Additional information 328 Competitive factors may adversely affect Aegon’s market share. The default of a major market participant may disrupt the markets. Aegon may be unable to attract and retain personnel who are key to the business. Annual Report 2013 conditions and within certain limits. Taxes on this inside build-up of earnings may not be payable at all and, if payable, generally are due  only when the earnings are actually paid. The US Congress has, from time to time, considered possible legislation that may make Aegon’s products less attractive to consumers,  including legislation that would reduce or eliminate the deferral of taxation on the accretion of value within certain annuities and life  insurance products. This may have an impact on insurance products and sales in the United States. The US Government, as well as state and local governments, also considers from time to time tax law changes that may increase the  amount of taxes that Aegon pays. For example, the US Treasury Department and the Internal Revenue Service may propose new  regulations regarding the methodology to determine the dividends received deduction (DRD) related to variable life insurance and  variable annuity contracts. The DRD reduces the amount of dividend income subject to tax and is a significant component of the  difference between Aegon’s effective tax rate and the federal statutory tax rate of 35%. A change in the DRD, including the possible  elimination of this deduction, may reduce Aegon’s consolidated net income. Any changes in tax laws, interpretation of tax laws, later jurisprudence or case law, or the introduction of new taxes or tax laws in all  countries in which Aegon operates or invests, which affects Aegon’s products, may have a materially adverse effect on Aegon’s  businesses, results of operations and financial condition. Competition in Aegon’s business segments is based on service, product features, price, commission structure, financial strength, claims  paying ability, ratings and name recognition. Aegon faces intense competition from a large number of other insurers, as well as  non-insurance financial services companies such as banks, broker-dealers and asset managers, for individual customers, employers,  other group customers, agents and other distributors of insurance and investment products. Consolidation in the global financial  services industry can enhance the competitive position of some of Aegon’s competitors by broadening the range of their products and  services, and increasing their distribution channels and their access to capital. In addition, development of alternative distribution  channels for certain types of insurance and securities products, including through the internet, may result in increasing competition as  well as pressure on margins for certain types of products. Traditional distribution channels are also challenged by the ban on sales- based commissions in some countries. These competitive pressures may result in increased pricing pressures on a number of products  and services, particularly as competitors seek to win market share. This may harm Aegon’s ability to maintain or increase profitability. The adverse market and economic conditions that began in the second half of 2007 and significantly worsened in 2008 and into 2009,  with recovery beginning in late 2009 and in 2010, followed in 2011, 2012 and 2013 by further periods of volatility and weakness,  particularly in the Eurozone, can be expected to result in changes in the competitive landscape. For example, the financial distress  experienced by some financial services industry participants as a result of weak economic conditions and newly imposed regulation may  lead to acquisition opportunities. Aegon’s ability or that of Aegon’s competitors to pursue such opportunities may be limited due to  lower earnings, reserve increases, capital requirements or a lack of access to debt capital markets and other sources of financing. Such  conditions may also lead to changes by Aegon or Aegon’s competitors in product offerings and product pricing that may affect Aegon  and Aegon’s relative sales volumes, market shares and profitability. Additionally, the competitive landscape in which Aegon operates  may be further affected by government-sponsored programs or actions taken in response to the severe dislocations in financial markets  which occurred in 2008 and 2009, as well as the European sovereign debt crisis. The failure of a sufficiently large and influential financial institution may disrupt securities markets or clearance and settlement  systems in Aegon’s markets. This may cause market declines or volatility. Such a failure may lead to a chain of defaults that may  adversely affect Aegon and Aegon’s contract counterparties. In addition, such a failure may impact future product sales as a potential  result of reduced confidence in the insurance industry. As a global financial services enterprise with a decentralized management structure, Aegon relies, to a considerable extent, on the  quality of local management in the various countries in which Aegon operates. The success of Aegon’s operations is dependent, among  other things, on Aegon's ability to attract and retain highly qualified professional personnel. Competition for key personnel in most  countries in which Aegon operates is intense. Aegon’s ability to attract and retain key personnel, in particular senior officers, 