ING Groep N.V. · EURONEXT:INGA
ING Groep — Non-Deal Roadshow (September 2013)
14 slides from ING Groep's roadshow presentation, Sep 19, 2013
Slide 1: Update on preparations for the IPO of ING Insurance
ING Insurance Update on preparations for the IPO of ING Insurance Delfin Rueda CFO Insurance EurAsia London – 19 September 2013 www.ing.com
Slide 2: Taking steps to improve earnings and to prepare for independent capital structure
Taking steps to improve earnings and to prepare for independent capital structure • Continued focus on cost reductions • Active management of Individual Life closed book Focus on • Re-pricing and changed conditions improve return and risk profile of in-force Group Life book in the Netherlands improv
Slide 3: Expenses in the Netherlands declined significantly and will be further reduced
Expenses in the Netherlands declined significantly and will be further reduced Insurance NL has strongly reduced admin expenses (in EUR mln) Efficiency has increased • Insurance Netherlands has reduced its administrative expenses -30% by 30% since 2007 driven by a strong reduction in FTEs 1,224 1,16
Slide 4: Protecting solvency with a conservative investment asset mix
Protecting solvency with a conservative investment asset mix Insurance Europe General Account* (in EUR bln) Insurance Europe general account has been de-risked 2Q2013 4Q2010 • The general account has been de-risked over the last years in light of the economic crisis and to protect regulatory capital
Slide 5: Reviewing options to increase allocation to higher return assets
Reviewing options to increase allocation to higher return assets Insurance Europe government bonds Insurance general account By rating By geography • We currently have a conservative investment portfolio 2Q2013 4Q2010 2Q2013 4Q2010 • General account investments are close AAA 62% 65% Germany 29% 21%
Slide 6: Moving to an independent capital structure
Moving to an independent capital structure Capital constraints Key capital considerations Local solvency positions of our entities Regulatory framework Withstand stress events Economic framework Funding of holding expenses Rating agency framework Leverage and coverage ratios ING Insurance Update - 1
Slide 7: ING Insurance (INGV) has improved financial leverage
ING Insurance (INGV) has improved financial leverage Net debt at INGV has been reduced (in EUR bln) -2.3 -1.5 0.1 1.7 Other 0.9 1.3 1.3 Debt from ING Group 1.7 0.7 0.7 Debt in issue 0.5 0.5 Hybrids INGV 2.5 2.5 0.4 2.5 1.8 Hybrids Group Net cash 1H2012 1H2013 Pro-forma 1H2013 Pro-forma net debt at E
Slide 8: INGV has a clean balance sheet with limited intangibles
INGV has a clean balance sheet with limited intangibles ING Insurance (INGV) pro-forma 30 June 2013 (in EUR bln) Benelux 11.6 Shareholders’ equity 14.4 • Removing the US from ING Insurance (ING Verzekeringen NV) clears the way CRE 1.4 Hybrids Group 2.5 to use ING Insurance as the IPO entity ING Life
Slide 9: Local entities managed on commercial capital levels
Local entities managed on commercial capital levels Capital positions of subsidiaries INGV IGD ratio pro-forma • We manage our subsidiaries on commercial capital levels • The pro-forma IGD ratio for INGV at 248% • Differences between IFRS equity and local regulatory available capital vary by market,
Slide 10: Dutch solvency is marked-to-market
Dutch solvency is marked-to-market • Regulatory solvency in the Netherlands is based on Solvency I methodology with a supplementary “test-of-adequacy” (ToA) • This essentially results in available capital that is on a full mark-to-market basis using the ECB AAA curve • This can be seen as conservati
Slide 11: Ultimate level of holding company cash capital yet to be determined
Ultimate level of holding company cash capital yet to be determined Holding company capital requirement Holding company (INGV) cash capital requirement • Cash capital is required in ING Insurance (INGV): • Fixed cost coverage • To provide flexibility to manage legal entity capital levels, • Capital
Slide 12: INGV debt strongly reduced but final capital target still to be finalised
INGV debt strongly reduced but final capital target still to be finalised • Most local entities are well capitalised • NN Life pro-forma solvency ratio is at the lower end of our target Local solvency positions of our entities range • Holding company capital level needs to be determined Withstand st
Slide 13: Focus on improving capital generation and earnings
Focus on improving capital generation and earnings Continued focus on cost reductions Active management of Individual Life closed book Re-pricing and changed conditions improve return and risk profile of in-force Group Life book in the Netherlands Underwriting and re-pricing actions to resto
Slide 14: Disclaimer
Disclaimer ING Group’s Annual Accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS-EU’). In preparing the financial information in this document, the same accounting principles are applied as in the 2Q2013 ING Group Interim Acco