AEGON’S BUSINESSES FOCUS ON LIFE INSURANCE, PENSIONS, SAVINGS AND INVESTMENT PRODUCTS. THE GROUP IS ALSO ACTIVE IN ACCIDENT AND HEALTH INSURANCE, GENERAL INSURANCE, AND HAS LIMITED BANKING ACTIVITIES. AEGON’S BUSINESSES ENCOURAGE PRODUCT INNOVATION AND REWARD VALUE CREATION THROUGH A DECENTRALIZED ORGANIZATION AND ENDORSE A MULTI-BRAND AND MULTI- CHANNEL DISTRIBUTION APPROACH. NEW PRODUCTS AND SERVICE INITIATIVES ARE DEVELOPED BY LOCAL BUSINESS UNITS, WITH A CONTINUOUS FOCUS ON COST CONTROL, USING TAILORED DISTRIBUTION CHANNELS TO MEET CUSTOMERS’ NEEDS. Insurance with a strong emphasis on life insurance, pensions, savings and investment products. AEGON focuses on the financial protection and asset accumulation needs of its clients. well in excess of the cost of capital on the pricing of new  business and acquisitions. Divestments of non-core activities  and underperformers and disciplined expense management  are key to the achievement of these objectives. AEGON’s objective is to achieve a leading position in each of its chosen markets in order to generate benefits of scale. AEGON supplements its autonomous growth with selective acquisitions and partnerships, which are preferred in countries where AEGON already has a presence in order to build scale and enhance distribution. Long-term average growth of net income of 10% per annum; the minimum return on investment is set to earn adequate returns  Multi-domestic and multi-branded approach, giving a high degree of autonomy to the management of the individual country and business units, encouraging entrepreneurial spirit and action. AEGON requires local management to run local businesses. STRATEGY COMMITMENT TO CORE BUSINESS DECENTRALIZED ORGANIZATION EMPHASIS ON PROFITABILITY INTERNATIONAL EXPANSION MARKET POSITION AEGON GROUP ANNUAL REPORT 2003 1 AEGON N.V. IS THE HOLDING COMPANY OF ONE OF THE WORLD’S LARGEST LISTED INSURANCE GROUPS RANKED BY MARKET CAPITALIZATION AND ASSETS. THE AEGON GROUP HEADOFFICE IS IN THE NETHERLANDS AND EMPLOYS ABOUT 28,000  PEOPLE WORLDWIDE.  AEGON’S THREE MAJOR MARKETS ARE THE UNITED STATES, THE NETHERLANDS AND  THE UNITED KINGDOM. IN ADDITION, THE GROUP IS PRESENT IN A NUMBER OF OTHER COUNTRIES INCLUDING CANADA, CHINA, HUNGARY, SPAIN AND TAIWAN. 