3 ANNUAL REPORT 2010  LETTER OF THE CEO The crisis has reminded us that this is necessary and  prudent given the continued uncertainties of the general  market environment. Equally important has been our focus on capturing the  operational and cost efficiencies necessary to create a  more streamlined organization, better positioned to  deliver added value to customers, business partners and  of course, our shareholders. In this regard, we continued  to reduce costs in our main operating units during the  course of 2010, consolidated a number of our operations  in the United States, and are implementing a broad  restructuring program in the United Kingdom to achieve  a 25% cost reduction by the end of 2011. At the same, we have continued to invest in our  businesses, both within AEGON’s established markets  and in those regions that offer higher growth and  returns over the longer-term – Central & Eastern Europe,  Latin America and Asia. These investments, particularly  in our newer markets, support our strategic objective to  achieve a better geographical balance for AEGON, in  terms of capital allocation and earnings generation.  Recognizing the promising demographic and market  developments throughout Asia, we have established a  new organizational structure to support our ambitions in  China, India and Japan. Under the new structure  headquartered in Hong Kong, AEGON’s businesses in  Asia will be managed as one regional division, allowing  us to leverage product and distribution expertise,  capture efficiencies, and pursue organic growth across  the Asian continent. Along with AEGON’s full-year 2010 results we also  announced specific medium-term targets in terms of  increased underlying earnings, cash flow generation and  return on equity. Each of these ambitious targets  supports our aim to ensure sustainable and growing  dividend payments to shareholders - further evidence  that AEGON has turned the corner of the financial crisis  and is determined to deliver the long-term value that  shareholders have every reason to expect.  AEGON is committed to assisting our many current and  future customers around the world secure their financial  futures. This is both our mission and our promise. More  than at any time in recent history, individuals and  families understand their need to take responsibility for  their financial security and make the decisions that will  provide them the peace of mind hoped for throughout a  longer retirement. This requires that wherever AEGON  operates, we provide simple, easy-to-understand  products and services that serve the full range of  customer needs and circumstances.  AEGON is a company with broad capabilities and  resources. We are grateful to our many employees  around the world whose hard work and dedication have  enabled AEGON to emerge stronger from the financial  crisis and better able to respond to our customers with  quality, need specific products and services. We are  more determined than ever to put our competitive  advantages to work for the long-term benefit of those  who have placed their trust in AEGON. All of these actions to reallocate capital, increase  returns, reduce costs and better leverage our global  resources are aimed at enabling AEGON to achieve  sustainable earnings growth, with an improved risk- return profile, and generate sustainable cash flows and  dividends to our shareholders going forward. Thank you for your continued confidence. Among the most important achievements over the past  year has been our progress towards completing full  repayment to the Dutch State by the end of June 2011.  Following the early repayment of EUR 1 billion last year,  we repaid an additional EUR 500 million in August 2010,  and in February 2011, we raised EUR 900 million of  equity in the market to support this key priority. The  remaining amount needed to complete repayment will  be generated from internal resources – retained earnings  and proceeds from potential disposals. The decision to  raise additional equity in the market further supports  our key objective of maintaining a strong capital buffer  and a strong balance sheet for AEGON. Looking ahead with confi dence Serving the growing need Alex Wynaendts Chief Executive Officer and Chairman of the  Executive Board of AEGON N.V. SHARPENING OUR FOCUS