AEGON AROUND THE WORLD REINSURANCE CEDED In accordance with industry practices, AEGON USA reinsures portions of its life insurance exposure with unaffiliated insurance companies under traditional indemnity reinsurance arrangements. Such reinsurance arrangements are in accordance with standard reinsurance practices within the industry. AEGON USA enters into these arrangements to assist in diversifying its risks and to limit the maximum loss on risks that exceed policy retention limits. The maximum retention limit on any one life is generally USD 500,000 with certain companies retaining up to USD 2,000,000. AEGON USA remains contingently liable with respect to the amounts ceded if the reinsurer fails to meet the obligations it assumed. AEGON USA annually monitors the creditworthiness of its primary reinsurers and has experienced no material reinsurance recoverability problems in recent years. The primary operating companies that comprise ACI are: •  Transamerica Life Canada • Money  Concepts (Canada)  Limited •  AEGON Dealer Services Inc. •  AEGON Capital Management Inc. •  AEGON Fund Management Inc. Transamerica Life Canada (TLC) offers term and tax-sheltered universal life insurance, segregated funds, guaranteed interest accounts and annuities. Money Concepts (Canada) Limited (MCC) is an independent Canadian financial planning company with an association of franchised planning centers, offering a diverse spectrum of planning, products and services to investors. With 84 offices across Canada, MCC is the only franchised financial planning company in Canada. AEGON Canada’s principle means of distribution includes a number of networks that are almost exclusively supported by independent advisors. The key channels of distribution are: The life product business unit of TLC provides life insurance products for individuals and companies across Canada. The portfolio includes universal life and traditional life insurance, predominantly term life and permanent life insurance, as well  as accidental death and out-of-the-country medical insurance. AEGON Canada’s current investment product offerings comprise the following: segregated funds, mutual funds, segregated funds offered through strategic alliances with investment management companies, guaranteed investment accounts, single premium annuities and leverage-lending programs through strategic alliances with bank and trust companies. The imaxx™ range of mutual funds is  offered by AFM. TLC offers all of AEGON Canada’s other investment products. AEGON Dealer Services Inc. (ADSCI) provides advisors and distributors with mutual fund and segregated fund dealership capability to the benefit of the MCC franchises and representatives, as well as to TLC’s and AEGON Fund Management Inc.’s (AFM) advisors across Canada. AEGON Capital Management Inc. (ACM) was created in November 2001, through the spin-off of the investment management division of TLC. ACM’s mandate is to develop products and services for the institutional, high net-worth individual, pension and retail markets. AFM is the mutual fund subsidiary of ACI, offering the imaxx™ brand of mutual funds to Canadian investors seeking customized portfolio solutions, as well as core fund portfolios featuring select investment managers from around the world. AEGON Canada Inc. (ACI) is the holding company for AEGON’s Canadian operations. Through its subsidiary companies, AEGON Canada operates multiple insurance, financial services, investment portfolio management and fund management businesses and provides wealth management solutions. CANADA GENERAL HISTORY PRODUCTS AND DISTRIBUTION LIFE INSURANCE PRODUCTS INVESTMENT PRODUCTS •  independent managing general agencies •  TLC owned and operated Profit Center Agencies •  bank-owned national broker-dealers •  World Financial Group •  other national, regional and local/niche broker-dealers. AEGON GROUP ANNUAL REPORT 2003 50