FY 2019 RESULTS - Ageas 19... · 2020. 2. 19. · Highest full-year results ever –Proposed gross dividend of EUR 2.65/share Ageas Periodical financial information I FY 19 results

FY 2019 RESULTSPeriodical Financial Information

2

Slides used during analyst call 2

Segment information 18

Equity / Solvency 53

Investment portfolio 65

Legal Settlement 70

General Information 73

Content

Periodical financial information I FY 19 results I 19 February 2020

Main messagesHighest full-year results ever – Proposed gross dividend of EUR 2.65/share

Ageas

3Periodical financial information I FY 19 results I 19 February 2020

Best Group net result ever, driven by Non-Life operational performance & helped

by some one-offs in Asia

Solid sales momentum

5 targets reached – closing the gap on UL

Successfully placed 2 debt instruments that were multiple times oversubscribed

9th consecutive SBB announced in August ‘19 for EUR 200 mio

Record group net result leading to all time high dividend – up 20%

Commitments as a stakeholder driven company confirmed by signing PRI &

integrating the pledges in corporate governance charter

Capital management

Connect21

Results

Dividend

Ageas

Connect 21

4

5 out of 6 targets reached in 2019 – Closing the gap in UL


88 88

2018 2019

2528

2018 2019

94 95

2018 2019

215 217

2018 2019

€ 4.1

€ 5.1

2018 2019

+24%

€ 2.20 € 2.65

58%

50%

2018 2019

Proposed gross cash dividend of EUR 2.65/ share, up 20%

Ageas


Shareholderreturn

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 since '09

Paid dividend 188 197 188 270 309 329 338 417 407 416 490 4,039

Share buy-back executed 230 160 144 209 250 244 247 208 184 1,876

Capital reduction 223 223

Total returned to shareholders 188 427 348 637 518 579 582 664 615 600 490 6,138

0.80 0.80 0.80

1.201.40

1.55 1.65 1.70

2.10 2.20

2.65

0.40

2.9%

3.7%

4.7% 4.6%4.4%

5.0% 4.9%

5.3%5.1%

5.3% 5.0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

gross dividend / share additional dividend / share dividend yield

Belgium268

Belgium168

Belgium294

Belgium333

Belgium391

Belgium437

Belgium415

UK 82

UK 64

UK 50

UK 47

UK 44

CEU 36

CEU150

CEU53

CEU 19

CEU48

CEU85

CEU86

Asia52

Asia106

Asia43

Asia89

Asia77

Asia92

Asia87

8

paid dividend

416

HQ & RO expenses

132438

488

440

487 516

622 632

548

2013 2014 2015 2016 2017 2018 2019 2019

Ageas


EUR 632 mio upstreamed in 2019Dividend upstream

Upstream duringbased on net result of the year

before

In EUR mioBelgium main contributor of cash

Upstream more than covering dividend & holding costs on FY basis

Malay sia 16

Thailand 16

China53

India3

Portugal75

Turkey 11

508

841

289

262

12

(123)

809

979

FY 18 FY 19

Life Non-Life GA

In EUR mio In EUR bnIn EUR bn

Ageas

Headlines

7

In bps avg technical liabilities In bps avg technical liabilities

* incl. non-consolidated partnerships @ 100%

In % NEP

45

17488

6021

(132)

154102

Q4 18 Q4 19

28.4 29.2

5.9 6.7

34.4 35.9

FY 18 FY 19

Life Non-Life

5.6 5.7

1.4 1.7

7.0 7.3

Q4 18 Q4 19

94.3 95.0

FY 18 FY 19

92.0 95.8

Q4 18 Q4 19

88 88

FY 18 FY 19

75

109

Q4 18 Q4 19

25 28

FY 18 FY 19

2132

Q4 18 Q4 19

Net result Q4: solid despite negative RPN(i)

Non-Life combined ratio: better than 96% target

Inflows up another 9% in Q4 scope-on-scope

Life Technical liabilities up in conso (3% excl. shadow) & non-conso

Margin Guaranteed: Q4 supported by capital gains

Operating margin Unit-Linked: Belgium reaching target & improving in CEU

Highest full-year results ever


71.5 73.2 73.6

1.8 5.2 3.9

65.680.2 82.2

139.0

158.6 159.6

FY 18 9M FY 19

excl shadow shadow non-conso

4,146 4,526

2,0002,086

6,1466,612

FY 18 FY 19

Life Non-Life

6690

4332

109122

Q4 18 Q4 19

In bps avg technical liabilities In bps avg technical liabilitiesIn % NEP

Belgium


Headlines

In EUR mio In EUR mio In EUR bn

287 302

128 125

415 426

FY 18 FY 19

Life Non-Life

1,159 1,209

448 466

1,606 1,675

Q4 18 Q4 19

55.9 57.7 58.2

1.44.2 3.1

57.361.9 61.3

FY 18 9M 19 FY 19

excl shadow shadow

85 88

FY 18 FY 19

93.4 95.2

FY 18 FY 19 proforma

90.195.7

Q4 18 Q4 19 proforma

38 43

Q4 18 Q4 19

40 40

FY 18 FY 19

77

111

Q4 18 Q4 19

Life Technical Liabilities mainly up on Group Life & Unit-Linked

Inflows: continued strong growth across most business lines

Non-Life COR very strong vs. exceptionally good 2018

Operating margin Guaranteed: strong investment result in RE

Operating margin Unit-Linked: @ upper end of target range

Solid 2019 result – Strong Q4 net result driven by solid Life operating performance and capital gains

Net result: Strong result over the year with Q4 supported by higher capital gains

96.8 98.7


In EUR mio

UK


Headlines

In % of NEPIn EUR mio


87

69

FY 18 FY 19

25

3

Q4 18 Q4 19

94.2103.4


1,7751,728

FY 18 FY 19

400 402

Q4 18 Q4 19

Challenging motor market & continued strong Household performance

Net result impacted by Motor Inflows* stabilising in Q4 Non-Life combined ratio impacted by claims inflation & large losses

CEU


Headlines


45 36

49 73

24

118109

FY 18 FY 19

Life Non-Life Divestments

8 12

11

17

17

3629

Q4 18 Q4 19

4,152

1,803

1,275

1,441

5,428

3,244

FY 18 FY 19

Life Non-Life

990

374

324

398

1,314

771

Q4 18 Q4 19

92.4 91.2

FY 18 FY19 proforma

95.8 93.5


108 90

FY 18 FY 19

6596

Q4 18 Q4 19

911

FY 18 FY 19

2 16

Q4 18 Q4 19



Non-Life COR: Excellent operating performance

Operating margin Unit-Linked up in Q4 on improved expense margin

Solid result supported by strong Non-Life performance

Net result FY up 16% excludingthe sale of Luxembourg last year

15.7 15.6 15.4

0.4 1.0 0.8

16.1 16.5 16.2

FY 18 9M 19 FY 19

excl shadow shadow

Q4 inflows up 4% scope-on-scope, on strong Non-Life sales

Life Technical liabilities consolidated entities stable year-on-year

Operating margin Guaranteed FY down due to reserve strengthening in Q2

20,14222,834

884

1,43521,027

24,269

FY 18 FY 19

Life Non-Life

In EUR mio In EUR mio

In EUR bn

Asia


Headlines

In % NEP

*Incl. non-consolidated partnerships @ 100%

All growth rates are at constant FX

152

503

17

12

170

515

FY 18 FY 19

Life Non-Life

65.680.2 82.2

FY 18 9M 19 FY 19

89.1

102.7

Q4 18 Q4 19

90.7100.9

FY 18 FY 19

Exceptionally high FY results supported by tax benefits& financial markets

3,443 4,071225

391

3,6684,463

Q4 18 Q4 19

(46)

72

6

0

(41)

72

Q4 18 Q4 19

18.6 20.9

1.5

1.920.1

22.8

FY 18 FY 19

regular single

In EUR bn

Regular premium: strong growth -approx. 90% of Life inflows

3.1 3.60.3 0.43.4 4.1

Q4 18 Q4 19

Net result Q4 supported by capital gains & discount rate curve

Inflows* up 13% in Q4 - continued solid growth trend

Life Technical liabilities up 22%

Non-Life COR reflecting scope change with acquisition in India

Additional information on Ageas

non-consolidated partnerships in

Asia is available on the excel

spreadsheet published on Ageas’

website under quarterly results

(www.ageas.com/investors/quarterly-results)

https://www.ageas.com/investors/quarterly-results

In EUR mio

Reinsurance

Headlines

12

In % NEPIn EUR mio

ageas SA/NV

reinsurance activities


8

(16)

FY 18 FY 19

48

Q4 18 Q4 19

61

1,689

FY 18 FY 19

16

234

Q4 18 Q4 19

82.6103.9


64.5

121.5


Full-year net result reflecting ramp-up phase

Net result: Q4 reserve review offset higher claims experience in BE & UK

Inflows: EUR 209 mio in Q4 from new QS agreements

Q4 COR impacted by UK CY claims experience

Implementation of an internal reinsurance programme within ageas SA/NV in order to

enhance capital fungibility in the group

Non-Life Quota Share (QS) Treaties: 30% with AG Insurance in Belgium*, 30% with Ageas

Insurance Limited in the UK, and 20% with all Portuguese Non-Life Entities

Loss Portfolio Transfers (LPT): 30% with Ageas Insurance Limited in the UK, and 20% with the

Portuguese Non-Life Entities

Cession rates to move to 40% subject to formal approval by local boards (BE & POR)

The reinsurance protection programme now managed by ageas SA/NV (formerly Intreas)

The Pillar I Solvency II for ageas SA/NV amounted to 351%

* Of which 75% is underwritten by ageas SA/NV

Net result driven Q4 by RPN(i) reevaluationIn EUR mio

Value legacies – Settlement liability down on payments

Negative RPN(i) revaluation & higher costs on execution of

the Fortis Settlement

GA


Headlines

Total liquid assets up following debt issuance – down in Q1 20 on tender Fresh

In EUR mio

Neutral impact FY on P&L from RPN(i) Operating expenses up on execution Fortis Settlement

In EUR bn

In EUR mio

12

(123)

FY 18 FY 19

21

(132)

Q4 18 Q4 19

25 25

6276

87

101

FY 18 FY 19

Staff & Intercompany Operating

3 5

24 18

2724

Q4 18 Q4 19

89

(0)

FY 18 FY 19

32

(106)

Q4 18 Q4 19

In EUR mioIn EUR mio

Record upstream Opcos

599 632

FY 18 FY 19

(359)(253)

(359)

7 7 7

(812)

(607)(514)

FY 18 9M 19 FY 19

RPN(i) RPI Settlement

1.7 1.6

2.2

FY 18 9M 19 FY 19

Equity


Equity up on net result & positive impact of financial markets

In EUR mio

6,799 7,290

2,613

3,931

979

1,319 169

(416) (185) (45) (12)

EUR 48.42 EUR 58.89

9,411

11,221

FY 18 result changeUG/L

dividend treasuryshares

FX IAS 19 other FY 19

Shareholders’ equity

per segment Belgium 4,843 ► 5,135 Asia 2,354 ► 4,008

UK 896 ► 998 Reinsurance 116 ► 108

Continental Europe 1,220 ► 1,326 General Account (17) ► (354)

Shareholdersequity

Equity per share

Unrealised gains &

losses

Equity per segment

Solvency


Solvency up on debt issuance – Tender FRESH not yet included

Solvency IIageas

Solvency IIageas

in %

Own Funds

SCR

Non EU

Non-controlled

participations*

Belgium UK CEU Reinsurance GA eliminations Group

2.7 2.9 2.8

0.5 0.5 0.5 0.6 0.7 0.6

0.1 0.30.4 0.1 0.1

0.2(0.3) (0.5) (0.6)

3.7 4.0 4.0

2.43.0 3.2

6.46.1

6.3

0.8 0.8 0.9 1.0 1.0 1.1

0.1

0.6 0.7

1.31.0

1.5

(1.7) (1.6) (1.8)

8.0 7.9

8.6

5.8

7.1

7.7

FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19

235% 209% 221% 167% 168% 179% 178% 142% 170% 196% 188% 173% 215% 199% 217% 241% 238% 243%

* Based on local solvency requirements

2,1432,432

414

490171 423

672

(255)

(143)

(185)

(416)

2,557

2,92298

521

FY 18 Model changes MarketImpact

Operationalimpact

Exceptionalitems

Capitaltransactions

M&A Paid dividend FY 19

Free CapitalGeneration


Operational FCG of EUR 521 mio* over 2019

expected

dividend

Operational impact – includes EUR 98 mio dividend upstream Non-European NCP’s

Market: sharp drop in yield curve

Exceptional items: implementation new internal reinsurance agreements & Ogden

Capital transactions = call & issue debt instruments offseting SBB & injection in Asia

M&A: Acquisition in India* FCG Non-European NCP’s over

9M 2019 at EUR 827 mio -

Operational FCG at EUR 407 mio,

not included in EUR 521 mio

Based on 175% SCR

Solvency IIageas

Solvency IIageas

In EUR mio*


Conclusions

1. Record result supported by some exceptionals

2. Good sales momentum continued

3. Solid capital generation in challenging environment

4. Leading to all time high dividend


Content





Legal Settlement 70


Net result


Strong operational performance in Life

Belgium UK CEU Asia Reins. GA ageas

(123)

12

(123)

287 302

69 36 152

503 508

841

128 125

49 73

17

12

289

262

415 426

87 69 118 109

170

515

8

(16)

12

809

979

FY 18 FY 19 FY 18 FY 19 FY 18 FY 19 FY 18 FY 19 FY 18 FY 19 FY 18 FY 19 FY 18 FY 19

Non-Life

Life

In EUR mio

General Account

Strong Life result supported by capital gains; Solid Non-Life result

Result reflecting challenging Motor market

Strong Non-Life performance offseting lower Life performance (Luxembourg out of scope)

Exceptionally high result supported by contribution of cap gains & tax change in China

Suffering from ramp-up phase, bad weather in Belgium & large losses UK

Belgium

UK

CEU

Asia

Reinsurance

Inflows


Inflows* up 11% scope-on-scope

In EUR mio

EUR mio FY 18 FY 19 FY 18 FY 19 FY 18 FY 19

Belgium 75% 4,146 4,526 9% 2,000 2,086 4% 6,146 6,612 8%

United Kingdom - 1,775 1,728 (3%) 1,775 1,728 (3%)

Consolidated entities 100% - 1,388 1,375 (1%) 1,388 1,375 (1%)

Non-consolidated JV's 50% 387 353 (9%) 387 353 (9%)

Continental Europe 4,152 1,803 (57%) 1,275 1,441 13% 5,428 3,244 (40%)

Consolidated entities 1,849 1,803 (2%) 677 737 9% 2,526 2,540 1%

Portugal 51% - 100% 1,494 1,401 (6%) 677 737 9% 2,170 2,138 (1%)

France 100% 356 402 13% 356 402 13%

Non-consolidated JV's 2,303 599 704 18% 2,902 704 (76%)

Turkey (Aksigorta) 36% 599 704 18% 599 704 18%

Luxembourg (Cardif Lux Vie) 33% 2,303 2,303

Asia Non-consolidated JV's 20,142 22,834 13% 884 1,435 62% 21,027 24,269 15%

Malaysia 31% 863 979 13% 561 660 18% 1,424 1,638 15%

Thailand 31% - 15% 2,475 2,412 (3%) 323 380 18% 2,798 2,793 (0%)

China 25% 16,502 19,080 16% 16,502 19,080 16%

Philippines 50% 23 37 65% 23 37 65%

Vietnam 32% 47 81 70% 47 81 70%

India 26% - 40% 232 245 6% 395 232 640 176%

Insurance Ageas 28,441 29,163 3% 5,935 6,689 13% 34,375 35,852 4%

Reinsurance 61 1,689 61 1,689accepted from Consolidated entities 59 1,668 59 1,668

accepted from Non-consolidated partnerships 2 21 2 21

Life Non-Life Total

@ 100%

* Inflows excluding Luxembourg, divested in 2018 & India Non-Life acquired in 2019

Inflows


Strong growth* across all segments except in UK

3,110 3,394

1,176 1,181

5,227 5,907

9,513 10,482

1,500 1,565

1,582 1,552 892 990

222 261

4,196

4,367

+8%

-2%

+5%

+13%

+8%

4,610 4,959

2,068 2,171

5,449 6,168

13,709

14,849

61

1,689

FY 18 FY 19 FY 18 FY 19 FY 18 FY 19 FY 18 FY 19 FY 18 FY 19 FY 18 FY 19

Belgium UK CEU Asia Insurance Reins.

Non-Life

Life

In EUR mio

Strong growth in Life & Non-Life in a mature market

Volumes stabilising

Inflows up 5% scope-on-scope

Maintaining strong sales momentum

Inflows include one-offs related to ramp up phase & QS agreements

Belgium

UK

CEU

Asia

Reinsurance

@ ageas part

* Inflows excluding Luxembourg, divested in 2018 & India Non-Life acquired in 2019

Net realisedcap gains*


Higher support of realised capital gains in Europe & Asia

In EUR mio

FY 18 FY 19 Q4 18 Q4 19

Life 85 119 22 44 Quarterly cap gains

Non-Life 7 14 1 8 driven by RE

Belgium 92 133 23 52

UK 1 4 (1) 0

Life 8 9 2 2

Non-Life 2 2 0 0

CEU 10 11 2 2

Life (153) 133 (95) 33 Mainly IFRS cap gains

Non-Life (1) (6) (1) (5) on equities in China

Asia (154) 127 (96) 28

Reinsurance 0 4 0 0

Life (60) 261 (72) 80

Non-Life 9 18 (0) 3

General Account

& Eliminations

3 (5)

Total Ageas (49) 275 (72) 82

* Net capital gains include capital gains, impairments & related changes in profit sharing

(consolidated entitities), net of tax & @ ageas’s part – CEU JV’s not included

Ageas


Excellent in Household offset by Motor & A&HCombined ratio

Net earned premium (In EUR mio)

In % Net earned premium

Quarter

Increased CY claims experience in A&H and Motor

Combined ratio in UK suffering from challenging Motor

market

PY releases slightly up on a reserve review in reinsurance

Year-to-date

Continued strong operating performance thanks to

Household & Other lines

Motor up across all segments – extremely good

performance in 2018

CY ratio: up mainly on deterioration in UK Motor

64.3 64.4 62.267.0

59.7 58.5 59.7 55.761.0

34.0 35.2 34.734.1

35.5 35.8 35.336.3

34.8

98.3 99.696.9

101.195.2 94.3 95.0

92.095.8

(3.8) (4.0) (5.9)(3.0) (5.6)

(7.7) (8.4) (7.5) (9.5)

2013 2014 2015 2016 2017 FY 18 FY 19 Q4 18 Q4 19

claims ratio expense ratio PY claims ratio

3,749 3,843 4,038 4,112 4,148 3,890 3,894 961 1,007

Ageas


Combined ratio

70.0 67.3 65.4 67.5 64.8 67.4 70.3 63.371.8

25.6 27.0 28.3 27.2 27.5 25.4 26.025.4

26.5

95.6 94.3 93.7 94.7 92.3 92.8 96.388.7

98.3

2013 2014 2015 2016 2017 FY 18 FY 19 Q4 18 Q4 19

69.8 69.6 69.178.2

68.7 61.2 66.5 64.772.6

29.3 29.7 30.529.7

31.633.0

32.9 33.232.8

99.1 99.3 99.6107.9

100.394.2

99.4 97.9105.4

2013 2014 2015 2016 2017 FY 18 FY 19 Q4 18 Q4 19

51.5 51.5 50.4 50.5 43.8 51.8 46.1 41.3 41.7

44.0 44.6 41.6 42.745.1

44.844.6

44.5 41.8

95.5 96.1 92.0 93.2 88.996.6

90.785.8 83.5

2013 2014 2015 2016 2017 FY 18 FY 19 Q4 18 Q4 19

62.4 71.257.9 60.4

51.0 43.9 38.3 31.5 32.6

45.550.6

46.4 44.445.1

47.845.1

59.0 47.3

107.9

121.8

104.3 104.896.1 91.7

83.490.5

79.9

2013 2014 2015 2016 2017 FY 18 FY 19 Q4 18 Q4 19

Accident & Health: CY claims up in Belgium & UK Motor: Q4 large claims in Belgium & UK

Household: lower net expense ratio Other lines: lower expense ratio / small portfolio

NEP 394 385 424 418 410 356 359 72 88

Excellent performance in Household


NEP 813 813 811 838 884 871 930 226 245 NEP 1,557 1,616 1,724 1,790 1,782 1,636 1,623 409 415

NEP 986 1,029 1,078 1,067 1,072 1,028 982 254 259

Ageas


Guaranteed: on target - UL closing the gap

In bps Avg techn. liabilities

Operating margins

Life Unit-Linked

Quarter

Belgium above target level & improving in CEU

Year-to-date

Closing the gap with target

Life Guaranteed

Quarter

Higher financial results & capital gains

Year-to-date

Up on higher investment margin

13 1217

4 3 2 2 2 2(2)

2

1

2

(3)

18

6

18

19 2423

26 2230

28

20

36

2527

2528

21

32

2013 2014 2015 2016 2017 FY 18 FY 19 Q4 18 Q4 19

Operating margin

Expense & other m.

Investment m.

Underwriting m.

43 38 33 41 39 41 37 43 43

83 9080

88 96 89 9877

99

(31) (39)(23)

(36) (42) (42) (47) (45)(33)

96 89

90

9393 88 88

75

109

2013 2014 2015 2016 2017 FY 18 FY 19 Q4 18 Q4 19

Avg techn liabilities (In EUR bn)

54.0 55.5 56.9 57.9 57.3 55.9 55.9 56.6 55.9 57.0


11.8 12.3 12.6 13.0 12.1 15.1 15.7 16.0 15.7 16.4

4,146 4,526

2,0002,086

6,1466,612

FY 18 FY 19

Life Non-Life

6690

4332

109122

Q4 18 Q4 19


Belgium


Headlines


287 302

128 125

415 426

FY 18 FY 19

Life Non-Life

1,159 1,209

448 466

1,606 1,675

Q4 18 Q4 19

55.9 57.7 58.2

1.44.2 3.1

57.361.9 61.3

FY 18 9M 19 FY 19

excl shadow shadow

85 88

FY 18 FY 19

93.4 95.2


90.195.7


38 43

Q4 18 Q4 19

40 40

FY 18 FY 19

77

111

Q4 18 Q4 19

Life Technical Liabilities mainly up on Group Life & Unit-Linked

Inflows: continued strong growth across most business lines

Non-Life COR very strong vs. exceptionally good 2018

Operating margin Guaranteed: strong investment result in RE

Operating margin Unit-Linked: @ upper end of target range

Solid 2019 result – Strong Q4 net result driven by solid Life operating performance and capital gains

Net result: Strong result over the year with Q4 supported by higher capital gains

Life

Belgium

27

Net result & Life liabilitiesIn EUR mio


287 302 302

128125 113

415 426 414

FY 18 FY 19 FY 19 proforma

Life Non-Life

In EUR bn

6690 90

43

32 29

109122 119

Q4 18 Q4 19 Q4 19 proforma

Life Non-Life

55.9 57.7 58.2

1.44.2 3.1

57.361.9 61.3

FY 18 9M 19 FY 19

excl shadow shadow

Net result

Life technical liabilities

Solid Q4 performance supported by strong investment result

Quarter

• Strong Life results mainly supported by Real Estate returns

• Strong Non-Life result vs. exceptionally strong LY results in Motor and

Accident & Health

Year-to-date

• Improved result in Life with Non-life profitability vs. LY impacted by some

large claims

• The new internal reinsurance program contributed EUR 12 million to the

Non-Life net result

Year-to-date

Life technical liabilities (+4%), mainly explained by :

• Continued high growth in Group Life

• Unit-Linked (+20%) which continues to outperform within the Life retail

segment

Life

Belgium

28

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio


Significant increase in Savings & Group Life –Non-Life growth in all business lines

+4%

Non-Life

Life

Quarter

• Unit-linked – up 9%

• Guaranteed – increase driven by savings products in Bank channel

Year-to-date

• Unit-linked – Remains strong although slightly lower than the

exceptionally strong inflow of last year

• Guaranteed - Inflows increased in all channels especially in Bank

Channel (+25%) & in Group Life (+7%)

Quarter

• Continuing strong growth in almost all product lines

Year-to-date

• Strong inflows across all business lines with significant increase in

Accident & Health (+7%)

3,2813,718

865

808

+9%

4,1464,526

FY 18 FY 19

1,032 1,072

126 138

1,159 1,209

+4%

Q4 18 Q4 19

532 570

608 628

656678

205211

+4%

2,000 2,086

FY 18 FY 19

117 125

136 141

151 156

44 44448 466

Q4 18 Q4 19

Belgium


Combined ratio


Net earned premium (in EUR mio)

Solid operating performance

63.2 63.556.9 58.3

53.1 56.0 57.852.4

58.1

36.7 37.7

37.8 37.737.9

37.4 37.437.7

37.6

99.9 101.2

94.7 96.091.0 93.4 95.2

90.195.7

(3.6) (3.4)(7.2) (8.2) (7.7) (8.3) (8.3) (6.8) (7.7)

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma


The new internal reinsurance agreement has an important impact on

the combined ratio. For ease of comparability, the pro forma combined

ratio commented in this section excludes all impacts from this internal

reinsurance agreement.

Quarter

Higher claims experience driven by a few large claims in Motor &

A&H

Year-to-date

COR higher vs. 2018 due to negative claims experience in Motor

and A&H

Both years include usual weather events (≈3pp)

1,785 1,815 1,832 1,836 1,861 1,944 1,527 2,023 494 514

Belgium


Combined ratio

73.7 70.1 70.4 70.0 68.0 71.0 76.265.2

77.4

23.8 25.4 27.6 27.6 26.9 24.424.4

24.0

24.2

97.5 95.5 98.0 97.6 94.9 95.4 100.689.2

101.6

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma

64.7 62.6 56.2 59.7 58.0 55.3 60.3 56.364.6

36.3 37.236.4 36.4 36.8 37.3

37.337.4

37.3

101.0 99.8

92.696.1 94.8 92.6

97.6 93.7101.9

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma

51.4 51.7 43.9 47.8 38.649.3 46.3 40.2 41.5

45.6 45.745.2 44.8

45.646.6 46.6

47.2 47.2

97.0 97.489.1 92.6

84.295.9 92.9

87.4 88.7

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma

66.187.5

65.8 58.346.8 40.3 35.8 44.7 36.0

47.2

47.6

45.044.6

44.843.0 44.3

44.845.9

113.3

135.1

110.8 102.9

91.683.3 80.1

89.581.9

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma


Solid operating performance

Accident & Health: Q4 impacted by a few large claims Motor: Q4 impacted by a few large claims

Household: Exceptionally good FY COR Other lines : Excellent performance in Q4 & FY thanks to favourable

PY claims evolution (in TPL & Legal Protection)

NEP 507 504 484 472 481 522 562 135 146 NEP 552 562 568 570 578 596 614 152 156

NEP 564 579 595 605 609 621 640 156 161 NEP 162 170 185 190 193 206 207 51 51

Belgium


Operating marginsIn bps Avg techn. liabilities

4

(2)

1 1 1 1 1 1

38

32 31 3133

39 39 3742

41

30 32 3134

40 40 3843

2013 2014 2015 2016 2017 FY 18 FY 19 Q4 18 Q4 19

Operating margin

Investment m.

Expense & other m.

Underwriting m.

32 30 25 29 27 31 25 33 33

88 9588

91 94 91 100 83101

(31) (38)(27) (34) (36) (37) (37)

(39)(22)

89 8786

86 85 85 8877

111

2013 2014 2015 2016 2017 FY 18 FY 19 Q4 18 Q4 19


5.4 5.7 5.9 6.1 7.6 8.1 9.0 8.1 9.7


46.4 47.5 48.1 48.7 48.0 47.7 48.0 47.7 48.2

Guaranteed: supported by investment resultUL: at the high end of the group target range

Life Unit-Linked

Quarter

improved compared to Q4 2018 supported by higher

volumes & financial markets

Year-to-date

Margin at the upper end of the group target range

Life Guaranteed

Quarter

Operating margin up on higher net capital gains & higher net

underwriting result

Year-to-date

Operating margin increased thanks to higher capital gains in Real

Estate

FY 16 FY 17 FY18 FY19

Guaranteed interest rate 2.49% 2.32% 2.17% 1.95%

Fixed income yield 3.45% 3.34% 3.25% 3.06%

Liabilities Guaranteed (EUR bn) 52.9 50.4 49.1 51.5

FY 16 FY 17 FY 18 FY 19

Fixed income yield 1.71% 1.88% 1.96% 1.63%

Reinvested amount (EUR bn) 4.5 2.9 3.2 3.6

Newly invested money mostly in corporate bonds (non-financial sector), government

bonds & related loans and mortgage loans.

Belgium


Yield & guaranteed rate on back book down at the same pace

Evolution assets & liabilities

Back book

Life

New money

Life & Non-Life

Belgium


Average rate on back book decreasing in line with evolution yield fixed income

Evolution assets & liabilities

Back book

vs fixed

income

investments

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Liabilities guaranteed i-rate Existing bonds Existing guaranteed rates Book yield existing bonds

96.8 98.7


In EUR mio

UK


Headlines

In % of NEPIn EUR mio


87

69

FY 18 FY 19

25

3

Q4 18 Q4 19

94.2103.4


1,7751,728

FY 18 FY 19

400 402

Q4 18 Q4 19

Challenging motor market & continued strong Household performance

Net result impacted by Motor Inflows* stabilising in Q4 Non-Life combined ratio impacted by claims inflation & large losses

UK

35

Challenging Motor market, Household restored toprofitability – Q4 Inflows stabilise

Net result & Inflows

Other

Household

Accident & Health

Motor

Net result

Quarter:

Continued Motor market wide claims inflation & above average number of

large losses

Strong underlying Household result

Year-to-date:

Motor market wide claims inflation in H2 & above average number of

large losses

Strong Household performance

Benefit from Ogden rate change (EUR 30 mio) & internal reinsurance

agreement (EUR 20 mio) – EUR 17 mio restructuring costs

32 36

1,224 1,184

364 369

155 138

-3%

1,775 1,728

FY 18 FY 19

In EUR mio

Inflows*

Motor slightly down reflecting lower TU volumes and lower volumes from

focus on maintaining pricing discipline & partnership exits, offset by

continued strong Direct Aggregator growth

Household returned to growth supported by new intermediated scheme in

Q4

Other down reflecting planned run off in Special Risks & discontinued

MGA relationship in Commercial

* incl. non-consolidated partnerships @ 100% & @ constant exchange rate

25

3(1)


87

69

49


5 9

273 255

88 103

34 35

1%

400 402

Q4 18 Q4 19


UK

36

Q4 continued challenging Motor market partly offset by strong Household performance

Combined ratio


The new internal reinsurance agreement has an important impact on

the combined ratio. For sake of comparability of the performance the

pro forma combined ratio commented in this section excludes all

impacts from this internal reinsurance agreement.

Combined ratio

Market wide Motor claims inflation & Large losses partly offset by a

strong Household performance

Q4 Combined ratio Tesco Underwriting 94.0% (vs. 96.0%)

reflecting positive experience in Motor large bodily injury claims

Claims ratio

Q4 CY ratio: Principally driven by market wide Motor claims

inflation in a persistently low premium rate environment and large

losses; partly balanced by strong Household performance

Q4 PY ratio: Robust Motor & Household PY releases partly

balanced by less favourable Commercial large loss development

vs. strong Q4 18

Expense ratio

Q4 lower overhead cost & increased non-risk income

65.6 66.3 69.380.7

68.360.2 63.3

56.169.4

32.2 33.532.8

31.5

34.9

36.6

35.4

38.1

34.0

97.8 99.8 102.1

112.2

103.296.8 98.7

94.2

103.4

(4.0) (4.6) (4.4)

4.5(1.4)

(9.2)

(9.4)

(12.3)

(9.2)

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma




1,562 1,613 1,751 1,598 1,493 1,320 1,296 307 338

59.8 56.0 55.373.7 67.0

46.3 54.0

(22.1)

50.6

44.4 54.3 48.6

44.947.0

56.747.9

105.7

47.1

104.2 110.3103.9

118.6 114.0103.0 101.9 83.6

97.7

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma

71.9 74.6 75.891.0

75.063.7 72.1 69.9

83.7

25.0 25.1 27.2

25.5

27.629.7

29.4 29.8

28.6

96.9 99.7 103.0

116.5

102.693.4

101.5 99.7

112.3

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma

UK

37

Strong Household performance – Large losses & continuedincreased claims inflation impacting Motor market

Combined ratio

Motor: Claims inflation & above average number of large lossesAccident & Health: Small portfolio, marginal impact on total

Other: Legacy book exit Q418; lower Commercial PY in Q4 19Household: Supported by benign weather

76.266.0

55.8 58.4 56.1 57.8 60.2 61.6 68.4

34.338.7

43.3 40.9 46.7 51.4 54.3 55.255.0

110.5104.7

99.1 99.3 102.8109.2 114.5 116.8

123.4

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma

51.4 51.062.2 57.6 51.7 56.9

42.8 36.9 38.0

42.4 43.337.3 40.6

47.845.1

44.142.1 40.1

93.8 94.3 99.5 98.2 99.5 102.0

86.979.0 78.1

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma


NEP 79 71 72 39 30 30 34 7 10

NEP 374 399 413 361 341 309 289 74 76 NEP 202 185 204 185 175 137 142 19 35

NEP 907 958 1,062 1,014 947 844 831 208 216

CEU


Headlines


45 36

49 73

24

118109

FY 18 FY 19


8 12

11

17

17

3629

Q4 18 Q4 19

4,152

1,803

1,275

1,441

5,428

3,244

FY 18 FY 19

Life Non-Life

990

374

324

398

1,314

771

Q4 18 Q4 19

92.4 91.2

FY 18 FY19 proforma

95.8 93.5


108 90

FY 18 FY 19

6596

Q4 18 Q4 19

911

FY 18 FY 19

2 16

Q4 18 Q4 19



Non-Life COR: Excellent operating performance

Operating margin Unit-Linked up in Q4 on improved expense margin

Solid result supported by strong Non-Life performance

Net result FY up 16% excludingthe sale of Luxembourg last year

15.7 15.6 15.4

0.4 1.0 0.8

16.1 16.5 16.2

FY 18 9M 19 FY 19

excl shadow shadow

Q4 inflows up 4% scope-on-scope, on strong Non-Life sales

Life Technical liabilities consolidated entities stable year-on-year

Operating margin Guaranteed FY down due to reserve strengthening in Q2

CEU

39

Very strong Non-Life businessLife result impacted by one-offs



4536 36

49 73 73

24

118109 109



8 12 12

11

17 17

17

36

29 29


Net result

Quarter

• Life: strong net profit supported by high investment result –

EUR 17 mio contribution from Luxembourg in Q4 2018

• Non-Life : Continued strong operating performance – EUR 5 mio

contribution from Turkey – no impact from QS reinsurance

Year to date

• Life: net result impacted by reserve strengthening in Portugal’s Guaranteed

business related to low interest rate environment in Q2 –

EUR 24 mio contribution from Luxembourg in FY 2018

• Non-Life : strongly up thanks to improved claims ratio and higher volume

Life technical liabilities

• Stable despite the exit in Q3 of one large UL group contract in France

15.7 15.6 15.4

0.4 1.0 0.8

16.1 16.5 16.2

FY 18 9M 19 FY 19

excl shadow shadow

CEU

40

Strong increase in Life Guaranteed Business –High Non-Life growth in all product lines

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio

1,285 1,221

565 583

-2%

1,849 1,803

FY 18 FY 19

388 435

541613

230

269116

123

+13%

1,275

1,441

FY 18 FY 19

* Excluding Luxembourg Periodical financial information I FY 19 results I 19 February 2020

92 110

142179

61

7729

32

+23%

324

398

Q4 18 Q4 19

467

171

147

203

614

374

Q4 18 Q4 19

*

-39%

Life

Quarter

• Unit-linked – Strongly up due to new product launched in Portugal

and commercial focus on Unit-linked

• Guaranteed – Lower sales appetite for guaranteed business due to

low interest rates – Transition phase in Portugal with launch of new

product better suited to low yield environment

Year-to-date

• Unit-linked – Up 3% thanks to good Q4

• Guaranteed - Inflows down 5%, in a low interest rate environment

Non-Life

Quarter

• Excellent commercial performance in Turkey

• Continued strong sales in Portugal across all product lines

Year-to-date

• Up 19% at constant FX with strong contribution from both Portugal

and Turkey

63.7 61.355.9 58.6 59.2 62.7 60.5

65.3 62.0

30.030.8

29.530.1 31.2

29.7 30.730.5

31.5

93.7 92.185.4

88.7 90.4 92.4 91.295.8 93.5

(4.0) (4.3) (6.5) (6.5) (8.0)(2.9) (2.4)

0.8(2.1)

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma


CEU


Combined ratio



Combined ratio well below group target

403 415 454 664 768 594 657 152 172

The new internal reinsurance agreement has an important impact on the

combined ratio. For sake of comparability of the performance the pro

forma combined ratio commented in this section excludes all impacts

from this internal reinsurance agreement.

Quarter

Combined ratio of consolidated companies at 93.5%, reflecting a

continued excellent operating performance

Improved claims ratio thanks to more benign weather in Household

and higher PY releases in Motor

Combined ratio in Turkey at 97.3% vs. 106.7%

Year-to-date

Excellent combined ratio of consolidated companies at 91.2%

thanks to good claims experience in Accident & Health and

Household

Improved combined ratio in Turkey at 99.5% vs. 101.8%

59.7 61.9 58.8 64.9 61.4 62.5 63.0 60.7 62.4

26.6 26.7 25.225.1 26.8 24.8

26.025.3 27.2

86.3 88.684.0

90.0 88.2 87.3 89.0 86.0 89.6

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma

CEU

42

Combined ratio

79.360.1

71.5 65.5 70.4 68.0 67.2 69.1 68.4

29.2

31.6

32.332.5

35.0 35.336.6

35.9 38.1

108.5

91.7

103.898.0

105.4 103.3 103.8 105.0 106.5

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma

53.5 54.0

36.1 42.3 46.5 48.540.3

66.4

47.6

38.8 40.3

35.938.0

34.7 34.2 33.2

37.4

31.2

92.3 94.3

72.080.3 81.2 82.7

73.5

103.8

78.8

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma

59.6 72.3

31.712.1

3.9

72.6

28.3

122.4

42.3

43.745.1

40.8

41.339.2

41.5

42.4

43.7

45.8

103.3117.4

72.5

53.443.1

114.1

70.7

166.1

88.1

2013 2014 2015 2016 2017 FY 18 FY 19pro

forma

Q4 18 Q4 19pro

forma

Continued excellent operating performance

Other: very small & volatile portfolio


Accident & Health: Still excellent despite slightly higher costs Motor: Improved claims ratio offset by higher expenses

Household: Very good claims ratio - Limited impact of Elsa

storms in Q4 2019 vs higher impact of Leslie in Q4 2018

NEP 227 238 255 328 373 318 349 83 92 NEP 99 96 94 202 249 188 207 48 54

NEP 48 51 70 91 105 74 86 18 22 NEP 29 30 35 43 41 13 15 3 4

CEU


Operating marginsIn bps Avg techn. liabilities

Guaranteed margin down on reserve strengthening in Q2

In EUR bn

1 20 (1) (1)

(6)

(1)1

2 0 5 4 4 3 4

9 4 5

16

68

5

1310

7 7

21

911

2

16

2014 2015 2016 2017 FY 18 FY 19 Q4 18 Q4 19

Operating margin

Expense & other m.

Underwriting m.

Investment m.

95 100 110 111 99 105 102 99

77 5976

106

8091

4091

(102)(71) (65) (78) (71)

(106)(77) (93)

7088

121139

10890

65

96

2014 2015 2016 2017 FY 18 FY 19 Q4 18 Q4 19


7.7 8.0 8.7 7.9 8.1 8.6 8.1 8.8


6.2 6.1 6.0 7.5 7.6 7.0 7.6 6.7

Life Unit-Linked

Quarter

• Up on higher volume and better expense ratio

Year-to-date

Slightly up on strong Q4 performance

Life Guaranteed

Quarter

• Q4 margin strongly up thanks to higher investment results and despite

higher expense charges

Year-to-date

• Down on FY due to reserve strengthening in Q2

20,14222,834

884

1,43521,027

24,269

FY 18 FY 19

Life Non-Life

In EUR mio In EUR mio

In EUR bn

Asia


Headlines

In % NEP

*Incl. non-consolidated partnerships @ 100%


152

503

17

12

170

515

FY 18 FY 19

Life Non-Life

65.680.2 82.2

FY 18 9M 19 FY 19

89.1

102.7

Q4 18 Q4 19

90.7100.9

FY 18 FY 19

Exceptionally high FY results supported by tax benefits& financial markets

3,443 4,071225

391

3,6684,463

Q4 18 Q4 19

(46)

72

6

0

(41)

72

Q4 18 Q4 19

18.6 20.9

1.5

1.920.1

22.8

FY 18 FY 19

regular single

In EUR bn

Regular premium: strong growth -approx. 90% of Life inflows

3.1 3.60.3 0.43.4 4.1

Q4 18 Q4 19

Net result Q4 supported by capital gains & discount rate curve

Inflows* up 13% in Q4 - continued solid growth trend

Life Technical liabilities up 22%

Non-Life COR reflecting scope change with acquisition in India

Additional information on Ageas

non-consolidated partnerships in

Asia is available on the excel

spreadsheet published on Ageas’

website under quarterly results

(www.ageas.com/investors/quarterly-results)

https://www.ageas.com/investors/quarterly-results

Asia


Exceptionally high full year result thanks to solid operating performance, financial markets and tax benefit


152

503

17

12

170

515

FY 18 FY 19

Life Non-Life

(46)

72

6

0

(41)

72

Q4 18 Q4 19

65.680.2 82.2

FY 18 9M 19 FY 19

Quarter

• Life Result driven by :

− High level of capital gains (EUR 28 mio vs EUR -96 mio in Q418)

− Evolution of discount rate curve in China

• Non-Life result impacted by higher claims experience and

impairment of security investment

Year-to-date

• Exceptionally high result driven by:

− Strong Life operating performance

− Higher capital gains (EUR 127 mio vs EUR -155 mio FY18)

− Tax regime change in China

(Due to different product mix, tax benefit relating to 2019 booked in H2

significantly lower than retroactive tax benefit booked in H1)

− Evolution of discount rate curve in China

• Non-Life Result: adverse claims experience and security

impairment partly offset by cost management

• Life Technical liabilities driven by top line growth and high

persistency levels

Net result

Life Technical Liabilities

Asia

46

Growth in Life from new business and renewals –Non-Life inflows supported by all business lines

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio

19,25121,660

891

1,17420,142

22,834

FY 18 FY 19

407

744130

138

104

161

243

391

884

1,435

FY 18 FY 19

incl. non-consolidated partnerships @ 100%



Life

• Life gross inflows up 15% in Q4, driven by new business

growth and strong persistency

• New business premiums grew 22% in Q4

• Regular premium up 13% in Q4

Non-Life

• Scope-on-scope inflows up 12% in Q4, supported by all

countries and all business lines, especially Motor (+94%),

A&H (+47%) and Household (+9%)

• EUR 124 mio contribution from the newly acquired Indian

business in Q4

108

20925

37

35

38

57

107

225

391

Q4 18 Q4 19

3,2813,799

162

2723,443

4,071

Q4 18 Q4 19

India: newly acquired business in Non-Life

China: up 22% in Q4 driven by newbusiness & renewals

Thailand: Non-Life growth offsettingimpact of paid up policies in Life

2,497 3,105

Q4 18 Q4 19

Vietnam: continued rapid growth

Malaysia: up 12% in Q4, driven by Life &Non-Life

16,50219,080

FY 18 FY 19

Asia

47

Solid growth across the regionInflows per country In EUR mio

2,475 2,412

323 380

2,798 2,793

FY 18 FY 19

Non-Life Life

23

37

FY 18 FY 19


All growth rates are at constant FX Periodical financial information I FY 19 results I 19 February 2020

18 21

Q4 18 Q4 19

863 979

561660

1,424

1,638

FY 18 FY 19

Life Non-Life

232 245

395

232

640

FY 18 FY 19

Life Non-Life

56 53

125

56

178

Q4 18 Q4 19

510

Q4 18 Q4 19

47

81

FY 18 FY 19

216 252

144164

360416

Q4 18 Q4 19

Philippines: continued upward trend

650 629

81 103

731 732

Q4 18 Q4 19

In EUR mio

Reinsurance

Headlines

48

In % NEPIn EUR mio

ageas SA/NV

reinsurance activities


8

(16)

FY 18 FY 19

48

Q4 18 Q4 19

61

1,689

FY 18 FY 19

16

234

Q4 18 Q4 19

82.6103.9


64.5

121.5


Full-year net result reflecting ramp-up phase

Net result: Q4 reserve review offset higher claims experience in BE & UK

Inflows: EUR 209 mio in Q4 from new QS agreements

Q4 COR impacted by UK CY claims experience

Implementation of an internal reinsurance programme within ageas SA/NV in order to

enhance capital fungibility in the group

Non-Life Quota Share (QS) Treaties: 30% with AG Insurance in Belgium*, 30% with Ageas

Insurance Limited in the UK, and 20% with all Portuguese Non-Life Entities

Loss Portfolio Transfers (LPT): 30% with Ageas Insurance Limited in the UK, and 20% with the

Portuguese Non-Life Entities

Cession rates to move to 40% subject to formal approval by local boards (BE & POR)

The reinsurance protection programme now managed by ageas SA/NV (formerly Intreas)

The Pillar I Solvency II for ageas SA/NV amounted to 351%

* Of which 75% is underwritten by ageas SA/NV

94

373

1,009

213

61

1,689

FY 18 FY 19

Reinsurance

49

Significant one-off impacts Net result & Inflows

Portugal

UK

Former Intreas

Belgium

Quarter

• EUR 209 mio from the new quota share agreements

• EUR 25 mio from protection programme

Year-to-date

• EUR 873 mio from the new quota share agreements

• EUR 462 mio from the LPT

• EUR 259 mio from prior year unearned premiums in UK & Portugal

• EUR 94 mio from protection programme – strong growth thanks to a new

participation in India non-life and in Motor & Third Party Liability in the UK


Gross inflows

Quarter

• EUR 0 mio result from traditional protection programme formerly

managed by Intreas related to higher FY claims

• Positive reserve review offsetting negative impact from quota share

treaties in Belgium & UK

Year-to-date

• EUR 4 mio positive contribution from traditional protection programme

• EUR 16 mio loss from the QS treaty in Belgium due to bad weather &

prudent initial reserving for CY claims

• EUR 6 mio loss from the UK related to ramp up phase & claims inflation

partly offset by positive reserve review in Q4

• EUR 3 mio positive contribution from Portugal

25

81

94

35

16

234

Q4 18 Q4 19

8

(16)

4

FY 18 FY 19 pro forma

4

8

(0)

Q4 18 Q4 19 pro forma

In EUR mio

Net result

Net result driven Q4 by RPN(i) reevaluationIn EUR mio

Value legacies – Settlement liability down on payments

Negative RPN(i) revaluation & higher costs on execution of

the Fortis Settlement

GA


Headlines

Total liquid assets up following debt issuance – down in Q1 20 on tender Fresh

In EUR mio

Neutral impact FY on P&L from RPN(i) Operating expenses up on execution Fortis Settlement

In EUR bn

In EUR mio

12

(123)

FY 18 FY 19

21

(132)

Q4 18 Q4 19

25 25

6276

87

101

FY 18 FY 19

Staff & Intercompany Operating

3 5

24 18

2724

Q4 18 Q4 19

89

(0)

FY 18 FY 19

32

(106)

Q4 18 Q4 19

In EUR mioIn EUR mio

Record upstream Opcos

599 632

FY 18 FY 19

(359)(253)

(359)

7 7 7

(812)

(607)(514)

FY 18 9M 19 FY 19

RPN(i) RPI Settlement

1.7 1.6

2.2

FY 18 9M 19 FY 19

GA


Cash upstream covering paid dividend, holdcocosts & part of SBB

Cash position

In EUR mio

Upstream from operating companies more than covering paid dividend &

holding expenses

Successful issues of Restricted Tier 1 & Tier 2 bonds & loan to Belgian opco

M&A relates to India & capital injections in The Philippines

Additional EUR 28 mio cash-out for running SBB in Q1 2020

EUR 0.5 bn ring-fenced for Fortis settlement & EUR 0.5 bn ring-fenced for the

tender of the FRESH securities

≈ 600≈ 1000

settlement settlement

SBB SBB

FRESH1,713

2,192

(416)

(192)

(251) (103)

(184) (7)632

1029(29)

FY 18 Upstream Dividend Cap mgmt M&A Settlement HQ & ROexpenses

Sharebuy-back

Other FY 19

HQ

RO

GA


Two successful issuances of debt at holding level in 2019Outstandinghybrids

In EUR mio ageas SA/NV Ageasfinlux

Perp Fixed

Rate Reset

Temporary

Write-Down

Tier 1

Fixed-to-

Floating Rate

Callable

Tier 2

Fresh -65.50% tender

in Q1 2020

Tier 1

Fixed-to-Floating Rate

Callable

Tier 2

Fixed Rate Reset

Perpetual Subordinated

LoansTier 1

Fixed Rate Reset Dated Subordinated

Notes

Tier 2

CASHES

% 3.875% 3.25%3m EUR + 135

bps5.25% 6.75% 3.50%

3m EUR +200

bps

Amountoutstanding

750 500 1,250 450 550 USD 400 948

ISIN BE6317598850 BE0002644251 XS0147484074 BE6261254013 BE6251340780 BE6277215545 BE0933899800

Call date

June 2030 first reset date Reset to 5-yr

mid-swap rate +379.2 bps

July 2029Step up to 3M Euribor +380

bps

Undated, strike 315.0 mandatory

472.5

June 2024

Step up to 3M

Euribor +413

bps

Mar 2019

Step up to 6yr

USD swap +

533 bps

June 2027

Step up after 12

years of 100bps

Undated,

strike 239.4,

mandatory

359.1

Other Public issue Public issue

Subscribed by

Ageas & BNP

Paribas Fortis

Public issue Public issue

Coupon served

by FBB, trigger

ACSM linked to

Ageas dividend

Market Price (31/12/19)

103.39 111.23 61.54 114.54 113.89 81.55

Fortis Bank (now BNPPF)

AG Insurance (Belgium)


ContentSlides used during analyst call 2




Legal Settlement 70


Equity


Equity up on net result & positive impact of financial markets

In EUR mio

6,799 7,290

2,613

3,931

979

1,319 169

(416) (185) (45) (12)

EUR 48.42 EUR 58.89

9,411

11,221

FY 18 result changeUG/L

dividend treasuryshares

FX IAS 19 other FY 19

Shareholders’ equity

per segment Belgium 4,843 ► 5,135 Asia 2,354 ► 4,008

UK 896 ► 998 Reinsurance 116 ► 108

Continental Europe 1,220 ► 1,326 General Account (17) ► (354)

Shareholdersequity

Equity per share

Unrealised gains &

losses

Equity per segment

Equity


Debt leverage up on issue EUR 750 mio Tier 1Tangible net equity

I page 55

* Leverage calculated as

(Subordinated liabilities + Senior

debt) / (Tangible net equity +

Subordinated liabilities + Senior

debt)

In EUR mio

FY 18 FY 19

IFRS Shareholders' Equity 9,411 11,221

Unrealised gains real estate 649 674

Goodwill (602) (614)

VOBA (Value of Business Acquired) (73) (58)

DAC (Deferred Acquisition Cost) (408) (425)

Other (423) (531)

Goodwill, DAC, VOBA related to N-C interests 331 381

Tax adjustment DAC, VOBA & Other 146 161

IFRS Tangible net equity 9,031 10,810

IFRS Tangible net equity/ IFRS Shareholder's Equity 96% 96%

Debt leverage on tangible net equity * 20.2% 22.4%

pro forma after tender FRESH 17.1%

Solvency



Solvency IIageas

Solvency IIageas

in %

Own Funds

SCR

Non EU

Non-controlled

participations*

Belgium UK CEU Reinsurance GA eliminations Group

2.7 2.9 2.8

0.5 0.5 0.5 0.6 0.7 0.6

0.1 0.30.4 0.1 0.1

0.2(0.3) (0.5) (0.6)

3.7 4.0 4.0

2.43.0 3.2

6.46.1

6.3

0.8 0.8 0.9 1.0 1.0 1.1

0.1

0.6 0.7

1.31.0

1.5

(1.7) (1.6) (1.8)

8.0 7.9

8.6

5.8

7.1

7.7

FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19

235% 209% 221% 167% 168% 179% 178% 142% 170% 196% 188% 173% 215% 199% 217% 241% 238% 243%


Solvency II


Expected dividend covered by positive impact from operations

Solvency IIageas

Impact on Solvency IIageas* FY ’18 FY ’19

215 217%

9M ’19 FY ’19

199% 217%

Debt initiatives +23 pp Call in Q1 / Issuances in Q2 & Q4 +18 pp

Model refinements + 6 pp Mainly correction minority interest treatment +1 pp

Market movements

& RPN(i)

- 11 pp

+0 pp

Mainly yield curve +4 pp

-3 pp

Internal reinsurance & Ogden - 4 pp LACDT, diversification & Ogden - 1 pp

Operational +14 pp +3 pp

Acquisition India - 5 pp Outside Solvency II scope -

SBB - 5 pp - 1 pp

Expected dividend - 13 pp - 2 pp

* Impact including secondary impact, diversification & non-transferable

2,1432,432

414

490171 423

672

(255)

(143)

(185)

(416)

2,557

2,92298

521


Operationalimpact

Exceptionalitems

Capitaltransactions




Operational FCG of EUR 521 mio* over 2019

expected

dividend

Operational impact – includes EUR 98 mio dividend upstream Non-European NCP’s

Market: sharp drop in yield curve

Exceptional items: implementation new internal reinsurance agreements & Ogden

Capital transactions = call & issue debt instruments offseting SBB & injection in Asia

M&A: Acquisition in India

Based on 175% SCR

Solvency IIageas

Solvency IIageas

In EUR mio*

* FCG Non-European NCP’s over

9M 2019 at EUR 827 mio -

Operational FCG at EUR 407 mio,

not included in EUR 521 mio



Evolution SCR & OF split between types of impact Solvency IIageas

Own Funds

SCR

7,9998,634

414

490

96

56 490

696

(25)

(185)(416)8,412

9,124


Operationalimpact

Exceptionalitems

Capitaltransactions


3,728

3,973

224

67

14

(50)

(10)


Operationalimpact

Exceptionalitems

Capitaltransactions


In EUR mio



Operational FCG driven by Belgium – negative impact from claims experience in UK

Operational Q

OF SCR FCG FCG

Belgium 578 (27) 626 199 strong & steady OF generation

UK 11 20 (24) (41) impacted by claims experience

CEU 184 (0) 184 123 driven by operating performance

SCR Q4 lower on shift in product mix away from Savings

Reinsurance 7 32 (48) (31) SCR up on build-up of accepted risks

OF impacted by claims experience

General Account (61) 8 (74) (29)

Group eliminations (231) (42) (143) (91) Q4 strong OFCG in BE & MBCP

Total Ageas 490 (10) 521 130 FY including dividend NCP's

Solvency II scope

Operational YTD

In EUR mio

Solvency IIageas

Solvency

61

High Solvency ratio providing resilience against market or other external evolutions

Solvency IIageas

sensitivities

As per 30/09/19

SCR OF Solvency

Base case Before stress 3,996 7,935 199%

Yield curve Down 50 bps 4,106 7,819 190%

Up 50 bps 3,887 7,996 206%

Equity Down 25% 3,951 7,641 193%

Property Down 10% 4,057 7,655 189%

Spread* Spreads on corporate & government bonds up 50 bps 3,993 7,630 191%

Corporate spread Up 50 bps 3,967 7,832 197%

Sovereign spread Up 50 bps 4,027 7,733 192%

UFR – base case 4.05% Down 15 bps 3,999 7,926 198%

Down 45 bps 4,018 7,881 196%

* Spread sensitivity doesn’t take into

account any credit rating movement


Solvency



PIM

Solvency II PIM

in %

Own Funds

SCR


** minority interest of not-fully owned

subsidiaries are equal to minority

interests exceeding contribution to group

SCR

In EUR bn

Belgium UK CEU Reinsurance GA eliminations** Group Non EU

Non-controlled

participations*

222% 181% 185% 169% 161% 172% 288% 246% 274% 191% 185% 170% 216% 193% 203% 241% 238% 243%

2.83.3 3.2

0.5 0.5 0.5 0.5 0.5 0.50.1 0.4 0.4

0.1 0.1 0.2 (0.3)(0.6)(0.6)

3.74.2 4.3

2.43.0 3.2

6.35.9 5.9

0.9 0.8 0.91.4 1.3 1.4

0.10.6 0.7

1.31.0

1.5

(1.9)(1.7)(1.7)

8.1 8.18.7

5.8

7.17.7

FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19 FY 18 9M19

FY 19

Solvency

63

Ageas asset mix not in line with EIOPA reference portfolio

PIMsensitivities

As per 30/09/19

SCR OF Solvency

Base case Before stress 4,182 8,060 193%

Yield curve Down 50 bps 4,255 7,986 188%

Up 50 bps 4,102 8,094 197%

Equity Down 25% 4,125 7,763 188%

Property Down 10% 4,213 7,803 185%

Spread* Spreads on corporate & government bonds up 50 bps 4,382 7,447 170%

Corporate spread Up 50 bps 4,073 8,049 198%

Sovereign spread Up 50 bps 4,556 7,441 163%

UFR – base case 4.05% Down 15 bps 4,184 8,050 192%

Down 45 bps 4,194 8,005 191%

* Credit rating movement not taken

up in spread sensitivity


( 1.4 ) ( 1.5 ) ( 1.5 )

( 1.0 )( 1.2 ) ( 1.0 )

( 0.9 )( 0.8 ) ( 0.8 )

4.4 4.9 4.8

0.4 0.4 0.4 0.6

0.8 0.8 0.3

0.4 0.3 0.7

0.8 0.8 0.5

0.5 0.5 3.7

4.2 4.3

FY 18 9M 19 FY 19

Non Diversifiable

Non-life UW

Health UW

Life UW

Counterparty Default

Market

Loss-Absorption Deferred Taxes

Loss-Absorption Techn. Liab.

Diversification

Solvency


Composition of SCR & OFComposition of SCR & OF

Diversification

Loss-Absorption Deferred Taxes

Insurance SCRageas per risk type

Market risk main factor in SCR

Tiering of Group PIM own funds

Tier 2 up on overflow EUR 750 mio debt issue

5.6 5.6 5.5

1.4 1.3 1.4

1.0 1.0 1.7

0.1 0.1 0.1

8.1 8.1 8.7

FY 18 9M 19 FY 19

Tier 3

Tier 2

Tier 1 restricted

Tier 1

In EUR bn


Content





Legal Settlement 70


Investment portfolio


Investment portfolio up on higher UG/L

* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs

Gross UG/L on

Available for Sale

Gross UG/L on Real

Estate

Gross UG/L on Held

to Maturity

Sovereign bonds 36.9

Sovereign bonds 38.4

Corporate bonds 19.9

Corporate bonds 20.8

Structured0.1

Structured0.1

Loans9.7

Loans11.1

Equities 4.5

Equities 4.6Real Estate

5.6

Real Estate5.6

Cash 2.9

Cash 3.779.6

84.3

FY 18 FY 19

Total portfolio: up to EUR 8.7 bn (vs. EUR 5.9 bn)

Fixed income: up to EUR 7.9 bn (vs. EUR 5.6 bn)

° Sovereigns at EUR 6.4 bn (vs. EUR 4.6 bn)

° Corporates at EUR 1.5 bn (vs. EUR 1.0 bn)

Equities: up to EUR 0.8 bn (vs. EUR 0.4 bn)

at EUR 1.9 bn

• not reflected in shareholders’ equity

Up to EUR 2.4 bn (vs. EUR 1.9 bn)

• not reflected in shareholders’ equity

Ageas Group has joined the commitment to incorporate ESG issues into its investment analysis

and decisions and signed on behalf of all its consolidated entities the UN PRI

In EUR bn



Value fixed income assets up on higher UG/L


Corporate bond

portfolio*

Belgium18.0

Belgium18.5

France 6.3 France 6.3

Austria 2.6 Austria 2.6Portugal 2.4 Portugal 2.7

Spain 1.8Spain 2.2Italy, 1.2Italy, 1.5Germany 1.2

Germany 1.2Ireland 0.5Ireland 0.5Other 2.9

Other 2.736.9

38.4

FY 18 FY 19

Banking 3.1 Banking 3.0

Other financials 2.1

Other financials 2.4

Non Financials

11.2

Non Financials

12.3

Government related 3.4

Government related 3.1

19.9 20.8

FY 18 FY 19

Gross UG/L up to EUR 6.4 bn (vs. EUR 4.6 bn)

Over 99% investment grade; 89% rated A or

higher

Belgium duration gap close to zero – matched

portfolio


Credit quality remains high with 91%

investment grade - 52% rated A or higher

Sovereign bond

portfolio*

In EUR bn



In EUR bn


Equity portfolio*

Loan portfolio

(customers & banks)*

Other: mostly government related loans

benefiting from an explicit guarantee by

the Belgian regions or the French State


Equities 2.2 Equities 2.4

Equity funds0.3

Equity funds0.5

RE funds 0.9RE funds 0.9

Mixed funds & others 1.1

Mixed funds & others 0.8

4.54.6

FY 18 FY 19

Loans to banks0.9 Loans to

banks 0.6

RE 0.1 RE 0.2

Infrastructure0.9

Infrastructure1.1

Mortgages 1.2 Mortgages 1.2

Other 6.6

Other 8.0

9.7

11.1

FY 18 FY 19



Real Estate exposure mainly in Belgium


Real estate portfolio* Gross UG/L at EUR 1.9 bn (not reflected

in shareholders’ equity but contributing to

available capital for solvency calculation)

In EUR bn

Investment Offices 2.4

Investment Offices 2.6

Car Parks1.2

Car Parks1.3

Investment Retail 1.3

Investment Retail 1.2

0.30.3

0.4 0.3

5.6 5.6

FY 18 FY 19


Content





Legal Settlement 70


Legal


Settlement in full execution mode

Ageas offers to pay EUR 1.2 bn compensation – additional effort of EUR 0.1 bn announced

16/10/2017

Cash impact of EUR 1.0 bn

No recognition of any wrongdoing by Ageas

Commitment by eligible shareholders to abandon any ongoing civil proceeding & not to start

any legal proceeding related to the events

Publication of binding declaration notice on 27/07/2018 launched execution of the settlement

Early filing & opt-out period ended on 31/12/2018

Limited number of opt-outs received for ≈1% of total settlement amount

Computershare Investor Services plc acting as independent claims administrator

Further information available on www.FORsettlement.com

≈290K claims received of which ≈216K have received early payment

End of 2019 ≈EUR 702 mio compensation paid to eligible shareholders of which EUR 140 mio

coming from D&O insurers – Additional ≈EUR 23 mio paid in January 2020

Due to higher than expected number of claims, dilution likely in certain cases

70% of estimated per share compensation guaranteed for claimants filing before 31/12/2018

Claims validation and payments to continue in 2020

Announcement

14/03/2016

Court’s decision to declare the settlement binding on 13/07/2018

Binding declaration and

claims filing period

Claims validation &

payments ongoing

Claims filing ended on 28/07/2019

http://www.forsettlement.com/

Legal


Proceedings related to the past that remain outstanding

Administrative proceedings

Criminal investigation

Civil proceedings

Other proceedings

None

Public prosecutor has announced discontinuation of proceeding

Public prosecutor has sent his proposal to Chambre du Conseil on referral

Written submissions to be exchanged

Hearing session before the Chambre du Conseil scheduled on 8 and 9 June 2020

Opt-out cases from settlement

Limited number of opt-outers for ≈1% of settlement amount

Patrinvest: first instance in favour of Ageas, appeal filed by plaintiff

Mr. Modrikamen: suspended awaiting outcome criminal procedure

Mr. Bos (Kortekaas): pleading session took place on 3 February 2020, case

suspended awaiting outcome negotiations.

MCS: Appeal Court ruled in favour of Ageas, appellants filed appeal before Supreme

Court






Legal Settlement 70


Outstandingshares


Reclassification of 2.6 mio treasury shares following tender on the FRESH securities

* After deduction of shares for management plans

*

Total Issued Shares

Shares not entitled to dividend nor voting rights

1. TREASURY SHARES Share buy-back

FRESH

Other treasury shares

2. CASHES

Shares entitled to dividend & voting rights

situation 31/12/2018 situation 31/12/2019 situation 14/02/2020

203,022,199 198,374,327 198,374,327

12,574,985 11,747,866 12,292,605

4,647,872 3,820,753 4,365,492

3,968,254 3,968,254 1,369,048

0 0 2,599,206

3,958,859 3,958,859 3,958,859

190,447,214 186,626,461 186,081,722

Shareholdersstructure


Ageas4.2%

Ping An

BlackRock, Inc.

Schroders

FosunIdentified retail

investors22%

Identified institutional investors

44%Other

investors14%

Based upon press release 17 February 2020

Based upon the number of shares mentioned in the notification received 6 May 2013

Based upon the number of shares mentioned in the notification received 4 February 2020

Based upon the number of shares mentioned in the notification received 8 June 2018

Based upon the number of shares mentioned in the notification received 16 May 2019

Estimate by

Estimate by

Ageas

Ping An

BlackRock, Inc.

Schroders

Fosun

Identified retail investors

Identified institutional investors

Financial calendar


19 February

FY 2019 results

13 May

3M 2020 results

20 May

Ordinary shareholders’ meeting

Brussels

2 June

Ex-dividend date

3 April

Annual report 2019 4 June

Payment 2019 dividend

7 August

6M 2020 results

13 November

9M 2020 results

Ratings


S&P MOODY'S FITCH

Operating entities AG Insurance (Belgium) A / positive A2 / stable* A+ / positive

Last change 21/11/19 13/12/19 20/11/19

unsollicited

Ageas Insurance Limited A / positive A+ / positive

Last change 21/11/19 20/11/19

Muang Thai Life BBB+ / Positive A- / stable

Last change 12/12/19 01/04/19

Etiqa Insurance Berhad (Malaysia) A / stable

Last change 11/04/19

China Taiping Life A+ / stable

Last change 22/03/19

Holding ageas SA/NV A / positive A3 / stable* A+ / positive

Last change 21/11/19 13/12/19 20/11/19

unsollicited

* Ageas has requested in early 2009 that this rating should be withdrawn. Ageas no longer participates in Moody's credit rating process.

Ageas does not provide, for purposes of Moody's rating, access to the books, records and other relevant internal documents of these rated entities.


Certain of the statements contained herein are statements of

future expectations and other forward-looking statements that are

based on management's current views and assumptions and involve

known and unknown risks and uncertainties that could cause actual

results, performance or events to differ materially from those

expressed or implied in such statements. Future actual results,

performance or events may differ materially from those in such

statements due to, without limitation, (i) general economic conditions,

including in particular economic conditions in Ageas’s core markets,

(ii) performance of financial markets, (iii) the frequency and severity

of insured loss events, (iv) mortality and morbidity levels and trends,

(v) persistency levels, (vi) interest rate levels, (vii) currency exchange

rates, (viii) increasing levels of competition, (ix) changes in laws and

regulations, including monetary convergence and the Economic and

Monetary Union, (x) changes in the policies of central banks and/or

foreign governments and (xi) general competitive factors, in each

case on a global, regional and/or national basis. In addition, the

financial information contained in this presentation, including the pro

forma information contained herein, is unaudited and is provided for

illustrative purposes only. It does not purport to be indicative of what

the actual results of operations or financial condition of Ageas and its

subsidiaries would have been had these events occurred or

transactions been consummated on or as of the dates indicated, nor

does it purport to be indicative of the results of operations or financial

condition that may be achieved in the future.

Investor Relations

Tel:

E-mail:

Website:

+ 32 2 557 57 32

[email protected]

www.ageas.com

Documents

FY 2019 RESULTS - Ageas 19... · 2020. 2. 19. · Highest full-year results ever –Proposed gross dividend of EUR 2.65/share Ageas Periodical financial information I FY 19 results