Business overview  Results of operations – CEE 68 Overview of Central & Eastern Europe Aegon has operations in the Central & Eastern European (CEE) countries of the  Czech Republic, Hungary, Poland, Romania, Slovakia, Turkey, and Ukraine. Aegon  first entered the Central & Eastern European market in 1992 with the purchase of  a majority stake in Hungary’s former state-owned insurance company, Állami  Biztosító. Aegon Hungary is Aegon's leading business in the region and a  springboard for further expansion. Aegon’s regional expansion continued in 2013  with entry into the Ukrainian market. Organizational structure Overview of sales and distribution channels Overview of business lines Life & Savings Preferred life is an individual life term insurance product which  offers insurance protection. The product distinguishes between  smoker and non-smoker status and uses standard and preferred  pricing dependent on the health status of the client. Group life  contracts are renewable each year and carry optional accident  and health cover. Aegon’s main subsidiaries and affiliates in Central & Eastern  Europe (CEE) are: The main guarantee in Hungary is variable crediting rates with  minimum interest guarantees of between 0% and 4% for  universal life type products, plus 100% participation in actual  interest earned. Profit-share products have a technical interest  rate of 2-4% and 85% participation in excess interest. The  average minimum interest guarantee is around 3%. In Hungary,  a small amount of new business provides a minimum interest  guarantee of 2%. Aegon operates through a number of different sales channels in  Central & Eastern Europe. These include tied agents, insurance  brokers, call centers, online channels and, particularly in Hungary,  Poland, Romania and Turkey, retail banks. Aegon primarily  sells life and non-life insurance through tied agents, brokers  and call centers, household and car insurance through online  channels; in addition, life insurance, mortgage loans, mutual  funds and household insurance are sold through banks and other  alternative channels. In Poland, an insurance fund with a guaranteed rate reset on  a quarterly and annual basis is offered on unit-linked products.  Similar products are sold in the Czech Republic and Slovakia, with  declared interest guarantees of 1.2% and 1% respectively, and  further conditional increases. In Slovakia, the minimum interest  rate on universal life products was 3% at the close of 2006,  and has since been 2.5%. Universal life products in the Czech  Republic have a guaranteed interest rate of 2.4%. The profit-share product portfolio in Turkey has a guaranteed  interest rate of 9% for Turkish lira products that are closed to  new business and 2% for those introduced since 2010. For USD  and EUR denominated products, the guaranteed interest rate is  2.5% for the old portfolio, and varies between 2% and 3.75%  for new products introduced after the acquisition of the company  in 2008. A minimum of 85% of the interest income in excess of  guaranteed return is credited to policyholders’ funds in Turkey. Aegon Life Insurance Company in Romania operates as a branch  of Aegon Poland Life Insurance Company and sells unit-linked,  term life and endowment insurance policies. An interest  guarantee is provided to a unit-linked product that varies  between 2%-3.2%, depending on the policy year. Traditional general account life insurance is mainly index life  products that are not unit-linked but have guaranteed interest  rates, as well as group life and preferred term life products.  Aegon companies in Central & Eastern Europe offer a range of  life insurance and personal protection products. This includes  traditional life and unit-linked products. Unit-linked products  cover all types of life insurance, including pension, endowment  and savings. Aegon is one of the leading providers of unit-linked  products in Poland 1  and Hungary 2 . 1 Source: www.knf.gov.pl. 2 Source: www.mabisz.hu. Annual Report 2013 ■ Aegon Magyarország Általános Biztosító Zártkörűen Működő  Részvénytársaság; ■ Aegon Magyarország Befektetési Alapkezelő Zártkörűen  Működő Részvénytársaság; ■ Aegon Magyarország Pénztárszolgáltató Zártkörűen Működő  Részvénytársaság ■ Aegon Towarzystwo Ubezpieczeń na Życie Spółka Akcyjna; ■ Aegon Powszechne Towarzystwo Emerytalne Spółka Akcyjna; ■ Aegon Emeklilik ve Hayat A.S. 