Strategic information  Aegon’s strategy 8 Aegon’s strategy Aegon is an international provider of life insurance, pensions and asset management  products, with businesses in more than 25 markets in the Americas, Europe and  Asia, and just over EUR 475 billion in revenue-generating investments. Aegon  employs nearly 27,000 people, and has millions of customers across the globe.  Aegon’s purpose is  to help people take responsibility for their  financial future . To achieve this, the company strives to provide  easy-to-understand products that help customers make  better financial decisions for themselves and their families.  As a company, Aegon believes that everyone, regardless of their  income, deserves to retire with dignity and peace of mind. Aegon’s ambition is to become a leader in all of its chosen  markets. This means being the most recommended provider of  life insurance and pensions among customers, the preferred  partner among intermediaries and distributors, and the employer  of choice for both current and prospective employees.  Recognizing the increasing demand for asset protection,  accumulation and long-term retirement security products and  services, Aegon is investing in new approaches to better serve  the full range of customers’ financial needs throughout their  life cycle. This includes accelerating investment in technology to  enable Aegon’s businesses to interact directly with customers. Fostering a truly customer-centric culture throughout the  organization is at the core of Aegon’s strategy. This entails  ensuring that every employee understands how he or she can  contribute to a distinctive and consistently positive customer  experience. To support this essential cultural mindset, a new  coordinated approach to performance management has been  implemented across Aegon’s businesses, with a strong emphasis  on talent development and customer centricity. Compensation  and incentives have been aligned accordingly. Aegon encourages  new thinking and innovative approaches as it continues to  transform its businesses.  In recent years, Aegon has taken steps to reduce costs, lower  risk and free up capital for reinvestment in its businesses. It has  divested businesses no longer considered core, or which have  failed to provide sufficient returns or prospects for long-term  growth. These actions have enabled Aegon to achieve a solid  capital position, deal effectively with economic and market  volatility, and position its businesses for future growth. At the  same time, Aegon has invested in key areas of growth, such as  emerging markets in Central & Eastern Europe, Asia and the  Americas, while also restructuring its businesses to achieve  greater operational efficiency and deliver a higher level of  customer service. Better leveraging the broad expertise that  exists within Aegon across various businesses and geographies  continues to be a key strategic objective.  Aegon’s strategy is supported by its ambition:  to be a leader in  all of its chosen markets . To support this ambition, Aegon has  implemented four strategic objectives: In 2013, Aegon took clear steps toward each of these objectives,  helping position the company’s businesses for the future, and  meet the risks and opportunities presented by long-term  industry trends.  Aegon targeted opportunities in its core markets in the Americas,  Europe and Asia by: ■ To optimize its portfolio  by investing in businesses that offer  attractive returns and strong prospects for growth and, if  necessary, closing or divesting business that do not meet  Aegon’s risk-return requirements, or contribute to its  long-term ambitions;  ■ To enhance customer loyalty  by improving customer service,  investing in new distribution capabilities, and expanding the  company’s online presence to connect better and more  frequently with its customers; ■ To deliver operational excellence  by improving efficiency and  reducing costs, innovating and making better use of its  resources around the world; ■ To empower employees  by providing the tools, training and  internal culture necessary to better serve the developing  needs of its customers, while also enabling employees to  realize their full potential.  ■ Investing in the rapidly-expanding 'at-retirement' market of  people in their fifties and sixties who are actively preparing  for retirement in the United States, the United Kingdom  and the Netherlands. In the United Kingdom, Aegon is  seeking to increase its share of the workplace savings and  non-advised markets; ■ Repositioning in Central & Eastern Europe – by channeling  other resources into new products and services, ceasing new  investment in mandatory private pensions due to government  restrictions, selling off pension operations in the Czech  Republic, and expanding the life and pensions business  in Romania; ■ Expanding into new markets – through the acquisition  of Fidem Life, one of Ukraine’s leading providers in the  emerging life insurance market, and the opening of  a new office in Germany in the second half of 2013 to  market variable annuities; Optimize portfolio Annual Report 2013