AEGON AROUND THE WORLD LIFE INSURANCE FUND PLAN AND SAVINGS PLAN PRODUCTS ENDOWMENT AND SAVINGS PRODUCTS MORTGAGE SAVINGS PRODUCTS NON-LIFE PRODUCTS TKP Pensioen offers administrative services for large pension funds. During 2003 this unit enlarged its already solid bases with the acquisition of the Uitvoering Werknemersverzekeringen (UWV) account which increased total participants by approximately 50,000 to a total of 200,000 participants. AEGON Particulieren (AEGON Personal Lines) principally sells standard financial products. Its most important products are discussed below. The fund plan and savings plan products are mainly endowment and savings type products, both single premium and recurring premium with profit sharing based on the selected fund performance. A customer may choose to invest in a wide variety of AEGON funds. For investments in the Mix Fund and/or in the Fixed Income Fund, AEGON Personal Lines has issued a guarantee of 3% (4% on policies sold before the end of 1999), at the maturity date if the policyholder has paid the premium for a consecutive period of at least ten year, or on the death of the insured. The endowment and savings type s  of products have recurring premiums with contractual surplus interest profit sharing. With the mortgage savings products,  the insured typically takes out a mortgage loan from AEGON Personal Lines for a period of twenty or thirty years. The loan is repaid in full at the redemption date with the proceeds from a savings policy. In principle, in case of surrender, the policyholder loses the  tax benefit. Upon the death of the policyholder within the policy contract period, the benefit payment is used to repay the mortgage loan. The interest paid on the loan is normally tax deductible and the customer retains the full income tax benefit over the contract period as long as there is no early redemption. The interest paid on the mortgage loan usually equals the interest accumulated on the account balance under the savings policy. To benefit from the growth in the mortgage market, AEGON Personal Lines has introduced a new mortgage investment product. This product is based on the same principles as the original mortgage savings products, except that the customer can choose the funds in which to invest the savings premiums. The ultimate amount available at the maturity date will therefore vary depending on the performance of the underlying funds. Spaarbeleg Kas N.V. and AEGON Spaarkas N.V. sell ‘spaarkas’ products, which are life products with both single and recurring premiums and profit sharing based on a tontine system. The main characteristic of a tontine system is that AEGON Schade Bedrijven  (AEGON Non-Life Commercial Lines) targets approximately 500,000 small and medium-sized companies with a maximum of 100 employees. This unit aims to shift from a focus on business continuity to providing a range of products for the asset and life protection of employers and employees, covering both business capital (property and cash assets) and the risk of employees’  inability to work. AEGON Non-Life Commercial Lines offers accident and health, and property and casualty insurance products to individuals. Distribution takes place via independent agents. when death occurs, the balance in the investment account is not paid out to the policyholder’s estate, but is distributed out at the end of the year to the surviving policyholders of the specific series (a new series starts at the beginning of each calendar year) to which the deceased policyholder belonged. In addition to the tontine products, Spaarbeleg Kas N.V. sells a number of tax driven products like Toekomstplan (Future Plan) and Koersplan (Index Plan) and has provided better access to products and services in order to meet consumers’ requests with respect to pension issues. Products are sold through intermediaries and by direct marketing. AEGON Van Nierop caters to the high income and high net- worth segment of the market. Customers are served directly or through a network of high-quality intermediaries. AEGON  Van Nierop’s products relate to capital accumulation, capital protection, capital consumption and estate planning and are customized to this specific segment. AXENT/AEGON transferred its group life business to the business unit AEGON Corporate Pensions, the funeral business to AEGON NabestaandenZorg (AEGON NBZ) and the administration of its life and savings portfolio to AEGON Personal Lines. AXENT/AEGON now acts as a sales organization for other units in AEGON The Netherlands. Following the transfer of the funeral insurance portfolios of Nederlandse Verzekeringsgroep (N.V.G.), AEGON Personal Lines and AXENT/AEGON subsidiaries (LPU Verzekeringen N.V. in 2002 and AXENT/AEGON Uitvaartverzekeringen N.V. in 2003) to AEGON NBZ, AEGON NBZ now manages more than two million policies in this market, placing it among the top three providers of funeral insurance in the Netherlands (source: Pensioen- en Verzekeringskamer). Further growth potential in this market is achievable by introducing new distribution methods and new products that enable clients to ensure their family’s financial situation in the event of their death. AEGON NBZ seeks to distinguish itself from its competitors through a broad approach to financial care for surviving relatives and estate planning. AEGON GROUP ANNUAL REPORT 2003 52