The primary insurance subsidiaries in the Netherlands, all of which are wholly owned, are: AEGON The Netherlands is involved in both life and non-life insurance businesses and provides financial services and asset management.  AEGON The Netherlands offers five product lines: pensions, · life insurance, non-life insurance, banking and asset management. Pension products are sold by AEGON Pensioen en Advies (AEGON Pension and Advice) and AEGON Bedrijfspensioenen (AEGON Corporate Pensions) business units, while TKP Pensioen offers administrative services for large pension funds. AEGON Pension and Advice services large companies as well as company pension funds (ondernemingspensioenfondsen) and industry pension funds (bedrijfstakpensioenfondsen). Its main products are: Separate investment guaranteed contracts and separate investment capital contracts are defined benefit products with both single and recurring premiums and a disability rider. Profit sharing is based on the return of a pool of investments. Large group contracts also share technical results (mortality risk and disability risk). The assets are owned by AEGON Levensverzekering N.V. but earmarked to form the basis for profit sharing for these contracts. The contract period is typically five years and the premium tariffs are fixed over this period. Separate investment capital contracts are only sold to company pension funds and AEGON Levensverzekering N.V. has the option not to renew a contract at the end of the contract period, so that the longevity risk lies with the pension fund. Separate investment guaranteed contracts provide a guarantee on the benefits paid. The longevity risk therefore lies with AEGON Levensverzekering N.V. AEGON guarantee pension and small and medium-sized enterprises growth pensions sold by the business unit AEGON Corporate Pensions, are also defined benefit products with single and recurring premiums. The initial contract period is ten years, with renewals for five-year periods. Profit sharing is based on excess interest earned on the general account investment portfolio. Premium tariffs are fixed over the contract period and the longevity risk lies with AEGON Levensverzekering N.V. Minimum interest guarantees are given for nominal benefits, based on the 3% actuarial interest (4% on policies sold before the end of 1999), after retirement of the employee. AEGON Levensverzekering N.V. introduced two new pension products: AEGON Pension Investment and AEGON Pension Accelerator.  AEGON Pension and Advice does not sell products through intermediaries but rather sells directly to clients and through actuarial advisors.  AEGON Corporate Pensions sells pensions to small and medium-sized companies through intermediaries. AEGON GROUP ANNUAL REPORT 2003 51 PENSIONS PRODUCTS AND DISTRIBUTION •  AEGON Levensverzekering N.V., The Hague •  AEGON Schadeverzekering N.V., The Hague •  AEGON NabestaandenZorg N.V., Groningen •  AEGON Spaarkas N.V., The Hague •  AEGON Bank N.V., Utrecht •  Spaarbeleg Kas N.V., Utrecht •  Meeùs Groep B.V., Amersfoort •  TKP Pensioen B.V., Groningen. •  AEGON guarantee pension (defined benefit). •  AEGON pension package (defined contribution) •  medium and small-sized enterprises guarantee pensions  •  medium and small-sized enterprises growth pensions •  products for account of policyholders without guarantees (separate investment capital contracts)  •  products for account of policyholders with guarantees (separate investment guaranteed contracts) GENERAL HISTORY AEGON Nederland N.V. (AEGON The Netherlands) was incorporated under the name AGO Holding N.V. on December 27, 1972. AEGON The Netherlands became the holding for all Dutch insurance and banking activities after the merger between Ennia and AGO in 1983 and  was renamed AEGON Nederland N.V. in 1986. AEGON THE NETHERLANDS