51 ANNUAL REPORT 2010   OUR BUSINESSES  CAPITAL AND LIQUIDITY Most important ratings (December 31, 2010) Liquidity management  senior debt accounted for the remaining 6%. AEGON’s  goal is to further improve the quality of its capital base  by increasing the proportion of core capital to at least  75% by the end of 2012. Group equity comprises core capital (including the  revaluation reserves), and other equity securities.  These include perpetual cumulative capital securities  and junior perpetual capital securities, as well as other  equity reserves. At the end of 2010, these equity  securities totaled EUR 4.7 billion. Agency AEGON N.V. AEGON USA Standard  &Poor’s A- Outlook: negative AA- Outlook: negative Moody’s A3 Outlook: negative A1 Outlook: negative Fitch A- Outlook: Stable AA- Outlook: Stable 14.2 18.7 Core capital 25 20 15 10 5 0 In EUR billion 10 09 23.4 Group equity 10 09 Sources and uses of liquidity Ratings Liquidity management is a fundamental building block of  AEGON’s overall financial planning and capital allocation  processes. AEGON’s aim is to ensure that liquidity is  sufficient to meet cash demands even under extreme  conditions. The amount of liquidity held is determined by  the company’s liquidity risk policy, which ensures that  AEGON and its operating companies maintain a prudent  liquidity profile. AEGON’s subsidiaries are primarily engaged in the life  insurance business, which is a long-term business with  relatively illiquid liabilities and generally matching  assets. Liquidity consists of both liquid assets held in  investment portfolios, as well as inflows generated by  premium payments and customer deposits. These are  used primarily to purchase investments, as well as to  fund benefit payments to policyholders, policy  surrenders, operating expenses, and to pay dividends to  AEGON N.V., if the subsidiary’s capital position so allows.  At AEGON N.V., liquidity is sourced from internal  payments by operating companies and accessing capital  and money markets. Liquidity is coordinated centrally  and managed both at AEGON N.V. and at country unit  levels. AEGON’s liquidity position remained strong  throughout 2010. Throughout the recent financial crisis, AEGON’s aim has  been to maintain excess capital over and above the  amount required to maintain an AA financial strength  rating. This remains the company’s objective, and  plays an important role in determining overall capital  management strategy. In 2010, AEGON maintained strong  financial strength ratings from leading international  rating agencies for its operating subsidiaries and a  strong credit rating for the holding.$^{18.9}$ FOCUS ON… Andrea Baker-Njenga,  Transamerica SHARPENING OUR FOCUS