HISTORY AEGON SPAIN operated through three insurance companies during 2003: AEGON Seguros Generales, AEGON Seguros Salud and AEGON Seguros de Vida. Since December 2003, these companies are held by one holding company, AEGON España SA, an economic interest grouping which provides operational and administrative services to the various insurance companies. In December 2003, AEGON MoneyMaxx SA was merged into AEGON Seguros de Vida.