STANDARDIZED NEW PREMIUM PRODUCTION  Hungary in EUR million  30 20 10 0 Single Recurring annualized 01 02 03 INCOME BEFORE TAX  Hungary in EUR million 80 60 40 20 0 Life General 01 02 03 INCOME BY  2003 2002 PRODUCT SEGMENT in in million million EUR EUR % Traditional life 28 27 4 Life for account of policyholders (14) (14) 0 Fee business 8 7 14 LIFE INSURANCE 22 20 10 Accident and health insurance 7 6 17 General insurance 50 38 32 INCOME BEFORE TAX 79 64 23 Corporation tax (21) (12) 75 NET INCOME 58 52 12 OTHER COUNTRIES REVENUES HUNGARY INCOME BEFORE TAX SLOVAKIA AEGON’s life operations in Slovakia started in September 2003 as planned. Total premium income was SKK 5 million, whereas commissions and expenses were SKK 206 million. ÁB-AEGON’s income before tax of HUF 16.6 billion for 2003 showed a 16% increase compared to 2002. The increase in income before tax came from life business, with 15% growth, and from the non-life business, which showed 20% growth. For both businesses, the main reasons for the increase are the premium income growth and cost efficiencies. Additionally, in Fee income increased by 40%, or HUF 0.8 billion, from 2002, due to a 31% increase in assets under management and the increase in the number of participants in the pension funds managed by ÁB-AEGON. Investment income decreased by HUF 0.9 billion, mainly due to the maturity of high yield long-term bonds. In the second half of the year, as a result of monetary interventions, market yields increased substantially, affecting the investment performance and the market value of the portfolio.  Please note that the Other Countries segment is accounted for in our financial statements in euro, but the operating results for the individual country units within Other Countries are accounted for, and discussed below, in terms of the local currencies of those country units. Total revenues increased by HUF 5.1 billion compared to 2002. Premium income increased by HUF 5.1 billion. Life premium income increased by HUF 2.8 billion, mainly due to higher sales of unit-linked products, while non-life premium income increased by HUF 2.3 billion. The non-life growth was due primarily to a HUF 1.5 billion increase in the household portfolio and a HUF 0.8 billion increase in the car insurance and other non-life product lines. The measures taken to protect the existing portfolio as well as the increased number of agents were the main factors in the increase in premium income. Weighted average exchange rates for currencies of the countries included in the Other Countries segment, and which do not report in euro, are summarized in the table below. As a result of expense control and technical innovations, expenses decreased by HUF 0.2 billion, or 2%, compared with 2002, despite 5% inflation. Premiums to reinsurers increased by more than 8%, or  HUF 0.1 billion. This increase was consistent with the development of premium income. Claim payments increased by HUF 2.8 billion, mainly due to maturities of life policies in the run-off portfolio. Non-life claims developed favorably in 2003 and were HUF 0.5 billion lower than in 2002. Commissions increased by HUF 1 billion, due to high pension fund and non- life sales. non-life, the favorable claim payments were partially offset by a strengthening of technical provisions. The fee income from managed assets rose by 40% to HUF 2.8 billion, reflecting the increase in the pension fund portfolio and assets under management. 2003 2002 Hungarian Forint (HUF) 253 243 New Taiwan Dollar (NTD) 39 33 Slovakian Koruna (SKK) 41 — Rin Min Bi Yuan (CNY) 10 8 AEGON GROUP ANNUAL REPORT 2003 29