Earnings overview

Underlying earnings before tax declined 28% to EUR 500 million.Underlying earnings in the Americas were down on the impact of lower equitymarkets on variable annuities (EUR 48 million) and mortality experience (EUR28 million) in life reinsurance. In the Netherlands underlying earnings wereimpacted by a charge to meet guaranteed returns on specific group pensioncontracts (EUR 35 million) and the costs of modifying unit-linked products(EUR 28 million). The decline in financial markets also negatively impactedunderlying earnings in the United Kingdom. AEGON's net loss in Q3 2008 is aresult of impairment charges (EUR 407 million pre tax) and significantunderperformance on fair value items (EUR 384 million pre tax), such asalternative investments and products containing financial guarantees. As aresult of the strengthening of the US dollar, the revenue generatinginvestments increased 2% compared to the second quarter to EUR 351 billion.

KEY PERFORMANCE INDICATORS Notes Q3 Q3 % At Ytd Ytd % At 2008 2007 constant 2008 2007 constant currency currency amounts in EUR millions % % (except per share data) Underlying earnings before tax 1 500 691 (28) (22) 1,754 1,972 (11) (2) Net income 2 (329) 541 N.M. N.M. 100 1,903 (95) (93) New life sales 3 618 847 (27) (18) 2,033 2,474 (18) (8) Total deposits 4 11,051 12,056 (8) (0) 28,818 34,934 (18) (8) Value of new business (VNB) 206 235 (12) (4) 604 702 (14) (5) Return on equity 5 8.7% 12.9% (33) 10.9% 12.3%(11) Strategic Highlights In June this year AEGON set out three strategic priorities: 1. To reallocate capital toward businesses with higher growth and returnprospects;

2. To improve growth and returns from existing businesses; 3. Manage AEGON as an international company. Despite the significant deterioration in world financial markets overrecent months, AEGON has made definite progress toward the company'sstrategic objectives:

- In July, AEGON completed a securitization in the United Kingdom, freeing up EUR 315 million in additional capital. AEGON is now looking actively at other, similar opportunities in the United States, the Netherlands and the United Kingdom, aimed at strengthening the company's capital position and enhancing its overall financial flexibility. - In July, AEGON's joint venture with Religare in India started operations. - In July, AEGON finalized the acquisition of the Turkish life insurance and pension provider Ankara Emeklilik. - In August, AEGON agreed a new joint venture with the Catalan-based savings bank Caixa Terrassa. The partnership gives AEGON access for the first time to Catalonia, one of Spain's wealthiest regions with a population of more than seven million people. - In September, AEGON announced important changes to the company's operations in Canada, aimed at ensuring profitable future growth by reducing capital use and focusing resources on areas with strong return prospects. - In October, AEGON signed an agreement to acquire a 50% stake in Brazilian life insurer Mongeral SA Seguros e Prevedencia, further strengthening the company's position in the fast-growing Latin American market. - AEGON is using its hedging expertise in the United States in variable annuities and life reinsurance expertise to expand into new markets in Europe and Asia. Financial markets Given the current troubled market environment, AEGON has been taking anumber of actions to accelerate capital preservation and risk mitigation toenhance its capital buffer. These actions include lowering investment risk onboth the existing portfolio and new money; transferring risk throughreinsurance and additional securitizations like the one completed in the UKduring the third quarter. During the third quarter, similar actions freed upEUR 729 million of capital in total. AEGON expects that the continuedexecution of these actions will release capital in the range of EUR 600 to800 million during the fourth quarter. All these measures aim to ensure AEGONmaintains a level of capital above its AA rating requirements.

Value of new business

Value of new business decreased by 12% to EUR 206 million in the thirdquarter (4% at constant currency). AEGON's internal rate of return remainedstable at 17.7% as the company continued its focus on writing profitable newbusiness.

Return on equity

AEGON's return on equity was 10.9% for the first nine months of 2008,down due to lower underlying earnings.

Underlying earnings

AEGON's underlying earnings before tax declined 2% in constant currencyin the first nine months of 2008 primarily as a result of continued turmoilin world financial markets.

AEGON and the global financial crisis

Like many other insurance companies, AEGON had to contend withunprecedented turmoil in world financial markets during the third quarter.Despite the extremely difficult conditions, AEGON is well positioned towithstand the current global financial crisis. The company has ampleliquidity, and a strong capital position going into next year.

Over the past few months, the global financial crisis has worsened to adegree few would have expected. The crisis has led to considerabledifficulties at a number of well-known financial institutions. Since thencorporate bond and equity values have fallen sharply.

Over the past few years, the company has taken a number of steps tostrengthen its capital position and to prepare itself for a potentialdownturn in market conditions. These included:

- Reducing direct exposure to equity markets and upgrading the quality of the company's bond portfolio; - Lowering interest rate risks and the guarantees offered on certain products; - Hedging more of the company's financial market risks; - And more effective matching of assets and liabilities. By reducing risk, AEGON has been able to free up more capital. Thesemeasures continued in the third quarter and are continuing now.

Recently, AEGON has also taken additional measures to strengthen its capital position, going into 2009. These included: - Foregoing the final dividend payment to shareholders for 2008; - And, securing an extra EUR 3 billion in core capital from the Vereniging AEGON funded by the Dutch State. Taken together, all these measures strengthen AEGON's overall financialposition by ensuring a capital buffer substantially in excess of AA ratingrequirements. At the end of the third quarter, AEGON had approximately EUR 5billion in capital over and above minimum EU regulatory requirements. Thiswould rise to approximately EUR 8 billion pro forma for the additionalcapital buffer.

Clearly, AEGON's balance sheet has also been affected by recent marketturmoil. In the third quarter, the value of AEGON's corporate bondinvestments declined significantly. This decline was due primarily to anunprecedented widening in credit spreads. Lower bond values, however, have noimpact on AEGON's earnings. They are reflected instead in the company'sso-called 'revaluation reserve', which given current market conditionsdecreased by EUR 2.5 billion in the third quarter.

The lower valuation of these bonds will only affect earnings if AEGON: - Either impairs its investments because, for one reason or another, the company does not expect to get its money back (as happened, for example, with Lehman Brothers); - Or is forced to sell those investments at a loss to generate cash. In any economic downturn, there is an increase in impairments. Buthistory shows the correlation between widening investment grade bond spreadsand an increase in impairments is not as strong as many might suppose. Evenif there is an increase in impairments because of deterioration in thegeneral economic climate, AEGON believes these impairments will remain atmanageable levels. This is primarily because of measures the company hasalready taken to limit risk and improve the quality of its portfolio.

Moreover, AEGON's long-term business model ensures that the company isunlikely to be in a position to have to sell its investments at a loss,simply to generate cash.

As an insurance company, AEGON sells products that last ten, twenty, eventhirty years, and it matches these liabilities to similar, long-terminvestments. Before the onset of this financial crisis, AEGON was proactivein positioning its bond portfolio more defensively. AEGON's ample liquidityand strong asset and liability management mean that it is unlikely that AEGONwill be forced to sell assets at distressed prices, as reflected in therevaluation reserve. Therefore, AEGON's negative revaluation reserve is not agood indication of future losses.

Like other financial sector companies, AEGON is operating in an extremelyuncertain economic and market environment. Nevertheless, the steps alreadytaken to reduce risk and strengthen the company's capital position mean AEGONis now well-placed to withstand the current crisis and take advantage of aneventual upturn in market conditions.

AEGON's exposure to equity markets

Over the past several years, AEGON has taken steps to reduce its exposureto world equity markets. As a result, the company's direct equity exposure islimited.

However, AEGON also has indirect exposure to equity markets, most notablyas a result of guarantees on variable annuities in the Americas andunit-linked products and group pension contracts in the Netherlands. AEGONreceives fees on equity related products. In addition, AEGON defers policyacquisition costs (DAC) on part of its equity linked products.

AEGON has hedged the equity risk of variable annuity guarantees on thevast majority of the products sold since 2004. On older blocks of business,sold before 2004, AEGON has not hedged equity related risks. The rise inequity markets between 2003 and 2007 resulted in a reduction of equity marketsensitivity of capital and earnings. Recent steep declines of equity marketsand increased equity markets volatility reversed this development andmaterially increased the equity market sensitivity.

In the Netherlands, equity market related risks from guarantees inunit-linked products and guarantees on group pension contract are consideredto be manageable and are not hedged.

The amortization of the DAC, in particular variable annuity DAC, dependson assumed equity market returns. Given current equity market volatility,assumptions on expected equity market returns can change and affect theoriginal DAC schedule. The difference between the original DAC amortizationschedule and the revised schedule is recognized in the income statement as anexpense or a benefit in that period. Recent declines in equity markets canlead to charges in income from accelerated DAC amortization.

AEGON estimates that for the total Group, from market levels perSeptember 30, a 20% decline in equity markets will negatively impact earningswith EUR 700 million, due to lower fees, higher reserve requirements andaccelerated amortization of the deferred acquisition cost. Additionally, thenegative impact from a 20% decline of equity markets would impact the capitalposition in the country units by EUR 900 million, which largely can beabsorbed by capital preservation actions.

AEGON's investment portfolio Corporate Credit AEGON's credit risks are concentrated primarily in the United States.Most of the unrealized losses on AEGON's investments may be attributed to itsUS bond portfolio.

Over the past several years, AEGON has structured its US investmentportfolio defensively in order to withstand a stressed credit environment,and also reduced its exposure to the US financial sector. During the thirdquarter, AEGON reported significant impairments linked to both financialinstitutions.

Over the past year, the yield on US investment grade corporate bonds hasrisen by more than 200 basis points. Seventy-five percent of this rise tookplace in the third quarter alone. Widening credit spreads accounted for theEUR 2.5 billion decrease in AEGON's revaluation reserve during the quarter.

Lower corporate bond values may lead to higher future defaults andimpairments. However, AEGON believes these will remain at manageable levels.

Recent steps taken by AEGON have resulted in a more conservative ratingsprofile for the company's investment portfolio than during the last economicrecession. In addition, the recapitalization of the financial sector inrecent months has lowered an important source of risk.

AEGON USA's corporate credit portfolio is highly diversified, well spreadover sectors of the economy and individual companies.

Mortgage-backed assets

The third quarter also saw a steep decline in the value ofmortgage-backed assets, particularly near prime residential (RMBS) andcommercial mortgage-backed securities (CMBS).

Clearly, risks in AEGON's mortgage-backed asset portfolio have increased.In particular, AEGON has regularly referred to a part of the subprimemortgage backed portfolio where most impairments are expected to come from:securities backed by subprime mortgage with adjustable rate, so called hybridARM's, assets which were originally rated AA. At the end of September,AEGON's exposure in this area amounted to EUR 1.7 billion, less than 63% ofthe company's overall subprime mortgage portfolio of EUR 2.7 billion.

AEGON also has investments in other mortgage-related assets, includingsecurities backed by near-prime mortgages referred to as Alt-A and negativeamortization/Option ARM floaters. Most of this portfolio is super senior andstructured to withstand high collateral loss rates. Even with stressed losslevels on the underlying collateral, principal losses should remain modest.

Over 86% of AEGON's commercial mortgage-backed securities are ratedsenior or super senior AAA, and can withstand very stressed loss levelswithout principal loss. Non-AAA bonds have been conservatively underwritten.

United Kingdom and the Netherlands

AEGON also has credit investments as part of its general account in boththe Netherlands and the United Kingdom. In the Netherlands, during the thirdquarter, the impact of wider credit spreads was offset by a decline in yieldson government bonds. In the United Kingdom, credit investments were adverselyaffected by the widening in spreads.

Financial Highlights FINANCIAL OVERVIEW At At constant constant Q3 Q3 currency Ytd Ytd currency EUR millions Notes 2008 2007 % % 2008 2007 % % Underlying earnings before tax by line of business Life and protection 286 349 (18) (11) 790 938 (16) (7) Individual savings and retirement products 56 126 (56) (56) 287 406 (29) (21) Pensions and asset management 79 110 (28) (23) 329 361 (9) (1) Institutional products 98 82 20 28 305 236 29 46 Life reinsurance 8 37 (78) (78) 51 96 (47) (40) Distribution 3 8 (63) (57) 20 27 (26) (30) General insurance 11 17 (35) (35) 48 34 41 41 Interest charges and other (40) (46) 13 4 (95) (151) 37 32 Share in net results of associates (1) 8 N.M. N.M. 19 25 (24) (16) Underlying earnings before tax 500 691 (28) (22) 1,754 1,972 (11) (2) Over/(under) performance of fair value items (384) (18) N.M. N.M. (638) 84 N.M. N.M. Operating earnings before tax 116 673 (83) (84) 1,116 2,056 (46) (40) Operating earnings before tax by line of business Life and protection 224 359 (38) (33) 722 969 (25) (18) Individual savings and retirement products (101) 146 N.M. N.M. (20) 445 N.M. N.M. Pensions and asset management 11 85 (87) (83) 207 348 (41) (34) Institutional products (38) 58 N.M. N.M. 62 246 (75) (72) Life reinsurance (76) 38 N.M. N.M. (42) 113 N.M. N.M. Distribution 3 8 (63) (57) 20 27 (26) (30) General insurance 11 17 (35) (35) 48 34 41 41 Interest charges and other 83 (46) N.M. N.M. 100 (151) N.M. N.M. Share in net results of associates (1) 8 N.M. N.M. 19 25 (24) (16) Operating earnings before tax 116 673 (83) (84) 1,116 2,056 (46) (40) Gains/(losses) on investments (47) 61 N.M. N.M. (312) 254 N.M. N.M. Impairment charges (407) (62) N.M. N.M. (537) (59) N.M. N.M. Other income/(charges) (5) 10 N.M. N.M. (50) 64 N.M. N.M. Income before tax (343) 682 N.M. N.M. 217 2,315 (91) (88) Income tax 14 (141) N.M. N.M. (117) (412) 72 64 Net income (329) 541 N.M. N.M. 100 1,903 (95) (93) Net underlying earnings 363 531 (32) (26) 1,303 1,517 (14) (5) Net operating earnings 92 509 (82) (83) 849 1,563 (46) (40) Underlying earnings geographically Americas 388 508 (24) (17) 1,307 1,490 (12) (1) The Netherlands 74 107 (31) (31) 303 309 (2) (2) United Kingdom 35 67 (48) (39) 128 204 (37) (28) Other countries 42 55 (24) (18) 110 120 (8) (7) Holding and other (39) (46) 15 7 (94) (151) 38 33 Underlying earnings before tax 500 691 (28) (22) 1,754 1,972 (11) (2) Operating earnings geographically Americas (65) 517 N.M. N.M. 580 1,596 (64) (59) The Netherlands 20 80 (75) (75) 197 287 (31) (31) United Kingdom 35 67 (48) (39) 128 204 (37) (28) Other countries 42 55 (24) (18) 110 120 (8) (7) Holding and other 84 (46) N.M. N.M. 101 (151) N.M. N.M. Operating earnings before tax 116 673 (83) (84)1,116 2,056 (46) (40) Commissions and expenses 1,315 1,454 (10) (4) 4,246 4,501 (6) 3 of which operating expenses 789 776 2 8 2,344 2,370 (1) 7 Operational Highlights Overview Unprecedented turmoil in world financial markets clearly impacted AEGON'sbusinesses across the globe during the third quarter. As a result, underlyingearnings before tax declined 28% to EUR 500 million (22% at constantcurrency). AEGON reported a net loss for the third quarter mainly as a resultof increased impairment charges and the impact of lower financial markets onso-called fair value items, which include certain investment classes in theNetherlands and the Americas, as well as a number of products containingfinancial guarantees. Earnings figures are in line with preliminary thirdquarter data published by AEGON on October 28, 2008.

New life sales in the third quarter decreased by 18% on a constantcurrency basis as a result of the current economic and financial environment.Total gross deposits were in line with last year on a constant currencybasis, with strong gains in fixed annuities offsetting the drop ininstitutional business. AEGON realized net deposits in the quarter of EUR 1.7billion.

During the third quarter, credit spreads widened significantly. This hadan adverse effect on the market value of fixed income assets held in AEGON'sgeneral account. As a result, the third quarter saw a further decline of EUR2.5 billion in AEGON's revaluation account.

Given current market levels and the ongoing uncertainty regarding thefinancial and economic environment, AEGON felt it prudent to furtherreinforce the capital buffer to a level substantially in excess of the AArating requirements. On October 28, AEGON announced that it has secured EUR 3billion of additional core capital from the Dutch State via its largestshareholder, Vereniging AEGON. AEGON's move follows an announcement onOctober 9 by the Dutch government that it would make EUR 20 billion ofcapital available to companies in the financial sector that are fundamentallysound and viable.

Underlying earnings before tax

On a constant currency basis, underlying earnings declined by 22%compared to last year. Underlying earnings in the Americas were down 17% toUSD 578 million reflecting the impact of lower equity markets on minimumguarantee reserves in AEGON's US variable annuities business.

Underlying earnings in the Americas were also affected by unfavorablemortality in life reinsurance.

In the Netherlands, underlying earnings were down 31% to EUR 74 millionas a charge to meet guaranteed returns on certain group pension contracts andthe cost of modifying unit-linked insurance products offset higher investmentincome during the quarter. Underlying earnings in the United Kingdom,meanwhile, declined 39% to GBP 28 million, due primarily to the impact oflower equity and bond markets on fee charges in AEGON UK's pension business.The decline in earnings from Other countries was the result of lowercontributions from associates.

Net income

AEGON reported a net loss for the third quarter of EUR 329 million. Thisnet loss can be attributed to two main factors: a significantunderperformance in fair value items (EUR 384 million pre tax) and impairmentcharges (EUR 407 million pre tax).

The underperformance in fair value items comprised a number of different elements: - A significant underperformance in alternative assets, including hedge funds in the Americas and private equity in The Netherlands. - The impact of lower interest rates, increased equity market volatility and wider credit spreads on the fair value of guarantees for certain variable annuities (Guaranteed Minimum Withdrawal Benefit), total return annuities and Canadian segregated funds. - AEGON's holding company senior debt is held at fair value. Movements in the value of this debt may, therefore, affect AEGON's earnings. As a result, the widening in credit spreads resulted in a gain during the third quarter, offsetting the impact of mark-to-market losses on credit derivatives and adjustments to other credit-related instruments in the Americas. The vast majority of the impairments during the third quarter wererelated to corporate bonds held in either Lehman Brothers or WashingtonMutual (EUR 336 million). A further EUR 46 million in impairments wererecognized on housing related asset backed securities. Of the totalimpairments, EUR 325 million were attributable to the Americas, EUR 49million to the Netherlands, EUR 15 million to the United Kingdom and EUR 18million to Other countries.

Losses on investments (EUR 47 million) were the result mainly ofineffectiveness of hedges of guarantees in the Netherlands.

Net income for the quarter included an income tax benefit of EUR 14million. Tax benefits related to impairment charges and mark-to-market losseson fair value items were offset by significant additional taxes onintercompany reinsurance treaties. Taxes in the Netherlands included a creditof EUR 34 million related to AEGON's real estate investments.

Commissions and expenses

Commissions and expenses declined 10% in the third quarter to EUR 1.3billion. Operating expenses were up 2% (or 8% at constant currency), areflection primarily of new investments designed to expand AEGON's existingbusinesses. SALES At At constant constant Q3 Q3 currency Ytd Ytd currency EUR millions Notes 2008 2007 % % 2008 2007 % % New life sales Life single premiums 2,568 3,794 (32) (23) 8,205 10,967 (25) (16) Life recurring premiums annualized 361 467 (23) (15) 1,212 1,377 (12) (2) Total recurring plus 1/10 single 618 847 (27) (18) 2,033 2,474 (18) (8) New premium production accident and health insurance 146 166 (12) (5) 453 502 (10) 2 New premium production general insurance 19 12 58 50 51 37 38 38 Gross deposits (on and off balance) by line of business Fixed annuities 1,200 363 N.M. N.M. 2,381 712 N.M. N.M. Variable annuities 644 679 (5) 3 2,046 2,103 (3) 9 Saving deposits 547 647 (15) (15) 1,883 1,944 (3) (3) Retail mutual funds 725 512 42 49 2,197 1,650 33 47 Pensions and asset management 2,248 2,861 (21) (17) 7,892 8,946 (12) (2) Institutional guaranteed products 5,687 6,992 (19) (10) 12,417 19,577 (37) (28) Life reinsurance 0 2 N.M. N.M. 2 2 0 0 Total gross deposits 11,051 12,056 (8) (0) 28,818 34,934 (18) (8) Net deposits (on and off balance) by line of business Fixed annuities 297 (979) N.M. N.M. (522)(3,629) 86 84 Variable annuities (73) (123) 41 36 (327) (439) 26 18 Saving deposits (206) 22 N.M. N.M. (164) 137 N.M. N.M. Retail mutual funds 185 141 31 39 772 531 45 63 Pensions and asset management 162 690 (77) (78) 1,512 1,446 5 15 Institutional guaranteed products 1,300 2,965 (56) (50) 506 4,306 (88) (87) Life reinsurance (13) 0 N.M. N.M. (42) 0 N.M. N.M. Total net deposits 1,652 2,716 (39) (30) 1,735 2,352 (26) (17) REVENUE GENERATING INVESTMENTS At Sep. At June 30 30 Notes 2008 2008 % Revenue generating investments (total) 6 350,756 344,200 2 Investments general account 131,738 126,613 4 Investments for account of policyholders 121,346 125,460 (3) Off balance sheet investments third parties 97,672 92,127 6 Sales New life sales in the third quarter held up well, despite the economicenvironment. On a constant currency basis new life sales decreased by 18%. Inthe Americas, sales of BOLI/COLI and life reinsurance were both significantlydown. Retail life sales declined as well, due to economic uncertainty. Grouppension business in the Netherlands was sluggish in the third quarter, whileretail sales continued to grow. Sales in the United Kingdom were in line withlast year. Equity market volatility impacted unit-linked sales in Central &Eastern Europe, while life sales in Taiwan declined, largely because of ashift from life products to variable annuity deposits.

Deposits

On a constant currency basis, total gross deposits were flat comparedwith the third quarter of 2007. Gross deposits declined 8% to EUR 11.1billion, mainly due to the continued weak US dollar. In the Americas, fixedannuities sales enjoyed their best quarter since 2003, benefiting from asteepening in the yield curve, a new distribution partnership in the UnitedStates and growing demand among customers for guaranteed, stable returnproducts. Variable annuity deposits were slightly down compared with lastyear, but sales through the bank and broker dealer/fee planner channelscontinued to perform well. Sales of retirement plans in the Americascontinued to increase as well.

Net deposits were positive in the third quarter of 2008, primarily theresult of positive net inflows in the pension business in the Americas, thelarge sales increase and a lower decrement rate of fixed annuities and netinflows in the institutional fee-based business. Retail mutual funds in theAmericas continued to experience positive net inflows despite negative marketsentiment as well, a result of the successful development of a dedicatedwholesaling organization.

Asia showed a strong increase in total gross and net deposits in thethird quarter - primarily the result of continued variable annuity salesgrowth in Taiwan and the inclusion of AEGON's new asset management jointventure in China. Gross deposits also increased in Central & Eastern Europeas a result of continued growth in AEGON's pension business in the region.

Revenue generating investments

Revenue generating investments totaled EUR 351 billion at the end ofSeptember 2008, up 2% from June 2008, as a result of the strengthening of theUS dollar.

Capital management

On October 28, AEGON announced that it has secured EUR 3 billion ofadditional core capital from the Dutch State via its largest shareholder,Vereniging AEGON. Given current market levels and the ongoing uncertaintyregarding the financial and economic environment, AEGON felt it is prudent toreinforce the capital buffer to a level substantially in excess of its AArating requirements. AEGON's move follows an announcement on October 9 by theDutch government that it would make EUR 20 billion of capital available tocompanies in the financial sector that are fundamentally sound and viable.

AEGON will issue 750 million non-voting securities at EUR 4 per securityto Vereniging AEGON. In turn, Vereniging AEGON will be funded on back-to-backterms and conditions by the Dutch State. AEGON expects the transaction toclose before the end of the year. (For details refer to the press release ofOctober 28, 2008). AEGON's overall ownership structure is not changing.

The additional core capital complements AEGON's acceleration of its riskreduction and capital release strategy. These actions include loweringinvestment risk on both the existing portfolio and new money; transferringrisk through reinsurance and additional securitizations like the onecompleted in the UK during the third quarter. During the third quarter,similar actions in total freed up EUR 729 million of capital. AEGON expectsthat the continued execution of these actions will release capital in therange of EUR 600 to 800 million during the fourth quarter. These actions,combined with the decision to forego the final dividend for 2008 will enableAEGON to enter 2009 with a significantly enhanced buffer.

After the transaction with Vereniging AEGON and the Dutch State, AEGONwill continue its dividend policy based on its capital position and cashflows.

At the end of September, shareholders' equity totaled EUR 9.4 billion, adecrease of EUR 2.2 billion compared with the end of June 2008. Foreigncurrency translation effects had a positive impact of EUR 1.1 billion.AEGON's revaluation reserve declined by EUR 2.5 billion to minus EUR 5.5billion. Also, the net loss of EUR 329 million this quarter added to thedecline in shareholders' equity. Finally, AEGON paid dividend on commonshares totaling EUR 258 million and coupons on perpetuals net of tax of EUR49 million.

At the end of September 2008, shareholders' equity excluding therevaluation reserve represented 71% of AEGON's total capital base, aboveAEGON's 70% target.7,8)

AEGON's capital position remained above requirements for an AA rating. AtSeptember 30, AEGON had EUR 0.8 billion of financial flexibility, includingEUR 0.3 billion over and above the required capital necessary to maintain anAA rating.

The capital position as per September 30, 2008 does not include the EUR 3billion additional capital buffer provided by the Dutch State.

Appendix I - Americas - The Netherlands - United Kingdom - Othercountries

Americas - Underlying earnings down 17%, on lower equity markets and unfavorable mortality experience - Gross fixed annuity deposits reach USD 1.8 billion, with net inflow of USD 461 million - Value of new business up 9% to USD 164 million despite difficult market environment - Impairments in line with October 9 estimate; include USD 69 million in impairments on subprime mortgage assets Overview Turmoil in world financial markets continued to have a significant impacton earnings from AEGON's operations in the Americas during the third quarter.Underlying earnings before tax were down 17%, a reflection primarily of theimpact of lower equity markets on variable annuities and a rise in USmortality experience in life reinsurance. In addition, fair value items andbond impairments on Lehman Brothers and Washington Mutual had a significantnegative impact on net income during the quarter. Sales of individual savingsand retirement products rose sharply, driven by continued demand for fixedannuities. New life sales were down in all lines of business, however,particularly in BOLI/COLI (bank-owned/corporate-owned life insurance) andlife reinsurance. Value of new business was up 9%, primarily due to higherfixed annuity sales, offset partly by lower volumes in other lines ofbusiness.

Underlying earnings before tax AEGON reported underlying earnings before tax for the third quarter of USD 578 million, down 17% compared with the same period last year: - Earnings from Life & Protection declined 1% as favorable results from life insurance were offset by an increase in claims in the Accident & Health business. - Earnings from Individual Savings & Retirement decreased by 60%, as lower equity markets led to a USD 72 million charge on variable annuities. Most of this amount was related to minimum guarantee reserve strengthening and changes in policyholder behavior assumptions. Fixed annuities earnings, meanwhile, were down on slightly lower spreads. - Pensions & Asset Management earnings declined by USD 9 million as a result of lower financial markets and an increase in restructuring expenses. - Earnings from the Institutional business grew 28% in the third quarter. A decrease in short-term rates continued to produce strong positive Spreads on institutional guaranteed products. BOLI/COLI earnings declined due to lower investment income. - Life Reinsurance earnings declined to USD 11 million - the result of a USD 40 million charge to reflect unfavorable domestic mortality experience. Net income AEGON reported a net loss for the third quarter of USD 578 million. Thisnet loss was the reflection of two main factors: the significantunderperformance in fair value items (USD 685 million) and impairment charges(USD 492 million).

The underperformance in fair value items comprised a number of different elements: - Alternative assets underperformed expected long-term returns during the quarter. This includes hedge funds which underperformed by USD 234 million. Credit derivatives and adjustments on other credit-related instruments, meanwhile, showed an underperformance of USD 101 million. - Lower interest rates, increased equity market volatility assumptions and widening credit spreads contributed to a USD 243 million lower mark-to-market valuation for GMWB guarantees, total return annuities and Canadian segregated funds. Total impairment charges during the third quarter totaled USD 492million, in line with estimates published by AEGON on October 9. Theseimpairments were related primarily to Lehman Brothers and Washington Mutual,but also included USD 69 million of impairments on housing related assetbacked securities.

The tax offset from impairments and mark-to-market losses on the fairvalue items is more than offset by significant additional taxes related tocross border intercompany reinsurance transactions.

Commissions and expenses

Total commissions and expenses decreased 14% in the third quarter.Commissions rose, while operating expenses were flat compared with the sameperiod last year. Third quarter 2007 operating expenses had includedintegration costs related to AEGON's Kansas City operation as well as theacquisition of Clark Inc. Employee costs increased in third quarter thisyear, the result of acquisitions and investments in marketing anddistribution.

Sales and deposits

Total new life sales in the Americas were down 33% in the third quarter,driven primarily by declines in the BOLI/COLI and life reinsurance lines ofbusiness. Activity in the BOLI/COLI market has declined significantly as aresult of the current financial crisis. The decline in life reinsurance saleswas in line with expectations. Meanwhile, retail life production in theAmericas was down 16%. The economic downturn clearly impacted sales of bothhigh net worth and equity-indexed universal life products in the middlemarket.

Total gross deposits were down slightly, as strong fixed annuity andmutual fund sales were offset by declines in other businesses.

Fixed annuity deposits increased to USD 1.8 billion this quarter, aresult of expanded distribution, a steepening of the yield curve, and strongdemand among customers looking for guaranteed, stable returns in the currentuncertain economic and financial climate.

Total variable annuity deposits were down 2% compared with the samequarter last year. Sales through the bank and broker dealer/fee plannerchannels continued to perform well - the result of recent investments inthese channels - and were up 18% and 35% respectively. This strong increase,however, was offset by lower sales through the direct and agency channel.Compared with the second quarter this year, variable annuity sales were down13%. Recent wholesaling initiatives also paid off in sales of retail mutualfunds: deposits increased by 19% in the third quarter, compared with the sameperiod last year.

AEGON's pension business in the Americas proved resilient in the thirdquarter, with retirement plan deposits up 3%. Overall pension deposits weredown 7%, however, due to a lack of terminal funding sales. Sales of managedassets were also down, a reflection of increased financial market volatilityduring the quarter.

During the third quarter, AEGON's Institutional business succeeded incapturing opportunities in the synthetic GIC market. Sales of spread-basedinstitutional products were up compared with last year, thanks mainly toincreased sales of short duration products.

Sales of accident and health products were slightly lower than the thirdquarter last year, a result primarily of lower international sales.

Value of new business

VNB rose 9% in the third quarter to USD 164 million. This increase wasprimarily driven by strong fixed annuity production, as well as a shift inthe product mix in America's life business. The internal rate of returndeclined to 12.3%, because of lower volumes and margins, but is well aboveAEGON's minimum hurdle rate of 11%.

Please refer to page 29 of this release for further details on AEGON'sVNB.

Revenue generating investments

AEGON's total revenue generating investments at the end of Septembertotaled USD 305 billion, down 4% from three months earlier.

AMERICAS - EARNINGS Q3 Q3 Ytd Ytd USD millions Notes 2008 2007 % 2008 2007 % Underlying earnings before tax by line of business Life 237 217 9 610 560 9 Accident and health 86 110 (22) 295 342 (14) Life and protection 323 327 (1) 905 902 0 Fixed annuities 82 91 (10) 282 275 3 Variable annuities (16) 74 N.M. 122 236 (48) Retail mutual funds 1 3 (67) 8 15 (47) Individual savings and retirement products 67 168 (60) 412 526 (22) Pensions and asset management 32 41 (22) 127 130 (2) Institutional guaranteed products 135 96 41 417 267 56 BOLI/COLI 11 18 (39) 46 51 (10) Institutional products 146 114 28 463 318 46 Life reinsurance 11 50 (78) 77 129 (40) Share in net results of associates (1) (1) 0 1 (1) N.M. Underlying earnings before tax 578 699 (17) 1,985 2,004 (1) Over/(under) performance of fair value items (685) 13 N.M.(1,104) 142 N.M. Operating earnings before tax (107) 712 N.M. 881 2,146 (59) Operating earnings before tax by line of business Life 156 228 (32) 523 592 (12) Accident and health 71 113 (37) 278 352 (21) Life and protection 227 341 (33) 801 944 (15) Fixed annuities (99) 129 N.M. 42 374 (89) Variable annuities (70) 62 N.M. (104) 188 N.M. Retail mutual funds 1 4 (75) 8 16 (50) Individual savings and retirement products (168) 195 N.M. (54) 578 N.M. Pensions and asset management 10 44 (77) 102 142 (28) Institutional guaranteed products (58) 62 N.M. 61 280 (78) BOLI/COLI 0 19 N.M. 34 51 (33) Institutional products (58) 81 N.M. 95 331 (71) Life reinsurance (117) 52 N.M. (64) 152 N.M. Share in net results of associates (1) (1) 0 1 (1) N.M. Operating earnings before tax (107) 712 N.M. 881 2,146 (59) Gains/(losses) on investments 51 23 122 (93) 204 N.M. Impairment charges (492) (49) N.M. (639) (44) N.M. Other income/(charges) 7 0 N.M. 7 0 N.M. Income before tax (541) 686 N.M. 156 2,306 (93) Income tax (37) (253) 85 (319) (719) 56 Net income (578) 433 N.M. (163) 1,587 N.M. Net underlying earnings 398 491 (19) 1,422 1,448 (2) Net operating earnings (82) 499 N.M. 645 1,540 (58) Commissions and expenses 1,013 1,180 (14) 3,510 3,576 (2) of which operating expenses 538 536 0 1,640 1,598 3 For the amounts in euro see the Financial Supplement. AMERICAS - SALES Q3 Q3 Ytd Ytd USD millions Notes 2008 2007 % 2008 2007 % New life sales Life single premiums 210 481 (56) 669 1,414 (53) Life recurring premiums annualized 195 272 (28) 673 773 (13) Total recurring plus 1/10 single 216 320 (33) 740 914 (19) Life 160 191 (16) 531 538 (1) BOLI/COLI 1 40 (98) 21 117 (82) Life reinsurance 55 89 (38) 188 259 (27) Total recurring plus 1/10 single 216 320 (33) 740 914 (19) New premium production accident and health insurance 213 221 (4) 665 649 2 Gross deposits (on and off balance) by line of business Fixed annuities 1,811 493 N.M. 3,619 957 N.M. Variable annuities 912 934 (2) 2,933 2,823 4 Retail mutual funds 758 638 19 2,417 2,069 17 Pensions and asset management 2,834 3,250 (13) 10,216 9,885 3 Institutional guaranteed products 8,567 9,601 (11) 18,870 26,325 (28) Life reinsurance 0 3 N.M. 3 3 0 Total gross deposits 14,882 14,919 (0) 38,058 42,062 (10) Net deposits (on and off balance) by line of business Fixed annuities 461 (1,359) N.M. (793) (4,880) 84 Variable annuities (154) (172) 10 (661) (595) (11) Retail mutual funds 276 146 89 997 614 62 Pensions and asset management 503 853 (41) 2,636 2,815 (6) Institutional guaranteed products 1,986 4,008 (50) 770 5,790 (87) Life reinsurance (20) 0 N.M. (64) 0 N.M. Total net deposits 3,052 3,476 (12) 2,885 3,744 (23) REVENUE GENERATING INVESTMENTS At Sep. At June 30 30 Notes 2008 2008 % Revenue generating investments (total) 6 304,706 317,728 (4) Investments general account 127,130 132,235 (4) Investments for account of policyholders 68,420 75,183 (9) Off balance sheet investments third parties 109,156 110,310 (1) For the amounts in euro see the Financial Supplement. The Netherlands - Underlying earnings declined 31% to EUR 74 million - Life sales down 46%, due to slowdown in group pension market - Net income primarily affected by private equity underperformance, impairments and guarantee hedge ineffectiveness Overview The Netherlands reported a net loss in the third quarter - the result ofsignificant underperformance in private equity investments, increasedimpairments and the impact of guarantee hedge ineffectiveness. Underlyingearnings were also lower, due to a charge to meet guaranteed returns oncertain group pension contracts (EUR 35 million) and costs of modifyingunit-linked insurance products (EUR 28 million), which offset higherinvestment income (EUR 48 million). Sales were down significantly, drivenprimarily by a lack of activity in the group pensions market in theNetherlands. Individual life sales, however, were up despite increasedeconomic uncertainty.

Underlying earnings before tax - Underlying earnings before tax declined 31% to EUR 74 million. - Earnings from Life & Protection were down 51% primarily due to the costs of modifying unit-linked insurance products (EUR 28 million) in AEGON The Netherlands' life business. On September 19, 2008, AEGON announced the implementation of these product improvements that have a value of EUR 140 million before tax, over the lifetime of the product portfolio. As a result of these measures, costs of unit-linked insurance policies sold by AEGON will be consistent with the recommendations of the Ombudsman and a recent settlement within the industry. - Improved technical results drove earnings in the Protection business. - Earnings from Individual Savings increased primarily as a result of improved interest margins at AEGON Bank. - Earnings from Pensions & Asset Management were broadly in line with last year. A charge for guaranteed returns on group pension contracts (EUR 35 million) was offset by higher investment income (EUR 24 million) and a one-time release of accruals (EUR 9 million). - Earnings from Distribution were down as a slowdown in the real estate market led to lower overall revenues. This more than offset efforts to reduce operating expenses. - General insurance earnings were down mainly due to higher claims. Net income The Netherlands reported a net loss for the third quarter of EUR 54million. The underperformance of private equity investments, compared withexpected returns over the long term, led to a charge against earnings of EUR54 million. Losses on investments, meanwhile, amounted to a further EUR 97million, a result mainly of guarantee hedge ineffectiveness. AEGON does nothedge equity market volatility risk of its guaranteed products in theNetherlands. Impairment charges totaled EUR 49 million, of which EUR 25million was related to Lehman Brothers. The effective tax rate came to 57% inthe third quarter. This includes a tax credit of EUR 34 million related tothe company's real estate investments.

Commissions and expenses

Commissions and expenses increased by 10%, due primarily to higheroperating expenses. There were increases in operating expenses related toseveral projects in 2008, while the third quarter of 2007 included a releaseof EUR 11 million in employee benefit provisions.

Sales and deposits

Group pension sales declined significantly during the quarter - theresult of market volatility and clients' increased reluctance to takedecisions. At the same time, the Dutch group pension market has becomeincreasingly competitive. Sales figures for the third quarter last year alsoincluded several large one-off contracts. Renewal rates did, however,continue to improve.

Retail sales of both annuities and regular premium individual lifeproducts were up during the third quarter. Regular premium products weresuccessfully sold in combination with mortgages, helped by the fact that someforeign competitors have withdrawn from the Dutch mortgage market.

Sales in accident & health were lower, mainly because of a decrease insales of the disability product WIA. Alternative disability products havebeen successfully introduced, and partly offset the decline in WIA salesduring the quarter. Sales of general insurance products were in line with thethird quarter last year.

Gross deposits were down compared with the same period of last year,while net deposits showed a decline as a result of increased competition inthe Netherlands for bank deposits.

Value of new business

VNB declined to EUR 8 million, primarily due to sluggish activity in theDutch group pension market. Other lines of business increased their VNB inthe third quarter. As a result of a shift in business mix, the internal rateof return improved to 11.5%, above AEGON's own minimum hurdle rate of 11%.

Please refer to page 29 for more detailed information on VNB. Revenue generating investments At the end of September 2008, revenue generating investments in theNetherlands totaled EUR 63 billion, down EUR 1.5 billion from June 2008levels.

THE NETHERLANDS - EARNINGS Q3 Q3 Ytd Ytd EUR millions Notes 2008 2007 % 2008 2007 % Underlying earnings before tax by line of business Life 16 49 (67) 77 136 (43) Accident and health 14 12 17 26 31 (16) Life and protection 30 61 (51) 103 167 (38) Saving products 5 3 67 6 14 (57) Individual savings and retirement products 5 3 67 6 14 (57) Pensions and asset management 28 30 (7) 139 101 38 Distribution 6 7 (14) 25 23 9 General insurance 4 6 (33) 23 3 N.M. Share in net results of associates 1 0 N.M. 7 1 N.M. Underlying earnings before tax 74 107 (31) 303 309 (2) Over/(under) performance of fair value items (54) (27) (100) (106) (22) N.M. Operating earnings before tax 20 80 (75) 197 287 (31) Operating earnings before tax by line of business Life 16 49 (67) 77 136 (43) Accident and health 14 12 17 26 31 (16) Life and protection 30 61 (51) 103 167 (38) Saving products 5 3 67 6 14 (57) Individual savings and retirement products 5 3 67 6 14 (57) Pensions and asset management (26) 3 N.M. 33 79 (58) Distribution 6 7 (14) 25 23 9 General insurance 4 6 (33) 23 3 N.M. Share in net results of associates 1 0 N.M. 7 1 N.M. Operating earnings before tax 20 80 (75) 197 287 (31) Gains/(losses) on investments (97) 0 N.M. (275) 122 N.M. Impairment charges (49) (23) (113) (70) (24)(192) Other income/(charges) 0 (1) N.M. 0 30 N.M. Income before tax (126) 56 N.M. (148) 415 N.M. Income tax 72 61 18 118 96 23 Net income (54) 117 N.M. (30) 511 N.M. Net underlying earnings 62 94 (34) 246 243 1 Net operating earnings 22 67 (67) 167 221 (24) Commissions and expenses 284 258 10 893 831 7 of which operating expenses 211 185 14 637 578 10 THE NETHERLANDS - SALES Q3 Q3 Ytd Ytd EUR millions Notes 2008 2007 % 2008 2007 % New life sales Life single premiums 211 449 (53) 1,099 1,067 3 Life recurring premiums annualized 18 27 (33) 68 80 (15) Total recurring plus 1/10 single 39 72 (46) 178 187 (5) Life 23 21 10 77 69 12 Pensions 16 51 (69) 101 118 (14) Total recurring plus 1/10 single 39 72 (46) 178 187 (5) New premium production accident and health insurance 2 3 (33) 11 14 (21) New premium production general insurance 6 6 0 21 20 5 Gross deposits (on and off balance) by line of business Saving deposits 547 647 (15) 1,883 1,944 (3) Pensions and asset management 18 81 (78) 145 349 (58) Total gross deposits 565 728 (22) 2,028 2,293 (12) Net deposits (on and off balance) by line of business Saving deposits (206) 22 N.M. (164) 137 N.M. Pensions and asset management (156) (55) (184) (52) (1,137) 95 Total net deposits (362) (33) N.M. (216) (1,000) 78 REVENUE GENERATING INVESTMENTS At Sep. At June 30 30 Notes 2008 2008 % Revenue generating investments (total) 6 63,310 64,814 (2) Investments general account 31,455 31,977 (2) Investments for account of policyholders 19,566 20,032 (2) Off balance sheet investments third parties 12,289 12,805 (4)SOURCE AEGON N.V.