Business overview  Results of operations – CEE 70 Competition Regulation and supervision Non-life Social Insurance Institution (ZUS) of Poland. Furthermore, as  a result of the changes, membership for the purpose of paying  future contributions is to become voluntary. Additionally, ZUS  is to provide the retirement benefits to members, requiring  a management company to transfer to ZUS the remaining assets,  commencing ten years before a member reaches retirement age.  As a result, Aegon wrote off the intangible assets on its balance  sheet in 2013, resulting in a loss of EUR 192 million before tax. Aegon is among the biggest providers operating in the life  insurance market in Hungary. In 2013, it was the second largest 2 provider in Hungary, based on the first nine months’ standardized  premium income, and the third largest 3  provider in the non-life  insurance market. Aegon is also a significant market participant  in Poland 4  and Ukraine 5 . As of September 2013, it was ranked  fifth for unit-linked products in Poland, based on gross written  premiums. Aegon is not a significant market participant in  those markets in which it was relatively recently incorporated:  Aegon Slovakia (incorporated in 2003); Aegon Czech Republic  (incorporated in 2004); and Aegon Romania (incorporated in  2008). Similarly, Aegon is not a significant participant in Turkey,  in which it acquired its business in 2008. In Slovakia, Aegon announced its withdrawal from the voluntary  pension business in 2011, and exited the market in 2013. Since September 2012 there has been a significant reduction  in the contribution rate payable into private pension funds in  Slovakia. Additionally, as of new legislation in 2013, it is no  longer mandatory to join a private pension fund (Pillar II). In Hungary’s voluntary pension fund market, Aegon was ranked  third 6  for both the number of its members and its managed assets  in 2012. For managed assets, in 2013 Aegon was ranked fifth 7 in the Slovakian private pension market. In Poland, Aegon was  ranked eighth 8  for number of members and ninth 9  for managed  assets in 2013. As of December 31, 2013, Aegon ranked seventh 10 in the Romanian mandatory private pension market, both for net  assets under management and number of members.  As of 2013 in Turkey, in accordance with legislative changes  enacted in 2012, a reduction is applied to the maximum  chargeable level of entrance fees, administration fees, and asset  management fees. From 2013, pension contributions are no  longer subject to tax incentives; instead, members receive 25% of  their contributions in the form of direct support from the state.  In the Czech Republic, as of January 2013, former pension  companies were transformed into management companies  managing newly launched Pillar II and Pillar III pension funds.  These exist alongside the so-called transformation fund, into  which savings accumulated to the end of 2012 were placed.  Aegon elected not to enter Pillar II in the Czech market. Aegon  operated a transformation fund throughout 2013. On December  30, 2013, Aegon disposed of its pension line of business, and  thus exited the Czech pension market.  In Central & Eastern Europe, a single insurance company may  only be licensed for, and conduct, one of either a life insurance or  non-life insurance business, and not both. In Hungary, however,  insurance companies established before 1995 are exempt from  this rule. This exemption applies to Aegon Hungary.  State supervision and oversight of the insurance industry is  conducted by the following bodies and institutions: Aegon Hungary offers non-life cover (household, car insurance,  and some wealth industrial risk). Aegon is the leading 1  insurance  company in the Hungarian household market. In recent  years, margins on non-life insurance in Hungary have been  attractive. Moreover, household insurance provides considerable  opportunities for cross-selling life insurance. As part of Aegon’s regional expansion, Aegon Hungary opened  branch offices in Slovakia in 2010, and in Poland in 2011, selling  household insurance policies in these markets. The above-mentioned authorities promote consumer protection  and have the right to investigate prudential activities and  conduct, financial position and solvency, and compliance with all  relevant laws. ■ The Central Bank of Hungary (MNB); ■ National Bank of Slovakia (NBS); ■ Czech National Bank (CNB); ■ Polish Financial Supervisory Authority (KNF); ■ Authority for Financial Supervision (ASF) (Romania); ■ Undersecretariat of Treasury (Turkey); ■ National Commission for State Regulation of Ukrainian  Financial Services Markets. 1 Source: www.mabisz.hu. 2 Source: www.mabisz.hu. 3 Source: www.mabisz.hu. 4 Source: www.knf.gov.pl. 5 Source: http://uainsur.com. 6 Source: The Central Bank of Hungary, https://felugyelet.mnb.hu. 7 Source: The Association of Pension Fund Management Companies, Slovakia, www.adss.sk. 8 Source: www.knf.gov.pl/. 9 Source: www.knf.gov.pl/. 10 Source: Authority for Financial Supervision, http://asfro.ro. Annual Report 2013