AEGON increases an already ambitious 2010 growth target

When Netherlands insurer AEGON set itself a target of increasing
the value of new business (VNB) by 2010 to €1.1 billion ($1.6
billion), double the €550 million achieved in 2005, it appeared
ambitious, even by AEGON’s own admission.

However, a year on and progress has been so good that the target
for 2010 has been upped by 14 percent to €1.25 billion. This will
entail sustaining a CAGR of 17.84 percent between 2005 and
2010.

“The underlying performance of our businesses in both our
established and emerging markets continues to be strong, resulting
in better-than-expected progress toward the value of new business
target we announced last year,” said Don Shepard, chairman of
AEGON’s executive board, who spoke at an analyst and investor
conference in New York on 26 November.

AEGON applies an embedded value principle in calculating VNB based
on the present value of the future distributable earnings on the
business sold in the latest reporting period.