Determinación de los usos

Ordinary life 101,831 37,619 110,562 101,086 41,001 Group life -1,938 168 -90 -753 22 Supplementary contr -4,395 -8,559 -912 -113 0 Individual annuities 38,606 -29,851 21,837 40,018 -100,508 Group annuities 209 885 521 -398 -82 Individual A&H 0 0 0 … … Group A&H 273 223 345 78 70 Total 134,586 485 132,262 139,919 -59,497 INVESTMENT GAINS ($000) —————————Company—————————

Net Realized Unrealized

Inv Capital Capital

Year Income Gains Gains

2008 71,623 368 1,738 2009 48,371 -24,264 161 2010 64,487 -9,123 783 2011 80,031 -12,431 -3,721 2012 81,729 -4,591 118 5-Year Total 346,242 -50,041 -921

——————Company—————— -Industry Composite- Inv Inc Inv Return on Total Inv Inc Inv Growth Yield Inv Assets Return Growth Yield

Year (%) (%) (%) (%) (%) (%) 2008 4.1 5.5 7.0 5.6 -6.1 5.5 2009 -32.5 3.5 2.2 1.8 -1.9 5.2 2010 33.3 4.0 3.6 3.6 7.1 5.4 2011 24.1 4.6 3.9 3.8 4.3 5.4 2012 2.1 4.7 4.6 4.5 -5.2 4.9 5-Yr Avg 3.9 4.4 4.2 3.8 -0.5 5.3

BALANCE SHEET STRENGTH

The following text is derived from A.M. Best’s Credit Report on Aegon USA Group (AMB# 069707).

Capitalization:Aegon USA’s overall risk-based capitalization is adequate to support its current insurance and investment risks and Aegon N.V. has contributed capital when necessary. A.M. Best believes that Aegon USA has good statutory earnings capacity to support its capital position going forward, and that Aegon N.V. is likely to provide additional capital, if needed.

Aegon USA’s regulatory capital ratio at year-end 2012 remains strong as the group has successfully executed several capital initiatives over recent years, including asset de-risking, continued run-off of institutional spread-based balances and tax-related initiatives. Furthermore, Aegon USA has continued to accelerate capital release through several fixed annuity coinsurance transactions in 2011 and 2012, while also finalizing the sale of its reinsurance book of business in 2011.

CAPITAL GENERATION ANALYSIS ($000)

——————Source of Surplus Growth——————

Net Realized Unrealized

Operating Capital Income Capital

Year Gain Gains Taxes Gains

2008 -59,497 368 -54,644 1,738 2009 139,919 -24,264 40,751 161 2010 132,262 -9,123 104,800 783 2011 485 -12,431 9,379 -3,721 2012 134,586 -4,591 13,977 118 5-Yr Total 347,756 -50,041 114,263 -921

—————Source of Surplus Growth—————

Change Change % Chg

in Other in in

Year AVR Changes C&S C&S

2008 2,716 -153,937 -208,611 -42.7 2009 -4,104 -28,658 83,054 29.7 2010 -732 24,929 148,118 40.8 2011 378 -220,778 -236,066 -46.2 2012 -3,201 -82,875 44,037 16.0 5-Yr Total -4,943 -461,319 -169,467 -8.2 QUALITY OF SURPLUS ($000)

Surplus Other Contributed Unassigned

Year Notes Debt Capital Surplus

2008 … … 197,456 82,636

2009 … … 198,193 164,953

2010 … … 222,654 288,610

2011 … … 219,630 55,568

2012 … … 152,127 167,108

Year-End Asset Valuation Interest Maint. Adjusted Year C&S Reserve Reserve C&S

2008 280,092 4,380 19,586 304,058 2009 363,146 8,484 25,879 397,510 2010 511,264 9,217 27,070 547,551 2011 275,198 8,838 26,504 310,541 2012 319,235 12,039 28,678 359,952 LEVERAGE ANALYSIS

————————Company———————— -Industry Composite- C&S NPW Change C&S

to Surplus & Dep in NPW to Surplus Year Liab Relief to Capital & Dep Liab Relief

2008 18.1 -4.0 2.8 -22.5 14.1 4.4 2009 28.9 12.1 1.8 -15.9 15.7 3.3 2010 33.0 21.2 1.0 -19.9 16.9 4.7 2011 17.5 -15.2 1.7 -9.6 16.4 3.8 2012 18.5 -1.1 1.5 1.8 17.6 3.1 Current BCAR: 201

CEDED REINSURANCE ANALYSIS

—————————Company————————— -Industry Composite- Face Affil Unaffil Total Total Amount Reins Reins Reins Surplus Reins Reins Reins Year Reins Ceded Rec/C&S Rec/C&S Rec/C&S Relief Leverage Rec/C&S Leverage 2008 55,022,875 3.3 4.7 8.0 -4.0 103.4 4.0 115.9 2009 55,159,480 2.1 3.6 5.7 12.1 92.8 3.3 111.0 2010 64,309,895 1.6 2.9 4.5 21.2 69.7 3.1 108.6 2011 64,960,452 4.4 4.7 9.1 -15.2 236.2 3.0 105.2 2012 63,828,956 3.8 3.1 6.9 -1.1 204.6 2.8 100.6 The following text is derived from A.M. Best’s Credit Report on Aegon USA Group (AMB# 069707).

Liquidity:Aegon USA’s investment portfolio provides ample liquidity as a majority of the group’s assets are in highly liquid public bonds. Aegon USA’s liquidity is also supported by $1.5 billion in committed bank lines through Aegon N.V., with whom it has a standing line of credit.

LIQUIDITY ANALYSIS

———————————Company———————————

Operating Non-Inv Delnq &

Cash Quick Current Grade Bonds Foreclsd Year Flow ($000) Liquidity Liquidity to Capital Mtg to Capital

2008 137,610 45.5 58.7 15.5 … 2009 -25,980 53.9 65.9 14.6 … 2010 452,941 55.4 71.1 8.3 … 2011 -81,418 50.2 61.4 13.9 … 2012 243,258 52.7 65.6 16.1 …

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————Company———— ——Industry Composite—— Mtg & Cred Affil

Ten Lns Invest Quick Current

Year & RE to Cap to Capital Liquidity Liquidity

2008 17.8 22.5 49.6 62.7

2009 13.3 25.9 49.5 62.9

2010 9.5 13.5 49.5 63.1

2011 30.2 23.4 49.5 63.1

2012 25.9 20.2 50.2 64.4

The following text is derived from A.M. Best’s Credit Report on Aegon USA Group (AMB# 069707).

Investments:With $111.3 billion in general account assets at December 31, 2012 (FIRS basis, excluding policy loans), Aegon USA maintains an investment portfolio that is well diversified and generally of high quality; however, holdings in structured securities and alternative asset classes expose the portfolio to potentially higher realized losses and impairments given the continued economic slowdown. The Aegon Americas segment (which is largely made up of Aegon USA, but also includes operations in Canada and Latin America) recorded IFRS net impairments of $151 million during 2012.

Bonds represent approximately 70% of Aegon USA’s investment portfolio and more than 90% are of investment grade quality. However, approximately 16% of the bond investments are in the form of structured securities including non-agency mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. Although most of the structured portfolio is rated investment grade with approximately 60% being rated AAA, A.M. Best believes that mortgage and consumer related loans are likely to experience further defaults in light of the recessionary U.S. economic climate.

Direct commercial mortgage loans comprise approximately 8% of total assets and are backed principally by office, retail, industrial and apartment properties. The commercial loan portfolio is performing well, with the vast majority of loans in good standing. Nevertheless, A.M. Best expects some defaults as a result of the persistently weak economic conditions.

Aegon USA’s exposure to alternative assets represents additional risk to the portfolio and consists of investments in higher risk and less liquid assets, such as hedge funds, private equity, mezzanine debt and real estate. A.M. Best notes that the alternative asset exposure has been reduced from prior years and is currently about 4% of the investment portfolio. Remaining assets include investments in common stock and preferred stock, cash and short-term investments.

INVESTMENT YIELDS

Cash & Invest.

Net Short- —Real Estate— Exp.

Year Yield Bonds Stocks Mortgages Term Gross Net Ratio 2008 5.46 5.51 27.95 9.16 2.58 11.95 -0.72 8.96 2009 3.47 3.73 12.26 5.75 0.60 12.18 -0.41 12.56 2010 4.02 4.72 29.65 5.78 0.18 12.31 -0.39 10.30 2011 4.61 4.56 58.59 4.84 0.19 12.51 -0.03 8.36 2012 4.66 4.72 44.60 4.17 0.18 12.38 -0.95 9.51 INVESTMENTS - SECURITIES

Current Year Distribution of Bonds By Maturity

————Years———— Yrs-Avg 0-1 1-5 5-10 10-20 20+ Maturity

Government 0.1 2.7 3.8 0.2 0.8 8

Gov’t Agencies & Muni 0.6 1.1 0.2 0.0 2.8 16 Industrial & Misc 17.3 29.0 30.7 2.2 7.2 6

Hybrid Securities … 0.6 … … 0.8 15 Total 17.9 33.4 34.7 2.4 11.6 7 2012 2011 2010 2009 2008 Bonds (000) 1,116,229 888,551 941,187 781,754 619,733 US Government 7.4 11.1 5.1 5.6 15.7 Foreign Government 1.4 1.2 1.1 1.4 0.6 Foreign - All Other 14.9 14.4 13.6 10.4 9.8 State/Special Revenue - US 5.4 3.1 3.2 4.2 8.7

Public Utilities - US … … … … 1.7

Industrial & Misc - US 69.2 68.2 76.0 77.2 63.5

Hybrid Securities 1.7 1.9 1.1 1.3 … Private Issues 23.5 22.0 30.5 23.2 37.7 Public Issues 76.5 78.0 69.5 76.8 62.3 Bond Quality (%) 2012 2011 2010 2009 2008 Class 1 66.6 70.6 71.7 75.2 83.5 Class 2 29.2 25.6 24.7 18.8 11.6 Class 3 0.9 1.5 1.8 3.5 2.1 Class 4 2.1 1.4 0.9 1.2 2.5 Class 5 0.4 0.6 0.9 1.1 0.1 Class 6 0.7 0.2 0.1 0.1 0.3 INVESTMENTS - EQUITIES 2012 2011 2010 2009 2008 Stocks (000) 31,961 30,479 33,238 32,187 30,637 Unaffiliated Common 0.4 … … … … Affiliated Common 99.6 100.0 100.0 100.0 85.2 Unaffiliated Preferred … … … … 14.8

INVESTMENTS - MORTGAGE LOANS & REAL ESTATE

2012 2011 2010 2009 2008 Mortgages (000) 50,714 49,646 12,416 12,505 12,754 Commercial 100.0 100.0 100.0 100.0 100.0 2012 2011 2010 2010 2008 Real Estate (000) 35,209 36,015 37,041 37,082 37,806 Property Occupied by Co 100.0 100.0 100.0 100.0 100.0

INVESTMENTS - OTHER INVESTED ASSETS

2012 2011 2010 2009 2008

Other Inv Assets (000) 683,527 674,704 831,696 534,196 724,276

Cash 20.0 14.9 20.9 11.2 32.5

Short-Term 6.9 10.4 8.2 16.7 6.1

Schedule BA Assets 0.5 0.5 0.5 1.2 1.2

All Other 72.6 74.2 70.4 70.9 60.3

HISTORY

Date Incorporated:05/14/1979 Date Commenced:06/17/1980

Domicile:OH

Mergers:Harrison National Life Insurance Company, Indiana, 1964; First Security Life Insurance Company, Mississippi, 1966; PWC Life Insurance Company, Ohio, 1980.

Reinsurances:American Investment Life Insurance Company, Tennessee, 1963; Kinder Life Insurance Company, Alabama, 1986.

MANAGEMENT

Officers:Chairman of the Board and President, Brenda K. Clancy; Chief Executive Officer, Charles T. Boswell; Chief Investment Officer, Joel L. Coleman; Vice President and Treasurer, Karen R. Wright; Secretary, William H. Geiger.

Directors:Charles T. Boswell, Brenda K. Clancy, John R. Hunter, Arthur C. Schneider, C. Michiel van Katwijk.

REGULATORY

An examination of the financial condition was made as of December 31, 2009, by the insurance departments of Iowa, Maryland, Ohio and Vermont. The 2011 annual independent audit of the company was conducted by Ernst & Young, LLP. The annual statement of actuarial opinion is provided by Donald Krouse.

Reserve basis:(Current ordinary business): 1980 CSO 3%, 4% and 4.50%; CRVM valuation. (Current annuity business): 1983 IAM 6 1/4%; CARVM valuation.

REINSURANCE

Reinsurance agreements are maintained with several primary reinsurers for the ceding of life business. Maximum net retention on any one life is $1,000,000 for ordinary business and $1,000,000 for group contracts.

FINANCIAL INFORMATION

Assets Liabilities

*Total bonds 1,116,229 +Net policy reserves 1,782,983 *Total common stocks 31,961 Policy claims 26,339 Mortgage loans 50,714 Deposit type contracts 14,647 Real estate 35,209 Interest maint reserve 28,678 Contract loans 411,101 Comm taxes expenses 19,285 Cash & short-term inv 184,234 Asset val reserve 12,039 Securities-colltrl assts 84,899 Funds held reinsurance 54,464 Net deferred tax asset 103,071 Payable for securities lending 84,899 Prems and consids due 2,735 Other liabilities -218,984 Accrued invest income 14,224

Other assets 89,209 Tot liab w/o sep accts 1,804,351 Separate account bus 6,477,241 Tot assets w/o sep accts 2,123,586 Total liabilities 8,281,592 Separate account bus 6,477,241 Common stock 2,500 Paid in & contrib surpl 149,627 Unassigned surplus 167,108

Assets 8,600,827 Total 8,600,827

*Securities are reported on the bases prescribed by the National Association of Insurance Commissioners. +Analysis of reserves; Life $1,235,445; annuities $481,279; supplementary contracts with life contingencies $7,897; accidental death benefits $22; disability active lives $2,829; disability disabled lives $4,940; miscellaneous reserves $49,609; accident & health $963.

SUMMARY OF OPERATIONS ($000)

Premiums: Death benefits 70,668

Ordinary life 460,467 Matured endowments 23 Individual annuities 10,739 Annuity benefits 21,114 Group life 11,246 Surrender benefits 423,203 Group annuities 2,808 Acc & health benefits 871 Acc & health group 1,658 Int on policy funds 649 Total premiums 486,919 Supplementary contracts 2,239 Supplementary contracts -2,211 Incr life reserves 35,219 Net investment income 81,729 Incr a & h reserves 446 Amort interest maint res 1,517 Commissions 160,309 Comm & exp reins ceded -3,415 Interest expenses 12,038 Res adj on reins ceded -24,697 Insur taxes lic & fees 17,898 Other income 318,021 General ins expenses 73,963 Mgt and/or service fee 1,875 Net transf to sep acct -107,485

Other expenses 0

Misc operating expense 1

Total 859,738 Total 711,153

Gain from operations before FIT & div to policyholders... 148,585 Dividends to policyholders: life... 22 Gains from operations after dividends to policyholders... 148,563 Federal income taxes incurred... 13,977 Net gain from operations after FIT and dividends... 134,586

CASH FLOW ANALYSIS ($000)

Funds Provided Funds Applied

Gross cash from oper 827,595 Benefits paid 520,765 Transf from sep account 200,378 Comm, taxes, expenses 264,731 Long-term bond proceeds 337,040 Long-term bonds acquired 562,044 Other cash provided 50,775 Other cash applied 54,368 Incr cash & short-term 13,880

Total 1,415,787 Total 1,415,787

A Rating Report from the A.M. Best Company represents an independent opinion from the leading provider of insurer ratings of a company's financial strength and ability to meet its obligations to policyholders.

The A.M. Best Company is the oldest, most experienced rating agency in the world and has been reporting on the financial condition of insurance companies since 1899. The Best's Financial Strength Rating opinion

addresses the relative ability of an insurer to meet its ongoing insurance obligations. The rating is not assigned to specific insurance policies or contracts and does not address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of an insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. A Best's Financial Strength Rating isnot a recommendationto purchase, hold or terminate any insurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser.

The company information appearing in this pamphlet is an extract from the complete company report prepared by the A.M. Best Company.

A Best's Financial Strength Rating is assigned after a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength,