9 Enhance customer loyalty Empower employees Deliver operational excellence Market conditions The global economy continued to recover in 2013, but growth  was low in many countries, and business confidence remained  depressed. Overall, world output expanded by 2.9%, the lowest  annual rate of growth since the end of the previous recession in  2009. Growth is forecast to accelerate in 2014, but the global  economy still faces significant downside risks.  In the United States, economic growth improved. There was  further improvement in the US housing market. Unemployment  decreased – though much of the decline in reported rates was  attributed to people withdrawing from the labor force rather  than to job creation. Cuts in government spending subdued  economic growth, however.  In Europe, growth rates continued to lag behind those of the  United States and other developed economies. High rates of  unemployment persisted, particularly in those countries hit  hardest by the recent eurozone crisis. The German and French  economies showed modest growth, while those of Spain and  Aegon strengthened employee engagement, and improved the  working environment by: Aegon is expanding digital distribution capability and improving  understanding of customers’ changing needs by: Aegon improved efficiency, supported intermediaries and  expanded distribution through traditional channels by: ■ Re-pricing, redesigning and withdrawing products, improving  Aegon’s overall product mix to reduce capital requirements  and improve profitability; ■ Restructuring in Spain – by securing a twenty-five year joint  venture and distribution partnership with Banco Santander,  the country’s largest bank, and exiting some former joint  ventures; ■ Entering new distribution partnerships with other key banks,  including Barclays Bank in the United Kingdom.  ■ Opening up access to Aegon’s Global Ethics Line to make it  easier for outside parties to report suspected misconduct and  violations of the company’s Code of Conduct; ■ Completing a second transaction to reduce the risk associated  with longer life expectancy in the Netherlands and cover EUR  1.4 billion in longevity reserves.  ■ Launching new online products in Spain and Turkey. Aegon  now retails online in nearly all its markets, and has also  expanded its digital marketing and social media efforts; ■ Investing in emerging new business models. In the  Netherlands, Aegon launched Kroodle, a social  media platform to sell general insurance, and in recent years  has begun distribution through the drugstore chain Kruidvat; ■ Expanding the company’s variable annuities business, and  launching other related products, such as a new series of  mutual funds in the United States, and new additional risk  riders with products in Central & Eastern Europe; ■ Implementing a common measurement for customer loyalty.  Aegon has implemented the Net Promoter Score (NPS) across  its businesses, and is using NPS methodology to drive  long-term improvements in products and customer service.  The company has also established a Customer Intelligence  Council to improve analysis of customer data and statistics,  and launched the not-for-profit Transamerica Center for  Health Studies to research and contribute to important health  issues in the United States.  ■ Introducing limited paid time off for volunteer work. By the  end of 2013, 91% of Aegon’s employees worldwide had  access to this benefit; ■ Helping employees establish new affinity groups in the United  States and the Netherlands in support of broader efforts to  improve workforce diversity; ■ Deepening Aegon’s regular talent review, which maps  employees’ skills against the company’s long-term  requirements; ■ Supporting employees impacted by company restructuring  with social plans and programs to find new employment  within and outside the company; ■ Implementing local action plans based on the findings from  the 2013 Global Employee Engagement Survey. Aegon  identified three main priorities: do more to explain the  company’s business strategy to employees; strengthen  employees’ focus on customers; provide additional  opportunities for career development; ■ Developing an Employer Value Proposition, which sets out the  advantages of working for Aegon among prospective  employees. The Employer Value Proposition will support  wider efforts in new recruitment.  ■ Continuing to reduce costs where possible to allow for  increased investments. Cost saving initiatives included the  creation of a shared service center in the Americas, further  cost reduction in the Netherlands, and restructuring both in  the United Kingdom and at Aegon’s Corporate Center;  ■ Pursuing value over volume through a strict pricing discipline,  an approach aimed at securing profitable, sustainable growth  – while making sure that, before any new product or service is  introduced, customer benefits are fully assessed and taken  into account through an updated Pricing & Product  Development Policy; ■ Investing in a new online platform in the United Kingdom,  called Aegon Retirement Choices. The platform provides  independent financial advisors with a clear overview of  Aegon's product range, and helps them to provide the right  advice to Aegon's customers;