A.M. Best Comments on AEGON's Proposed Acquisition of Merrill Lynch Life Insurance Companies

Business Wire, August 15, 2007

OLDWICK, N.J. -- A.M. Best Co. has commented that the financial strength rating of A (Superior) and the issuer credit ratings of "aa" of AEGON N.V.'s (AEGON) [NYSE: AEG] life/health subsidiary companies in the United States remain unchanged, following the announcement that it intends to acquire Merrill Lynch Life Insurance Company (Little Rock, AR) and ML Life Insurance Company of New York (New York, NY) (together known as Merrill Lynch Life) for USD 1.3 billion in cash. AEGON is a leading multinational insurance organization based in The Hague, the Netherlands. Pending regulatory approval, the transaction is expected to close before year end. AEGON's U.S. life/health companies are collectively referred to as AEGON USA, which is part of AEGON Group.

The acquisition provides AEGON's U.S. operations a strategic distribution relationship with Merrill Lynch & Co., Inc.'s [NYSE: MER] sizable network of financial advisors and presents opportunities for future product development, as well as greater sales penetration through the wirehouse/broker-dealer channel. The purchase price--which includes the surplus of Merrill Lynch Life--will be sourced internally. Although the net purchase price represents roughly 10% of AEGON's U.S. statutory surplus, A.M. Best does not expect the risk-adjusted capitalization of the life/health entities to change materially from their present levels.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.