12 United States Asia Optimize ONE AEGON Steps AEGON is taking  The aim of the integration is to leverage product and  distribution expertise, capture efficiencies, and pursue  organic growth of AEGON’s franchise in Asia. The  integration, which will be carried out during 2011, is  in line with AEGON’s strategy to achieve a greater  geographical balance in favor of those regions and  markets that offer higher growth and returns in the  longer-term. Mr. Douglas Henck, a US citizen who has  held a number of senior management positions in the  international insurance world over the last 25 years,  mostly in Asia, has been appointed CEO of AEGON Asia.  In 2010 AEGON announced a new organizational  structure for its operations in Asia under the leadership  of a newly-established CEO position for Asia. Whereas  a number of AEGON’s businesses in Asia had previously  been managed from the United States, under the new  structure all Asian based insurance businesses will  be managed as one regional division headquartered  in Hong Kong.  Key to AEGON’s long-term strategy is to manage AEGON  as one company. This goal has been part of AEGON’s  strategy since mid-2008, and is aimed at ensuring the  company makes the most of its worldwide resources. In  the past two years, AEGON has taken a more integrated  approach to areas such as asset management, human  resources, risk and capital, and sustainability. AEGON  expects this approach will bring greater efficiency and  a better transfer of knowledge and best practice within  the organization. As part of this approach, AEGON’s  objective is to standardize best practice in a number of  areas, including product innovation, distribution, brand  management, underwriting, risk management and IT  infrastructure.  ■ AEGON is discontinuing sales of executive non- qualifi ed benefit plans and associated Bank-Owned  and Corporate-Owned Life Insurance (BOLI-COLI) in  the United States. Most of this business’ operations  are located in Dallas, Texas. ■ AEGON’s operations in Louisville, Kentucky will be  consolidated with locations elsewhere in the  United States. In addition, some back offi ce activities  in Cedar Rapids, Iowa, will be consolidated or  outsourced.  ■ These measures will result in the loss of between  400 and 500 jobs over the next years, equivalent to  approximately 5% of AEGON’s US workforce.  Organizational changes will result in annual cost  savings of approximately USD 70 million.  ■ Greater efficiency with establishment of a single  European Data Center covering both the Netherlands  and the United Kingdom. ■ Integration of Asian operations as one regional  division headquartered in Hong Kong. ■ Move towards a more coordinated approach to  underwriting and risk and capital management.  ■ Appointment of new senior management in the past two  years, with new CEOs appointed in the Netherlands,  the United States, the United Kingdom and Asia, and  the appointment of a new CEO of AEGON Asset  Management.  ■ More integrated approach with the appointments  of AEGON’s global heads of Human Resources,  Sustainability and Brand & Customer Strategy.  ■ Introduction of consistent performance management  across the organization and greater alignment of  management compensation with strategic objectives.  ■ Using expertise in the United States to support new  variable annuity products in the United Kingdom,  the Netherlands, France and Japan.  ■ AEGON Asset Management fully operational as one  global business since beginning of 2010, bringing  together asset management businesses in the United  States, the United Kingdom, the Netherlands, Asia and  Central & Eastern Europe. 