2007 Annual Meeting ● Assemblée annuelle 2007 Vancouver

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

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

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

4. 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 AEGON Canada

5. 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 Risk Management

6. 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 ERM Purpose

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

8. 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 Risk Management Mandate

9. 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 ERM Framework Objectives

10. 2007 Annual Meeting Assemblée annuelle 2007 ERM Framework

11. 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 Risk and Capital Committee

12. 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 Risk and Capital Committee

13. 2007 Annual Meeting Assemblée annuelle 2007 Policies within ERM Framework

14. 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 Risk Reporting

15. 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 Final Thoughts