SAECURE 16 October 2018 Investor Presentation · SAECURE 16 Investor Presentation October 2018....

Helping people achieve a lifetime of financial security

SAECURE 16

Investor Presentation

October 2018

This presentation was prepared by Aegon Hypotheken B.V. ("Aegon" or the "Company") and may contain marketing materials. In connection with the proposed transaction the Company has retained Coöperatieve Rabobank U.A.”, ING Bank N.V., Merrill Lynch International, Société Générale, acting through its corporate and investment banking department, and Wells Fargo Securities International Limited as managers (the "Managers"). Although the information in this presentation has been obtained from sources which the Company believes to be reliable, the Company and the Managers do not represent or warrant its accuracy, completeness or correctness, and such information may be incomplete or condensed. The Company and the Managers will not be responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission.

No action has been taken by the Company or any Manager that would permit an offer of the securities (the "Securities") as referred to in the presentation or the possession or distribution of this presentation or any other offering or publicity material relating to such Securities in any jurisdiction where action for that purpose is required. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which they are released, published or distributed, should inform themselves about, and observe, such restrictions.

The Securities are complex financial instruments and are not a suitable or appropriate investment for all investors. The Notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area (EEA). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, MiFID II); or (ii) a customer within the meaning of Directive 2002/92/EC (as amended, the Insurance Mediation Directive), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in Directive 2003/71/EC (as amended, the Prospectus Directive). Consequently, no key information document required by Regulation (EU) No 1286/2014 (as amended, the PRIIPs Regulation) for offering or selling the Notes or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPS Regulation.

In preparing this presentation, the Company has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from various sources. This presentation may be subject to variation to the extent that any assumptions contained herein prove to be incorrect, or in light of future information or developments relating to the transaction or following discussions with relevant transaction parties. No assurance can be or is given that the assumptions on which the information is made will prove correct. Information of this kind must be viewed with caution and should not be treated as giving investment advice.

The information in this presentation reflects currently prevailing conditions and views, which are subject to change. Any historical information is not indicative of future performance. Opinions and estimates may be changed without notice and involve a number of assumptions which may not prove valid. Average lives of and potential yields on any securities cannot be predicted as the actual rate of repayment as well as other relevant factors cannot be determined precisely. No assurance can be or is given that the assumptions on which such information is made will prove correct. Information of this kind must be viewed with caution.

The Company and the Managers assume no obligation to notify or inform the recipient of any developments or changes occurring after the date of this presentation that might render its contents untrue or inaccurate in whole or in part. In addition, no representation or warranty, expressly or implied, is or will be made in relation to, no reliance should be placed on and no responsibility is or will be accepted by the Company, any Manager or its respective affiliates, agents, directors, officers, partners, employees or advisers, as to the accuracy and completeness of the information contained in this presentation and nothing in this presentation shall be deemed to constitute such a representation or warranty or to constitute a recommendation to any person to acquire securities.

The recipient of this information acknowledges that the Company and the Managers do not owe or assume any duty of care or responsibility to the recipient. The recipient of this presentation cannot derive any rights from any estimates, outlooks, highlights, overviews etc. included in this document. The Company and the Managers and their respective affiliates, agents, directors, officers, partners, employees and advisers accept no liability whatsoever for any loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith and any and all such liability is expressly disclaimed.

This presentation contains "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company and the Managers accept no obligation to update the forward-looking statements contained herein to reflect actual results, changes in assumptions, or changes in factors affecting these statements.

This presentation is provided for discussion purposes only and does not constitute an offer or invitation for the sale, purchase, exchange or transfer of any securities or a recommendation to enter into transactions hereby contemplated and it does not constitute a prospectus or offering document in whole or in part.

No representation, warranty or undertaking, express or implied, is made as to and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. This presentation is not to be relied upon in any manner as legal, tax, regulatory, accounting or any other advice and shall not be used in substitution for the exercise of independent judgment and each person made aware of the information set-forth hereof shall be responsible for conducting its own investigation and analysis of the information contained herein.

Disclaimer

Disclaimer

The information contained herein is confidential and is intended for use only by the intended recipient and does not carry any right of publication or disclosure. This presentation is not intended for U.S investors nor U.S. persons. The presentation nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions (collectively, the "United States") directly or indirectly. Any failure to comply with these restrictions may constitute a violation of U.S. or other securities laws, as applicable.

No action has been or will be taken by the Company and the Managers in any country or jurisdiction that would, or is intended to, permit a public offering of securities in any country or jurisdiction where action for that purpose is required. In particular, no Securities have been or will be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States and securities may not be offered, sold or delivered within the United States or to US persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws and may only be sold outside of the United States to persons who are not US persons in reliance on Regulation S under the Securities Act and otherwise in compliance with all applicable laws and regulations in each country or jurisdiction in which any such offer, sale or delivery of securities is made. The Company does not intend to register or to conduct a public offering of any securities in the United States or any other jurisdiction. This presentation and its contents may not be viewed by persons within the United States (within the meaning of Regulation S under the Securities Act).

The securities may not be purchased by, or for the account or benefit of, any “U.S. person” as defined in the U.S. Risk Retention Rules (“Risk Retention U.S. Person”). Prospective investors should note that the definition of “U.S. person” in the U.S. Risk Retention Rules is different from the definition of “U.S. person” in Regulation S under the Securities Act. Each purchaser of the securities or a beneficial interest therein acquired in the initial distribution of the securities, by its acquisition of the securities or a beneficial interest therein, will be deemed to have made certain representations and agreements, including that it (1) is not a Risk Retention U.S. Person, (2) it acquiring such or a beneficial interest therein for its own account and not with a view to distribute such security, and (3) is not acquiring such security or a beneficial interest therein as part of a scheme to evade the requirements of the U.S. Risk Retention Rules (including acquiring such security through a non-Risk Retention U.S. Person, rather than a Risk Retention U.S. person, as part of a scheme to evade the 10 per cent. Risk Retention U.S. Person limitation in the exemption provided for in section 20 of the U.S. Risk Retention Rules).

In the European Economic Area (the “EEA”), the securities are only directed at persons who are “Qualified Investors” within the meaning of Article 2(1)(e) of the EU Directive 2003/71/EC, as amended (the “EU Prospectus Directive”). If you have received this presentation in the EEA, by not immediately returning and deleting it you are confirming that you are a Qualified Investor. This presentation must not be acted upon in any member state of the EEA by persons who are not Qualified Investors. Any investment or investment activity to which this presentation relates in the EEA is available to, and will be engaged only with, Qualified Investors.

This presentation and its contents is for distribution in or from the United Kingdom only to persons who are authorised persons within the meaning of the Financial Services and Markets Act 2000 of the United Kingdom or who are investment professionals within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (all such persons together being referred to as “relevant persons”). This presentation is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons.

The information contained herein may not be reproduced or redistributed (in whole or in part) in any format without the express written approval of the Company and the Managers.

Aegon is supervised by the Dutch Central Bank and the Authority for the Financial Markets in the Netherlands. By attending the presentation to which this document relates, you will be deemed to have represented, warranted and agreed that you have read and will comply with the contents of this notice.

The information in this presentation has not been verified, approved or endorsed, or independently verified by the Managers or by any independent third party. The Managers make no representation or warranty, express or implied, as to the accuracy or completeness of such information. None of the Managers or any of their directors, officers, employees, affiliates or agents will be responsible or liable for the consequences of reliance upon any statement, opinion or information contained herein or any omission therefrom. The Managers therefore disclaim any and all liability relating to this presentation including, without limitation, any express or implied representations or warranties for statements contained in, and omissions from, the information herein. None of the Managers nor any of their respective employees, directors, subsidiaries or affiliates and any of their respective employees, directors, officers, advisers, agents or subcontractors accept any liability or responsibility whatsoever to any person or entity, directly or indirectly, in respect of the information herein and/or any omission, condition or other circumstances within or outside the control of the Managers. The Managers shall not be liable for any direct or consequential damage, loss, cost, charge, expense or other liability which may result from, be caused by or alleged to be caused by or in connection with the use or reliance by you, or others, upon such information. The information contained herein is subject to change without notice, and is qualified in its entirety by the information in the relevant final prospectus.

This does not comprise a prospectus, for the purpose of the EU Prospectus Directive (or any relevant implementing measures in The Netherlands) or otherwise. There has been no independent verification of the contents of this document and it does not constitute or contain investment advice. Information contained in this document prepared for information purposes, is indicative and a summary only and is subject to change, finalisation and amendment without notice, and is qualified and superseded in its entirety by reference to the offering circulars to be issued, once approved, in respect of the transaction (the "Offering Circular"). Investors should not subscribe for any securities referred to herein except on the basis of information contained in the Offering Circular. When available, the Offering Circular will be made public in accordance with the EU Prospectus Directive and/or relevant implementing measures in The Netherlands and investors may obtain a copy on www.aegon.com.

Disclaimer

Disclaimer

Any investment decisions on the securities should not be based on this document and should be based solely on the Offering Circular. In addition, investors should pay particular attention to any sections of the Offering Circular describing any special investor considerations or risk factors. Prospective investors are solely responsible for their own independent appraisal of, and investigations into the products, investments and transactions referred to in this document and should not rely on any information in this document as constituting investment advice. Before entering into any transaction, prospective investors should ensure that they fully understand the potential risks and rewards of that transaction and that they independently determine that the transaction is appropriate for them given their objectives, experience, financial and operational resources, and other relevant circumstances. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient.

No person is authorised to give any information or to make any representation not contained in and not consistent with this document or the Offering Circular and, if given or made, such information or representation must not be relied upon as having been authorised by or on behalf of the SAECURE 16 B.V.(the” Issuer”) or Aegon.

Rabobank is the trading name used by Coöperatieve Rabobank U.A. incorporated in the Netherlands. Rabobank is authorised by De Nederlandsche Bank and regulated by the Netherlands Authority for the Financial Markets.

ING Bank N.V. is incorporated in The Netherlands with limited liability. ING’s registered office is at Bijlmerplein 888, 1102 MG, Amsterdam. ING is regulated by De Nederlandsche Bank (Dutch Central Bank) and the Autoriteit FinanciëleMarkten (Financial Markets Authority, for more information see www.afm.nl).

“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation, including Merrill Lynch International. Merrill Lynch International is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Société Générale Corporate & Investment Banking (SG CIB) is a marketing name for corporate and investment banking businesses of SG and its subsidiaries worldwide. SG is a French credit institution (bank) that is authorised and supervised by the European Central Bank ("ECB") and the Autorité de Contrôle Prudentiel et de Résolution ("ACPR") (the French Prudential Control and Resolution Authority) and regulated by the Autorité des marchés financiers (the French financial markets regulator) ("AMF"). Société Générale London Branch is authorised by the ECB, the ACPR and the Prudential Regulation Authority ("PRA") and subject to limited regulation by the Financial Conduct Authority ("FCA") and the PRA. Details about the extent of our authorization, supervision and regulation by the above mentioned authorities are available from us on request.

The Société Générale Book Building Allocation Policy setting out the process for developing allocation recommendations is available at: https://cib.societegenerale.com/fileadmin/user_upload/SGCIB/pdf/SGCIB_Bookbuilding_Summary.pdf

Wells Fargo Securities International Limited (“WFSIL”) is incorporated in the United Kingdom with limited liability. WFSIL’s registered office is at One Plantation Place, 30 Fenchurch Street, London EC3M 3BD. WFSIL is authorised and regulated by the Financial Conduct Authority under registration number 186745.

Disclaimer

Disclaimer

http://www.afm.nl/

https://cib.societegenerale.com/fileadmin/user_upload/SGCIB/pdf/SGCIB_Bookbuilding_Summary.pdf

5

07Executive summary

Slides 6-7

01

SAECURE 16 – Transaction

overview

Slides 8-15

02

Aegon highlights

Slides 16-19

03

Mortgage loan business &

origination

Slides 20-27

04

05

Slides 35-40

06

Contact information

Slide 41

Content

Content

SAECURE performance

The Dutch economy and

housing market

Slides 28-34

08 Appendix

Slides 42-55

66Executive summary

Executive summary

7Executive summary

Executive summary

Aegon mortgage business in the

Netherlands

• Aegon is one of the top 5 lenders in the Dutch residential mortgage market and has been able to

maintain a strong market position in the competitive Dutch mortgage market over the last years

• Aegon NL is wholly owned by Aegon N.V. and a core member of the Aegon group

• The historical performance of Aegon's total residential mortgage loan portfolio has been in line with

the prime Dutch mortgage market, i.e. the best performing and most resilient across Europe where in

the wake of the crisis the losses did not exceed 11bps for non-NHG and 3bps for NHG Loans in 20142

The SAECURE programme

• 15 SAECURE transactions issued since 2000, SAECURE 1 through 13 called at FORD

• SAECURE portfolios are representative of Aegon’s total portfolio with a stable and strong

performance

• The SAECURE programme had a total outstanding net balance of EUR 2.21 bn at end of June 2018

and the 2 remaining FORD have not occurred yet

SAECURE 16

• The SAECURE 16 transaction includes EUR [•] of [4.1]1 year Mortgage Backed Class A Notes that

will be rated [AAA(sf)] / [AAAsf] by S&P and Fitch

• The transaction benefits from a 15 year Interest Rate Cap with a 2.5% strike price

• The Issuance is collateralised by first and sequentially lower ranking secured, owner occupied, prime

Dutch Residential Mortgage Loans originated by Aegon Hypotheken and Aegon Levensverzekering

and serviced by Aegon Hypotheken

• The portfolio primarily consists of Fixed Rate Mortgage Loans and Mortgage Loan Parts with the

benefit of an NHG Guarantee represent [10.4%] of the portfolio

1Based on CPR of 6% to FORD without defaults and delinquencies and no Further Advances/replacements, assuming the Notes being redeemed at FORD2Calculated over the average portfolio balance

88SAECURE 16 – Transaction overview

SAECURE 16Transaction overview

9

Main features & industry compliance

• The interest rate risk is mitigated by a 15 year Interest Rate Cap provided by Rabobank

• Credit enhancement of [8.0%] for the Class A Notes is provided by:

1. Subordination of Class B Notes of [7.0]%

2. Reserve Account of [1.0]% at closing,

3. Excess margin

• Based on the information publicly available at the date of the announcement of this

transaction, this transaction intends to comply with the framework for simple, transparent

and standardised (STS) securitisations and to fulfil additional requirements, if any, on or

prior to such notification date

• The Class A Notes may price above par

• The Class A Notes are intended to be held in a manner which will allow Eurosystem eligibility

• Application has been made to obtain the PCS Label to the Class A Notes on or around the Closing Date

• Transaction is compliant with the RMBS Standard of the Dutch Securitisation Association

• Aegon has undertaken to retain a net economic interest of not less than 5% (in accordance with each of

article 405 CRR, article 51 AIFMR and article 254 Solvency II Regulation), as well as to make available

all materially relevant data to comply with articles 405 up to and including 409 CRR, articles 51, 52 and

53 AIFMR and articles 254 and 256 Solvency II Regulation

SAECURE 16 – Transaction overview

Transaction highlights

Note class Size (%) Status CE1 Coupon up to and

including FORD2 Coupon after FORD Excess Consideration WAL3 FORD Final Maturity S&P/ Fitch

A [93.0%] Offered [8.0%] 3mE + [40] bp Min(3mE,5%) + [40] bp Max(3mE-5%,0) + [40] bp [4.06] [October 2023] [October 2091] [AAA(sf)/AAAsf]

B [7.0%] Retained [1.0%] [0.0%] [0.0%] N/A [4.96] [October 2023] [October 2091] NR

Total [100%]

C [1.0%] Retained [0.0%] [0.0%] [0.0%] N/A N/A N/A [October 2091] NR

Capital Structure

1. Credit enhancement includes Reserve Account of [1%] as a percentage of the Class A and B Notes and excludes excess margin

2. After the FORD, a step-up equal to the margin (the Class A Step-up Consideration) will be payable and will, together with the portion of the 3mE rate exceeding [5]% (ie the EURIBOR Excess Consideration), be subordinated to

certain payments

3. Based on CPR of 6% to FORD without defaults and delinquencies and no Further Advances/replacements, assuming the Notes being redeemed at FORD


Portfolio characteristics1 (I)

Source: Provisional portfolio as per 31 August 20181The actual portfolio of Mortgage Loans sold on the Closing Date will be selected from the Provisional Pool

0.02% 0.51% 1.46%3.43%

7.06%9.72%

13.45%

16.83%19.37%

28.17%

0%

10%

20%

30%

Current loan to indexed market value

Principal balance € 988,617,922.31

Value of savings deposits € 41,099,630.28

Net principal balance € 947,518,292.03

Number of mortgages 3,913

Number of mortgage loan parts 8,817

Average principal balance (per borrower) € 242,146

Weighted average current interest rate (%) 3.33

Weighted average maturity (in years) 29.39

Weighted average remaining fixed rate period (in years) 17.23

Weighted average seasoning (in years) 3.22

Weighted average CLTOMV 80.64

Weighted average CLTIMV 75.18

Weighted average Debt Service to Income 16.49%

Weighted average LTI 3.69

Key characteristics

1.14%

9.39%

26.75%

38.55%

20.40%

3.43%0.34%

0%

10%

20%

30%

40%

50%Debt servicing to income

11

98.3%

1.7%

Fixed

Floating

Redemption type


Portfolio characteristics1 (II)

Source: Provisional portfolio as per 31 August 20181The actual portfolio of Mortgage Loans sold on the Closing Date will be selected from the Provisional Pool

Geographical distribution

Interest

payment type

41.9%

38.6%

7.8%

4.1%3.7%

2.8% 1.3%

Interest only

Annuity

Bank savings

Savings

Life insurance

Linear

Investments

Drenthe 2.4%

Flevoland 1.7%

Friesland 2.7%

Gelderland 12.0%

Groningen 2.6%

Limburg 4.6%

Noord-Brabant 16.2%

Noord-Holland 16.0%

Overijssel 6.5%

Utrecht 12.2%

Zeeland 2.2%

Zuid-Holland 21.0%


Risk mitigating features

Credit enhancement

Subordination is provided by the Class B

Notes [7,0%]

The Reserve Account

• The Reserve Account will be funded

at closing at [1.0]% of the Class A & B

Notes and has a Target Level of

[2.0]% of the balance of the Class A &

B Notes at closing

• The Reserve Account will not

amortize as long as the Class A Notes

are outstanding

Excess margin

Pre-FORD:

• The excess margin equals the

difference between the interest

received on the mortgage portfolio

and the interest paid on the Notes,

subject to payout from the Interest

Rate Cap Provider if and when

applicable

Post-FORD

• Any excess margin will be diverted in

the form of Class A Additional

Redemption Amounts to the Available

Principal Funds for the accelerated

redemption of the Class A Notes

Cash Advance Facility

• Cash Advance Facility is [1.0%] of the

Principal Amount Outstanding of the

Class A Notes with a floor of [0.75%]

of the Class A Notes at closing

• The Cash Advance Facility may only

be used to pay senior expenses and

interest due on the Class A Notes (up

to the EURIBOR Agreed Rate plus

[40bps] post FORD)

• Cash Advance Facility is provided by

Rabobank (A+/Aa3/AA-) (S/M/F)

Commingling Risk

• All Borrowers pay into the seller

collection account (held at ABN

AMRO Bank N.V (A/A1/A+) (S/M/F)

by means of direct debit on the first

day of each month

• On each mortgage collection payment

date the Seller will transfer to the

Issuer the scheduled amount of

principal and interest and an

estimated amount of prepaid principal

(120% of the previous month’s

prepayments)

• Following an Assignment Notification

Event and expiry of any applicable

grace period, the Seller undertakes to

immediately notify the Borrowers and

any other relevant party, of the

assignment of Mortgage Loans and

the beneficiary rights relating thereto

after which Borrowers will make

payments directly to the Issuer

Set-off risk

• Fitch and S&P have both considered

the potential set-off exposure related

to life insurance, bank and savings

Mortgage Loans in determining the

credit enhancement levels

• Structural features mitigate set-off risk

on life insurance, bank and savings

Mortgage Loans by means of,

amongst other things, the participation

agreements

13

Indicative issue price sensitivity¹


Indicative amortisation profile and issue price

sensitivity

Source: Aegon analysis, provisional pool as per 31 August 2018

¹A constant discount rate has been used as of 18 October 2018 (of [-0.318]%). At the pricing date, the constant discount rate of that date

will be used, which could lead to slight differences. For reference purposes only.

Indicative amortisation profile of Class A and B notes (6% CPR)Assumptions

• Closing in [November] 2018

• Call at the FORD

• No defaults / delinquencies

• CPR of 6%

• Class A Additional Redemption Amounts are not taken into account

• No repurchases and Further Advances

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Class A Notes Class B Notes

Discount Margin (bps) 0% CPR 3% CPR 6% CPR 10% CPR 15% CPR

20 [100.97] [100.90] [100.83] [100.74] [100.65]

25 [100.73] [100.67] [100.62] [100.56] [100.48]

30 [100.48] [100.45] [100.41] [100.37] [100.32]

35 [100.24] [100.22] [100.21] [100.18] [100.16]

40 [100.00] [100.00] [100.00] [100.00] [100.00]

WAL table of Class A Notes

CPR 0% 3% 6% 10% 15%

Class A [4.76]yr [4.40] yr [4.06]yr [3.64]yr [3.18]yr

14

Mitigating call risk

• As of [October 2024] (1 year Post-FORD), the Issuer will have the option to sell the loan portfolio if the sale would generate sufficient proceeds to redeem the Class A Notes only

• With an indicative credit enhancement of around [13.3]%1 on the Notes Payment Date falling in [October 2024], this effectively allows for a discount on the sale of the mortgage portfolio to

redeem the Class A Notes

• After the FORD, Available Revenue Funds remaining after making good any amounts under the Class A Excess Consideration Deficiency Ledger will be added to the Available Principal

Funds for the accelerated redemption of the Class A Notes, serving as a mitigant to call risk

• The Class A Excess Consideration payment ranks ahead of the Class B Notes. This may lead to losses for Aegon (as the Class B Noteholder) in high interest rate scenarios


Interest hedging arrangements

1Subject to an estimated CPR of 6% to FORD without defaults and delinquencies and no Further Advances/replacements

15 year interest rate cap

• The Issuer will enter into an Interest Rate Cap Agreement with Rabobank for 15 years with a strike price at 2.5%

• The Interest Rate Cap Agreement is in line with the structured finance criteria of S&P and Fitch

• Under such Interest Rate Cap Agreement the Issuer pays an upfront premium to the Interest Rate Cap Provider on the Closing Date

• Predetermined notional schedule based on the outstanding notional of the Class A Notes, with a CPR of 3% per annum

Post-FORD interest rate risk

• The Interest Rate Cap will remain in place for another [10] years after the FORD

• Post-FORD, the Class A Notes will be paying a senior floating coupon based on the 3m EURIBOR, up to a maximum of 5% (the EURIBOR Agreed Rate) plus the margin

• Post-FORD, the Class A Step-up Consideration equal to the margin will be payable on the Class A Notes. The Class Excess Consideration being equal to the Class A Step-up Consideration

plus the EURIBOR Excess Consideration (portion of the 3m EURIBOR above the EURIBOR Agreed Rate of 5%), will be payable on the Class A Notes and will be subordinated in the Pre-

Enforcement Revenue Priority of Payments and in the Post-Enforcement Priority of Payments

• The EURIBOR Agreed Rate of 5% is close to the historical high of 2008


Indicative Class A revenue breakdown

Underlying assumptions*

• Three interest rate scenarios: 3m EURIBOR rates flat at [-0.3%], [5%], and [8%]

• The CPR is assumed to be [6.0%] throughout the life of the transaction

• The expected losses are set at [5 bps]

• Asset repricing at reset dates of the Mortgage Loans is set at [3m EURIBOR + 250 bps]

EUR mn EUR mn EUR mn % of total% of total% of total

Excess consideration paid (LHS)

Senior interest paid (LHS)

Cumulative total interest paid /

Cumulative total interest due (RHS)

3m EIB [-0.3%] 3m EIB [5%] 3m EIB [8%]

*Scenario’s in case the call at FORD is not exercised

0%

20%

40%

60%

80%

100%

120%

-

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

1 11 21 31 41 51 61 71Quarters from close

0%

20%

40%

60%

80%

100%

120%

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0


0%

20%

40%

60%

80%

100%

120%

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0


1616Aegon highlights

Aegon highlights

17Aegon highlights

7%

52%

38%

3%

Americas

AAM

Asia

What we doLife insurance, pensions &

asset management for approximately

29 million customers

(2H17)

HistoryOur roots date back to the first

half of the 19thcentury

Employees

Over 25,000 employees

(1H18)

EarningsUnderlying earnings before tax

EUR 1,064 million(1H18)

InvestmentsRevenue-generating investments

EUR 825 billion

(1H18)

DepositsNet deposits

EUR 3.9 billion

(1H18)

Europe

Aegon N.V. at a glance

Source: Aegon

18Aegon highlights

• Strong capital generation of EUR 1.4 billion in 1H 2018, driven by

increase in own funds

• Improved capital quality: Unrestricted Tier 1 capital as a percentage of

SCR increased by 16%-pts to 150% in 1H18

• Main units solvency ratios remain well within or above target zones

Target

zone

150%

200%

4Q 2016 4Q 2017 1H 2018

157% 201% 215%

US

490%RBC

NL

190%SII

UK

197%SII

Local solvency ratio by unit

Significant improvement in Solvency II ratio

Group Solvency II improvement

19

Aegon Netherlands N.V. (“Aegon NL”)

Aegon highlights

100% 100%100%

Aegon N.V.

Aegon Netherlands N.V.

Aegon Bank N.V.Aegon Schade-

verzekering N.V.

Aegon Levens-

verzekering N.V.

Aegon Hypotheken

B.V.

100%

EUR millions 1H 2018

Life 238

Non-life 24

Banking 49

Service business 8

Underlying earnings before tax 318

Aegon

Europe Holding B.V.

Simplified Aegon NL Structure

Underlying earnings before tax

Since April 2011, all newly originated mortgage loans are

fully underwritten by Aegon Hypotheken, a 100%

subsidiary of Aegon NL, and are subject to the same

underwriting criteria

In 1H 2018, Aegon NL represented 28% of Aegon’s total

underlying earnings before tax

Aegon NL offers a wide range of financial products and

services to its clients, including pensions, insurance (life

and non-life), mortgage loans, savings and investment

products

Source: Aegon

2020Mortgage loan business & origination

Mortgage loan business & origination


Aegon NL mortgage lending organization

Aegon Hypotheken is a 100%

subsidiary of Aegon NL

Origination is done through

intermediaries, while all

underwriting decisions are made

by Aegon NL’s underwriting team

in Leeuwarden

All mortgage related processes

are periodically reviewed and are

regularly audited (including SOX

compliance)

In 2017 Aegon NL Hypotheken

published the ISAE 3402 Type II

Report1

A trusted party

1International assurance standard on the controls at a service organization

22

16.4%

3.0%

3.9%

4.2%

5.0%

7.3%

8.2%

12.8%

18.9%

20.3%

0% 5% 10% 15% 20% 25%

Aegon in the Dutch mortgage market

Other


4th mortgage lender with 8.2% market share

Source: Land Registry (Kadaster) (1H 2018)

23

Aegon in the Dutch mortgage market


7.9% 6.0% 4.8% 5.1%

71.8%67.2%

63.9%51.6%

7.6%14.3% 20.4%

31.6%

12.7% 12.5% 10.9% 11.8%

2015 2016 2017 1H2018

10yr 20yr 30yr Other

47.1% 43.8% 41.4%33.9%

33.0% 38.9% 38.4%40.1%

3.0%4.1% 8.1%

11.2%

16.9% 13.2% 12.1% 14.8%

2015 2016 2017 1H2018

10yr 20yr 30yr Other

Relatively longer term fixed interest rates

Source: Hypotheken Data Nederland (HDN) / Aegon (1H 2018); Newly originated loans per year.

Aegon mortgage production Dutch mortgage production


Diversified funding

Life

Nominal mortgage amounts per 1H 2018(in EUR X bn)

Characteristics(

Large part interest only mortgages

Supports investment incomeNon-life

Full risk transfer

Attractive mortgage fund solutions (DMF I and

DMF II) and tailored whole loan solutionsService business

Mostly short interest rate reset periods

Offering products to clients on both sides of the

balance sheet

Bank

Originate to share

Long-dated assets

Good match against liabilities

Funding diversification

15 deals issued since 2000, with

SAECURE 14 and 15 still outstanding

RMBS –

SAECURE programme

Covered Bond

Registered Conditional Pass-Through Covered Bond

programme with DNB since 2015

Covered Bonds are rated AAA/AAA (S&P/Fitch), dual

recourse. Total value issued amounts to EUR 2.25bn

17

16

6

3*

2

<1

Origination vehicle

Aegon Hypotheken &

Aegon Levensverzekering

Source: Aegon*Cover Pool is more than EUR 2.5 bn

25

0%

10%

20%

30%

40%

50%

0

5

10

15

20

25

30

35

40

45

50

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H2018

NHG Mortgage Loans (LHS) Non NHG Mortgage Loans (LHS)

SAECURE program (RHS) Covered Bond program (RHS)

Fee business (RHS)*

% of total bookEUR bn


Increasing portfolio requires diversified funding sources

Diversified funding

Source: Aegon (2006 – 1H 2018)*Fee business constitutes no funding implications for Aegon (only servicing and no refinancing risk)

26

Key mortgage loan products

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H 2018

Interest Only

Life Insurance

Savings

Investment

Linear

Annuity

Other


Since 2013 only amortizing mortgage loans are eligible for tax deductibility1

Source: Aegon (2006 – 1H 2018) – Newly originated mortgage loans per year1Grandfathering on existing loans


Underwriting criteria & credit process

Aegon’s underwriting team consists

of 95 FTE

25% of the team has more than 10

years experience. All underwriters

are WFT1 certified

Approximately 75% of all applications

were approved in 2017 (of which ~5%

after deferral to a loan committee)

• Only owner occupied residential properties with first lien

• Mandatory valuation of the property in most cases (see prospectus for full details)

• Mandatory damage and fire insurance

• Additional forms of collateral possible: life insurance, bank savings and equity portfolios

Collateral

• Underwriting criteria based on the Code of Conduct (LTVs, DTIs etc)

• The approval to lend outside the automatically accepted lending criteria may be granted on a loan-by-loan

basis subject to senior underwriter approval

Loan

• All borrowers must meet Aegon underwriting criteria (also for Further Advances)

• The Dutch legislation (Wft) contains strict criteria with regard to loan to income. Aegon origination policy is

in compliance with the Wft, whereby the largest part of the mortgage requests is in accordance with the

standard criteria.

• Credit searches with BKR (National Credit Register) and fraud prevention searches in BKR VIS/EVA2 and

SFH3

Borrower

1 ‘Wet op Financieel Toezicht’ is a Dutch law that serves to protect consumers and obliges financial service providers to meet criteria with regard to professional competence,

financial security and clear and fitting advice.2 VIS (Verificatie Informatie Systeem) and EVA (Externe Verwijzing Applicatie) is a fraud prevention system which shows all lost, stolen and invalid identification documents

both domestic and foreign3 SFH (Stichting Fraudebestrijding Hypotheken) is a fraud prevention system which shows all persons and companies involved in mortgage fraud

2828The Dutch economy and housing market

The Dutch economy and housing market


Dutch economy

One of the most stable and open economies in Europe with one of the highest

GDP per capita

• Y-o-Y real GDP growth rate 3.2% (2017)

• Unemployment rate at 3.8% as of July 2018

• Sovereign debt of 56.7% of GDP and budget surplus of 1.1% in 2017

• International trade is key driver of economy and future economic growth

Highlights of the Dutch economySource: Eurostat, CPB

Trade balance (% of GDP)Source: OECD

Unemployment rate comparisonSource: Eurostat

Evolution of Y-o-Y real GDP growth rateSource: Eurostat

0%

2%

4%

6%

8%

10%

12%

14%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Netherlands UK Eurozone US

-6%

-4%

-2%

0%

2%

4%

6%

8%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Netherlands UK Eurozone US

-10%

-5%

0%

5%

10%

15%

20%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Netherlands UK US Eurozone


Dutch economy (cont’d)

Sovereign debt (% of GDP)Source: Bloomberg, IMF

5 Year CDS Sovereign Spread (in USD - bps)Source: Bloomberg

Deficit (% of GDP)Source: Bloomberg

Gross national savings1 (% of GDP)Source: Bloomberg, CIA

(4)

(2)

-

2

4

6

8

10

12

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Netherlands UK Germany France US

-

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017


0

50

100

150

200

250

300

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


-

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017


1GNS = GDP – consumption – government spending

31

Key characteristics

Code of

Conduct

• The Code of Conduct encourages lenders to compete on service and price rather than aggressive lending practices

• Affordability calculation assuming 30 year amortizing loan regardless of product and interest rate risk

NHG

• The NHG programme is the public mortgage loan guarantee scheme supporting home ownership in The Netherlands

• All Dutch citizens can obtain a guarantee from the Dutch State guaranteed non-profit organization (Stichting WEW) subject

to the applicable terms and conditions

Underwriting

• Mortgage loans are provided predominantly on the basis of income (LTV’s are a less significant factor due to tax incentives)

• “Full-doc” underwriting; there is no self certification of income

• Industry wide credit database (BKR) and fraud register (SFH)

Products

• Predominantly prime, owner occupied

• Limited buy-to-let, non-conforming and sub-prime

• Mainly fixed rate mortgage loans

Framework

• Lenders can repossess and sell properties by public auction without a court order

• Full recourse to the borrower. After foreclosure, any remaining debt remains enforceable until discharged in full

• Strong social support and pension system

…of the Dutch residential mortgage market

The Dutch economy and housing market

1Source: Miljoenennota 2018

Policy

developments1

• Accelerated reduction in maximum tax deductability of mortgage interest payments was announced on September 18, 2018

• As of 2020, the government will cut the maximum tax relief by 300 bps per annum, settling at a deduction rate of 37.05% in 2023.


Dutch housing prices

60

70

80

90

100

110

120

130

140

150

2010 2011 2012 2013 2014 2015 2016 2017 2018

Euro Area Ireland Spain Netherlands United Kingdom

S&P 2 expects that house prices will increase

less rapidly at 7% annually in 2018, compared

to the increase of around 8.5% last year

(2017). Moreover, the expectation is that this

will further cool down to around 5% in 2019.

Rabobank3 expects an increase in housing

prices of 8.7% in 2018 and a subsequent

increase of around 7% in 2019. However,

Rabobank does expect a drop in the number

of transactions of around 7% in 2018

compared to the year before.

Significant increases over recent years

Source: ECB, S&P/Case-Shiller, Nationwide2S&P Global Ratings ‘Europe’s Housing Markets: Soft Landing in Sight’, February 7, 2018;3Rabobank: Kwartaalbericht woningmarkt, August 15, 2018.


Dutch housing prices: regional development

-20%

-10%

0%

10%

20%

30%

40%

50%

since pre crisis high (2008-Q3) since crisis low (2013- Q2)

Strong regional differences in price development

Source: CBS (June 30th 2018)

4%7%

11%

10% 12%

9% 9%

7%

7%

6%

8%

7%

Regional house price development (YoY)

Increase > average (8%)

Increase <= average (8 %)

Regional house price development (since pre crisis high & low)


Dutch household financials

1,112 1,202 1,1701,398 1,488

1,621 1,597

321340 344

332336

342 344

4753 62

7187

89 95

682688 673 675

679687 695

50 48 44 37 36 32 30

0

500

1,000

1,500

2,000

2,500

2011 2012 2013 2014 2015 2016 2017

Life insurance & Pension assets Savings & Deposits Investments Residential Mortgage Debt Consumer Credit

Dutch household wealth including pension assets far exceeds mortgage debt

EUR bn

Source: Dutch Central Bank (DNB), Statistics Netherlands (CBS)

35SAECURE performance

SAECURE performance


Performance of SAECURE transactions

-

2,000

4,000

6,000

8,000

10,000

12,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

SAECURE 1 SAECURE 2 SAECURE 3 SAECURE 4 SAECURE 5

SAECURE 6 NHG SAECURE 7 SAECURE 8 NHG SAECURE 9 SAECURE 10

SAECURE 11 SAECURE 12 SAECURE 13 NHG SAECURE 14 NHG SAECURE 15

EUR (mln)

Decreasing outstanding net balance

Source: SAECURE investor reports (2006 – 1H 2018), unaudited data



-

1.00

2.00

3.00

4.00

5.00

-

2,000

4,000

6,000

8,000

10,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*

bps of net balanceEUR (mln) Total net losses (RHS) Outstanding net balance (LHS)

Limited losses and strong recoveries

Recovery Rate on NHG SAECURE transactions

remained stable at 98.4% at the end of 2017

compared with 98.6% at the end of 2016

Recovery Rate on regular SAECURE

transactions remained stable at 95.4% at the

end of 2017 compared with 95.7% at the end of

2016

Source: SAECURE investor reports (2006 – 1H 2018), unaudited data* 2018 shows total net losses and outstanding net balance at end of June 2018



Limited losses for most recent SAECURE transactions

Source: Prospectus & Investor Reports SAECURE transactions; unaudited data 1For currently active SAECURE transactions, this is shown at end of June 20182These figures show post-foreclosure recoveries

Transaction information Asset balance at Closing Date Cumulative gross losses (at FORD)1 Cumulative recoveries (at FORD)12

Transaction Closing Date FORDNumber of

loansEUR (mln)

Number of

foreclosuresEUR (mln)

Cumulative

losses (bps)EUR (mln)

Cumulative

recoveries (bps)

SAECURE 2 Sep-2003 Aug-2010 6,266 1,080 40 1.60 14.80 0.25 2.36

SAECURE 3 Nov-2003 Feb-2011 9,578 1,193 17 0.72 6.07 0.06 0.47

SAECURE 4 Jun-2004 Aug-2011 7,186 1,109 87 4.40 39.70 0.87 7.87

SAECURE 5 Apr-2005 Aug-2012 7,375 1,212 57 4.03 33.25 0.40 3.33

SAECURE 6 NHG Sep-2006 Aug-2013 14,947 2,054 65 1.35 6.49 0.79 3.83

SAECURE 7 Jul-2010 Aug-2015 8,508 1,100 65 2.60 23.61 0.16 1.49

SAECURE 8 NHG Oct-2010 Dec-2014 8,377 1,470 42 0.57 3.18 0.16 1.06

SAECURE 9 Sep-2010 Mar-2016 4,488 908 52 1.89 20.85 0.18 1.97

SAECURE 10 Apr-2011 Feb-2016 8,259 1,631 86 3.74 22.94 0.23 1.39

SAECURE 11 May-2012 Jul-2015 3,715 721 23 0.36 5.04 0.05 0.66

SAECURE 12 Dec-2012 Oct-2017 7,588 1,468 111 1.31 8.91 0.23 1.60

SAECURE 13 NHG Mar-2013 Feb-2018 6,452 1,233 108 0.38 3.07 0.03 0.26

SAECURE 14 NHG Mar-2014 Feb-2019 8,030 1,502 85 0.30 2.02 0.01 0.05

SAECURE 15 Oct-2014 Feb-2020 8,009 1,552 25 0.19 1.20 0.00 0.01



Low and further decreasing arrears

0

1

2

3

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

2 <= 3 monthly payments 3 <= 4 monthly payments

4 <= 6 monthly payments > 6 monthly payments

Arrears in the >6 month bucket have declined

since Q1 2016 due to successfully completed

voluntary sales resulting in minimal losses and

arrears being cured

The post crisis SAECURE issuance volumes

(2010-2011) resulted in a steep decline in the

relative volume of arrears

bps of net balance

Source: SAECURE investor reports (2006 – 1H 2018); unaudited data

40


SAECURE performance

Lifetime CPRs for outstanding SAECURE transactions

Source: SAECURE portfolio and performance reports (2014-1H 2018); unaudited dataPast performance is not necessarily an indicator of future results or performance

0%

2%

4%

6%

8%

10%

Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18

CPR SAECURE 15 CPR SAECURE 14CPR (%)

41

WWW.AEGON.COM

For questions and information relating to the

Aegon SAECURE programme please contact:

Bastiaan Warmerdam Christiaan HoitingManager Capital Market Solutions Funding ManagerT: +31 70 344 8361 T: +31 6 5393 7521E: [email protected] E: [email protected]

Jeroen DekkersSenior Strategic AnalystT: +31 6 1191 1447E: [email protected]

For questions relating to Aegon please contact:

Aegon Investor RelationsT: +31 70 344 8305E: [email protected]

4242

Appendix

Appendix

43Appendix

Transaction parties

Key Transaction Parties

Issuer SAECURE 16 B.V.

Shareholder Stichting Holding SAECURE 16

Security Trustee Stichting Security Trustee SAECURE 16

Originators AEGON Hypotheken B.V. and AEGON Levensverzekering N.V.

Seller AEGON Hypotheken B.V.

Servicer AEGON Hypotheken B.V.

Issuer Administrator Intertrust Administrative Services B.V.

Issuer Account Bank Coöperatieve Rabobank U.A. (Rabobank)

Cash Advance Facility Provider Rabobank

Interest Rate Cap Provider Rabobank

Arranger Rabobank

Joint Lead Managers Rabobank; Société Générale; ING Bank N.V.; Wells Fargo Securities; Merrill Lynch International

Paying / Reference agent CitiBank N.A. Amsterdam Branch / London Branch

Listing Agent Rabobank

Rating Agencies Fitch Ratings Ltd. (Fitch) and S&P Global Ratings Europe Ltd. (S&P)

Originator Collection Account Bank ABN AMRO Bank N.V.

Source: preliminary prospectus

44Appendix

Interest Priority of Payments1

1This is a simplified overview. Please refer to the Preliminary Prospectus for a full description of the Priority of Payments and of the Available Principal Funds2To be applied in Principal Waterfall, subject to certain conditions

=

Mortgage Loan Interest

Interest on Issuer Accounts

Cash Advance Facility drawings; if any

Reserve Account drawings, if any

Repurchase or sale proceeds (interest)

Post foreclosure proceeds, if any

Credit insurance proceeds (interest)

Prepayment penalties

Net foreclosure proceeds of mortgage

receivables (relating to interest)

Interest Rate Cap receivables

Additional Available Revenue Funds (principal to pay interest in certain conditions)

Additional Available Revenue Funds (principal to pay interest in certain conditions)

Senior expenses and servicing fee

Cash Advance Facility

Interest on the Class A

Replenishment of Class A PDL

Replenishment of Reserve Account

After FORD: Class A Excess Consideration

After FORD: Class A Additional Redemption Amounts2

Replenishment of Class B PDL

Repayment of Class C Notes (only after redemption of Class A & B)

Gross-up or additional amounts on the Cash Advance Facility

Deferred Purchase Price to Seller

Principal on Subordinated Loan

45Appendix

Principal Priority of Payments1

1This is a simplified overview. Please refer to the Preliminary Prospectus for a full description of the Priority of Payments and of the Available Principal Funds2 To be applied in the Revenue Waterfall3Up to the FORD only and subject to specific criteria identified by the Additional Purchase Conditions including a [1]% cap of the aggregate outstanding balance of

portfolio Mortgage Loans

=

Mortgage Loan principal repayments and prepayments

Credit insurance proceeds (principal)

Participation increase

Partial prepayments

After-FORD: Class A Additional Redemption Amounts

Net foreclosure proceeds of mortgage

receivables (relating to principal)

Repurchase / Sale of Mortgage Loans

Credits to PDL

Switched insurance savings participation (from conversion to

savings)

Available Principal Funds

Available Principal Funds

Class A Revenue Shortfall2

Purchase of Further Advance Receivables3

Principal on Class A Notes until fully redeemed

After Class A repaid: Class A Excess Consideration Revenue Shortfall Amount

Principal on Class B Notes until fully redeemed

46Appendix

Comparison Transactions

Deal Name SAECURE 161 Green Apple 2018-I NHG B.V Arena NHG 2016-I B.V DRMP II B.V. SAECURE 15

Summary deal info

Closing Date • [November 2018] • June 2018 • June 2016 • November 2016 • October 2014

Class A size • [∙] • 1,000,000,000 • 500,000,000 • 600,000,000 • 1,443,000,000

Offering • Reg S Only • Reg S Only • Reg S Only • Reg S Only • Reg S Only

Rating • [AAAsf / AAA (sf)] • AAAsf / Aaa (sf) • AAAsf / Aaa (sf) • AAAsf / Aaa (sf) • AAAsf / AAA (sf)

Issue price • [•]% • 101.10% • 100% • 100.45% • 100%

WAL • [4.1] years2 • 5.0 years • 4.9 years (Class A2) • 4.5 years • 5.3 years (Class A2)

Structural Features

Hedging• Cap strike at [2.5%]

• [15 years]

• Cap strike at 2.75%

• Up to FORD


• Up to FORD


• 10 years• Interest Rate Swap

Credit enhancement • [8%] • 12% • 20% • 13.5% • 8%

Excess Consideration• 3mE > [5.0]%

• Step-up margin

• 3mE > [5.0]%

• Step-up margin

• 3mE > [5.0]%

• Step-up margin

• 3mE > [5.0]%

• Step-up margin• Not applicable

Additional Amounts• Accelerated redemption on the

Class A Notes

• Accelerated redemption on the

Class A Notes

• Paid out as additional revenue to

the Class A Noteholders

• Paid out as additional revenue

to the Class A Noteholders• Not applicable

Pool characteristics

WA CLTIMV • [75.18%] • 75.27% • 85.51% • 81.51% • 89.35%

NHG • [10.38%] • 100% • 100% • 57.3% • 30.6%

WA interest rate • [3.33%] • 2.84% • 3.41% • 3.69% • 4.33%

Source: Preliminary prospectus SAECURE 16 and final prospectus other transactions, ConceptABS1Provisional2Based on CPR of 6% to FORD without defaults and delinquencies and no Further Advances/replacements, assuming the Notes being redeemed at FORD

47Appendix

Aegon NL mortgage lending organization

Product

Development &

Pricing

Develop mortgage

products

Determine price

of mortgage

products

Marketing and

Communication

Develop and

maintain

marketing

material

mortgages

Sponsorship,

press releases

and brand

advertising

Master Servicing

Payment to

investors

Reporting to

investors

Administrative

handling of

received loans

Structuring &

Arranging

Expand or adapt

existing funding

agreements

Securitization of

Mortgage Loans

Issuing of

Covered Bonds

Structuring of

whole loan

transactions

Capital &

Liquidity

Management

Determine funding

needs

Determine funding

strategy

Execute funding

strategy

Special

Servicing

Arrears servicing

Residual debt

servicing

Operations

Offer

Underwrite

Administer and

service

Complaint

handling

Payments

Distribution

Distribution / sales

of mortgage

products

Advise on

development of

mortgage

products

48Appendix

Underwriting (95 FTE) Servicing (146 FTE)External

Aegon NL underwriting process

Source: Aegon1Aegon only sells mortgages via brokers, which are carefully selected according to predetermined criteria and monitored regularly

Mortgage broker1

Preparation of proposals

Aegon front office

Review of proposals

Preparation and sending of

proposals

Aegon back office

Receipt of signed deeds

Transfer mortgage loans to back office systems

Transfer insurance policies to back office

systems

Handling of insurance policy changes

Handling of mortgage loan changes

98% pay via direct debit; 2% by bank transfer

Aegon mid office

Receipt of signed proposals

Verification of documents

(customer ID etc.)

Send documents to the

notary

Receive preliminary deeds

& settlements

49Appendix

Service providers(VCN, Financiële

makelaar, LNI)

Franchisers(Hypotheker,CMIS,

Hypotheekvisie)

Country-wide

operating entities(SNS, Vereniging

Eigen Huis, Univé)

Appointment based on:

• Possibility to do business in several branches (i.e. mortgages, life

insurances)

• Growth opportunities of firm

• Smaller offices are serviced via service providers

Monitoring quality:

• All offices are obliged to have a WFT1-certification

• Frequent contact between account management and mortgage brokers

• Monitoring first time right percentages on submitted proposals

• Brokers are paid by their customers, not by Aegon (provisieverbod)

Key notes:

Aegon NL only provides

mortgages via mortgage brokers

The top 25 Aegon NL mortgage

brokers provide 33% of total

production

In total there are approximately

2,500 Aegon NL mortgage

brokers

Mortgage brokers

1 ‘Wet op Financieel Toezicht’ is a Dutch law that serves to protect consumers and obliges financial service providers to meet criteria with regard to professional competence, financial security and clear and fitting advice.

50Appendix

Key mortgage loan products

Repayment

mortgage loans

Annuity mortgage loans

• Fixed monthly payments

Linear mortgage loans

• Principal component comprising an equal, fixed amount each month

Interest-only

mortgage loans

Interest-only mortgage loans

• Borrowers do not make any principal repayments until maturity

Savings mortgage loans

• Borrowers do not make any principal repayments but instead make

payments into a savings account with an insurance company or

bank

Life mortgage loans

• Borrowers do not make any principal repayments but have an

insurance policy, into which they pay a monthly premium, which is

either expected or guaranteed to repay (part of) the mortgage loan

at maturity

Investment mortgage loans

• Borrowers do not make any principal repayments but select an

investment policy, into which they pay a monthly premium, which is

expected (however not guaranteed) to repay the mortgage loan at

maturity

Savings mortgage

loans

Main mortgage products prior to January

1st 2013

Main mortgage products since January

1st 2013

51

Source: Aegon; “Een betaalbare hypotheek, nu en straks.” ; NIBUD, Affordability percentages, 2018

Loan affordability

Affordability tables provided by NIBUD For borrowers below 65 years of age

• Mortgage lenders closely follow the affordability recommendations

provided by National Institute for Budget Awareness (“NIBUD”)

- Independent Dutch foundation

- Promotes the rational planning of family finances

- Affordability tables are included in the Code of Conduct

• For each income bracket, the part of the gross income that can be

paid on a mortgage loan is calculated

- For example, a borrower with a gross income of EUR 61,000 and a

mortgage loan with an interest rate of 2.001% to 2.5% can use 23% of his

income on interest and principal repayments (based on a 30 year annuity)

• NIBUD’s calculations take into account household expenditures

(e.g. electricity, gas, water, local taxes, telephone/internet,

insurances, transport, school costs for children), other fixed costs

and reservation expenditure as well as tax aspects of a mortgage

loan

• Lenders can obtain other financial obligations of applicants in the

national credit register (“BKR”)

Percentage of gross income that can be used for mortgage loan payments

Mortgage loan rate

Gross Income 1.501%-2% 2.001%-2.5% … 3.001%-3.5% 3.501%-4%

20,500 11.50% 12.00% … 13.00% 13.50%

21,000 11.50% 12.00% … 13.00% 13.50%

21,500 12.50% 13.00% … 14.00% 14.00%

… … … … … …

55,000 20.50% 21.50% … 24.00% 25.00%

58,000 21.00% 22.50% … 24.50% 25.50%

61,000 21.50% 23.00% … 25.00% 26.50%

… … … … … …

75,000 23.00% 24.50% … 27.00% 28.50%

77,000 23.50% 24.50% … 27.50% 28.50%

79,000 23.50% 25.00% … 27.50% 29.00%

… … … … … …

96,000 24.00% 25.50% … 28.50% 30.00%

110,000 24.50% 26.00% … 28.50% 30.00%

Appendix

52

• A prepayment must have a minimum value of EUR 1,000

• Prepayments do not release the customer from its regular interest & principal payment obligations

• Conditions for penalty free prepayment

- Up to 10% annually of the original principal amount of each loan part

- Up to the WOZ valuation (only by own means, no refinancing)

- Mortgages using floating interest rates

- Full prepayment at prolongation or at interest rate reset date is allowed

- Full prepayment is allowed if current mortgage interest rate is equal to or higher than the contract interest rate

- Sale and delivery of the collateral

- Loss of collateral (e.g. due to fire)

- Decease of (one of the) debtor(s), provided that the prepayment is done within three months of the decease

- Prepayment through release of pledged prepayment insurance

- Prepayment of a bridge loan

Prepayment conditions

Appendix

General conditions

53

NHG mortgage loan guarantee

Appendix

• NHG (national mortgage loan guarantee) refers to the public

mortgage loan insurance scheme supporting home ownership in the

Netherlands

• Borrowers that benefit from an NHG guarantee will:

• Receive an interest rate discount varying between 5 - 65bps

depending on LTV

• Receive full or partial compensation for a mortgage loss caused by

a divorce, unemployment, occupational disability, decease or a non

culpable drop in income

• Pay an upfront fee of 100bps over the loan amount

• Mortgage lenders that apply for an NHG guarantee on behalf of their

clients are responsible for ensuring that the guarantee application

meets NHG conditions:

• If the NHG conditions are not satisfied, the mortgage lender may

not be fully covered by the guarantee

• WEW (Stichting Waarborgfonds Eigen Woningen) is the foundation

responsible for granting NHG guarantees (Aaa/AAA rating and stable

outlook in 2016 and 2017)

350

320

290265

245 245 245265

290

0

50

100

150

200

250

300

350

400

2011 2012 2013 2014 2015 2016 2017 2018* 2019**

EUR Thousands

Source: NHG Quarterly Reports* Maximum LTV in 2018 stands at EUR 281k for properties for which energy saving investments are made; **It is proposed by NHG to increase the maximum purchasing price for NHG eligibility to EUR 290,000 in 2019

Maximum purchasing price (NHG)

54

Stage 1: Day 20

Action: Automatic reminder

Appendix

Focus on foreclosure

60 120

Days in Arrears 6 Months

Continued on next page

Days in Arrears 6 Months

Stage 0: Day 1 & Day 15

Action: Automatic payment

(again on day 15

when failed)

Stage 3: Day 45

Action: Formal written demand and

risk based treatment (call,

email etc.) on part of files

Stage 2: Day 30

Action: Telephone collection list

Stage 4: Day 90

Action: Urgent arrears list

BKR registration

(National credit register)

Notify NHG (if

applicable)

Stage 5: Day 150

Action: Entire loan declared immediately due and payable

a) Induce a final attempt for voluntary paymentb) Allow time for drafting of legal documentsc) Begin foreclosure process

Stage 7: Post Sale

Action: Post sale review

Stage 6: Foreclosure Process

Action: Repossession and sale

Aegon’s collection procedure

Source: Aegon

55Appendix

Focus on foreclosure

Stage 5c

Begin foreclosure procedure

Gather recent income data and

perform affordability check

Stage 6

Sale process

Stage 7

Post saleUp to 1 Year1

Borrower

cooperation

decision

Joint voluntary sale

Foreclosure begins Notary appointed Sale type decision

Private sale

Auction

NHG to decide on

any remaining

claims2

Unsuccessful

Successful

Yes

No

NHG decision

Borrower is able to pay

Loan restructuring

Start sales process

Third party guarantor

NHGNon-NHG

Repossession & sale process

1This is the average total time from the first missed payment until the actual foreclosure data2 Lender is responsible for the first 10% loss

5656Thank you!

Thank you!

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SAECURE 16 October 2018 Investor Presentation · SAECURE 16 Investor Presentation October 2018....

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