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9M Periodical Financial
Information
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Strong Insurance results across Life & Non-Life in all segments Group net result both Insurance & General Account contributing Shareholders’ equity up Solvency further up
Insurance net profit of EUR 450 mio Inflows at EUR 15.5 bn (+20%)
Group combined ratio at 97.9% (vs.100.2%)
Life FuM at EUR 67.8 bn (+5%)
Q3 Insurance net profit of EUR 147 mio Q3 Inflows at EUR 4.6 bn
Group net profit of EUR 518 mio
General Account net result of EUR 69 mio
Shareholders’ equity at EUR 40.89 per share
Insurance solvency at 214%, Group solvency at 254%
Net cash position General Account at EUR 1.4 bn
* All figures compared to 9M 11 unless mentioned otherwise
Main messages 9M 12 results* Ageas confirms strong insurance results
Periodic Financial Information I 9M 12 Results I 7 November 2012 2
100.2% 97.9%
9M 11 9M 12
Insurance net result: 2011 heavily impacted by impairments In EUR mio In EUR mio
Insurance solvency further up* Combined ratio further improving in claims & expenses
Insurance excl. impairments & cap gains: improving Life & Non-Life
227%
Shareholders’ equity up on net profit & unrealized gains EUR per share
210%
* Based on regulator’s view / ** pro forma recalculation for reverse 10 to 1 stock-split
207% 207% 214%
FY 11 9M 12
32.3040.89
FY 11 9M 12
Both insurance & General Account contributing to group net result In EUR mio
(209)
450
(325)
69
(534)
518
9M 11 9M 12
Insurance General Account
Headlines Ageas confirms strong insurance results
Periodic Financial Information I 9M 12 Results I 7 November 2012
(288)
293
57
143
23
13
(209)
450
9M 11 9M 12
Life Non-Life Other
3
233 282
7911923
13334414
9M 11 9M 12
Life Non-Life Other
**
Key financials 9M 12 Y-o-Y comparison net result difficult, all ratios improving
10/03/2010 I page 4
Periodic Financial Information I 9M 12 Results I 7 November 2012 4
EUR mio 9M 12 9M 11 Q3 12 Q3 11 Q2 12
Gross inflows 15,465 12,884 4,649 3,891 5,164 - of which inflows from non-consolidated partnerships 7,283 4,460 2,171 1,380 2,281
Net result Insurance 450 (209) 147 (320) 148By segment: - Belgium 216 (331) 73 (354) 66 - UK 86 62 35 31 34 - Continental Europe 49 (12) 15 (15) 16 - Asia 99 72 24 18 31By type: - Life 293 (289) 88 (340) 80 - Non-Life 143 57 54 9 63 - Other 13 23 6 11 4
Net result General Account 69 (325) 67 (155) 241Net result Ageas 518 (534) 214 (475) 389
Earnings per share (in EUR) 2.17 (2.07)
Combined ratio 97.9% 100.2% 97.2% 100.3% 94.7%Life Funds under management (in EUR bn) ** 67.8 64.4 *
Insurance Solvency 214% 207% *
Shareholders' equity 9,651 7,760 *Net equity per share (in EUR) 40.89 32.30 **** Year-end 2011 data // ** Consolidated companies only*** Following the reversed 10 to 1 stock-split completed on 7 August 2012, Ageas’s net equity per share has been multiplied by 10
10/03/2010 I page 5
Periodic Financial Information I 9M 12 Results I 7 November 2012 5
Greek bonds Equities TotalEUR mio 9M 12 9M 11 9M 11 9M 11 9M 12 9M 11 9M 12 9M 11
Life (38) (449) (86) (535) 45 58 7 (477)
Non-Life (18) (21) (9) (30) 27 5 9 (25)
Total Belgium (56) (470) (95) (565) 72 63 16 (502)Life 0 0 0 0 0 0 0 0
Non-Life 0 0 (0) (0) 14 4 14 4
Other 0 0 0 0 0 0 0 0
Total UK 0 0 (0) (0) 14 4 14 4Life (2) (32) (17) (49) 5 2 3 (47)
Non-Life 0 (1) 0 (1) 0 (0) 0 (1)
Total CEU (2) (33) (17) (50) 5 2 3 (48)Life 0 0 0 0 2 3 2 3
Non-Life 0 0 0 0 0 0 0 0
Total Asia 0 0 0 0 2 3 2 3Life (40) (481) (103) (584) 51 63 11 (521)
Non-Life (18) (22) (9) (31) 42 9 24 (21)
Other 0 0 0 0 0 0 0 0
Total Ageas (57) (503) (112) (615) 92 72 35 (543)
Total turmoilImpairments Net cap gains bonds & equities
Overview impairments & net capital gains on bonds & equities 2011 result heavily hit by financial turmoil, in 9M 12 only limited influence
Insurance result adjusted for impairments & cap gains 9M 12 vs. 9M 11 By segment/business
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Other Life Non-Life Life Non-Life Life Non-Life Other
Periodic Financial Information I 9M 12 Results I 7 November 2012
In EUR mio
* Real Estate capital gains not excluded from result
148 158
0 30 33 57 91
233 282
23 42
36 58 6 13 13
6
79
119
2313
23
13
171 200
58 72
36 46 69
97
334
414
9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12
6
11
75
(278)
(51)
2
14
15
57(19)
67
400
(132)
3
90 (221)
(70)
69
Deal withABN Amro &Dutch State
Agreementwith BNP
on CASHES& Tier 1
RPN(I)revaluation
RPI BNPCall option
Other GeneralAccount
Q3 126M 12
General Account Quarterly result mainly up on revaluation BNP P call option
Periodic Financial Information I 9M 12 Results I 7 November 2012
In EUR mio
7
EUR 140 mio 9M 12 impact of legacies
8
Combined ratio Insurance 2008 – 9M 12
Insurance Combined ratio Further improvement to 97.9% sound Q3 at 97.2%
Improvement of combined ratio in all product lines
Combined Ratio at 97.9 % (vs. 100.2%) Sound Q3 12 at 97.2%
Prior year releases increased slightly to 3.8% (vs. 3.2%); Expense ratio significantly improved from 31.8% to 30.6%
Motor at 97.3% (vs.97.4%): continued improvement following corrective measures taken over latest years
Belgium: exceptionally strong when adjusted for claims reserves strengthening for bodily injuries
UK: impact of rating actions & increased sophistication in fraud detection
CEU : good claims & costs
Fire at 98.8% (vs.106.2%): improving but still under pressure of climatic events
Belgium: below 100%; excellent Q3 at 84.7%
UK: ; improving trend but UK market still suffering from various bad weather events throughout the year
Asia: no additional impact from Thai floods in Q3
Accident & Health: at 93.6% (vs.95.6%):
Belgium: frequency in Workmen’s Compensation improving
→ restated for new calculation methodology
Periodic Financial Information I 9M 12 Results I 7 November 2012
67.0% 69.4% 73.2% 69.0% 68.4% 71.6% 67.7% 67.3%
32.8% 33.1% 32.8%31.1% 31.8% 30.3% 30.6% 30.6%
99.8% 102.5% 106.0%100.1% 100.2% 101.9% 98.3% 97.9%
2008 2009 2010 2011 9M 11 3M 12 6M 12 9M 12
claims ratio expense ratio
Detailed overview inflows 9M 12 vs. 9M 11 By segment/business
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Life Non-Life Life Non-Life Life Non-Life
3,305 3,674
36 61 1,691 2,142
4,178 5,238
9,210
11,115
1,293 1,362
1,523 1,636
394 766
464
586
3,674
4,349
+ 10%
+ 9%
+ 39%
+ 25%
+ 20%
4,598 5,036
1,559 1,697 2,086 2,908
4,642
5,824
12,884
15,465
9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12
Periodic Financial Information I 9M 12 Results I 7 November 2012
In EUR mio
9
4.2
2.41.0 0.4 1.4
0.61.4 0.5
8.2
3.8
1.5
9.9
3.8
IFRS Solvency as per 30 September 2012 Solvency ratio further up
Actual / Min Actual / Min Actual / Min Actual / Min Actual / Min Actual Actual / Min Belgium United Continental Asia Insurance General Ageas Kingdom Europe Account
Solvency Ratio181% 247% 241% 271% 214% 254%
Excess Capital Insurance General Account Ageas
EUR 4.6 bn EUR 1.5 bn EUR 6.1 bn
Periodic Financial Information I 9M 12 Results I 7 November 2012 10
Total available capital Required Regulatory minimum
Shareholders’ equity / share
Shareholders’ equity as per 30 September 2012 Up driven by unrealized gains, net profit & revaluation put option
In EUR mio
Periodic Financial Information I 9M 12 Results I 7 November 2012 11
Equity per segment FY 11 9M 12 FY 11 9M 12
Belgium 2,381 ► 3,546 Asia 1,687 ► 1,852UK 1,008 ► 1,136 Insurance 6,005 ► 7,713Continental Europe 929 ► 1,179 General Account 1,755 ► 1,938
5,582 6,134
423
1,5791,755
1,938450 69
1,156 364 119(188) (76)
EUR 32.30 EUR 40.89
7,760
9,651
FY 11 Net resultInsurance
Net resultGen Account
Change UG/L Dividend Buy back Revaluationput option
Forex& other
9M 12
InsuranceUG/L
InsuranceUG/L
Insurance : Strong Q3 in line with previous quarters
Acquisition Groupama increases weight Non-Life activities
Combined ratio below 100% thanks to measures taken
Group :
Vision for the future outlined & targets for 2015 set
Future developments :
Focus on maintaining momentum
Conclusions
Periodic Financial Information I 9M 12 Results I 7 November 2012 12
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Shareholders’ equity / share
Shareholders’ equity as per 30 September 2012 Up driven by unrealized gains, net profit & revaluation put option
In EUR mio
Periodic Financial Information I 9M 12 Results I 7 November 2012 14
Equity per segment FY 11 9M 12 FY 11 9M 12
Belgium 2,381 ► 3,546 Asia 1,687 ► 1,852UK 1,008 ► 1,136 Insurance 6,005 ► 7,713Continental Europe 929 ► 1,179 General Account 1,755 ► 1,938
5,582 6,134
423
1,5791,755
1,938450 69
1,156 364 119(188) (76)
EUR 32.30 EUR 40.89
7,760
9,651
FY 11 Net resultInsurance
Net resultGen Account
Change UG/L Dividend Buy back Revaluationput option
Forex& other
9M 12
InsuranceUG/L
InsuranceUG/L
Tangible net equity as per 30 September 2012 Ageas’s capital of a high quality
10/03/2010 I page 15
Periodic Financial Information I 9M 12 Results I 7 November 2012
EUR bn 9M 12 FY 11
Reported net Shareholders' Equity 9.7 7.8Unrealised gains real estate 0.7 0.6Goodwill (incl RPI) (1.1) (1.1)VOBA (Value of Business Acquired) (0.4) (0.4)DAC (Deferred Acquisition Cost) (0.8) (0.7)Other* (0.4) (0.4)Goodwill, DAC, VOBA related to N-C interests 0.4 0.425% tax adjustment DAC, VOBA & Other 0.3 0.3
Tangible net equity 8.4 6.5
Tangible net equity 87% of reported net shareholders’ equity
15
4.2
2.41.0 0.4 1.4
0.61.4 0.5
8.2
3.8
1.5
9.9
3.8
IFRS Solvency as per 30 September 2012 Solvency ratio further up
Actual / Min Actual / Min Actual / Min Actual / Min Actual / Min Actual Actual / Min Belgium United Continental Asia Insurance General Ageas Kingdom Europe Account
Solvency Ratio181% 247% 241% 271% 214% 254%
Excess Capital Insurance General Account Ageas
EUR 4.6 bn EUR 1.5 bn EUR 6.1 bn
Periodic Financial Information I 9M 12 Results I 7 November 2012 16
Total available capital Required Regulatory minimum
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Detailed overview inflows 9M 12 vs. 9M 11 By segment/business @ 100%
Periodic Financial Information I 9M 12 Results I 7 November 2012
EUR mio 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11Belgium 75% 3,674 3,305 1,362 1,293 5,036 4,5980 0 United Kingdom 100% 61 36 1,636 1,523 1,697 1,559Continental Europe 2,142 1,691 766 394 2,908 2,086
Consolidated entities 802 1,691 334 329 1,136 2,020 Portugal 51% 611 864 183 180 795 1,044 France 100% 190 229 0 0 190 229 Luxembourg 50% 0 568 0 0 0 568 Germany 100% 0 31 0 0 0 31 Italy 25% 0 0 151 149 151 149
Non-consolidated JV's 1,340 0 432 66 1,772 66 Turkey (Aksigorta) 36% 0 0 432 66 432 66
Luxembourg (Cardif Lux Vie) 33% 1,340 0 0 0 1,340 0
Asia 5,238 4,178 586 464 5,824 4,642Consolidated entities 313 248 0 0 313 248
Hong Kong 100% 313 248 0 0 313 248Non-consolidated JV's 4,925 3,930 586 464 5,511 4,394
Malaysia 31% 568 435 454 368 1,023 803 Thailand 31%/15% 927 702 131 95 1,059 797 China 25% 3,346 2,700 0 0 3,346 2,700 India 26% 84 94 0 0 84 940 0Total 11,115 9,210 4,349 3,674 15,465 12,884
Life Non-Life Total
18
*
* Ageas holds a 50% stake in Tesco Underwriting
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Life Non-Life Life Non-Life Life Non-Life
3,305 3,674
36 61 1,691 2,142
4,178 5,238
9,210
11,115
1,293 1,362
1,523 1,636
394 766
464
586
3,674
4,349
+ 10%
+ 9%
+ 39%
+ 25%
+ 20%
4,598 5,036
1,559 1,697 2,086 2,908
4,642
5,824
12,884
15,465
9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12
Detailed overview inflows 9M 12 vs. 9M 11 @ 100% By segment/business
Periodic Financial Information I 9M 12 Results I 7 November 2012
In EUR mio
19
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Life Non-Life Life Non-Life Life Non-Life
Detailed overview inflows 9M 12 vs. 9M 11 @ Ageas’s share By segment/business
Periodic Financial Information I 9M 12 Results I 7 November 2012
In EUR mio
2,479 2,756
36 61 984 944 1,300 1,635
4,798 5,396
970 1,022
1,343 1,443 153 287
128 160
2,594
2,911
+ 10%
+ 9%+ 8%
+ 26%
+ 12%
3,449 3,777
1,379 1,504 1,137 1,231 1,428
1,796
7,393
8,307
9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12
20
Detailed overview Insurance net result 9M 12 vs. 9M 11 By segment/business
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Other Life Non-Life Life Non-Life Life Non-Life Other
(329)
165
(1) 0 (17)
36 59 92
(289)
293
(2)
51
40 73 6
13 13
6
57
143
2313 23
13
(331)
216
62 86
(12)49
72 99 (209)
450
9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12
Periodic Financial Information I 9M 12 Results I 7 November 2012
In EUR mio
21
Insurance result adjusted for impairments & cap gains 9M 12 vs. 9M 11 By segment/business
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Other Life Non-Life Life Non-Life Life Non-Life Other
Periodic Financial Information I 9M 12 Results I 7 November 2012
In EUR mio
* Real Estate capital gains not excluded from result
148 158
0 30 33 57 91
233 282
23 42
36 58 6 13 13
6
79
119
2313
23
13
171 200
58 72
36 46 69
97
334
414
9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12 9M 11 9M 12
22
Insurance Better results both in Life and Non-Life & across all segments
Net profit of EUR 450 mio (vs. EUR (209) mio) 9M 11 results include EUR 615 mio impairment charge on Greek bonds
& equities; EUR 72 mio cap gains on bonds & equities 9M 12 results include EUR 57 mio impairment charge on equities;
EUR 92 mio cap gains on bonds & equities
When adjusting for both, 9M result up around 25% vs last year; strongest improvement mainly in Asia
Life at EUR 293 mio (vs. EUR (288) mio) Strong result in Asia generated by organic growth & further strengthened
by one-offs in H1
Net result on adjusted basis slightly up in Belgium on better investment margin; in CEU on lower claims in risk business & lower costs
Non-Life at EUR 143 mio (vs. EUR 57 mio) Good results across all major business segments
Belgium: Q3 marked by strong Fire result with low claims & no major weather events
UK: strong continuation Motor, strong underlying performance in Household, more than offsetting higher weather claims
CEU: all countries participate to good result
Asia: lower result due to floods in Thailand & positive one-off in 9M 11
Other at EUR 13 mio (vs. EUR 23 mio) Commission & fee income at EUR 212 mio, broadly in line with last year
Net profit down reflecting highly competitive environment. 9M 11 benefited from EUR 6 mio incentive payment from commercial partner; 9M 12 include EUR 2 mio one-off charge related to KFFS operations
* Consolidated entities only; compared to FY 2011 Periodic Financial Information I 9M 12 Results I 7 November 2012
EUR mio 9M 12 9M 11
Gross inflow 15,465 12,884
Operating costs 661 628
Technical result 559 257
Operating margin 637 (316)
Profit before tax 832 (340)
Net profit after tax & non-controlling interests 450 (209)
Life FUM (EUR bn)* 67.8 64.4
23
Combined ratio Insurance 2008 – 9M 12
Insurance Combined ratio Further improvement to 97.9% sound Q3 at 97.2%
Improvement of combined ratio in all product lines
Combined Ratio at 97.9 % (vs. 100.2%) Sound Q3 12 at 97.2%
Prior year releases increased slightly to 3.8% (vs. 3.2%); Expense ratio significantly improved from 31.8% to 30.6%
Motor at 97.3% (vs.97.4%): continued improvement following corrective measures taken over latest years
Belgium: exceptionally strong when adjusted for claims reserves strengthening for bodily injuries
UK: impact of rating actions & increased sophistication in fraud detection
CEU : lower claims & costs
Fire at 98.8% (vs.106.2%): improving but still under pressure of climatic events
Belgium: below 100%; excellent Q3 at 84.7%
UK: improving trend but UK market still suffering from various bad weather events throughout the year
Asia: no additional impact from Thai floods in Q3
Accident & Health: at 94.0% (vs.96.2%):
Belgium: frequency in Workmen’s Compensation improving
→ restated for new calculation methodology
Periodic Financial Information I 9M 12 Results I 7 November 2012
67.0% 69.4% 73.2% 69.0% 68.4% 71.6% 67.7% 67.3%
32.8% 33.1% 32.8%31.1% 31.8% 30.3% 30.6% 30.6%
99.8% 102.5% 106.0%100.1% 100.2% 101.9% 98.3% 97.9%
2008 2009 2010 2011 9M 11 3M 12 6M 12 9M 12
claims ratio expense ratio
24
70.4% 74.3% 71.9% 71.4% 69.6%
23.6% 24.8% 25.0% 24.8% 24.4%
94.0% 99.1% 96.9% 96.2% 94.0%
2009 2010 2011 9M 11 9M 12
79.0% 78.4% 72.0% 70.9% 71.8%
29.3% 29.0%25.3% 26.5% 25.5%
108.3% 107.4%97.3% 97.4% 97.3%
2009 2010 2011 9M 11 9M 12
59.4%75.0%
61.9% 63.9% 57.4%
43.4%
43.2%
41.5% 42.3%41.4%
102.8%
118.2%
103.4% 106.2%98.8%
2009 2010 2011 9M 11 9M 12
69.1% 72.9% 68.2% 67.6% 66.8%
36.1% 35.5%32.7% 33.7% 32.0%
105.2% 108.4%100.9% 101.3% 98.8%
2009 2010 2011 9M 11 9M 12
Property & Casualty: >100% due to higher average claims cost in TPL
Insurance Combined ratio per product line All product lines well below the targeted 100%
Motor: continued strong performance
Accident & Health: improvements in all segments
Fire: weather events in UK, Belgium ok
Periodic Financial Information I 9M 12 Results I 7 November 2012 25
Belgium Good operating performance both in Life and Non-Life
I page 26
* Compared to FY 2011
EUR mio 9M 12 9M 11
Gross inflow 5,036 4,598
Operating costs 357 343
Technical result 329 198
Operating margin 386 (364)
Profit before tax 453 (495)
Net profit after tax & non-controlling interests 216 (331)
Life FUM (EUR bn)* 51.8 49.1
Periodic Financial Information I 9M 12 Results I 7 November 2012
Net profit at EUR 216 mio (vs. EUR (331) mio in 2011) 9M 11 heavily hit by impairments on Greek bonds & equities for
EUR (615) mio
Both Life & Non-Life improving on adjusted basis
Life at EUR 165 mio (vs. EUR (329) mio) Excl. net realized capital gains & impairments, net result improved
with EUR 10 mio
Operating margin up to EUR 288 mio (vs. EUR (389) mio)
Increase when excluding for impairments & cap gains mainly resulting from better investment margin in Bank, Broker and Group Life.
Life FUM at EUR 51.8 bn (+6% vs. end 2011).
Non Unit-linked FUM at EUR 45.9 bn, up 6% vs. end 11
Unit-linked FUM relatively stable at EUR 5.9 bn
Non-Life at EUR 51 mio (vs. EUR (2) mio) Better operating performance & higher net realized capital gains
Strong result in Fire driven by previous corrective measures, lower impact of climatic events & higher prior year run off
Motor performance remained solid despite strengthening of reserves for bodily injuries
Healthcare confirmed its good performance of the previous quarters.
26
244 231
2,075 2,353
223270763820
3,3053,674
9M 11 9M 12
+11%
Life In EUR mio
Non-Life In EUR mio
Unit-Linked
Savings
Traditional
Other
Fire
Accident & Health
Motor
+5%
Group Life
Belgium Inflow Solid inflow across Life and Non-Life
362 378
420 429
399 434113 121
1,293 1,362
9M 11 9M 12
Periodic Financial Information I 9M 12 Results I 7 November 2012
Individual Life Growth mainly driven by Savings products at Bank channel next to
accelerated & very successful launch of structured UL products.
Savings inflow benefited from competitive offering & customers’ anticipation on announced guaranteed interest rate reductions
Growth also driven by sustained interest for guaranteed products & peers having cut their guaranteed interest rate earlier in the year
Group Life Group Life up 7%; lifted by strong increase in single premiums & good
performance in Flexible products & Ascento.
Property and Casualty (Fire, Motor & others)
Most of the increase related to Fire (+9%); well spread across the Bank and Broker channels, driven by higher volume & tariff increase on top of the ABEX-indexation.
Growth in Motor (+2%) slowed down somewhat, reflecting focus on profitability.
TPL inflow +10% mostly on tariff
Accident & Health Inflow growth Healthcare (+4%) follows annual medical indexation
27
Combined ratio AG Insurance 2008 – 9M 12
Belgium Combined ratio Further improvement in 2012 and amounting to 98.8%
→ restated for new calculation methodology
Periodic Financial Information I 9M 12 Results I 7 November 2012
65.0% 64.1% 68.7% 64.3% 64.3% 67.2% 63.1% 62.2%
35.9% 36.8%36.4% 36.8% 36.7% 36.9% 36.7% 36.6%
100.9% 100.9% 105.1% 101.1% 101.0% 104.1% 99.8% 98.8%
2008 2009 2010 2011 9M 11 3M 12 6M 12 9M 12
claims ratio expense ratio
Motor remained below 100% at 99.5% (vs. 94.9 %)
this includes negative impact of a strengthening of reserves for bodily injuries. Excluding this reserves strengthening, combined ratio would stand at 95.4%
Fire combined ratio down from 111.5% to 97.1%.
Driven by previous corrective measures, lower impact of climatic events and a higher prior year run off.
Excellent Q3 combined ratio of 84.7%
Property & casualty combined ratio above 100%
TPL combined ratio high due to a strengthening of reserves for bodily injuries & higher average claims cost
Combined ratio Accident & Health amounted to 95.7%
Reflecting improved performance in Workmen’s Compensation (104.4% vs. 115.8%)
28
62.2% 65.8% 60.5% 60.7% 58.1%
42.5% 42.3% 41.9% 42.1% 42.0%
104.7% 108.1% 102.4% 102.8% 100.1%
2009 2010 2011 9M 11 9M 12
Property & Casualty: reserves strengthening bodily injuries in Motor & TPL
68.9% 75.8% 73.8% 73.1% 72.4%
22.6%21.9% 23.8% 23.6% 23.3%
91.5%97.7% 97.6% 96.7% 95.7%
2009 2010 2011 9M 11 9M 12
60.5%75.6%
63.0% 64.0%50.9%
47.1%
47.1%
46.9% 47.5%
46.2%
107.6%
122.7%109.9% 111.5%
97.1%
2009 2010 2011 9M 11 9M 12
Belgium Combined ratio per product line Further improvement in 2012; thanks to Fire and Accident & Health
Motor: below 100% despite reserves strengthening bodily injuries
Accident & Health: vast improvement in Workmen’s Comp
Fire: effect of corrective measures & no climate events
Periodic Financial Information I 9M 12 Results I 7 November 2012
68.5% 71.0%58.9% 59.4% 63.7%
36.3% 35.7%35.3% 35.5% 35.8%
104.8% 106.7%94.2% 94.9% 99.5%
2009 2010 2011 9M 11 9M 12
29
10/03/2010 I page 30
EUR mio 9M 12 9M 11
Gross inflow 1,697 1,559Fee, commission & other income
212 207
Operating costs 162 119
Technical result 80 43
Operating margin 99 48
Profit before tax 131 90
Net profit after tax & non-controlling interests 86 62
Periodic Financial Information I 9M 12 Results I 7 November 2012
United Kingdom Strong net result driven by Motor business and realized capital gains
Net result at EUR 86 mio (vs. EUR 62 mio) Multi-distribution strategy creating good returns
Improved performance overall but especially in private Motor
Retail income in line with last year
Life at EUR 0.3 mio (vs. EUR (1) mio) Continued progress in line with its stage of business development
since launch; first quarterly profit since launch
Non-Life at EUR 73 mio (vs. EUR 40 mio) Improved Motor result through positive impact of management
actions, offsetting seasonal claims Household
Net profit AIL at EUR 60mio; Tesco Underwriting EUR 13 mio
Net realized capital gains of EUR 14 mio (net of minority interests)
Announced acquisition Groupama not yet closed; acquisition on track for completion in Q4
Other Insurance at EUR 13 mio (vs. EUR 23 mio) Competitive retail environment leads to pressure on net profit
Includes EUR 2m for closure of Birmingham; prior year included EUR 6m incentive payment from partner
30
Motor
Non-Life
Life
Other
Property
Accident & Health
Total In EUR mio
Non-Life In EUR mio
* including other income
1,523 1,636
36 611,559 1,697
9M 11 9M 12
56 43
982 1,116
352 328133 148
1,523 1,636
9M 11 9M 12
+7%
+9%
Periodic Financial Information I 9M 12 Results I 7 November 2012
United Kingdom Inflow Inflow levels substantially increased
Life Successful roll out of its proposition across the IFA market
and through affinity partnerships developed in 2011
Over 245,000 customers up 40% on same period last year
Non-Life Up 7%, driven by organic growth, primarily in Personal lines
Within Personal lines, Motor +14%, Household and Travel fell slightly
Commercial lines +11%
Groupama inflow not included; acquisition will propel Ageas to fifth largest UK Non-Life insurer
Other Insurance (including Retail) YTD total income of EUR 212 mio in line with last year.
31
Combined ratio UK 2008 – 9M 12
→ no impact from new calculation methodology
Periodic Financial Information I 9M 12 Results I 7 November 2012
73.1% 80.4% 81.5% 74.6% 73.5% 76.7% 73.0% 72.5%
29.5%27.7% 28.0%
25.3% 26.4% 25.6% 25.8% 26.1%
102.6%108.1% 109.5%
99.9% 99.9% 102.3% 98.8% 98.6%
2008 2009 2010 2011 9M 11 3M 12 6M 12 9M 12
claims ratio expense ratio
UK Combined ratio Continued improvement confirmed
UK : continued positive impact from corrective measures Overall combined ratio at 98.6%, 1.3%
improvement on 9M 11
Prior year releases at (1.8%) vs. 1.3% strengthening in 9M 11
Motor : Improved to 96.7% (vs. 98.2%) reflecting lower claims frequency, better fraud prevention and revised rating structures
Household slightly deteriorated to 101.3% (vs. 100.4%) continuing bad weather offsetting good underlying performance.
Travel at 106.5% (vs.106.3%)
32
80.2% 80.4% 74.0% 73.0% 72.3%
27.8% 28.3%25.4% 26.6% 26.1%
108.0% 108.7%99.4% 99.6% 98.4%
2009 2010 2011 9M 11 9M 12
83.5%97.9% 87.7% 83.0% 80.3%
26.2%24.0%
23.2% 23.3% 26.2%
109.7%121.9%
110.9% 106.3% 106.5%
2009 2010 2011 9M 11 9M 12
88.9% 82.9% 79.2% 77.1% 75.4%
22.8%23.3%
19.5% 21.1% 21.3%
111.7%106.2%
98.7% 98.2% 96.7%
2009 2010 2011 9M 11 9M 12
61.2%77.4%
61.4% 64.5% 65.2%
38.0%
38.2%
35.3% 35.9% 36.1%
99.2%
115.6%
96.7% 100.4% 101.3%
2009 2010 2011 9M 11 9M 12
Property & Casualty: increase in Fire combined ratio
UK Combined ratio per product line Decreasing in Q2 in all product lines
Motor: rating actions & fraud detection
Accident & Health
Fire: continuous bad weather impacting UK market
Periodic Financial Information I 9M 12 Results I 7 November 2012 33
10/03/2010 I page 34
* Consolidated entities only; compared to FY 2011
Continental Europe Sustained net profit driven by better results in both Life and Non-Life
Periodic Financial Information I 9M 12 Results I 7 November 2012
EUR mio 9M 12 9M 11
Gross inflow 2,908 2,086
Operating costs 109 140
Technical result 125 (4)
Operating margin 125 (22)
Profit before tax 146 (9)
Net profit after tax & non-controlling interests 49 (12)
Life FUM (EUR bn)* 14.2 14.1
Net result at EUR 49 mio (vs. EUR (12) mio) 9m 11 net result included EUR 33 mio impairment charges on Greek
bonds & EUR 17 mio on equities
Life up from EUR 17 mio negative result last year to EUR 36 mio in a distressed economic environment Operating margin increased significantly reflecting lower claims in the
risk business and improved investment result as last year impacted by net impairment charges on Greek bonds
Operating costs on a like-for-like basis reduced by 11% to EUR 53 mio due to continued cost containment and timing differences
FUM non-consolidated entities (Luxembourg) at EUR 14 bn
Non-Life at EUR 13 mio (vs. EUR 6 mio) Operating margin driven by excellent technical result in all lines of
business
Operating costs decreased by 5% explained by continued focus on cost containment
Net result up due to inclusion Turkey, lower claims and costs in both Portugal and Italy
34
162 135276
705
1,161
1,19892
1041,691
2,142
9M 11 9M 12
Accident & Health
Motor
Unit-Linked
Savings
Traditional
Group +27%
Other Fire
Life In EUR mio
Non-Life In EUR mio
185 244107
28157
125
44
117
394
766
9M 11 9M 12
Continental Europe Inflow Up driven by recently merged/acquired activities
Periodic Financial Information I 9M 12 Results I 7 November 2012
+94%
Life Inflows +27%, including non-controlling interests @ 100%, driven by
merged Luxembourg entity (EUR 1.3 bn)
Other countries inflow below last year
Portugal: volumes dropped both in savings and UL due to economic situation and to reorientation towards protection and UL business. The Portuguese market decreased by 17.5% (end of August 2012)
France: drop in volumes influenced by economical reasons. UL still represents 36% of total sales compared to 13% market average
Funds under Management Scope-on-scope at EUR 14.2 bn, up 3% vs. FY 2011.
Non-Life GWP, including non-controlling interests @ 100% rose to EUR 766 mio
driven by inclusion Turkish acquisition
GWP consolidated entities up 2% to EUR 334 mio
Turkey (Aksigorta) at EUR 432 mio
Although all lines increased significantly through the inclusion of Turkey, Motor and A&H form the major business lines in the portfolio.
35
Combined ratio CEU* 2009 – 9M 12
* Scope: only consolidated companies: 2009 Portugal; as from 2010 Portugal & Italy
CEU Combined ratio Continued improvement in all countries
Continental Europe: 89.9% vs. 97.4% Portugal : Combined ratio at 88.1% vs. 93.0%
supported by lower claim ratios in A&H, Fire & Motor
Italy : Combined ratio at 91.9% vs. 102.3% primarily due to lower costs & improving claims in Motor
Asia: 101.0% vs. 96.5% Impacted by additional charges related to 2011
floods in Thailand
Excluding Thai floods combined ratio at 96.7%
Periodic Financial Information I 9M 12 Results I 7 November 2012
62.4% 71.0% 66.4% 67.1% 64.9% 61.0% 62.6%
27.6%30.3%
30.3% 30.3%25.4% 27.5% 27.3%
90.0%
101.3%96.7% 97.4%
90.3% 88.5% 89.9%
2009 2010 2011 9M 11 3M 12 6M 12 9M 12
claims ratio expense ratio
36
10/03/2010
* Including Inflow (100%) & Profit (Ageas share) from partnerships respectively ** Consolidated entities only; compared to FY 2011
Periodic Financial Information I 9M 12 Results I 7 November 2012
EUR mio 9M 12 9M 11
Gross inflow* 5,824 4,642
Operating costs 33 27
Technical result 25 19
Operating margin 27 22
Profit before tax* 101 74
Net profit after tax & non-controlling interests* 99 72
Life FUM (EUR bn)** 1.8 1.6
Net profit of EUR 99 mio (vs. EUR 72 mio) Hong Kong: Satisfactory organic growth and positive FX impact
Non-consolidated partnerships: EUR 83 mio (vs. EUR 61 mio), strong organic growth of underlying businesses
Life net profit at EUR 93 mio (vs. EUR 59 mio) Hong Kong : EUR 26 mio vs. EUR 19 mio
Good organic growth, supported by positive FX impact & one-offs
Non-consolidated partnerships : EUR 76 mio vs. EUR 48 mio
Reflection of excellent growth of underlying businesses
Non-recurring positive impact on result (EUR 15 mio current year vs. EUR 10 mio previous year)
EUR 7 mio equity hedge cost included
Regional costs : EUR 10 mio (vs. EUR 8 mio)
Non-Life net profit at EUR 6 mio (vs. EUR 13 mio) Good underwriting performance (excluding flood losses)
Additional provision in H1 2012 for 2011 floods in Thailand (EUR 2 mio)
9M 11 result positively impacted by non-recurring tax recovery
Asia Strong result driven by organic growth and supported by non-recurring income
37
3.825 4.868
217
265 133
62 3
43
4.178
5.238
9M 11 9M 12
288 346
176 240
464 586
9M 11 9M 12
+25%
+26%
** MAT: Marine Aviation & Transport
Non-Motor*
Motor
Savings Group
Traditional
* Non-motor includes Fire, MAT, Accident & Health and other lines
Life
Non-Life In EUR mio
In EUR mio
Unit-Linked
Periodic Financial Information I 9M 12 Results I 7 November 2012
Asia Inflow Excellent inflow levels, 25% up to EUR 5.8 bn
Life Hong Kong, +26%, Strong growth of 46% in new business, in
particular from IFA channel
China, +24%, Focus on building book of higher-margin recurring premiums and excellent persistency resulted in a 34% increase of regular premium income. In Q3 new business in bank channel picked up and new product launch supported performance agency channel.
Malaysia, +31%, New business premiums up 41% thanks to strong recovery bank channel activity
Thailand, +32%, Continued strong growth in both bank and agency channel
India, (11)%, New business down reflecting continued weak market sentiment and regulatory uncertainty. Relative market position maintained.
Funds under Management Hong Kong : EUR 1.8 bn, +13% vs. end 11
Including non-consolidated partnerships @ 100%: EUR 23.2 bn, +16% vs. end 11
Non-Life Malaysia, +23%, driven by all lines of business and in particular Motor
Thailand, +38%, across all lines and distribution channels boosted by post-flood recovery
38
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Investment portfolio as per 30 September 2012 Value up as result of volume growth & drop in yields on fixed income
In EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets which are valued at amortized costs
Increase mainly explained by volume growth, both in existing & new business and by yield drop of European sovereign & corporate bonds.
Gross unrealized gains up EUR 3.7 bn vs. FY 11 to EUR 5.5 bn, mainly in fixed income
Investments in Belgian government bonds & corporate Non-Financials up
Update on infrastructure loans: 5 projects selected for potential total amount of EUR 221 mio
Fixed Income
Gross unrealized gains at EUR 4.0 bn; EUR 0.6 bn FY 11 Unrealized Gain Sovereigns at EUR 2.5 bn Unrealized Gain Corporates at EUR 1.6 bn
Equities
Gross unrealized gains up to EUR 142 mio vs. nearly breakeven end 2011
Real Estate
Gross unrealized gains marginally up to EUR 1.4 bn
Investment portfolio*
31.5 34.0
21.424.2
1.82.24.34.859.5
65.6
FY 11 9M 12
Real Estate
Equities
Structured creditinstruments
Corporate bonds
Sovereign bonds
Periodic Financial Information I 9M 12 Results I 7 November 2012
52%
37%
1%
7%
3%
40
Sovereign bond portfolio as per 30 September 2012 vs. end 2011 Re-domestication within Belgian operations
Fair value increased by EUR 2.5 bn, from EUR 31.5 bn to EUR 34.0 bn
Increase coming from yield drop as result of decreasing spreads
96% investment grade, almost 85% portfolio rated A or higher
Divestments of bonds in Southern European & some core countries, primarily reinvested in Belgium as part of re-domestication within the Belgian operations.
Gross unrealized gains at EUR 2.5 bn, compared to EUR 159 mio end 11 resulting from yield drop mainly Belgium, up EUR 1.2 bn
In EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets which are valued at amortized costs
Sovereign bond portfolio*
14.218.0
4.6
4.83.9
3.12.4
2.81.6
1.41.8
0.92.72.60.4
0.431.534.0
FY 11 9M 12
Ireland
Others
The Netherlands
Germany
Austria
SE Sovereigns
France
Belgium
Periodic Financial Information I 9M 12 Results I 7 November 2012 41
Net exposure on Southern European sovereigns further reduced Exposure at amortized cost & adjusted for non-controlling interests of EUR 2.1 bn
Exposure on S-E sovereigns at amortized cost , after impairments and non-controlling interests further reduced to EUR 2.1 bn
Additional reduction of primarily Italian & Spanish sovereigns of EUR 0.6 bn given increased liquidity and reduced spreads of SE sovereigns.
Exposure on Greece brought down to zero
Gross exposure at fair value of EUR 3.1 bn.
In EUR bn
(0.9)
3.2
1.40.3
6.2
2.6
1.41.2
1.4
1.3
0.70.3
2.1
0.9
0.6
0.6
12.9
6.2
3.02.1
FY 09 FY 10 FY 11 9M 12
Portugal
Spain
Italy
Greece
Impairment
Periodic Financial Information I 9M 12 Results I 7 November 2012 42
In EUR bn
Portfolio up to EUR 24.2 bn (vs. EUR 21.4 bn)
Unrealized gains at EUR 1.6 bn (vs. EUR 432 mio)
95% investment grade; 79% rated A or higher
Banking / Other financials : 92% investment grade
Corporate bond portfolio*
Equities investments at fair value increased from EUR 1.8 bn to EUR 2.2 bn.
Gross unrealized gains up to EUR 142 mio, vs. nearly breakeven at end 2011.
* All assets at fair value except the ‘Held to Maturity’ assets which are valued at amortized costs
Equity portfolio*
Corporate bond & Equity portfolio as per 30 September 2012 Corporate bond portfolio of EUR 24.2 bn; Equity portfolio at EUR 2.2 bn
4.9 5.7
1.8 1.9
6.27.8
8.4
8.9
21.424.2
FY 11 9M 12
Government related
Other corporates
Other financials
Banking0.8
1.1
0.1
0.10.7
0.70.2
0.31.8
2.2
FY 11 9M 12
Mixed funds & others
Real Estate funds
Equity funds
Equities
Periodic Financial Information I 9M 12 Results I 7 November 2012
23%
8%
32%
37%
48%
7%
32%
14%
43
Real estate portfolio as per 30 September 2012 Invested amount fairly stable
10/03/2010
In EUR bn
Value increased by EUR 0.5 bn to EUR 4.8 bn mainly through investments in Retail & Offices
Gross unrealized gains stable at EUR 1.4 bn (not reflected in net equity) For own use : EUR 0.5 bn Investment property : EUR 0.9 bn
Real Estate exposure mainly in Belgium (+/- 70%)
* At fair value
Real Estate portfolio*
1.5 1.6
0.2 0.3
1.1 1.1
0.91.3
0.60.64.34.8
FY 11 9M 12
Real EstateDevelopment
Investment Retail
Car Parks
InvestmentWarehouses
Investment Offices
Periodic Financial Information I 9M 12 Results I 7 November 2012
33%
5%
24%
26%
11%
44
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
General Account Driven by legacy related one-offs & revaluation BNP P call option
Net result General Account of EUR 69 mio
Net interest income includes EUR 39 mio Tier 1 amortisation of discount & received interest.
RPN(I) liability floor fairly stable since agreement on CASHES; EUR 3 mio net result impact in Q2 + Q3 12.
Call option BNP P: Strong decrease mainly driven by sharp decline in volatilities from 49% end 2011 to 31% at 30 September; positive result in Q3 following rise of BNP P share price
RPI: Ageas net profit of EUR 90 mio following higher market to market revaluations of portfolio & after goodwill impairment
Legacy related one-off agreements Deal BNP P on CASHES & Tier 1(EUR (132) mio in Q1)
Settlement ABN AMRO & Dutch State on legal proceedings (EUR 400 mio in Q2)
Staff & other expenses flat
Periodic Financial Information I 9M 12 Results I 7 November 2012
EUR mio 9M 12 9M 11
Net interest income 27 (9)BNP P Call Option (221) (248)Result on RPN(I) (268) 320Result on sales & revaluations (mainly Tier 1)
123 (202)
Results of associates (mainly RPI)
84 (139)
Settlement ABN Amro 400 0Staff & other expenses (37) (37)Profit before tax 98 (326)Net profit after tax & non- controlling interests 69 (325)
Balance sheet items 9M 12 FY 11
RPN(I) (160) (190)Call option BNP Paribas 174 395RPI 864 779Net cash/deposits 1,436 688
46
11
75
(278)
(51)
2
14
15
57(19)
67
400
(132)
3
90 (221)
(70)
69
Deal withABN Amro &Dutch State
Agreementwith BNP
on CASHES& Tier 1
RPN(I)revaluation
RPI BNPCall option
Other GeneralAccount
Q3 126M 12
General Account Quarterly result mainly up on revaluation BNP P call option
Periodic Financial Information I 9M 12 Results I 7 November 2012
In EUR mio
47
EUR 140 mio 9M 12 impact of legacies
3
1.3
2.8
1.0
2.6
0.9
2.3
0.7
2.2
0.5
2.1
0.2
2.1
1.0 0.8 0.71.3 1.3 1.3
1.5 1.4
FY 09 3M10 6M10 9M10 FY 10 3M11 6M11 9M 11 FY 11 3M12 6M12 9M 12
Net cash position General Account at EUR 1.4 bn Significantly up after agreements in H1; first impact buy-back
The agreements with Fortis Bank & BNP P on the CASHES & Tier 1 (Q1) & with ABN AMRO & Dutch State on legal proceedings (Q2) had a joined positive impact on net cash position of EUR 1.1 bn
2011 dividend of 8 eurocent per share brought cash down with EUR 0.2 bn (Q2)
Quarterly impact of EUR 64 mio mainly due to share buy-back programme
Quarterly evolution net cash position* In EUR bn
* Until 6M 11 known as discretionary capital
in EUR mio FY 11 9M 12
Cash and cash equivalents 345 624Due from banks short term 600 1,000Debt certificates (EMTN) (257) (188)
Net cash position 688 1,436
Periodic Financial Information I 9M 12 Results I 7 November 2012
Share buy-back programme announced 6 August 2012 will further reduce net cash
Net cash Discretionary capital
48
Buy-back programme of up to EUR 200 mio of its outstanding common stock
Buy-back programme launched as of 13 August
For period ending 19 February 2013 at the latest
Independent broker mandated to execute the programme
Through open market purchases on NYSE Euronext Brussels
Shares to be held as treasury shares until formal approval of cancellation
On 30 September, Ageas bought back 2.8 mio shares (1.17%) for a total amount of EUR 52.8 mio
As per 7 November, Ageas acquired 4.8 mio shares for a total amount of EUR 90.8 mio (corresponding to 1.99% of the total amount of outstanding shares)
Ageas announced a share buy-back programme on 6 August As at 7 November, Ageas has bought back 2% of its outstanding shares
Periodic Financial Information I 9M 12 Results I 7 November 2012 49
Balance sheet value In EUR mio
Net result impact In EUR mio
Valuation Call option BNP Paribas shares at 30 September 2012 Value down due to decrease in volatility, up in Q3 following BNP share price
Valuation
Model parameters(Black & Scholes) FY 10 FY 11 9M 12
BNP Paribas share price EUR 47.69 EUR 30.35 EUR 36.98
Strike price EUR 66.67 EUR 66.67 EUR 66.67
Volatility 33% 49% 31%
Dividend yield 5.29% 5.98% 4.76%
609
395
117 174
FY 10 FY 11 6M 12 9M 12
(271)(214)
(278)(221)
FY 10 FY 11 6M 12 9M 12 Sensitivities FY 11 9M 12
Implied volatility +5% 24.5% 53.7%
Implied volatility -5% (23.6%) (44.9%)
Dividend yield -1% 2.8% 3.9%
Dividend yield +1% (1.1%) (2.9%)
Periodic Financial Information I 9M 12 Results I 7 November 2012 50
Ageas’s equity Value Net book value assets RPI* In EUR mio
In EUR bn
In EUR bn In EUR bn
Principal & interest collections In EUR mio
Outstanding debt - IFRS
Fair value - IFRS
Valuation items Royal Park Investments as at 30 September 2012 Equity value up driven by positive RPI result, goodwill further impaired
Net result impact – part Ageas In EUR mio
Commercial paper Other Senior + Super Senior
* Net book value = Economic recovery value as of 31 December 2011 under B-GAAP minus Redemptions until 30 September 2012
Net result impact
Principal collections Interest collections
933
779864
FY 10 FY 11 9M 12
10.08.9
8.1
FY 10 FY 11 9M 12
4.6 4.8 4.4
2.6 1.20.6
7.26.0
5.0
FY 10 FY 11 9M 12
131
(197)
90
FY 10 FY 11 9M 12 7.06.0 6.1
FY 10 FY 11 9M 12
1,5401,208 1,003
169
156103
1,709
1,3641,106
FY 10 FY 11 9M 12
Periodic Financial Information I 9M 12 Results I 7 November 2012 51
Balance sheet Royal Park Investments (under IFRS at 100%) Remaining goodwill reduced to EUR 276 mio
IFRS -- in EUR mio 9M 12 FY 11Assets 6,916 7,738Securities 6,066 6,043Deferred tax assets 458 712Goodwill 276 782Other assets 116 201
Liabilities and shareholders’ equity 6,916 7,738Liabilities 4,984 5,995Other liabilities 49 35Commercial paper 4,429 4,792Funding, super senior 0 649Funding, senior 506 519
Shareholders’equity 1,932 1,743Share capital 850 850Share premium (additional paid in capital) 850 850Hedging reserve 4 123Cash Flow hedge reserves 175 67Retained earnings 53 (148)
Periodic Financial Information I 9M 12 Results I 7 November 2012 52
February 11 Claim re FRESH hybrid instrument dismissed by Brussels Court
November 11 Receipt report Belgian experts
General Account: judgments received in various legal procedures No major new elements in Q3 12
Sep- Dec 10 Ageas starts legal procedure against Dutch State & ABN AMRO to obtain compensation in return for conversion Mandatory Convertible Securities (MCS) into Ageas’ shares
September 11 Exchange of uncalled Fortis Bank Tier 1 Debt Securities for cash by Ageas
Timing and (financial) outcome remains hard to estimate…. In many legal proceedings still at the stage of first instance Possible decisions before end 2012/early 2013: - Administrative proceedings by FSMA (communication Q2 2008)
May 11 - Claim dismissed of
VEB/Deminor and FortisEffect by Amsterdam Court
- Rotterdam court confirmed fine AFM I: appeal filed
Initi
ated
by
Age
as
Act
ions
aga
inst
Age
as
February 12 BNP P tender for CASHES and subsequent conversion into Ageas shares – partial settlement of RPN/RPN(I) – call Fortis Bank Tier 1 Debt Securities
February 12 - Rotterdam court
confirmed fine AFM II; appeal filed
- Utrecht court re communication May-June 2008 in favour of plaintiffs; appeal filed
March 12 Brussels Commercial Court rules in favour of Ageas in MCS-case, appeal filed
2011 2012 2009... 2010 ...
April 12 Ondernemingskamer Amsterdam re mismanagement mainly in favour of plaintiffs; appeal filed
June 12 Agreement with ABN Amro to settle legal proceedings concerning FCC and MCS, closing all outstanding disputes with Dutch State
Periodic Financial Information I 9M 12 Results I 7 November 2012 53
54
Legal proceedings & investigations at 30 September 2012 Managed in interest of shareholders
Periodic Financial Information I 9M 12 Results I 7 November 2012
Administrative proceedings
AFM fine imposed 05/02/10 re price sensitive info June 08
AFM 2nd fine imposed 19/08/10 re price sensitive information Sep 07
Appeal filed against both before The Hague “College van Beroep voor het bedrijfsleven”; proceedings ongoing
FSMA re communication in Q2 2008 Proceedings ongoing Criminal investigation File transmitted to the public prosecutor in October 2012 Enterprise Court (Ondernemingskamer)
At request of VEB re 2007-2008 Report June 10; Judgment 05/04/12 re mismanagement, mainly in favour plaintiffs. Appeal before Supreme Court
Civil Lawsuits
Amsterdam - VEB re alleged miscommunication 2007-08 against Ageas, former directors/executives & banks
Amsterdam - Stichting FortisEffect, re sale of Dutch activities against Dutch State and Ageas
Proceedings ongoing
Judgement in favour of Ageas; appeal filed by Stichting FortisEffect before Court of Appeal
Utrecht - Stichting Investor Claims Against Fortis re alleged miscommunication 2007-08 against Ageas & 2 financial institutions
Utrecht - 2nd case by Stichting on behalf of certain shareholders for damages from same defendants & certain former directors/executives
Proceedings ongoing
Proceedings initiated in August 2012 ; at present unclear whether both actions will be joined
Arnhem - Mr.Bos, re alleged miscommunication May June 2008 Judgment Utrecht court 15/02/12 in favour of plaintiffs; Appeal filed before Arnhem Court of Appeal
Brussels - Modrikamen, re Sep/Oct 2008 transactions
Brussels - Deminor, re alleged miscommunication 2007 - 08 Brussels - Fortis shareholder re 2007 rights issue
Court decision 08/12/09 on competence & provisional measures; proceedings ongoing
Proceedings ongoing Proceedings initiated in September 2012
Financial instruments
Brussels Court of Appeal - MCS-holders contesting validity of conversion
Judgment Brussels court 23/03/12 in favour of Ageas; Appeal by certain MCS-holders; no judgment before 2015
Overview of main characteristics Hybrids Situation as per 30 September 2012
EUR mio Ageas
Ageasfinlux Fresh
Ageas Hybrid Financing Hybrone
Ageas Hybrid Financing
Nitsh I
Ageas Hybrid Financing
Nitsh II Direct issue FBB, 2004 CASHES*
% 3m EUR + 135 bp 5.125% 8.25% 8% 4.625% 3m EUR +200 bp Amount
outstanding 1,250 500 USD 750 625 1,000 1,110
ISIN XS0147484074 XS0257650019 XS0346793713 XS0362491291 BE0119806116 BE0933899800
Call date Undated exchange
strike 315 mandatory 472
Jun/2016 Step up to 3M Euribor +200
Aug/2013 No step up
Jun/2013 No step up
Oct/2014 Step up to 3M Euribor+170
Undated exchange strike 239 mandatory 359
ACSM YES YES YES YES YES YES
Dividend pusher YES YES YES YES YES NO
Dividend stopper NO YES YES YES YES YES
Trigger < 0.5% dividend trigger Liabilities > asset Liabilities > asset Liabilities > asset <8% CAD <0.5% Dividend
Other 500
on lent to AG Insurance
USD 750 on lent to FBB
250 on lent to AG Insurance; 375
on lent to FBB
No stock settlement feature as for Direct
issue FBB 2001
Coupon served by FBB, trigger ACSM linked to
Ageas dividend
Market Price (30/09/12) 39.1 67.2 96.1 97.5 83.5 46.0
Fortis Bank (now BNP Paribas)
* On 31 January 2012 BNPP announced that 63% of the holders have tendered CASHES for purchase by BNPP @ purchase price of 47.5% of the principal amount of the CASHES.
Periodic Financial Information I 9M 12 Results I 7 November 2012 55
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Four targets Evolution on realizing the targets set for 2015
Acquisition Groupama UK announced, expected to be concluded in Q4 2012
Combined ratio in 9M 2012 of 97.9%; below 100%
Net result substantially up; Insurance shareholder equity increasing on unrealized gains
No noticeable progress made
57 Periodic Financial Information I 9M 12 Results I 7 November 2012
Total number of outstanding shares
Reverse stock split
Cancellation bought back shares
Agreement with BNP in February
situation 31/12/2011 situation 30/06/2012 situation 07/11/2012
Total Issued Shares 2,623,380,817 2,431,212,726 243,121,272
Shares not entitled to dividend and voting right 342,404,219 88,922,670 13,722,516
1. TREASURY SHARES Share buy-back 175,163,656 0 4,829,454FRESH 39,682,540 39,682,540 3,968,254Other treasury shares 2,244,740 2,801,088 280,904
2. CASHES 125,313,283 46,439,042 4,643,904
Shares entitled to dividend and voting rights 2,280,976,598 2,342,290,056 229,398,756
Total Issued Shares diminished with the 192,168,091 shares acquired through the Buy-back programme & cancellation granted at the shareholders' meetings of 24 and 25 April 2012 effective as at 29 June 2012.
Following the agreement with BNPP 63% of the outstanding CASHES has been converted into Ageas shares (63% of 125,313,283) with dividend and voting right.
Following the reverse stock split the total number of shareshas been divided by 10, effective as at 7 August 2012.
58 Periodic Financial Information I 9M 12 Results I 7 November 2012
Ping An 4.98%
Franklin Mutual Advisers3.23%
Ageas3.73%
Norges Bank 2.98%
Fortis Bank1.91%
BNP Paribas 1.05% Benelux Retail
shareholders 15% Identified
institutional investors
41%
Other investors26%
BNP Paribas Group 2.96%
Shareholders structure
Ping An Based upon the number of shares mentioned in the notification received March 2009BNP Paribas Based upon the BNP Paribas notification 1 October 2012
Ageas Based upon press release 5 November 2012Norges Bank Based upon the number of shares mentioned in the notification received 20 August 2012
Franklin Mutual Advisers Based upon the number of shares mentioned in the notification received 30 April 2012Benelux Retail shareholders Estimate by
Identified institutional investors Estimate by
Based on number of shares as at 5 November 2012
Periodic Financial Information I 9M 12 Results I 7 November 2012 59
Financial Calendar 2012 - 2013
6 August 6M 2012 results
7 November 9M 2012 results
24 & 25 September Investor Day - London
24 April Ordinary & Extraordinary shareholders’ meeting - Brussels
20 February Annual results 2012
15 May 3M 2013 results
14 March Annual report 2012
26 April Ex-dividend date
6 May Payment 2012 dividend
2 August 6M 2013 results
6 November 9M 2013 results
Periodic Financial Information I 9M 12 Results I 7 November 2012 60
Rating
MOODY'S FITCH S&P
Operating entitiesAG Insurance (Belgium)
Insurance Financial Strength A2 A+ A-Outlook negative negative stableLast change 26/07/12 17/04/12 29/11/11
Millenniumbcp Ageas (Portugal)Insurance Financial Strength BBB- BBOutlook negative negativeLast change 25/11/11 17/01/12
Holdingsageas SA/NV
Long-term Baa3 / P-3 * BBB+ / F2 BBB- / A-3Outlook negative negative stableLast change 26/07/12 17/04/12 25/10/10
* Ageas has requested in early 2009 that this rating should be withdrawn. Ageas no longer participates in Moody's creditrating process. Ageas does not provide, for purposes of Moody's rating, access to the books, recordsand other relevant internal documents of these rated entities.
Periodic Financial Information I 9M 12 Results I 7 November 2012 61
Disclaimer 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
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Investor Relations
Periodic Financial Information I 9M 12 Results I 7 November 2012