Profile: Aegon NV (AEG.N)
30 Sep 2016
AEGON N.V., incorporated on June 5, 1905, is a life insurance, pensions and asset management company. The Company's segments include Americas, Europe, Asia, Asset Management, and Holding and other activities. The Americas segment covers business units in the United States, Brazil and Mexico, including any of the units' activities located outside these countries. The Europe segment covers the operating segments: the Netherlands, the United Kingdom (including VA Europe), Central and Eastern Europe, Spain and Portugal. The Asia segment covers businesses operating in Hong Kong, Singapore, China, Japan, India and Indonesia, including any of the units' activities located outside these countries. The Asset Management segment covers business activities from Aegon Asset Management. The Holding and other activities segment includes financing, reinsurance activities, employee and other administrative expenses of holding companies. The Company's products range from life, critical illness and disability insurance, to pensions, annuities, long-term savings and investments. It also offers mortgages, car, household and travel insurance in some markets.
Aegon Americas comprises Aegon USA, which operates under the Transamerica brand, together with operations in Brazil and Mexico. AEGON USA is a life insurance organization in the United States. Through its subsidiaries and affiliated companies, AEGON USA provides a range of life insurance, supplemental health, pensions, long-term savings and investment products. AEGON USA life insurance companies operate through approximately two divisions: Life and Protection, and Investments and Retirement.
AEGON USA affiliates provide whole life, universal life, variable universal life, indexed life, and term life insurance and supplemental health, special accident, and long-term care protection products. Term life insurance provides protection for a stated period of time. Universal life insurance is flexible permanent life insurance that offers the low-cost protection of term life insurance as well as a savings element, which is invested to provide a cash value buildup. The death benefit, savings element and premiums can be reviewed and altered as a policyholder's circumstances change. Variable universal life insurance is cash-value life insurance that offers both a death benefit and an investment feature. Indexed Universal Life (IUL) insurance provides permanent death benefit protection and cash value accumulation with flexible premium payments. Whole (or permanent) life insurance provides lifelong death benefit protection provided that the premiums required are paid, while accumulating tabular cash values based on statutory requirements.
Through its insurance companies, broker-dealers and investment advisors, Aegon USA offers a range of savings and retirement products and services for individual investors, including mutual funds and variable and fixed annuities. The Investments & Retirement (I&R) division administers and distributes these products through a variety of channels, including warehouse firms, banks, regional broker-dealers, independent financial planners, and direct to consumer. Aegon USA's fee-based business comprises asset management and insurance products that generate fee income by providing investment management, administrative or risk transfer services. Aegon USA's operations provide various investment products and administrative services, individual and group variable annuities, mutual funds, collective investment trusts, and asset allocation services. The operations in the United States provide fund managers with oversight for the Transamerica mutual funds. Aegon USA selects, manages, and retains affiliated and non-affiliated managers from a variety of investment firms based on a number of qualitative and quantitative factors.
Aegon USA offers retirement plans, pension plans, and pension-related products and services to employers, in addition to step-by-step guidance to people that are transitioning to, or living in, retirement related to approximately five areas: lifestyle, investments, healthcare, protection and income. Transamerica Retirement Solutions is a provider of retirement plans in both the institutional market and the emerging market. In the institutional market, Transamerica Retirement Solutions offer an array of investment options designed to create a fully customized investment line-up for clients, and a personalized retirement funding strategy for their retirement plan participants. Transamerica Retirement Solutions' open architecture investment platform provides access to a range of investment options, including institutional and retail mutual funds, registered or non-registered variable annuities, and a collective investment trust. The investment options offered in each plan are selected by the client or the client's financial advisor. In the emerging market, Transamerica Retirement Solutions offer fully bundled and partially bundled retirement plan solutions to small and mid-sized employers. These plans are predominantly supported by a group variable annuity product.
Aegon's business in Latin America holds interest in Mongeral Aegon Seguros e Previdencia S.A. (Mongeral Aegon), a Brazilian independent life insurer, and holds interest in Seguros Argos S.A. de C.V. (Seguros Argos), a Mexican life insurance company. Mongeral Aegon's insurance activities include pension product distribution, individual and group life insurance products, and administrative services. Seguros Argos' primary product is a 20-year term life insurance product. Both THE insurance companies distribute their products in the worksite market.
Aegon the Netherlands operates through a number of brands, including TKP Pensioen, Optas and Unirobe Meeus. Aegon the Netherlands has approximately four lines of business: Life and Savings, Pensions, Non-life and Distribution. AEGON The Netherlands provides a range of individual savings products and a range of life insurance and personal protection products and services, including traditional, universal and term life. The life products of The Netherlands' consist of endowment, Term and Whole Life Insurance, Annuity Insurance, Variable Unit-Linked Products, Tontine Plans, Mortgage Loans, Savings Accounts, Investment Contracts and Banksparen, among others.
The Pensions business provides a range of full-service pension products to pension funds and companies. Aegon the Netherland provides pension solutions and administration-only services to company and industry pension funds and companies. The pension products for account of policyholders are separate account group contracts with and without guarantees. The non-life business consists of general insurance and accident and health insurance. Aegon the Netherland offers general insurance products in the corporate and retail markets. These include house, inventory, car, fire and travel insurance. Aegon the Netherland offers disability and sick leave products to employers that cover sick leave payments to employees not covered by social security, and for which the employer bears the risk.
In the United Kingdom, Aegon is a provider of corporate and individual pensions, protection products, annuities, and savings products. AEGON UK plc (AEGON UK) is AEGON UK's holding company. AEGON UK's operating subsidiaries are Scottish Equitable plc. (trading as Aegon) and Aegon Investment Solutions Ltd. Aegon UK has two business lines: Life and Pensions. The Aegon UK life business primarily comprises individual protection and individual annuities. Aegon UK offers a range of products for individual customers, including life cover, critical illness and income protection. Aegon UK provides a full range of personal and corporate pensions. The company also offers investment products, including Individual Savings Accounts (ISAs), General Investment Accounts (GIAs), offshore bonds and trusts. Aegon UK provides a range of personal pensions and associated products and services, such as Flexible personal pensions, Self-invested personal pensions, Transfers from other retirement plans, and Phased retirement options and income drawdown. As an alternative to annuities, Aegon UK also offers Income for Life, a retirement solution that bridges the gap between annuities and income drawdown products. It offers customers a guaranteed income for life, plus continued control over their investments until the age of 75. Aegon UK offers offshore investment bonds. Aegon UK also offers GIAs and ISAs through its platform.
Aegon operates through a number of different sales channels in Central & Eastern Europe. These include tied agents, insurance brokers, call centers, online channels and particularly in Hungary, Poland, Romania and Turkey -retail banks. Aegon companies in Central & Eastern Europe offer a range of life insurance and personal protection products. These include traditional life and unit-linked products. Unit-linked products cover all types of life insurance, including pension, endowment and savings. Traditional general account life insurance consists mainly of index life products that are not unit-linked but have guaranteed interest rates, in addition to group life and preferred term life products. Preferred life is an individual term life insurance product that offers insurance protection. The product distinguishes between smoker and non-smoker status, and uses standard and preferred pricing dependent on the respective health of clients.
In Poland, Aegon is a provider of unit-linked products. In addition, Aegon Poland Life also offers traditional saving type products. In Hungary, Aegon offers a range of life insurance products, including term life products, whole life products, group life insurance, accidental life and traditional saving type products besides unlit-linked policies, frequently accompanied by riders. In both the Czech Republic and Slovakia, Aegon focuses on the unit-linked segment, besides selling term life products and offering a range of riders covering accidental death, disability, critical illness risks and providing a daily hospitalization allowance to insured clients. In Turkey, Aegon provides only traditional life insurance products, such as pure term life with several riders, term life with premium refund on maturity, and saving-type endowment products. In Ukrainian, Aegon sells endowment traditional life products. In Romania, Aegon undertakes life insurance business via Aegon Poland Life Insurance Company. The Romanian branch sells unit-linked, term life and endowment insurance policies.
Aegon Asia operates in the Asia region through approximately three joint ventures in China, India and Japan, in addition to a network of subsidiaries. Aegon provides a range of life insurance products through its life insurance businesses in China and India. These include unit-linked, universal life, and traditional life products. In China and India, Aegon-CNOOC and Aegon Religare, offer products through multiple distribution channels: agents, independent brokers, banks, direct marketing, group, and e-sales. Aegon Sony Life in Japan has approximately two primary distribution channels: Sony Life Planner channel (operated by Sony Life), and the bank distribution channel. Transamerica Life Bermuda (TLB) distributes its products through relationships with private and priority banks, local and international brokers, and intermediaries. In China, Aegon-CNOOC's agency and broker channels primarily sell regular premium endowment with high sum assured protection and critical illness products. Regular premium participating endowment and single-pay universal life are both key products for the bancassurance channel.
Aegon Asset Management operates in the United States, the Netherlands, the United Kingdom, Canada, Central & Eastern Europe, Spain, Hong Kong and mainland China. It has approximately three main brands: Aegon Asset Management specializes in providing clients with a range of investment solutions across asset classes, including fixed income, equities, real estate, absolute return, liability-driven, and multi-asset solutions. Kames Capital is a United Kingdom-based asset management company that provides fixed income, equities, real estate and multi-asset solutions to both the United Kingdom and international clients; and TKP Investments is a Netherlands-based fiduciary manager.
The Company competes with Lincoln National, Prudential Financial, MetLife, Pacific Life, John Hancock, Genworth, AIG, Jackson National, Nationwide, American Funds, Fidelity, Vanguard, PIMCO, T. Rowe Price, Empower Retirement, Mass Mutual, Principal Financial, Charles Schwab, New York Life, Voya Financial, NN Group, Achmea, ASR, Vivat, Delta Lloyd, Legal and General, Standard Life, Zurich, Aviva, HSBC Life, AIA, Manulife Bermuda, Sun Life Bermuda, Grupo VidaCaixa, BBVA Seguros, Axa, Canada Life, Swiss Life, Allianz, Generali, Helvetia, China Universal Asset Management, Alibaba, Rabobank, ING, ABN AMRO and SNS Bank.
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Company Web Links
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