AEGON N.V.: AEGON reports 2005 embedded value

Press release

The Hague, May 10, 2006

AEGON reports 2005 embedded value and value of new business

* STRONG INCREASES IN EMBEDDED VALUE AND VALUE OF NEW BUSINESS REFLECT
  CONTINUED FOCUS ON PROFITABLE GROWTH

* VALUE OF NEW BUSINESS INCREASED 13% TO EUR 550 MILLION

* TOTAL EMBEDDED VALUE INCREASED 27% TO EUR 21 BILLION

* TOTAL EMBEDDED VALUE PER COMMON SHARE INCREASED 27% TO EUR 12.61

* AEGON'S DEVELOPING MARKETS GENERATED 25% OF 2005 VALUE OF NEW BUSINESS

The embedded value (EV) and value of new business (VNB) information as
reported today by AEGON N.V. demonstrates the increasing diversity of AEGON's
business and the continued successful focus on profitable growth. With the
strong contribution to value of new business from the developing markets in
Asia, Central & Eastern Europe and Other European Countries, AEGON generated a
quarter of its VNB outside the three major countries.

Joseph B.M. Streppel, Member of the Executive Board and CFO of AEGON N.V.,
said: "We are pleased with the increases in our embedded value life insurance
and value of new business. While not all businesses performed as well as in
the prior year, the diversity of AEGON's business and focus on profitable
growth continued to drive strong performance. The internal rate of return on
new business of over 12% underscores our disciplined approach to writing
profitable business."

At year-end 2005, the total embedded value (TEV) of AEGON N.V. amounted to EUR
21.0 billion, an increase of 27% compared to 2004. Adjusted for the value of
AEGON preferred shares, the total embedded value per common share amounted to
EUR 12.61, an increase of 27%.

The embedded value life insurance (EVLI) increased 22% to EUR 27.6 billion.
The EVLI benefited from the performance of the in-force book of EUR 1.4
billion, higher than expected investment returns of EUR 1.7 billion, and
positive currency translation effects of EUR 2.2 billion. The embedded value
total margin, which reflects the total change in EVLI excluding capital
movements, increased to 25.0% from 12.7% in 2004. The embedded value operating
margin, representing the embedded value operating return (value of new
business plus in-force performance) divided by beginning of year EVLI,
decreased to 7.8% in 2005, primarily reflecting adverse operating variances
and assumption changes in the Netherlands, which are partly related to the
improvements to Koersplan. All other country units performed in line with
expectations.

The VNB, reflecting the present value of the projected distributable earnings
arising from the sale of new business in 2005, amounted to EUR 550 million, an
increase of 13% compared to EUR 489 million reported in 2004. The total
internal rate of return on new business in 2005 amounted to 12.4%.

AEGON's new operations in the Czech Republic, Poland and Slovakia and
partnerships in China, France and Spain have been included in the 2005 EVLI
and VNB. In comparative 2004 EV figures, these operations are included at book
value under other activities in the TEV figures and were not included in the
reported 2004 VNB.

AEGON's EVLI and VNB results have been reviewed by Tillinghast. As a result of
this review, Tillinghast considers that the methodology adopted, the
assumptions used and the results in AEGON's 2005 embedded value report have
been properly prepared, are reasonable and comply with the European Embedded
Value Principles and Guidance. In giving this opinion, Tillinghast has relied
on the values placed on the 'other activities' by AEGON (for more details
please refer to section 6 of AEGON's embedded value report).

Embedded value                                        Year-end Year-end
(amounts in millions unless stated otherwise, after       2005     2004
tax)
 
                                                           EUR  EUR (A)       %
 
Life business
Adjusted net worth (ANW)                                15,969   12,896      24
       Free surplus (FS)                                 3,184    1,957      63
       Required surplus (RS)                            12,785   10,939      17
 
Value of in-force life business (ViF)                   11,624    9,748      19
       Present value future profits (PVFP)              14,877   12,487      19
       Cost of capital (CoC)                           (3,253)  (2,740)      19
 
Embedded value life insurance (EVLI)                    27,593   22,643      22
 
Other activities
IFRS book value                                             68      665    (90)
 
Total embedded value before holding activities          27,661   23,308      19
 
Holding activities                                     (6,677)  (6,841)     (2)
       Market value of debt, capital securities &      (6,433)  (6,642)     (3)
       other net liabilities
       Present value holding expenses                    (244)    (199)      23
Total embedded value (TEV)                              20,984   16,467      27
       Value of preferred share capital                (1,462)  (1,601)     (9)
Total embedded value (TEV) attributable to common       19,522   14,866      31
shareholders
       TEV attributable to common shareholders per       12.61     9.89      27
       share (EUR)
 
(A) Adjusted for the move to IFRS for regulatory accounting in the
Netherlands, a required surplus change in Taiwan, the adoption of IFRS in
the value of other activities and the presentation of holding debt at
market value.




Value of new business                  2005    2004       %
(amounts in millions, after tax)       EUR     EUR
                                       
Americas                               273      311     (12)
The Netherlands                         39       29      35
United Kingdom                          98       78      26
Asia                                    83       48      71
Central and Eastern Europe              27       20      33
Other European Countries                30        2    N.M.
Total                                  550      489      13
 
The tables in this press release provide a summary of AEGON's key 2005
embedded value and value of new business figures. These should be read in
conjunction with the detailed information on embedded value life insurance and
total embedded value in the report that is available on www.aegon.com.

DISCLAIMERS

Cautionary note regarding Regulation G (non-GAAP measure)

This press release includes a non-GAAP financial measure. Embedded value is
not based on IFRS, which are used to prepare and report AEGON's 2005 financial
statements and should not be viewed as a substitute for IFRS financial
measures. In the 2005 Embedded Value report available on www.aegon.com, the
embedded value life insurance and the total embedded value are reconciled to
shareholders' equity of EUR 19.3 billion as reported in AEGON's annual
accounts over the year 2005. AEGON believes the non-GAAP measure shown herein,
together with the GAAP information, provides a meaningful measure for the
investment community to evaluate AEGON's business relative to the businesses
of our peers.

Forward looking statements

The statements contained in this press release that are not historical facts
are forward-looking statements as defined in the U.S. Private Securities
Litigation Reform Act of 1995. Words such as believe', estimate', intend',
may', expect', anticipate', predict', project', counting on', plan',
continue', want', forecast', should', would', is confident' and will'
and similar expressions as they relate to us are intended to identify such
forward-looking statements. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are
difficult to predict. We undertake no obligation to publicly update or revise
any forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of their
dates.

All forward-looking statements are subject to various risks and uncertainties
that could cause actual results to differ materially from expectations,
including, but not limited to, the following:

* Changes in general economic conditions, particularly in the United States,
  the Netherlands and the United Kingdom;

* Changes in the performance of financial markets, including emerging markets,
  including:

  - The frequency and severity of defaults by issuers in our fixed income
    investment portfolios; and

  - The effects of corporate bankruptcies and/or accounting restatements on the
    financial markets and the resulting decline in value of equity and debt
    securities we hold;

* The frequency and severity of insured loss events;

* Changes affecting mortality, morbidity and other factors that may affect the
  profitability of our insurance products;

* Changes affecting interest rate levels and continuing low interest rate
  levels and rapidly changing interest rate levels;

* Changes affecting currency exchange rates, including the EUR/USD and EUR/GBP
  exchange rates;

* Increasing levels of competition in the United States, the Netherlands, the
  United Kingdom and emerging markets;

* Changes in laws and regulations, particularly those affecting our
  operations, the products we sell and the attractiveness of certain products to
  our consumers;

* Regulatory changes relating to the insurance industry in the jurisdictions
  in which we operate;

* Acts of God, acts of terrorism, acts of war and pandemics;

* Changes in the policies of central banks and/or governments;

* Litigation or regulatory action that could require us to pay significant
  damages or change the way we do business;

* Customer responsiveness to both new products and distribution channels;

* Competitive, legal, regulatory, or tax changes that affect the distribution
  cost of or demand for our products;

* Our failure to achieve anticipated levels of earnings or operational
  efficiencies as well as other cost saving initiatives;

* The impact on our reported financial results and financial condition as a
  result of our adoption of International Financial Reporting Standards.

ABOUT AEGON

AEGON is one of the world's largest life insurance and pension companies, and
a strong provider of investment products. We empower our local business units
to identify and provide products and services that meet the evolving needs of
our customers, using distribution channels best suited to their local markets.
We take pride in balancing a local approach with the power of an expanding
global operation.

With headquarters in The Hague, the Netherlands, AEGON companies employ
approximately 27,000 people. AEGON's three major markets are the United
States, the Netherlands and the United Kingdom. In addition, the Group is
present in a number of other countries including Canada, China, Czech
Republic, Hungary, Poland, Slovakia, Spain and Taiwan.

Respect, quality, transparency and trust constitute AEGON's core values as the
company continually strives to meet the expectations of customers,
shareholders, employees and business partners. AEGON is driven to deliver new
thinking and our ambition is to be the best in the industry.


CONTACT INFORMATION

Group Corporate Affairs & Investor Relations

                   The Hague, the           Baltimore, the United States
                   Netherlands
Analysts &         [phone]      [phone] (toll free) / +1
Investors                                   410 576 45 77

Media              [phone]      [phone]

E-mail             [e-mail]         [e-mail]

Website            www.aegon.com



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