34 Market positions The Netherlands Sales and deposits Overview  Underlying earnings before tax Value of new business Net income Operating expenses Revenue-generating investments Revenue-generating investments increased 2% to  EUR 73 billion mainly as a result of improved market  conditions. Operating expenses declined 14% during the year to  EUR 748 million. The decline was due mainly to cost  savings measures and the transfer of asset management  activities to AEGON Asset Management. Net income from AEGON’s businesses in the Netherlands  almost tripled to EUR 711 million. This sharp increase  was the result of a significant improvement in the  performance of fair value items and lower impairments,  somewhat offset by fewer realized gains on investments  compared with 2009. The value of new business in 2010 declined to  EUR 144 million. The positive effects of increased sales  were more than offset by lower spreads in AEGON’s  mortgage and annuity businesses. The internal rate of  return on new business amounted to 14%. AEGON reported EUR 2.4 billion of gross deposits for  2010, a decrease of 31% compared with 2009 as a result  of lower savings deposits. Net deposits turned negative  for the year as a result of higher outflows from savings  accounts due to lower interest rates offered on savings  accounts. Underlying earnings before tax declined 3% during the  year to EUR 385 million as increased earnings from  life and savings and non-life were more than offset by  lower pensions earnings. Life and savings increased to  EUR 186 million as improved margins on savings account  balances were only partly offset by a loss of earnings  due to the sale of the funeral insurance business.  Earnings from pensions declined to EUR 153 million,  mainly as a result of lower investment income. Non-life  earnings increased to EUR 33 million as a result of more  favorable motor and fire insurance claim levels. Earnings  from distribution remained level at EUR 16 million. Following changes in government regulations, the  disability insurance market in the Netherlands is now  more open to private sector insurers. As a result, AEGON  accident and health premium production increased 53%  to EUR 26 million for the year. Total new life sales in the Netherlands increased 4%.  AEGON successfully utilized its leading position in the  Dutch pension market to secure a number of sizeable  group pension contracts during the year. Individual life  sales were level at EUR 83 million as a result of  continued demand for mortgage-related products and  immediate annuities. This was a strong result, given that  the market as a whole is declining.  AEGON’s operation in the Netherlands reported strong  underlying earnings for 2010. Net income increased  considerably as a result of lower impairments and  improved results from fair value items. At the beginning  of the year, AEGON sold its funeral insurance activities.  During the fourth quarter the company announced a  reorganization of its banking activities. This is part of  AEGON’s strategy to focus on its core businesses,  positioning the company for sustainable growth.  # 3 Group pensions # 5 Accident and health # 6 Individual life  # 7 Property and c asualty