Business overview  Results of operations – Americas 30 Results 2012 Americas Net income Commissions and expenses Underlying earnings before tax Production ■ Life & Protection underlying earnings before tax decreased by  6% to USD 746 million, mostly the result of the non- recurrence of favorable items in 2011. ■ Underlying earnings before tax from Individual Savings &  Retirement decreased by 5% to USD 639 million in  2012 driven mostly by lower fixed annuity earnings due to  declining account balances as the product is de-emphasized.  Earnings from variable annuities were down slightly to  USD 359 million as the benefit of higher account balances  was offset mainly by the negative effect of policyholder  assumption changes of USD 55 million. Earnings from retail  mutual funds increased slightly to USD 25 million. ■ Employer Solutions & Pensions underlying earnings before tax  increased by 15% to USD 319 million in 2012 driven mostly  by growing retirement plan account balances. ■ Underlying earnings before tax from Canada decreased to  USD 40 million in 2012. In Latin America underlying earnings  before tax increased to USD 12 million driven by  improvements in both Brazil and Mexico. Aegon’s businesses in the Americas  1  continued to perform well in 2012.  Sales of life, accident and health insurance all increased over 2011 on expanded  distribution capabilities. Variable annuity, pension and retail mutual fund balances  increased while fixed annuity balances continued to decline, a direct result of  Aegon’s efforts to grow its fee-based earnings. Net income from Aegon’s businesses in the Americas increased  to USD 1,357 million in 2012. Better results from fair value  items, lower impairments and higher realized gains on  investments more than offset lower underlying earnings, lower  earnings from run-off businesses and higher taxes. Results from fair value items improved from USD (663) in 2011  to USD (98) million in 2012 as better than expected alternative  asset performance and the impact of tightening credit spreads  more than offset by the negative impact of the macro hedge  caused by higher equity markets and the continued low interest  rate environment. In addition, Aegon lowered its interest rate  assumptions in 2011 which led to a charge of USD 237 million  in 2011. Gains on investments of USD 225 million were realized as a  result of normal trading activity. Net impairments amounted to  USD 151 million, down from USD 349 million in 2011, and  continue to be primarily caused by mortgage related securities. Underlying earnings before tax from the Americas amounted to  USD 1,756 million in 2012, a decrease of 2% compared to 2011.  The positive effect of business growth and favorable equity  markets was offset by lower Life & Protection earnings mostly  the result of the non-recurrence of favorable items in 2011,  recurring charges for Corporate Center expenses and higher  employee benefit expenses. Gross deposits amounted to USD 34.7 billion in 2012 compared  to USD 32.0 billion in 2011. Gross deposits in variable annuities,  retail mutual funds and retirement plans were all higher  than in 2011. Variable annuities gross deposits increased in  2012 despite product re-pricing throughout the year to reflect  the continued low interest rate environment and subsequent  higher hedging costs. The increase in retirement plan deposits  was driven by higher takeover deposits and successful efforts  to increase inflows from the existing client base through higher  contributions and larger participation count. New life sales increased 15% to USD 668 million in 2012,  primarily driven by strong indexed universal life sales as  distribution expanded into the brokerage channel and by higher  sales of certain products as they were withdrawn from the  market. New premium production for accident & health insurance  amounted to USD 905 million, up 11% on increased travel  insurance sales following the addition of a new distribution  partner in the second half of 2011. Commissions and expenses decreased by 13% to  EUR 4,276 million in 2012, mainly due to lower amortization of  deferred policy acquisition costs. Operating expenses decreased  by 6% to USD 1,823 million, as cost savings and lower expenses  related to the divestment of the life reinsurance business were  only partly offset by higher performance related employee  expenses, an increase in employee benefit expenses and costs  to support growth. Annual Report 2013 1 As of the first quarter of 2012, Aegon has revised its financial reporting to reflect changes in its organization. Businesses in Asia, which were previously managed  by Aegon Americas, are included in the Asia line of business within the ‘New Markets’ segment. For the full year 2011, the underlying earnings before tax  generated by the Asian operations totaling EUR 37 million were previously reported under the ‘Americas’ segment. The 2011 and 2010 figures have been revised  to reflect this change.