AEGON AROUND THE WORLD Investors Career Agents/Independent Producers Group targets middle to upper income markets  selling primarily interest-sensitive and ordinary life insurance. Through its agency-building system  Life Investors has carried out its mission by providing more than 2 000 agents with quality products  technology tools and a high level of home office training and support. During the past few years  the Independent Producers Group has seen tremendous growth in both recruiting and sales. This unit  which is focused on developing relationships with independent marketing organizations and managing general agents throughout the United States  has grown to nearly 13 000 independent agents. Intersecurities  Inc. (ISI) is a fully licensed  independent broker-dealer and registered investment advisor. ISI’s 2 500 registered representatives are focused on helping clients meet their investment objectives through an array of financial products  including mutual funds  fixed and variable life insurance  annuities  and securities. ISI is positioning itself for growth by building an internal wholesaling unit for life products within already existing channels and leveraging the wholesaling expertise of its affiliate  Transamerica Capital  Inc.  for variable products. Transamerica Insurance & Investment Group (TIIG) distributes term  fixed and variable life insurance and equity products to its targeted niche market of older  affluent individual customers and small to mid-sized businesses. TIIG’s primary distribution channels are 469 general agencies and 100 000 agents. Sales of TIIG’s variable products are supported by a network of broker-dealers  including the broker-dealer channel  which includes Transamerica Financial Advisors  Inc.  an affiliated broker-dealer with 950 representatives. TIIG currently has a National Accounts initiative underway for its fixed and variable products  focusing on establishing and maintaining business relationships with key national accounts and driving marketing programs aimed at increasing production from sales representatives. TIIG Distributors has been formed to penetrate this market and is made up of general agencies  with wholesalers dedicated to serving this channel with TIIG programs and products. World Financial Group (WFG) targets the middle income market  selling variable universal life insurance  variable annuities and mutual funds. WFG affords its more than 50 000 associates (8 500 of whom are securities brokers registered with World Group Securities  Inc.  a registered broker-dealer) the opportunity to build financial services and insurance businesses on their own terms. Monumental Division targets the underserved lower and middle income markets  selling individual traditional life and supplemental health insurance through three distinct distribution systems: Career Agency  Pre-Need and Military. Approximately 2 700 agents in 22 states reflect the diversity found in the communities they serve. The career agents provide face-to-face service to the policyholders. The Pre-Need unit sells life insurance products through funeral directors and their agents to pre-fund funerals. In the Military unit  former military officers market life insurance and retirement savings products to commissioned and non-commissioned officers based in the United States and abroad. The Long Term Care Division provides insurance products designed to meet the long-term health care needs of consumers during retirement. Long-term care insurance products provide coverage primarily for care services provided at home  in an assisted living facility or in a nursing home. This division has been active in the market since the late 1980’s and with the integration of the Transamerica Long Term Care operations  it is now among the top six United States providers of long-term care insurance products (Life Plan 2002 annual survey of Long Term Care Insurers). Products are sold directly through independent brokerage agents  captive/career agents and general agents. Transamerica Worksite Marketing offers a wide range of voluntary  payroll deduction life and supplemental health insurance products for groups ranging in size from as few as five employees to more than 150 000 employees. Products marketed to employees at their workplace are designed to supplement benefit plans that they may already have  both through their employers and on their own. AEGON Direct Marketing Services (ADMS) is focused on customers that might not be reached by AEGON USA’s other distribution channels  or might prefer to buy insurance products directly and not through an agent or intermediary. ADMS has developed a highly targeted approach using sophisticated database technology to increase its ability to develop niche markets and design products positioned to meet specific customers’ needs. Customers can purchase an extensive portfolio of products through direct mail  point-of- service  internet and direct marketing. Products are also marketed using the endorsement of sponsoring organizations  such as financial institutions  car dealers and various membership associations.  Additionally  ADMS has applied its direct marketing expertise to markets abroad and has offices in England  Australia  Spain  Republic of Korea  Japan  Germany  Italy  and Taiwan. ADMS has developed strategic relationships  with major business partners in these areas and uses their endorsement to market AEGON USA’s products via telemarketing and direct mail. AEGON USA’s Financial Markets Group (FMG) consists primarily of Transamerica Capital Inc.  Transamerica Investment Management  LLC  and Extraordinary Markets. AEGON GROUP ANNUAL REPORT 2003 48 FINANCIAL MARKETS GROUP  DIRECT MARKETING SERVICES GROUP 