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9M Periodical Financial
Information
2013 RESULTS
Executive summary
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
A consistent & robust overall Insurance performance Both Insurance & General Account contributing to Group net result Balance sheet remained strong
Insurance net profit of EUR 497 mio (+11%) Inflow @ 100% of EUR 17.8 bn (+15%) Group combined ratio at 97.6% (vs.97.9%) Life Technical Liabilities at EUR 69.0 bn*
Q3 insurance net profit of EUR 168 mio
Group net profit of EUR 513 mio (-1%) General Account net result of EUR 15 mio
Q3 Group net profit of EUR 41 mio, incl.revaluation RPN(i) Shareholders’ equity at EUR 38.30 per share Insurance solvency at 210%, Group solvency at 226% Net cash position General Account at EUR 2.0 bn EUR 33 mio executed of EUR 200 mio share buy-back
Main messages Ageas’s 9M results continued positive trend
Periodic financial Information I 9M 13 Results I 6 November 2013 2 * Consolidated entities only, compared to FY 2012
293 311
143174
1312450
497
9M 12 9M 13Life Non-Life Other
97.9% 97.6%
9M 12 9M 13
Net result: Strong quarterly results in BE & Asia In EUR mio In EUR bn
Non-Life combined ratio: improving CY claims ratio
227% 210% 207% 0.86% 0.87%
FY 12 9M 13
0.55% 0.47%
FY 12 9M 13
Inflow*: strong growth in Asia & CEU In EUR bn
Total Insurance: Headlines Ageas insurance performance consistent & robust
3
68.8 69.0
36.5 40.2
105.3 109.2
FY 12 9M 13Conso Non-conso
Periodic financial Information I 9M 13 Results I 6 November 2013
11.1 13.3
4.34.5
15.517.8
9M 12 9M 13Life Non-Life Other
Life Technical liabilities*: stable in consolidated, up in non-consolidated
Operating margin Guaranteed: strong quarterly result
Operating margin Unit-Linked: down but still in line with target
In % avg technical liabilities In % avg technical liabilities
* Incl. non-consolidated partnerships @ 100%
3.73.0
1.41.4
5.04.4
9M 12 9M 13
Life Non-Life
Periodic financial Information I 9M 13 Results I 6 November 2013
Net result: strong Q3 In EUR mio In EUR bn
Operating margin Guaranteed: strong quarterly result
Non-Life combined ratio: strong Q3
Inflow: Individual Guaranteed Life down
227% 210% 207%
Life Technical liabilities stable In EUR bn
Belgium : Headlines Strong quarterly results in Life & Non-Life, inflow trends confirmed
**
165 190
5157
216247
9M 12 9M 13Life Non-Life
98.8% 97.6%
9M 12 9M 13
0.80% 0.84%
9M 12 9M 13
Operating margin Unit-Linked:
52.7 52.9
FY 12 9M 13
4
In % avg technical liabilities
0.49% 0.44%
9M 12 9M 13
In % avg technical liabilities
0.06 0.08
1.6 1.7
1.7 1.7
9M 12 9M 13Life Non-Life
Net result: Non-Life up on inclusion Groupama In EUR mio
In EUR bn Inflow up 8% at constant FX
United Kingdom: Headlines Overall Non-Life performance & inflow improved
5
212 181
9M 12 9M 13
0(2)
73 77
13 1286 87
9M 12 9M 13
Life Non-Life Other
Non-Life combined ratio: improved underwriting mainly in Household
98.6% 98.2%
9M 12 9M 13
Other Income down in a competitive market In EUR mio
Periodic financial Information I 9M 13 Results I 6 November 2013
2.12.9
0.8
0.82.9
3.7
9M 12 9M 13Life Non-Life
Net profit increase driven by Turkey In EUR mio
In EUR bn
Non-Life combined ratio: weather conditions Portugal vs. strong 2012
227% 210% 207%
Inflow* increased in nearly all countries
In EUR bn
Continental Europe: Headlines Excellent top line performance & increased Non-Life net profit including positive one-off
**
36 36
1326
49
63
9M 12 9M 13
Life Non-Life
89.9%94.5%
9M 12 9M 13
1.02% 0.89%
9M 12 9M 13
Operating margin Guaranteed: lower risk result vs. excellent 9M 12
Periodic financial Information I 9M 13 Results I 6 November 2013 6
Life Technical liabilities*: growth due to fewer surrenders
0.51% 0.56%
9M 12 9M 13
In % avg technical liabilities
* Incl. non-consolidated partnerships @ 100%
14.1 14.0
14.0 14.4
28.1 28.4
FY 12 9M 13Conso Non-conso
Operating margin Unit-Linked: In % avg technical liabilities
Net result: Excluding one-offs, strong growth of underlying profit In EUR mio
In EUR bn
Non-Life combined ratio improving in both Thailand & Malaysia
Inflow* fuelled by China & Thailand Life Technical liabilities* up across all entities In EUR bn
Asia: Headlines New business boost & underlying profit growth Life / Strong Non-Life underwriting result
Periodic financial Information I 9M 13 Results I 6 November 2013 7
**
92 87
6 1499 101
9M 12 9M 13
Life Non-Life
101.0%
94.8%
9M 12 9M 13
5.27.3
0.6
0.65.8
7.9
9M 12 9M 13Life Non-Life
76 79
6 1483
93
9M 12 9M 13Life Non-Life
1.9 2.0
22.5 25.8
24.427.8
FY 12 9M 13Conso Non-conso
* Incl. non-consolidated partnerships @ 100%
In % avg technical liabilities In EUR mio
2.10%1.41%
9M 12 9M 13
Life operating margin Hong Kong: excluding one-offs up 8%
Result non-consolidated partnerships: excluding one-offs up 15%
Periodic financial Information I 9M 13 Results I 6 November 2013 8
Investment portfolio Value of portfolio down on UG/L in fixed income, increased allocation to equities In EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets; loans & real estate which are valued at amortized costs
Asset mix
Asset mix relatively stable
Increased positions in equities & customer loans at the expense of cash continued
Gross unrealized gains/losses on Available for Sale Total portfolio: down to EUR 3.8 bn (EUR 5.4 bn FY 12);
exclusively down in fixed income
Fixed income: at EUR 3.5 bn (EUR 5.2 bn FY 12) Sovereigns at EUR 2.2 bn (vs. EUR 3.3 bn) Corporates at EUR 1.3 bn (vs. EUR 1.8 bn)
Equities: slightly up to EUR 0.3 bn
Gross UG/L on Real Estate: stable at EUR 1.3 bn - not reflected in shareholders’ equity
EUR 0.8 bn unrealized gains/losses on Held to Maturity not reflected in shareholders’ equity
Sovereign bonds 34.7
Sovereign bonds 33.9
Corporate bonds 25.1
Corporate bonds 24.7
Structured 0.3Structured 0.4
Loans6.3 Loans
5.9
Equities 2.4 Equities 3.0
Real Estate 4.7 Real Estate 4.6
Cash 2.4 Cash 2.2
75.9 74.7
FY 12 9M 13
Net result driven by Q1 transactions & revaluation RPN(i) In EUR mio
Accounting value remaining legacies:
General Account: Headlines Q3 impact of revised methodology RPN(i) methodology
Periodic financial Information I 9M 13 Results I 6 November 2013 9
**
Net cash position: cash on legacy transactions partly in
69
15
9M 12 9M 13
1.2
2.0
FY 12 9M 13
In EUR bn In EUR mio
(165) (279)
234
872
241
FY 12 9M 13RPN(i) Call Option RPI
* Subject to absence of any creditor’s claim
Shareholders’ equity / share
Shareholders’ equity Net profit impact offset by lower unrealized gains & return to shareholders In EUR mio
6,206 6,378
1,939 1,316
1,6551,034
497 15
(692) (105) (270) (224) (190) (104)
EUR 42.27 EUR 38.30
9,7998,727
FY 12 Net resultInsurance
Net resultGen
Account
ChangeUG/L
TreasuryShares
Dividend Capitalreduction
Revaluationput option
Forex& other
9M 13
InsuranceUG/L
InsuranceUG/L
Periodic financial Information I 9M 13 Results I 6 November 2013 10
Equity per segment FY 12 9M 13 FY 12 9M 13
Belgium 3,974 ► 3,691 Asia 1,837 ► 1,685UK 1,149 ► 1,127 Insurance 8,145 ► 7,693Continental Europe 1,185 ► 1,191 General Account 1,655 ► 1,034
IFRS Solvency up on Net result General Account down on capital reduction
2.4 2.4
0.5 0.5 0.6 0.6 0.5 0.6
4.0 4.1 4.0 4.1
1.7 2.1
0.6 0.6 0.8 0.9 0.9 0.8
4.14.5
1.0 0.7
5.1 5.2
4.14.6
1.1 1.1 1.4 1.5 1.4 1.4
8.18.6
9.1 9.3
FY 12 9M 13 FY 12 9M 13 FY 12 9M 13 FY 12 9M 13 FY 12 9M 13 FY 12 9M 13 FY 12 9M 13
Belgium UK
CEU Asia
Total Ageas General Account
RMC Excess Capital RMC Excess Capital RMC Excess Capital RMC Excess Capital RMC Excess Capital Available Capital
In EUR bn
Periodic financial Information I 9M 13 Results I 6 November 2013 11
Solvency ratio 173% 188% 220% 220% 243% 258% 268% 230% 204% 210% 229% 226%
Periodic financial Information I 9M 13 Results I 6 November 2013
Net cash position General Account at EUR 2.0 bn Up in Q2 on transactions regarding RPI & BNPP Call Option
EUR 33 mio executed at 30/09/13 in EUR 200 mio share buy-back launched August 2013
EUR 1.2 per share 2012 dividend paid out in May, upstream from operating companies more than compensating 2012 dividend & 2012 corporate centre costs
Transactions RPI & BNPP Call option: expected cash inflow almost entirely received, most of remaining proceeds expected in the coming months
Capital reduction approved at Shareholders’ Meeting 16 September, pay-out foreseen mid-December
12
6881,216
1,981340
827
144 ≈200
(97) (77)(270)
(46) (56) (167)(224)
FY 11 FY 12 buy-back capitalinjection
TPL
paiddividend
upstreamopco's
RPI calloption
operating expenses
other 9M 13
RPI transaction share buy-back capital reduction
In EUR bn announced cash movements -best estimate
Takeaways Q3 confirmed 6M trends in inflow,
operating performance & net insurance results
Results well spread across segments
Up both in Life & Non-Life
Combined ratio & Operating margins in line with targets communicated at
Investors Update
Focus on maintaining this performance
Conclusions : positive trend continued
Periodic financial Information I 9M 13 Results I 6 November 2013 13
Executive summary
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Periodic financial Information I 9M 13 Results I 6 November 2013 15
Key financials Strong operational performance In EUR mio 9M 12 9M 13 Q3 12 Q2 13 Q3 13
Gross inflows 15,465 17,767 4,649 5,744 5,270 - of which inflows from non-consolidated partnerships 7,283 9,562 2,171 2,965 2,590
Net result Insurance 450 497 147 172 168By segment: - Belgium 216 247 73 80 87 - UK 86 87 35 35 29 - Continental Europe 49 63 15 28 17 - Asia 99 101 24 29 35By type: - Life 293 311 88 93 110 - Non-Life 143 174 54 74 55 - Other 13 12 6 5 3
Net result General Account 69 15 67 7 (127)Net result Ageas 518 513 214 179 41Earnings per share (in EUR) 2.17 2.24Combined ratio 97.9% 97.6% 97.2% 96.1% 97.4%
FY 12 9M 13Life technical liabilities (in EUR bn) 68.8 * 69.0Insurance Solvency 204% ** 210%Shareholders' equity 9,799 ** 8,727Net equity per share (in EUR) 42.27 ** 38.30Insurance ROE 8.7% 8.4% annualized result / avg equity 31/12 - 30/09Insurance ROE excl.UG/L 10.5% 10.5% annualized result / avg equity excl. UG/L 31/12 - 30/09
* Consolidated companies only / ** restated for IAS 19
Shareholders’ equity / share
Shareholders’ equity Net profit impact offset by lower unrealized gains & return to shareholders In EUR mio
6,206 6,378
1,939 1,316
1,6551,034
497 15
(692) (105) (270) (224) (190) (104)
EUR 42.27 EUR 38.30
9,7998,727
FY 12 Net resultInsurance
Net resultGen
Account
ChangeUG/L
TreasuryShares
Dividend Capitalreduction
Revaluationput option
Forex& other
9M 13
InsuranceUG/L
InsuranceUG/L
Periodic financial Information I 9M 13 Results I 6 November 2013 16
Equity per segment FY 12 9M 13 FY 12 9M 13
Belgium 3,974 ► 3,691 Asia 1,837 ► 1,685UK 1,149 ► 1,127 Insurance 8,145 ► 7,693Continental Europe 1,185 ► 1,191 General Account 1,655 ► 1,034
Tangible net equity High quality capital structure
10/03/2010 I page 17
EUR bn FY 12 9M 13
IFRS Shareholders' Equity 9.8 8.7Unrealised gains real estate 0.6 0.6Goodwill (0.7) (0.7)VOBA (Value of Business Acquired) (0.4) (0.4)DAC (Deferred Acquisition Cost) (0.9) (0.9)Other (0.4) (0.3)Goodwill, DAC, VOBA related to N-C interests 0.5 0.525% tax adjustment DAC, VOBA & Other 0.3 0.3
IFRS Tangible net equity 8.9 7.9
IFRS Tangible net equity/ IFRS Shareholder's Equity 91% 90%
Periodic financial Information I 9M 13 Results I 6 November 2013 17
IFRS Solvency up on Net result General Account down on capital reduction
2.4 2.4
0.5 0.5 0.6 0.6 0.5 0.6
4.0 4.1 4.0 4.1
1.7 2.1
0.6 0.6 0.8 0.9 0.9 0.8
4.14.5
1.0 0.7
5.1 5.2
4.14.6
1.1 1.1 1.4 1.5 1.4 1.4
8.18.6
9.1 9.3
FY 12 9M 13 FY 12 9M 13 FY 12 9M 13 FY 12 9M 13 FY 12 9M 13 FY 12 9M 13 FY 12 9M 13
Belgium UK
CEU Asia
Total Ageas General Account
RMC Excess Capital RMC Excess Capital RMC Excess Capital RMC Excess Capital RMC Excess Capital Available Capital
In EUR bn
Periodic financial Information I 9M 13 Results I 6 November 2013 18
Solvency ratio 173% 188% 220% 220% 243% 258% 268% 230% 204% 210% 229% 226%
Executive summary
Annexes
Equity / Solvency
Insurance activities
Investment portfolio
General Account
General Information
293 311
143174
1312450
497
9M 12 9M 13Life Non-Life Other
97.9% 97.6%
9M 12 9M 13
Net result: Strong quarterly results in BE & Asia In EUR mio In EUR bn
Non-Life combined ratio: improving CY claims ratio
227% 210% 207% 0.86% 0.87%
FY 12 9M 13
0.55% 0.47%
FY 12 9M 13
Inflow*: strong growth in Asia & CEU In EUR bn
Total Insurance: Headlines Ageas insurance performance persistently robust
20
68.8 69.0
36.5 40.2
105.3 109.2
FY 12 9M 13Conso Non-conso
Periodic financial Information I 9M 13 Results I 6 November 2013
11.1 13.3
4.34.5
15.517.8
9M 12 9M 13Life Non-Life Other
Life Technical liabilities*: stable in consolidated, up in non-consolidated
Operating margin Guaranteed: strong quarterly result
Operating margin Unit-Linked: down but still in line with target
In % avg technical liabilities In % avg technical liabilities
* Incl. non-consolidated partnerships @ 100%
Inflow @ 100% Growth driven by China, Thailand & Portugal
*
* Ageas holds a 50% stake in Tesco Underwriting Periodic financial Information I 9M 13 Results I 6 November 2013 21
EUR mio 9M 12 9M 13 9M 12 9M 13 9M 12 9M 13Belgium 75% 3,674 2,996 1,362 1,425 5,036 4,422 United Kingdom 100%* 61 79 1,636 1,669 1,697 1,748 0 0 Continental Europe 2,142 2,871 766 800 2,908 3,671
Consolidated entities 802 1,358 334 335 1,136 1,693 Portugal 51% 611 1,087 183 190 795 1,278 France 100% 190 271 190 271 Italy 25% 151 144 151 144
Non-consolidated JV's 1,340 1,513 432 465 1,772 1,978 Turkey (Aksigorta) 36% 432 465 432 465 Luxembourg (Cardif Lux Vie) 33% 1,340 1,513 1,340 1,513
Asia 5,238 7,327 585 598 5,824 7,926 Consolidated entities 313 341 313 341
Hong Kong 100% 313 341 313 341 Non-consolidated JV's 4,925 6,986 585 598 5,511 7,585
Malaysia 31% 568 479 454 437 1,023 917 Thailand 15%/31% 927 1,133 131 161 1,059 1,294 China 25% 3,346 5,287 3,346 5,287 India 26% 84 87 84 87 0 0 Total 11,115 13,274 4,349 4,493 15,465 17,767 0 0
Consolidated entities 4,850 4,775 3,332 3,429 8,182 8,204 Non-consolidated partnerships 6,265 8,499 1,017 1,063 7,283 9,562
Life Non-Life Total
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Life Non-Life Life Non-Life Life Non-Life
Inflow @ Ageas’s part Strong growth in emerging markets, Guaranteed Life sales down following market trend In EUR mio
Periodic financial Information I 9M 13 Results I 6 November 2013 22
2,756 2,247
61 79 949 1,330 1,630 2,178
5,396 5,834 1,022
1,069
1,344 1,470 287
301 160 159
2,813 2,999
(12%)
10% 32%
31%
8%
3,777 3,316
1,405 1,549 1,236
1,630 1,790 2,338
8,208 8,833
9M 12 9M 13 9M 12 9M 13 9M 12 9M 13 9M 12 9M 13 9M 12 9M 13
Insurance net result Result under pressure of competitive markets & strong inflow growth
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Other Life Non-Life Life Non-Life Life Non-Life Other
165 190
0 (2) 36 36 92 87
293 311
51 57
73 77 13 26
6 14
143 174
13 12
13
12
216 247
86 87 49 63
99 101
450
497
9M 12 9M 13 9M 12 9M 13 9M 12 9M 13 9M 12 9M 13 9M 12 9M 13
In EUR mio
Periodic financial Information I 9M 13 Results I 6 November 2013 23
10/03/2010 I page 24
Overview impairments & net capital gains on investments Impairments substantially lower than 9M 12
*
Periodic financial Information I 9M 13 Results I 6 November 2013 24
EUR mio 9M 12 9M 13 9M 12 9M 13 9M 12 9M 13Life 70 53 (65) (23) 5 30Non-Life 18 10 (4) (4) 14 6
Total Belgium 87 63 (69) (27) 18 36LifeNon-Life 14 6 14 6Other
Total UK 14 6 14 6Life 4 13 (1) (7) 3 5Non-Life 0 (0) 0 (0)
Total CEU 4 13 (1) (7) 3 5Life 20 30 (15) (5) 5 25Non-Life 2 4 (0) (0) 2 4
Total Asia 22 34 (15) (6) 7 28Life 94 95 (81) (36) 13 60Non-Life 34 20 (4) (4) 30 16Other
Total Ageas 128 115 (85) (40) 43 75
Capital gains/losses Impairments & Profit sharing impact Total impact
25 Periodic financial Information I 9M 13 Results I 6 November 2013
Insurance Lexicon on new margin disclosures as from FY 2012 Life Non-Life + Underwriting
result + Premiums received from policyholders - actual payments made in risk contracts + penalties deducted in case of surrender + reinsurance result
+ Net Underwriting result
+ Net Earned Premium - all evolutions in claims reserves (CY & PY) + technical interest charges on technical liabilities - all expenses (marketing, intermediary, claims
handling & administration) + Expense &
Other result + expense loadings - actual expense charges + other results of technical nature
= Net Underwriting result + Other result + other results of technical nature
+ Investment result + Investment income on assets covering Life technical liabilities (recurring & cap gains)
- what is paid out to policyholders (guaranteed income & profit sharing)
+ Investment result + Investment income on assets covering Non-Life technical liabilities (recur. & cap gains)
- technical interest charges on technical liabilities
= Operating result = Operating result
Average technical liabilities
= average between technical liabilities at the beginning & at the end of each quarter of current year.
Net earned premium + Premiums received from policyholders - premiums covering risks future period - premiums paid to reinsurers
Life margins All Life margins calculated as % of average technical liabilities
Non-Life ratio’s All Non-Life ratio’s calculated in % of Net earned premiums
Combined ratio
Corresponds to 1minus net underwriting result in % of net earned premiums
Insurance Combined ratio On track to be substantially below 100%
Net earned premium in EUR mio
Periodic financial Information I 9M 13 Results I 6 November 2013 26
Combined ratio at 97.6% vs. 97.9%
Q3 confirms H1 good operational performance with COR at 97.2%
Household at 90.8% (vs.98.8%): benign weather in major markets, impact of corrective measures & tariff increases in Belgium – Q3 at 90.5%
Accident & Health: at 94.7% (vs.94.0%): strong improvement claims ratio Belgium – Q3 at 94.4%
Motor at 102.2% (vs. 96.5%): increase combined ratio in all segments – Q3 at 98.5%
Claims ratio at 64.6% vs. 67.3%
CY claims ratio (67.6% vs. 72.5%) most significant impact in Household
PY claims ratio down to release of 2.8% (vs. 3.8%), lower run-off mainly in Motor
Expense ratio at 33.2% vs. 30.6%
2,497 2,858 3,507 4,178 3,067 3,225 1,044 1,079
69.4% 73.2% 69.0% 68.1% 67.3% 64.4% 66.5% 64.2%
33.1%32.8%
31.1% 31.0% 30.6% 33.2% 30.7% 33.0%
102.5% 106.0%100.1% 99.1% 97.9% 97.6% 97.2% 97.2%
(6.0%)(3.7%) (3.5%) (3.1%) (3.8%) (2.8%) (1.7%) (2.5%)
2009 2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13
claims ratio expense ratio PY claims ratio
Insurance Combined ratio per product line Household strongly improving
Motor: reserves strengthening Accident & Health: good performance confirmed
Other: improvement across all segments Household: benign weather in major markets
Periodic financial Information I 9M 13 Results I 6 November 2013 27
609 714 736 763 571 599 1,012 1,134 1,571 2,058 1,508 1,535
203 261 308 349 246 296673 750 892 1,007 742 795
70.4% 74.3% 71.9% 70.5% 69.6% 68.9%
23.6% 24.8% 25.0% 25.5% 24.4% 25.8%
94.0% 99.1% 96.9% 96.0% 94.0% 94.7%
2009 2010 2011 2012 9M 12 9M 13
79.0% 78.4% 72.0% 73.6% 71.8% 72.4%
29.3% 29.0%25.3% 25.4% 25.5% 28.6%
108.3% 107.4%97.3% 99.0% 97.3% 101.0%
2009 2010 2011 2012 9M 12 9M 13
59.4%75.0%
61.9% 55.6% 57.4% 47.8%
43.4%43.2%
41.5% 41.6% 41.4%43.0%
102.8%118.2%
103.4% 97.2% 98.8%90.8%
2009 2010 2011 2012 9M 12 9M 13
51.7% 42.9%67.2% 66.5% 64.0% 59.1%
45.8%41.2%
44.8% 44.9% 44.0% 45.3%
97.5%84.1%
112.0% 111.4% 108.0% 104.4%
2009 2010 2011 2012 9M 12 9M 13
NEP NEP
NEP NEP
Insurance Life operating margin per product line Margins in Guaranteed & UL within target range communicated at Investors Update Guaranteed: improvement driven by investment margin Unit-linked: driven by Hong Kong
Average technical liabilities Average technical liabilities
Expense & other margin decrease related to Asia mainly
Underwriting margin improvement in Hong Kong following organic growth
Investment margin strong improvement due to lower impairments
Slight deterioration underwriting margin √ mainly coming from CEU (lower risk margin) & Asia √ improving in Belgium on increasing technical
liabilities Expense margin stable
Periodic financial Information I 9M 13 Results I 6 November 2013
0.44% 0.41% 0.44% 0.47% 0.43% 0.43% 0.40%
0.67%
(0.79%)
0.87% 0.70% 0.79%0.57% 0.81%
(0.33%)
(0.36%)
(0.33%) (0.34%) (0.35%) (0.34%) (0.36%)
0.56%
(0.60%)
0.81% 0.86% 0.87%0.77%
0.85%
2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13Expense & other m. Investment m. Underwriting m.
0.07%0.04%
0.11% 0.13% 0.14% 0.15% 0.14%0.01%0.01% 0.00%
0.27%0.42%
0.37%0.42%
0.33%0.43% 0.42%
0.35%
0.45%0.48%
0.55%0.47%
0.58% 0.56%
2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13Expense & other m. Investment m. Underwriting m.
28
50.4 52.3 54.0 53.7 55.4 53.7 55.4 20.2 12.4 11.8 11.7 12.3 11.7 12.3
3.73.0
1.41.4
5.04.4
9M 12 9M 13
Life Non-Life
Periodic financial Information I 9M 13 Results I 6 November 2013
Net result: strong Q3 In EUR mio In EUR bn
Operating margin Guaranteed: strong quarterly result
Non-Life combined ratio: strong Q3
Inflow: Individual Guaranteed Life down
227% 210% 207%
Life Technical liabilities stable In EUR bn
Belgium : Headlines Strong quarterly results in Life & Non-Life, inflow trends confirmed
**
165 190
5157
216247
9M 12 9M 13Life Non-Life
98.8% 97.6%
9M 12 9M 13
0.80% 0.84%
9M 12 9M 13
Operating margin Unit-Linked:
52.7 52.9
FY 12 9M 13
29
In % avg technical liabilities
0.49% 0.44%
9M 12 9M 13
In % avg technical liabilities
3,4042,562
270
434
3,6742,996
9M 12 9M 13
(18%)
Life In EUR mio
Non-Life In EUR mio
Unit-Linked
Guaranteed
Other
Household
Accident & Health
Motor
Belgium: Inflow @ 100% Life Individual Guaranteed decrease partly offset by higher sales in other products
378 392
429 441
434 461121 131
1,362 1,426
9M 12 9M 13
Periodic financial Information I 9M 13 Results I 6 November 2013 30
+5%
Guaranteed Sales of guaranteed products decreased by 25% to EUR 2.6 bn
Decline evident in Individual Saving & Individual Traditional to a lesser extent
Lower volumes due to historically low guaranteed interest rates & impact of Belgian government decision to increase insurance premium tax (from 1.1% to 2%; as at 01/01/2013).
Group Life inflow continued to grow reaching EUR 843 mio
Unit-linked Individual Unit-Linked increased strongly to EUR 434 mio (up 61%),
mainly thanks to a marked customer appetite for these products
Household, Motor, Other GWP increased in Bank & Broker channel & across all product lines,
mainly in Household
Household (+6.2%): higher volume & tariff increases
Motor (+2.9%): driven by tariff increase
Other (+8.2%): mainly driven by tariff increase in Legal Assistance
Accident & Health Accident & Health (+3.7%) supported by good momentum in Health
Care
Belgium: Combined ratio Strong underwriting result in Household and Accident & Health, weaker in Motor
Net earned premium in EUR mio
Periodic financial Information I 9M 13 Results I 6 November 2013 31
1,469 1,541 1,601 1,698 1,269 1,323 429 451
Combined ratio at 97.6% vs. 98.8%
Solid third quarter at 97.9%
Household at 93.3% vs. 97.1% : Solid performance with improved claims ratio benefitting from benign weather & reflecting corrective measures taken in the past. Q3 at 95.3%
Accident & Health at 94% vs.95.7%. Q3 at 94.3%
Motor at 101.4% vs. 99.5%: impacted by non-recurring Q2 additional reserving for a few large claims. Good Q3 at 95,3% driven by solid underwriting
Claims ratio at 60.8% vs. 62.2%
CY ratio (65.0% vs.68.2%) improvement mainly in Household, but also in Accident & Health
PY ratio (4.2% vs. 6%) run-off adversely impacted by aforementioned Q2 additional reserving in Motor & by Q3 reserve strengthening following changes in legislation with respect to the introduction of VAT charges on lawyer fees (mainly Other lines)
Expense ratio increased slightly to 36.8%
64.1% 68.7% 64.3% 62.7% 62.2% 60.8% 60.5% 61.5%
36.8%36.4%
36.8% 36.8% 36.6% 36.8% 36.4% 36.4%
100.9%105.1% 101.1% 99.5% 98.8% 97.6% 96.9% 97.9%
(8.0%) (6.6%) (7.3%) (4.5%) (6.0%) (4.2%) (0.8%) (0.9%)
2009 2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13
claims ratio expense ratio PY claims ratio
Belgium: Combined ratio per product line Strong underwriting performance in Household and Accident & Health
Motor: solid Q3 at 95.3% Acc & Health: improved mainly thanks to Workmen’s Compensation
Household: benign weather & impact corrective measures Other: Q3 impacted by reservation VAT lawyer fees
NEP NEP
NEP NEP Periodic financial Information I 9M 13 Results I 6 November 2013 32
68.9% 75.8% 73.8% 73.0% 72.4% 69.9%
22.6%21.9% 23.8% 24.0% 23.3% 24.1%
91.5% 97.7% 97.6% 97.0% 95.7% 94.0%
2009 2010 2011 2012 9M 12 9M 13
68.5% 71.0%58.9% 64.7% 63.7% 65.0%
36.3% 35.7%35.3%
35.8% 35.8% 36.4%
104.8% 106.7%94.2% 100.5% 99.5% 101.4%
2009 2010 2011 2012 9M 12 9M 13
60.5%75.6% 63.0% 50.5% 50.9% 47.7%
47.1%47.1%
46.9%46.2% 46.2% 45.6%
107.6%122.7%
109.9%96.7% 97.1% 93.3%
2009 2010 2011 2012 9M 12 9M 13
44.9%
10.4%
58.2% 65.9% 63.7% 63.7%
49.2%
50.9%
49.5%48.1% 49.0% 47.3%
94.1%
61.3%
107.7% 114.0% 112.7% 111.0%
2009 2010 2011 2012 9M 12 9M 13
424 451 451 480 362 370 465 498 525 540 403 410
453 463 484 530 393 421 127 129 142 149 111 121
Belgium Life operating margin per product line Guaranteed: 9M13 solid underwriting & investment results, strong Q3
Unit-linked: increasing liabilities & lower expense & other margin
Avg techn liabilities Avg techn liabilities
0.03%
(0.05%)
0.04% 0.05% 0.05%
0.12% 0.10%
0.64%
0.50% 0.44% 0.44% 0.39%
0.46%0.40%
0.66%
0.45%0.47%
0.49%0.44%
0.58%0.51%
2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13
Expense & other m. Underwriting m.
0.28% 0.32% 0.32% 0.33% 0.34% 0.39% 0.34%
0.57%
(0.80%)
0.93% 0.77% 0.81% 0.66% 0.83%
(0.21%)
(0.30%)
(0.29%) (0.30%) (0.31%) (0.34%) (0.32%)
0.64%
(0.78%)
0.96%0.80% 0.84% 0.71%
0.85%
2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13Expense & other m. Investment m. Underwriting m.
Periodic financial Information I 9M 13 Results I 6 November 2013 33
40.7 42.9 44.9 44.7 46.3 44.7 46.3 6.0 5.6 5.2 5.2 5.4 5.2 5.4
Operating result amounted to EUR 17.6 mio, down 7.9% Average Technical Liabilities increased by 4%
Operating result amounted to EUR 292 mio, up 8.4% Operating margin 9M13 increased vs. 9M12 despite
continued low i-rate environment Investment margin 9M13 improved to 0.81% vs. 9M12
which was heavily impacted by impairment charges Average Technical Liabilities up 4%, mainly due to last
year’s strong intakes
0.06 0.08
1.6 1.7
1.7 1.7
9M 12 9M 13Life Non-Life
Net result: Non-Life up on inclusion Groupama In EUR mio
In EUR bn Inflow up 8% at constant FX
United Kingdom: Headlines Overall Non-Life performance & inflow improved
34
212 181
9M 12 9M 13
0(2)
73 77
13 1286 87
9M 12 9M 13
Life Non-Life Other
Non-Life combined ratio: improved underwriting mainly in Household
98.6% 98.2%
9M 12 9M 13
Other Income down in a competitive market In EUR mio
Periodic financial Information I 9M 13 Results I 6 November 2013
1,636 1,669
61 791,697 1,748
9M 12 9M 13
43 66
1,116 1,090
328 362148 151
1,636 1,669
9M 12 9M 13
Motor
Non-Life
Life
Other Property
Accident & Health
Total In EUR mio
Non-Life In EUR mio
2%
3%
United Kingdom: Inflow @ 100% Inflow up 8% at constant FX
Life Successful roll out of its proposition across the IFA market
Over 295,000 customers up 20% on same period last year
Non-Life Up 2%, growth of 7.1% at constant FX
Motor down 2% mainly due to lower average premiums, following market trend of rate decreases (14% year-on-year) & focus on risk mix improvement
Household up 10% primarily due to the inclusion of Groupama Insurance Company Ltd (GICL)
Accident & Health up 54% due to the inclusion of GICL
Other lines, including Commercial & Special Risks up 2% due to inclusion of GICL offset partially by management actions to improve profitability
EUR 296 mio Groupama inflow included
Other Insurance (including Retail) YTD total income of EUR 181 mio ,15% below last year, reflecting
continued competitive market
Periodic financial Information I 9M 13 Results I 6 November 2013 35
United Kingdom: Combined ratio Below 100% reflecting continued strong performance in Household due to benign weather
Net earned premium in EUR mio
Combined ratio at 98.2%
Combined ratio continued sub 100% performance
Impact Groupama: greater proportion delegated authority schemes with higher expense ratio but lower claims in portfolio
Claims ratio at 67.4%
Claims ratio Reduction across all lines of business with greatest impact in Household due to benign weather
CY ratio (69.2% vs. 74.3%) significant reduction primarily due to benign weather experience in Household
PY ratio: at same level as 9M 12
Expense ratio at 30.8%
Increase from combination of pressure on earned premium in Tesco & addition of Groupama with greater proportion of delegated authority schemes.
Periodic financial Information I 9M 13 Results I 6 November 2013 36
80.4% 81.5% 74.6% 73.3% 72.5% 67.4% 71.5% 66.9%
27.7% 28.0%25.3% 26.5% 26.1% 30.8% 26.7% 30.6%
108.1% 109.5%99.9% 99.8% 98.6% 98.2% 98.2% 97.5%
(3.5%)(1.1%) 0.1% (2.1%) (1.8%) (1.8%) (2.4%) (3.8%)
2009 2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13
claims ratio expense ratio PY claims ratio
834 948 1,524 2,083 1,509 1,603 521 528
88.9% 82.9% 79.2% 77.2% 75.4% 75.1%
22.8% 23.3% 19.5% 21.3% 21.3% 25.6%
111.7% 106.2%98.7% 98.5% 96.7% 100.7%
2009 2010 2011 2012 9M 12 9M 13
United Kingdom: Combined ratio per product line Reduced loss ratios in all products, partially offset by expense ratios
Motor: loss ratio improved, premium strain on expense ratio continues (TU)
NEP
Accident & Health: GICL impacting expense ratio
Household: benign weather impact Other: positive impact mgmt actions (AIL) & inclusion of GICL
NEP Periodic financial Information I 9M 13 Results I 6 November 2013 37
83.5%97.9% 87.7% 78.1% 80.3% 78.1%
26.2%24.0%
23.2%28.2% 26.2% 34.3%
109.7%121.9%
110.9% 106.3% 106.5% 112.4%
2009 2010 2011 2012 9M 12 9M 13
53 58 65 57 41 59 524 532 949 1,420 1,032 1,052
61.2%77.4%
61.4% 62.3% 65.2%46.0%
38.0%
38.2%
35.3% 36.7% 36.1%
40.3%
99.2%115.6%
96.7% 99.0% 101.3%86.3%
2009 2010 2011 2012 9M 12 9M 13
66.0% 75.1% 71.6% 67.7% 64.3% 57.4%
38.1% 30.4% 39.3% 42.2% 41.1% 43.9%
104.1% 105.5% 110.9% 109.9% 105.4% 101.3%
2009 2010 2011 2012 9M 12 9M 13187 248 366 434 318 339 69 110 143 173 118 153
NEP
NEP
2.12.9
0.8
0.82.9
3.7
9M 12 9M 13Life Non-Life
Net profit increase driven by Turkey In EUR mio
In EUR bn
Non-Life combined ratio: weather conditions Portugal vs. strong 2012
227% 210% 207%
Inflow* increased in nearly all countries
In EUR bn
Continental Europe: Headlines Excellent top line performance & increased Non-Life net profit including positive one-off
**
36 36
1326
49
63
9M 12 9M 13
Life Non-Life
89.9%94.5%
9M 12 9M 13
1.02% 0.89%
9M 12 9M 13
Operating margin Guaranteed: lower risk result vs. excellent 9M 12
Periodic financial Information I 9M 13 Results I 6 November 2013 38
Life Technical liabilities*: growth due to fewer surrenders
0.51% 0.56%
9M 12 9M 13
In % avg technical liabilities
* Incl. non-consolidated partnerships @ 100%
14.1 14.0
14.0 14.4
28.1 28.4
FY 12 9M 13Conso Non-conso
Operating margin Unit-Linked: In % avg technical liabilities
9441,334
1,198
1,5382,142
2,871
9M 12 9M 13
244 242
281 286
125 144117 129766 800
9M 12 9M 13
Accident & Health
Motor
Unit-Linked
Guaranteed
+34%
Other Household
Life In EUR mio
Non-Life In EUR mio
Continental Europe: Inflow @ 100% Higher Life sales in Portugal & France, Non-Life driven by Turkey
+4%
Life Inflow +34%, including non-controlling interests @ 100%, reflecting
higher sales in all operating companies
Consolidated inflow up 69%
Portugal: volumes up by 78% driven by the UL business as a result of successful campaigns in Q3
France: up by 42% continue to benefit from the 1st quarter UL single premium payment
Technical liabilities End of period technical liabilities: flat vs. year-end 2012
Average technical liabilities growth in line with excellent sales performance over last 2 years
Non-Life Inflow +4%, including non-controlling interests @ 100% driven by
Turkey
GWP consolidated entities in line with last year
Turkey (Aksigorta) at EUR 465 mio
A&H and Motor remain the major business lines in the portfolio. Motor growing in Portugal (Mobis product) & regaining momentum in Turkey despite intense competition
Periodic financial Information I 9M 13 Results I 6 November 2013 39
Continental Europe: Combined ratio Well below group target even with severe winter weather in Portugal
Net earned premium in EUR mio
* Scope: only consolidated companies: 2009 Portugal; as from 2010 Portugal & Italy
Combined ratio at 94.5%
Combined ratio higher than PY mainly due to severe weather impact in Portugal (Household) & exceptionally low claims ratios last year.
Combined ratio Turkey at 89.9% vs. 99.4%
Claims ratio at 65.0%
Claims ratio mainly higher due to mid-January storms in Portugal & higher volume of claims reported
Claims ratio Italy improved compared to previous quarter & in line with 9M 12
PY ratio: 2.4% release vs. 4.1%
Expense ratio at 29.5%
Expense ratio continued focus on cost containment (LY was influenced by a one off release in Italy), commission ratio slightly up due to product mix
Periodic financial Information I 9M 13 Results I 6 November 2013 40
62.4%71.0% 66.4% 63.6% 62.6% 65.0% 65.9% 62.4%
27.6%
30.3%30.3% 29.8% 27.3%
29.5% 26.9% 30.0%
90.0%
101.3%96.7% 93.4% 89.9%
94.5% 92.8% 92.4%
(1.3%)1.9%
(2.0%) (2.5%) (4.1%) (2.4%) (1.6%) (2.5%)
2009 2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13
claims ratio expense ratio PY claims ratio
194 369 382 397 289 299 95 100
65.3%90.5%
71.8% 69.8% 66.1% 73.9%
36.7%
27.0%
29.2% 28.1% 27.6%28.3%
102.0%117.5%
101.0% 97.9% 93.7%102.2%
2009 2010 2011 2012 9M 12 9M 13
Continental Europe: Combined ratio per product line Overall combined ratio within expectations
Motor: 9M 12 positively influenced by reserve developments
Accident & Health: product mix drives increase commission ratio
Household: impact of weather in Portugal Other: higher commission due to product mix
Periodic financial Information I 9M 13 Results I 6 November 2013 41
70.2% 64.2% 63.5% 63.3% 61.1% 63.5%
25.7% 31.6% 27.8% 28.2% 26.0% 26.3%
95.9% 95.8% 91.3% 91.5% 87.1% 89.8%
2009 2010 2011 2012 9M 12 9M 13132 205 220 226 167 169 23 104 97 99 74 73
34.9%53.5% 53.7% 51.8% 61.1% 65.3%
22.9%
27.7% 34.2% 33.5%32.3%
38.5%
57.8%
81.2% 87.9% 85.3%93.4%
103.8%
2009 2010 2011 2012 9M 12 9M 1333 39 42 44 31 35
33.8%
73.3%94.5%
62.8% 64.5%45.4%
58.6%
39.0%
50.0%
43.3% 30.3%44.4%
92.4%112.3%
144.5%
106.1%94.8% 89.8%
2009 2010 2011 2012 9M 12 9M 137 21 23 28 16 22
NEP
NEP
NEP
NEP
Continental Europe Life operating margin per product line
Guaranteed: lower underwriting margin partially offset by higher investment margin
Unit-linked: increasing expense & other margin
Avg techn liabilities Avg techn liabilities
Increase expense & other margin related to inflow growth
Investment margin improved vs. last year Decline in underwriting margin YTD due to higher claims in
risk business & fewer premiums (change payment frequency)
Cost containment leading to stable expense margin
1.25% 1.00% 1.18% 1.22%0.91% 1.19% 0.89%
0.84%
(0.75%)
0.70% 0.64%0.83% 0.54%
0.80%
(0.93%)
(1.08%)
(0.85%) (0.84%) (0.85%) (0.91%) (0.93%)
1.16%
(0.83%)
1.02% 1.02% 0.89% 0.82% 0.79%
2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13Expense & other m. Investment m. Underwriting m.
0.01% 0.02% 0.02% 0.02% 0.01% 0.01% 0.01%
0.01% 0.01% 0.01% 0.01%
0.18%
0.55%0.41%
0.48% 0.54%0.45%
0.62%
0.20%
0.56%
0.44%0.51%
0.56%
0.47%
0.64%
2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13
Expense & other m. Investment m. Underwriting m.
Periodic financial Information I 9M 13 Results I 6 November 2013 42
8.7 8.3 7.8 7.8 7.7 7.8 7.7 13.9 6.4 6.1 6.1 6.3 6.1 6.3
Net result: Excluding one-offs, strong growth of underlying profit In EUR mio
In EUR bn
Non-Life combined ratio improving in both Thailand & Malaysia
Inflow* fuelled by China & Thailand Life Technical liabilities* up across all entities In EUR bn
Asia: Headlines New business boost & underlying profit growth Life / Strong Non-Life underwriting result
Periodic financial Information I 9M 13 Results I 6 November 2013 43
**
92 87
6 1499 101
9M 12 9M 13
Life Non-Life
101.0%
94.8%
9M 12 9M 13
5.27.3
0.6
0.65.8
7.9
9M 12 9M 13Life Non-Life
76 79
6 1483
93
9M 12 9M 13Life Non-Life
1.9 2.0
22.5 25.8
24.427.8
FY 12 9M 13Conso Non-conso
* Incl. non-consolidated partnerships @ 100%
In % avg technical liabilities In EUR mio
2.10%1.41%
9M 12 9M 13
Life operating margin Hong Kong: excluding one-offs up 8%
Result non-consolidated partnerships: excluding one-offs up 15%
240 257 76 79 20 22 250 240
585 598
9M 12 9M 13
4,973
7,090 265
237 5,238
7,327
9M 12 9M 13
+40%
+2%
Fire
Motor
Guaranteed
Life
Non-Life In EUR mio
In EUR mio
Unit-Linked
Asia: Inflow @ 100% Strong growth new business, boosted by very successful sales campaigns
Accident & Health
Other
Periodic financial Information I 9M 13 Results I 6 November 2013 44
Life Hong Kong, +9%, New business premiums strongly up despite a general
market slowdown following new regulations covering sales procedures of investment linked products
China, +58%, New business bank channel up 100% after very successful campaign; agency sales up 174% thanks to expanding number of agents & successful sales campaigns
Malaysia, -16%, New business premiums down due to the ongoing transition of both bank & agency channel distribution strategy from single premium sales towards more sustainable regular premium sales
Thailand, +22%, New business premiums up 28%; strong performance in both the bank channel & the agency channel
India, +4%, Despite continuation of a difficult regulatory environment new business was up 20% in the bank channel
Technical liabilities – end-of-period
Hong Kong : EUR 2.0 bn, up 6%
Including non-consolidated JVs @ 100%: EUR 27.8 bn, up 14%
Non-Life Malaysia, -4%, Growth in high-retention lines Household & Personal Accident,
offset by lower premiums in Marine, Aviation & Transport
Thailand, +23%, Concentrated in Motor business. Household & Personal Accident business also showed good growth
Hong Kong Life operating margin per product line Improved margin due to organic growth & higher investment income Guaranteed: improving expense & investment margin Unit-linked: pressure on margin from new business growth
Periodic financial Information I 9M 13 Results I 6 November 2013
Avg techn liabilities Avg techn liabilities
(0.15%)(0.71%)
(0.15%) (0.12%) (0.55%)0.48%
(0.53%)
3.62%
(0.57%)
(0.11%) (0.19%)0.03% (0.22%)
0.00%
1.30%
3.52%2.52% 2.48% 2.65%
2.26%2.20%
4.77%
2.24%
2.26% 2.16% 2.12% 2.48%1.63%
2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13Expense & other m. Investment m. Underwriting m.
3.11%
1.75% 2.14% 2.53% 2.27%2.99%
1.79%
0.01%0.14%
(2.40%)(3.21%)
(0.95%) (0.66%)
(2.52%)
(0.90%)(1.65%)
0.70%
(1.47%)1.19%
1.87%(0.24%) 2.08%
0.28%
2010 2011 2012 9M 12 9M 13 Q3 12 Q3 13Expense & other m. Investment m. Underwriting m.
45
1.0 1.1 1.3 1.3 1.3 1.3 1.3 0.3 0.4 0.5 0.4 0.6 0.4 0.6
Underwriting margin improved following organic growth Expense & Other margin deteriorated in 9M 13 following
new business growth & change in product mix - 9M 12 expense margin included EUR 8 mio positive non-recurring adjustment
Underwriting margin deteriorated in 9M 13 due to higher reinsurance costs & better persistency
Investment margin improved as result of higher net income from larger bond portfolio & some realised capital gains
Expense & Other margin improved due to organic growth
Executive summary
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Periodic financial Information I 9M 13 Results I 6 November 2013 47
Investment portfolio Value of portfolio down on UG/L in fixed income, increased allocation to equities In EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets; loans & real estate which are valued at amortized costs
Sovereign bonds 34.7
Sovereign bonds 33.9
Corporate bonds 25.1
Corporate bonds 24.7
Structured 0.3Structured 0.4
Loans6.3 Loans
5.9
Equities 2.4 Equities 3.0
Real Estate 4.7 Real Estate 4.6
Cash 2.4 Cash 2.2
75.9 74.7
FY 12 9M 13
Asset mix
Asset mix relatively stable
Increased positions in equities & customer loans at the expense of cash continued
Gross unrealized gains/losses on Available for Sale Total portfolio: down to EUR 3.8 bn (EUR 5.4 bn FY 12);
exclusively down in fixed income
Fixed income: at EUR 3.5 bn (EUR 5.2 bn FY 12) Sovereigns at EUR 2.2 bn (vs. EUR 3.3 bn) Corporates at EUR 1.3 bn (vs. EUR 1.8 bn)
Equities: slightly up to EUR 0.3 bn
Gross UG/L on Real Estate: stable at EUR 1.3 bn - not reflected in shareholders’ equity
EUR 0.8 bn unrealized gains/losses on Held to Maturity not reflected in shareholders’ equity
Belgium18.4
Belgium18.3
France 4.8 France 5.0
3.3 3.2Austria 2.9 Austria 2.7
1.4 1.10.7 0.4
Others 2.8 Others 2.5
34.7 33.9
FY 12 9M 13
In EUR bn
Gross UG/L at EUR 2.2 bn (vs. EUR 3.3 bn) 96% investment grade; 88% rated A or higher Exposure on SE sovereigns at amortized cost, after
impairments & @ Ageas’s part slightly down to EUR 1.9 bn
Maturity sovereign bond portfolio unchanged & close to maturity liabilities , limited interest rate sensitivity
Sovereign bond portfolio*
Sovereign & Corporate bond portfolio Value fixed income portfolio impacted by evolution unrealized gains
Periodic financial Information I 9M 13 Results I 6 November 2013 48
Gross UG/L at EUR 1.3 bn (vs. EUR 1.8 bn) Priority to investment grade industrials has led to
increased share within corporate bond portfolio of 41% in 9M 13 (vs. 37% FY 12)
Credit quality remains very good with 94% investment grade; 74% rated A or higher
Corporate bond portfolio*
Banking 6.1 Banking 5.4
Other financials 1.9
Other financials 1.9
Non Financials
9.3
Non Financials
10.1
Government related 7.9
Government related 7.2
25.1 24.7
FY 12 9M 13
* All assets at fair value except the ‘Held to Maturity’ assets; loans & real estate which are valued at amortized costs
The Netherlands The Netherlands Germany Germany
SE Sovereigns SE Sovereigns
In EUR bn
Loan portfolio (customers + banks)*
Loan & Equity portfolio More loans with guarantee
Loans to banks 2.6 Loans to
banks 1.8
RE 0.1
RE 0.1Infrastructure
0.1Infrastructure
0.1
Mortgages 1.5
Mortgages 1.5
Other 2.0Other 2.4
6.35.9
FY 12 9M 13
Increase in other: long term lending to social housing agencies in Belgium, benefiting from explicit guarantee by the region
Loans to banks – mainly short term bank deposits - down: priority to long-term secured loans
Periodic financial Information I 9M 13 Results I 6 November 2013 49
Equity portfolio*
Gross UG/L increased slightly up to EUR 0.3 bn
Equities 1.2Equities 1.5
Equity funds 0.1
Equity funds 0.1
RE funds 0.7
RE funds 0.7
Mixed funds & others 0.4
Mixed funds & others 0.72.4
3.0
FY 12 9M 13
* All assets at fair value except the ‘Held to Maturity’ assets; loans & real estate which are valued at amortized costs
Real estate portfolio
10/03/2010
Gross UG/L stable at EUR 1.3 bn (not reflected in shareholders’ equity but contributing to available capital for solvency calculation)
Real Estate exposure mainly in Belgium (+/- 70%)
Investment Offices 1.5
Investment Offices 1.5
Car Parks1.1
Car Parks1.0
Investment Retail 1.3
Investment Retail 1.4
0.6 0.4
0.3 0.3
4.7 4.6
FY 12 9M 13
In EUR bn
Real Estate portfolio*
Periodic financial Information I 9M 13 Results I 6 November 2013 50 * All assets at fair value except the ‘Held to Maturity’ assets, loans & real estate which are valued at amortized costs
Investment Warehouses RE Development
Investment Warehouses
RE Development
Executive summary
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Net result driven by Q1 transactions & revaluation RPN(i) In EUR mio
Accounting value remaining legacies:
General Account: Headlines Q3 impact of revised methodology RPN(i) methodology
Periodic financial Information I 9M 13 Results I 6 November 2013 52
**
Net cash position: cash on legacy transactions partly in
69
15
9M 12 9M 13
1.2
2.0
FY 12 9M 13
In EUR bn In EUR mio
(165) (279)
234
872
241
FY 12 9M 13RPN(i) Call Option RPI
* Subject to absence of any creditor’s claim
15
276
(90)
(114)
(13)(19)
(25)
RPI Call option Reval RPN(i) Staff exp. Op.& admin. exp. Investment &Interest Result*
GeneralAccount
General Account: components of Net result Result driven by transactions on legacy items & valuation methodology RPN(i) In EUR mio
Periodic financial Information I 9M 13 Results I 6 November 2013 53 * Including Interest Margin, Other Expenses & Other Losses (Realised/Unrealised)
Valuation RPN(i) liability as of 9M 13 equal to RPN amount compliant with IFRS 13 : transfer notion vs. settlement notion
causing non-cash accounting volatility with low cost
EUR (2) mio interest paid in 9M 13 calculation aid available on www.ageas.com (Investors Update 2013)
announced cash movements -best estimate
Periodic financial Information I 9M 13 Results I 6 November 2013
Net cash position General Account at EUR 2.0 bn Up in Q2 on transactions regarding RPI & BNPP Call Option
EUR 33 mio executed at 30/09/13 in EUR 200 mio share buy-back launched August 2013
EUR 1.2 per share 2012 dividend paid out in May, upstream from operating companies more than compensating 2012 dividend & 2012 corporate centre costs
Transactions RPI & BNPP Call option: expected cash inflow almost entirely received, most of remaining proceeds expected in the coming months
Capital reduction approved at Shareholders’ Meeting 16 September, pay-out foreseen mid-December
54
RPI transaction share buy-back capital reduction
In EUR bn
6881,216
1,981340
827
144 ≈200
(97) (77)(270)
(46) (56) (167)(224)
FY 11 FY 12 buy-back capitalinjection
TPL
paiddividend
upstreamopco's
RPI calloption
operating expenses
other 9M 13
Only 2 alternative uses for General Account net cash withheld
1. Invest in Businesses
Organic growth Selective acquisitions Create new partnerships
2. Return to shareholders
Dividend payment Share buy-back
≈ EUR 1.8 bn ≈ EUR 900 mio cash dividend over ‘09, ’10, ’11 & ‘12 EUR 450 mio share buy-backs
finalized early ‘12 & ’13 EUR 200 mio share buy-back launched 12/08/13 EUR 224 mio capital reduction from proceeds of
BNP Call Option & RPI
≈ EUR 1.0 bn from net cash on top of retained earnings
≈ EUR 600 mio UK (Tesco, KFIS,
Castle Cover, Groupama) ≈ EUR 200 mio CE (Italy, Turkey) ≈ EUR 200 mio Asia (India, HK, China)
Periodic financial Information I 9M 13 Results I 6 November 2013 55
February 11 Claim re FRESH hybrid instrument dismissed by Brussels Court
Judgments received in various legal procedures No major new elements in 9M 13
Sep- Dec 10 Ageas starts legal procedure against Dutch State & ABN AMRO to obtain compensation in return for conversion MCS (Mandatory Convertible Securities) into Ageas’ shares
Timing and (financial) outcome remains hard to estimate Most civil proceedings still at the stage of first instance Possible decisions 2013:
- Appeal administrative proceedings AFM I (June 2008) & AFM II (Sep 2007) - total amount fines: EUR 864.000
- Dutch Supreme Court re mismanagement (ondernemingskamer) - no direct financial consequences
- Court of Appeal Amsterdam in Stichting FortisEffect case - first instance in favour of Ageas
May 11 - Claim VEB/Deminor
& FortisEffect dismissed 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 & 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 Q2 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 & MCS, closing all outstanding disputes with Dutch State
2013
June 13 Fine imposed by FSMA, appeal filed
Periodic financial Information I 9M 13 Results I 6 November 2013 56
Legal proceedings Managed in interest of shareholders
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 Appeal filed before Court of Appeal
Criminal procedure Public prosecutor requests referral of 7 individuals
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 & 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 Appeal filed before Arnhem Court of Appeal
Brussels - Modrikamen, re Sep/Oct 2008 transactions Brussels – Various lawsuits initiated by shareholders re alleged
miscommunication 2007 - 08
Pleadings on the merits scheduled H1 2014 Proceedings ongoing
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
Periodic financial Information I 9M 13 Results I 6 November 2013 57
Situation 30 September 2013
Main characteristics Hybrids Hybrone partly tendered, NITSH I & II reimbursed
In EUR mio Ageas
Ageasfinlux Fresh
Ageas Hybrid Financing Hybrone
Direct issue FBB, 2004 CASHES
% 3m EUR + 135 bp 5.125% 4.625% 3m EUR +200 bp Amount
outstanding 1,250 336 1,000 1,110
ISIN XS0147484074 XS0257650019 BE0119806116 BE0933899800
Call date Undated exchange, strike 315.0, mandatory 472.5
Jun/2016 Step up to 3M Euribor +200
Oct/2014 Step up to 3M Euribor+170
Undated exchange, strike 239.4, mandatory 359.1
ACSM YES YES YES YES
Dividend pusher YES YES YES NO
Dividend stopper NO YES YES YES
Trigger < 0.5% dividend trigger Liabilities > asset <8% CAD <0.5% Dividend
Other on lent to AG Insurance No stock settlement feature
Coupon served by FBB, trigger ACSM linked to
Ageas dividend
Market Price (30/09/13) 56.03 98.59 100.54 59.29
Fortis Bank (now BNP Paribas)
Periodic financial Information I 9M 13 Results I 6 November 2013 58
Executive summary
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
situation 31/12/2012 situation 30/09/2013
Total Issued Shares 243,121,272 233,486,113
Shares not entitled to dividend and voting right 15,886,832 10,159,098
1. TREASURY SHARES Share buy-back 7,056,442 1,000,843FRESH 3,968,254 3,968,254Other treasury shares 218,232 546,097
2. CASHES 4,643,904 4,643,904
Shares entitled to dividend and voting rights 227,234,440 223,327,015
Total Issued Shares diminished with the 9,635,159 shares acquired through the Buy-back programmeup to 15 February 2013 & cancellation granted at the shareholders' meetings.
Following the reverse stock split the number of shares at 31/12/2011has been divided by 10, effective as at 7 August 2012.
Cancellation bought back shares + new buy back
Periodic financial Information I 9M 13 Results I 6 November 2013 60
Total number of outstanding shares Bought back shares cancelled following approval AGM April & September 2013
Shareholders structure Based on number of shares as at 30 September 2013
Ageas2.36%
Ping An 5.18%
BlackRock, Inc.5.02%
Franklin Mutual Advisers2.97%
Norges Bank
BNPP & Fortis Bank Identified retail
investors16%
Identified institutional investors
39%
Other investors23%
Ageas Based upon press release 30 September 2013Ping An Based upon the number of shares mentioned in the notification received 6 May 2013
Franklin Mutual Advisers Based upon the number of shares mentioned in the notification received 22 August 2013BlackRock, Inc. Based upon the number of shares mentioned in the notification received 22 July 2013
Norges Bank Based upon the number of shares mentioned in the notification received 20 August 2012BNP P & Fortis Bank Based upon BNP Paribas notification 01 October 2012
Benelux Retail shareholders Estimate byIdentified institutional investors Estimate by
Periodic financial Information I 9M 13 Results I 6 November 2013 61
6 November 9M 2013 results
Periodic financial Information I 9M 13 Results I 6 November 2013 62
10 December Ex date
13 December Payment capital reduction*
Financial calendar 2013 - 2014 Extraordinary shareholders’ meeting in September re EUR 1 distribution
* Subject to absence of any creditor’s claim
19 February Annual results 2013
14 May 3M 2014 results
30 April Ordinary & Extraordinary shareholders’ meeting - Brussels
5 May Ex date
19 March Annual report 2013
13 May Payment 2013 dividend
6 August 6M 2014 results
5 November 9M 2014 results
Rating
Periodic financial Information I 9M 13 Results I 6 November 2013 63
S&P MOODY'S FITCH
Operating entities AG Insurance (Belgium)Insurance Financial Strength A- / stable A2 / negative* A+ / stableLast change 05/07/13 02/10/13 29/05/13
Millenniumbcp Ageas (Portugal)Insurance Financial Strength BB / negative BBB- / negativeLast change 25/09/13 09/07/13
Ageas Insurance Co. (Asia)Insurance Financial Strength Baa1 / stable A / stableLast change 16/01/13 26/03/13
Muang Thai LifeInsurance Financial Strength BBB+ / stable BBB+ / stableLast change 29/12/10 16/12/10
Etiqa Insurance Berhad (Malaysia)Insurance Financial Strength A / stableLast change 26/09/11
Holdings ageas SA/NVLong-term BBB- / A-3 Baa3 / P-3 * BBB+ / F2Outlook stable negative stableLast change 05/07/13 02/10/13 14/12/12
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.
Periodic financial Information I 9M 13 Results I 6 November 2013 64
Investor Relations
Tel: E-mail: Website:
+ 32 2 557 57 34 [email protected] www.ageas.com
Investor Relations
Periodic financial Information I 9M 13 Results I 6 November 2013 65