LIFE REINSURANCE CEDED ASSET MANAGEMENT  BANKING DISTRIBUTION UNITS NON-LIFE AEGON The Netherlands maintains reinsurance on an excess of loss basis for its fire insurance businesses, with a retention of EUR 4.5 million per risk and EUR 13.7 million per event. AEGON The Netherlands’ motor business is also reinsured on an excess of loss basis. The life companies have a two-part reinsurance strategy.  The first part is a profit sharing contract between AEGON Levensverzekering N.V. and Swiss Re, with a retention of  EUR 900,000 per policy. The second part is a facultative reinsurance of AEGON The Netherlands’ mortality and morbidity risk with a small number of reinsurers, of which  ‘De Hoop’ is the most significant. The distribution units consists primarily of the  Meeùs Groep, which is an intermediary company with its core activities in rendering financial advice and intercession in real estate. Within the financial advice segment, the Meeùs Groep has developed a broad range of activities such as insurance, pensions, mortgages, financing, savings and investments. In the real estate business the Meeùs Groep acts as a broker in both residential and commercial real estate. In addition to this, the Meeùs Groep is active in the real estate management business. AEGON Bank N.V. supplies savings accounts with simple conditions. The products are sold under the Spaarbeleg name through a multi-channel strategy, with franchise organizations contributing the majority of AEGON Bank N.V.’s total sales. In addition, internet sales are growing. AEGON Financiële Diensten B.V. sold securities lease products via independent agents. Securities lease products provided customers with a loan allowing these customers to acquire securities. As a result of the bearish equity markets, the proceeds of the securities may over time prove to be insufficient to pay back the loans in full. AEGON The Netherlands discontinued selling securities lease products in early 2003. AEGON Asset Management's (AAM) approach is to further develop the institutional market, by winning asset management customers in cooperation with AEGON Pension and Advice, while also assisting AEGON The Netherlands’ retail units in developing banking expertise. In 2002 and 2003, AAM launched twelve mutual funds and plans to expand product development further in order to offer a complete range of funds. AAM is also the asset manager for AEGON The Netherlands’ insurance subsidiaries. AEGON The Netherlands has a straightforward distribution strategy. The majority of AEGON The Netherlands' products are sold through agents. Spaarbeleg Kas N.V., AXENT/AEGON and AEGON NBZ sell branded products under their own names through multiple channels, including direct marketing, specialized agents and tied agents. AEGON GROUP ANNUAL REPORT 2003 53