S&P Affrms AA+ Rtgs on Scottish Equitable;Otlk Stable.

Business Editors

LONDON--(BUSINESS WIRE)--Standard & Poor's

May 22, 2001-- Standard & Poor's today affirmed its double-'A'-plus counterparty credit and insurer financial strength ratings on Scottish Equitable PLC. The outlook is stable. [pilcrow (paragraph sign)] The ratings primarily reflect the company's strategic importance to the Netherlands-based life insurance group AEGON (the main operating companies of which are rated 'AA+'). The ratings are also based on Scottish Equitable's very strong position in the U.K. independent financial advisor (IFA) pensions market and its strong operating performance. Capitalization is expected to remain consistent with the rating, based on the commitment of AEGON. An offsetting factor is the challenge posed by industry developments, which may expose the company's current high reliance on pensions products and IFA distribution.

Major rating factors:

-- Standard & Poor's views Scottish Equitable as strategically important to AEGON. This reflects its focus on business core to the

AEGON Group, its contribution to group results, and its size.

-- Scottish Equitable is a leading provider of pension products in the U.K., and, marketing exclusively through IFAs, is a recognized specialist in both individual and group schemes. Scottish Equitable is the second-largest IFA pensions office in the U.K., with a share in excess of 14% of the IFA pensions market.