1. 2007 Annual Meeting ● Assemblée annuelle 2007 Vancouver 2007 Annual Meeting ● Assemblée annuelle 2007 Vancouver Canadian Institute of Actuaries Canadian Institute of Actuaries L’Institut canadien des actuaires L’Institut canadien des actuaires

2. Enterprise Risk Management 101 Company Perspective Altaf Rahim AEGON Canada 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007

3. Agenda Brief Overview of AEGON Canada Purpose of ERM Implementation of ERM Final Thoughts 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007

4. AEGON Canada AEGON Canada consists of: – Transamerica Life Canada Offers life insurance and savings products – AEGON Capital Management Offers active asset management to Canada’s top pension funds, foundations and institutional investors – AEGON Fund Management Offers mutual funds – Money Concepts Limited Canada’s largest franchised financial planning company – AEGON Dealer Services Mutual fund dealership Member of the AEGON Group, one of the worlds largest insurance and pension companies 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007

5. Risk Management AEGON has a decentralized approach Group Risk is responsible for risk management oversight at the Group level AEGON Canada works closely with Group Risk and AEGON USA Corporate Risk 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007

6. ERM Purpose Described in the Company’s Board approved Enterprise Risk Management Policy ERM is the ongoing process of developing, implementing and monitoring financial and operational risk strategies ERM provides the framework in which all risk management activities within AEGON Canada are coordinated. 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007

7. Implementation of ERM Risk Management Mandate ERM Framework Objectives ERM Framework Policies Risk Reporting 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007

8. Risk Management Mandate Risk Management contributes to the achievement of AEGON Canada’s risk management and governance objectives Risk Management function acts independently to identify and assess financial and operational risks facing the Company Reports on risk management matters to Company Management and the Audit Committee of the Board Chief Risk Officer has periodic “in camera” sessions with the CEO and the Audit Committee of the Board 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007

9. ERM Framework Objectives ERM framework provides a clear reporting structure for all financial and operational risks Allows the Risk and Capital Committee to review risks based on the information provided through other organizational committees and working groups Limits the inherent risk of working in silos Allows for the early detection of potential issues that may impact the Company 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007

10. ERM Framework 2007 Annual Meeting Assemblée annuelle 2007 Risk & Capital Committee (RCC) Risk Management Economic Capital Portfolio Mgmt Team (PMT) Policy Governance Group Risk Reporting Product Development Steering Committee Key Initiative Steering Committee Asset Liability Management Liquidity Management Interest Rate Management Credit Risk Portfolio Concentration ALM Capital Management Shock Testing Capital Forecast Operational Risk Mgmt ORM IT Risk Management Information Security Support Council AEGON International Security COI US Divisional Security Officer Council Crisis Management Compliance Risk Mgmt Legislative Compliance Mgmt System (LCMS) AEGON NV Risk Report Conflict of Interest Questionnaire Complaints Money Laundering Report Market Conduct

11. Risk and Capital Committee Comprised of Senior Management of the Company Responsible for overseeing the planning, directing, and controlling of the impact on the Company of risks arising from its operations Identification of material risks Direct the implementation of financial and operational risk strategies 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007

12. Risk and Capital Committee Development of risk measurement metrics Establishment of policies and operating guidelines for the management of risk Monitoring and measurement of compliance to risk management policies Reporting of results of risk monitoring to the Board 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007

13. Policies within ERM Framework 2007 Annual Meeting Assemblée annuelle 2007 Enterprise Risk Mgmt Risk Management Enterprise Risk Mgmt Policy Product Design & Pricing Mgmt Risk Mgmt Policy Underwriting & Claim Risk Mgmt Policy Signing Authorities Risk Mgmt Policy Risk Management Mandate Reinsurance Risk Mgmt Policy Equity Risk Pricing Policy Asset Liability Management Equity Risk Mgmt policy Foreign Exchange Risk Mgmt Policy Interest Rate Risk Mgmt Policy Asset Liability Risk Mgmt Policy Asset Liability Operating Guideline Credit name Limit Policy Derivative Use Policy Capital Management Liquidity Risk Mgmt Policy Capital Risk Mgmt Policy Investment & Lending Risk Mgmt Policy Operational Risk Mgmt ORM IT Risk Management Enterprise Information Security Standards Staff Security Handbook Crisis Management Annual Business Continuity Policy Compliance Risk Mgmt Anti Money Laundering Risk Mgmt Policy Outsourcing Risk Mgmt Policy Privacy Risk Mgmt policy Employee Code of Conduct Conflict of Interest Questionnaire

14. Risk Reporting Stress tests help identify sensitivity to various risks (e.g. equity, interest, mortality) Credit name limit reporting measures the Company’s economic exposure to credit risk Liquidity risk reporting allows Management to identify any liquidity issues over a specified time horizon under various stress scenarios Operational risk reporting reveals any potential losses due to operational risk based events Compliance to Board approved policies 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007

15. Final Thoughts Enterprise risk management has to be important for Senior Management Risk management needs to be embedded in the culture of the company Risk management should be viewed as a business partner Pro active identification of material risks Need to develop strategies to mitigate risks based on Company’s tolerance 2007 Annual Meeting Assemblée annuelle 2007 2007 Annual Meeting Assemblée annuelle 2007