Asr Nederland N.v. · EURONEXT:ASRNL
Asr Nederland — FY 2024 Earnings Presentation
42 slides from Asr Nederland's earnings presentation, Feb 19, 2025
Slide 1: 2024 Full-year results: Delivering on growth and return
a.s.f. 2024 Full-year results Delivering on growth and return Analyst conference call 19 February 2025 Jos Baeten, CEO Ewout Hollegien, CFO
Slide 2: Delivering on CMD 2024 promises
Delivering on CMD 2024 promises • All 2024 milestones achieved, synergy realisation ahead of planning Integration on • Clear integration calendar and confident to deliver partial internal model in 2025 track • Fully on track to deliver cost synergies and OCC target per 2026 Creating a • Strong comme
Slide 3: Strong financial performance and robust solvency position
Strong financial performance and robust solvency position • Robust Solvency II ratio increased to 198%, well-positioned in entrepreneurial zone driven Organic capital creation Solvency II ratio by strong OCC and supported by Knab transaction and capitalised cost synergies Solvency II • Increase in O
Slide 4: Value creation for all stakeholders and compelling ESG credentials
Value creation for all stakeholders and compelling ESG credentials Non-financial targets1 Sustainable reputation Employee engagement2 Gender diversity Carbon footprint Impact investments4 Customer satisfaction Public recognition in management3 reduction4 Net Promotor Score (NPS-r) 39% 73 32% 5% 8.7%
Slide 5: Integration well on track with nearly 50% of synergies realised
Integration well on track with nearly 50% of synergies realised closing → FY 2024 realised 50% of synergies Realisation of run-rate cost synergies • Staff functions operate in target operating model • Total workforce1 reduced by >500 FTE with further reductions to follow integration efforts € 215m S
Slide 6: Final settlement resolves long-lasting dispute in unit-linked life insurance
Final settlement resolves long-lasting dispute in unit-linked life insurance and clears historical overhang a.s.r.'s final settlement solution adopted as industry Quick and positive response: final settlement provides standard; resolving two decades of disputes and (collective) attractive solution a
Slide 7: Non-life delivering on both profitability and growth
Non-life delivering on both profitability and growth Premiums received (in €m) Combined ratio P&C and Disability (in %) Premiums received P&C • Strong organic premium growth in both P&C and Disability Disability (+5.1%) and inorganic growth through the addition of Aegon NL +12.1% -1.7%-p • Organic g
Slide 8: Positive commercial momentum in Pensions
Positive commercial momentum in Pensions DC accumulation Annuities Pension buy-outs DC accumulation inflow (in €m) Annuities inflow (in €m) Pension buy-outs AuM inflow (in €m) € 8bn € 1.8bn € 8bn +189.2% Subject to +33.7% regulatory approval 2,768 581 2,070 ~1,600 201 0 69 FY 2023 FY 2024 FY 24-26 F
Slide 9: Strong improvement in fee-based businesses
Strong improvement in fee-based businesses Business highlights Business KPIs Operating result Segment Asset management Fee income (in €m) Operating result (in €m) • Retained market leading position among Dutch +45.0% +34.9% insurers in mortgage origination. Increased 703 production driven by the con
Slide 10: Significant value creation drives attractive capital returns
Significant value creation drives attractive capital returns Profitable growth and capital accretion leads to increased capital returns Total capital return since IPO € 3.9bn Cumulative dividends: € 3.2bn Total FY 2024 dividend of € 3.12 per share (€ 1.96 final Cumulative share buybacks: € 0.7bn div
Slide 11: Financial and capital position
Financial and capital position Ewout Hollegien, CFO
Slide 12: Putting the balance sheet to work
Putting the balance sheet to work Robust balance Solvency ratio materially sheet strengthened with bank sale and capitalised cost synergies Rational capital deployment in organic growth, re-risking and buy-out market Increased CAPITAL Deployment shareholder € WHEEL of capital return Increased OCC to
Slide 13: Robust Solvency, well-positioned in entrepreneurial zone
Robust Solvency, well-positioned in entrepreneurial zone Solvency II ratio (in %) • Solvency II ratio at a robust level of 198% after a 12%-p deduction for capital distributions (dividends and share buyback) OCC: 19%-p / € 1,193m • The sale of Knab further strengthened the balance sheet, comfortably
Slide 14: Higher OCC driven by solid business performance
Higher OCC driven by solid business performance OCC (in €m) OCC +36.5% • OCC increased to € 1,193m reflecting strong business performance in Non-life and fee-based businesses, re-risking benefit and the addition of 1,193 Aegon NL 874 390 Business capital generation • Well on track to meet medium-ter
Slide 15: Bridge OCC to operating result
Bridge OCC to operating result Bridge from OCC to operating result (in €m) Business capital generation1 • Timing differences in insurance profit recognition • In OCC, (future) insurance profits are added directly to the own funds at inception date, while in the operating result the profits release g
Slide 16: Operating result
Operating result Operating result (in €m) Operating result +46.7% • Operating result (€ 1,428m) benefitted from strong business performance in Non-life and fee-based business, re-risking effects and the addition of 1,428 Aegon NL Operating insurance service result • The release of CSM is included in
Slide 17: Diversified and robust investment portfolio
Diversified and robust investment portfolio Revaluations of real estate portfolio Well diversified governments portfolio with (FY 2024 in %) countercyclical solvency impact from VA % mix (sensitivity of 50bps spread widening to a.s.r. portfolio) Average1 4.8% Positive impact Residential 8.2% 53% lia
Slide 18: Solid balance sheet provides ample financial flexibility
Solid balance sheet provides ample financial flexibility Eligible own funds and SII headroom1 (in €m) S&P Insurer Financial Strength Rating RT1 headroom: T2+T3 headroom: Headroom € 1,351m € 1,128m 9,356 Unrestricted Tier 1 988 Restricted Tier 1 1,976 Tier 2 Tier 3 12,321 Eligible Own Funds A Positiv
Slide 19: Robust holding cash: ample capacity at entities to remit
Robust holding cash: ample capacity at entities to remit HoldCo liquidity (in €m) HoldCo liquidity • HoldCo liquidity buffer stood at € 893m per FY 2024 to fund holding and interest expenses and dividends -731 893 809 700 • Cash needs amply covered by OCC of underlying 302 entities which aligns to f
Slide 20: Wrap-up
Wrap-up Jos Baeten, CEO
Slide 21: Key messages
Key messages ► Solid performance in all business segments bolstered by the contribution of Aegon NL; OCC on track to achieve medium-term target of € 1.35bn in 2026 ► Strong commercial results driven by both organic and inorganic growth. Delivering on growth targets and a solid base for medium-term g
Slide 22: Investor relations a.s.r.
Investor relations a.s.r. Financial calendar 26 March 2025 21 May 2025 23 May 2025 26 May 2025 28 May 2025 20 August 2025 Publication annual report 2024 Annual General Meeting Ex-dividend date Dividend record date Payment of final dividend over 2024 Publication half-year results 2025 <@ Contact Inve
Slide 23: Appendix
Appendix
Slide 24: Appendices
Appendices • A. Financial ratios • B. Breakdown of OCC • C. Breakdown of operating result • D. Segment Non-life: Combined ratio per product line • E. Segment Life: Operating result & technical provisions • F. CSM overview • G. Calculation of operating ROE • H. IFRS profit per segment • I. IFRS equit
Slide 25: A. Financial ratios
A. Financial ratios Net result (in €m) Operating result (in €m) ROE Operating ROE 1,086 1,428 15.4% 13.1% 946 11.6% 973 10.4% FY 20231 FY 2024 FY 20231 FY 2024 FY 20231 FY 2024 FY 20231 FY 2024 Combined ratio Non-life2 Solvency II ratio Total IFRS equity (in €m) Financial leverage 93.5% 91.9% 198% 9
Slide 26: B. Breakdown of OCC
B. Breakdown of OCC OCC per segment FY 2024 OCC sensitivity1 (annualised, in €m) Business Capital Generation 212 0 Finance Capital Generation 142 Net capital release -81 Non-life 273 -10 Interest rates Interest rates Business Capital Generation 156 -50bps +50bps Finance Capital Generation 641 Net ca
Slide 27: C. Breakdown of operating result
C. Breakdown of operating result Operating result per segment FY 20231 FY 2024 delta Operating Insurance & Service result 241 339 98 Operating Investment & Finance result 156 143 -12 Other result -19 -13 6 Non-life 378 469 91 Operating Insurance & Service result 274 428 154 Operating Investment & Fi
Slide 28: D. Segment Non-life: Combined ratio per product line
D. Segment Non-life: Combined ratio per product line FY 2023 FY 2024 H1 2024 H2 2024 Net insurance contract revenue (in €m) 1,803 1,983 995 988 Claims ratio 58.3% 55.6% 57.7% 53.5% Property & Casualty (P&C) Expense ratio 8.9% 8.9% 8.7% 9.0% Commission ratio 26.4% 26.2% 25.7% 26.6% Combined ratio 93.
Slide 29: E. Segment Life: Operating result & technical provisions
E. Segment Life: Operating result & technical provisions Operating result segment Life (in €m) FY 20231 FY 2024 delta IFRS 17 technical provision Life € 100bn (FY 2023: € 98bn) Release of CSM 190 308 118 Release of RA 110 150 40 5% Experience variance 2 -4 -5 9% Pension DB Losses on new business -28
Slide 30: F. CSM overview
F. CSM overview1 CSM development Life (in €m) CSM Life Run-off: 5-6% • Total accretion of Life CSM consists mostly of annuities new business and the Total CSM interest accretion. No impact from indexation in funeral portfolio in 2024 accretion: € 154m -312 5,382 • Changes in estimates increased the
Slide 31: G. Calculation of operating ROE
G. Calculation of operating ROE Calculation of operating ROE (in €m) FY 2022 FY 20231 FY 2024 Operating result (pre-tax) 973 1,428 Minus: Tax effect 241 359 Operating result (post-tax) 732 1,069 Equity attributable to shareholder 5,146 8,339 8,779 Minus: Unrealised gains and losses reserve 0 55 -15
Slide 32: H. IFRS profit per segment
H. IFRS profit per segment FY 20231 FY 2024 Operating Investment Non-investment IFRS Operating Investment Non-investment IFRS result related related profit result related related profit (pre-tax) incidentals incidentals (pre-tax) (pre-tax) incidentals incidentals (pre-tax) Non-life 378 29 -136 271 4
Slide 33: I. IFRS equity and Solvency II EOF
I. IFRS equity and Solvency II EOF IFRS equity (in €m) Solvency II eligible own funds1 (in €m) 12,321 0 11,578 529 2,964 9,833 9,377 47 2,907 35 1,007 1,004 7,441 0 6,177 1,837 27 1,004 8,779 9,356 8,339 8,142 5,146 5,604 FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Equity attributable to shareho
Slide 34: J. Sensitivities Solvency II ratio
J. Sensitivities Solvency II ratio Total impact expressed as % of group solvency ratio +3 0 +1 198% -1 -1 -1 -2 -4 -5 -8 -9 VA Government Corporate Interest Interest Interest Equities Equities Real estate Mortgage Inflation -10bps spread credit spread +50bps -50bps steepening1 -20% +20% -10% spread
Slide 35: K. Sensitivities Solvency II ratio – UFR
K. Sensitivities Solvency II ratio – UFR Solvency II ratio (‘stock’) UFR level Current level: • Current level of the UFR used for the Solvency II ratio calculation 187% 194% 196% 198% is set by EIOPA at 3.30% 179% • EIOPA announced to keep the level of the UFR at 3.30% for 20251 • Lowering the UFR w
Slide 36: L. Investment portfolio
L. Investment portfolio • Increase in fixed income and derivatives reflects Assets (in €bn, fair value) FY 2023 FY 2024 Delta % of total lower swap rates Fixed income 37.6 38.3 0.7 44% • Growth in equities due to re-risking and rising equity markets Derivatives 2.1 3.1 1.0 4% • Increase of mortgages
Slide 37: M. Details of fixed income portfolio (1/3)
M. Details of fixed income portfolio (1/3) Fixed income (in €m) FY 2023 FY 2024 Delta % of total Fixed income Governments 18,713 18,112 -602 44% • Portfolio weight to government bonds declined due to re-risking and widening Financials 4,878 5,392 514 13% of spreads Corporate 4,972 5,006 33 12% • Exp
Slide 38: M. Details of fixed income portfolio (2/3)
M. Details of fixed income portfolio (2/3) Credits (in €m) FY 2023 FY 2024 Delta % of total Alternative fixed income (in €m) FY 2023 FY 2024 Delta % of total Automotive 304 375 72 7% Government guaranteed 474 487 13 5% Basic industry 329 384 54 8% Multi credit 862 1,047 185 10% Capital goods 362 290
Slide 39: M. Details of fixed income portfolio (3/3)
M. Details of fixed income portfolio (3/3) Market value governments per 0-1 1-2 2-3 3-5 5-10 10-20 20-30 30+ Total ∆ FY23 % of total rating and maturity bucket (in €m) AAA 144 74 82 287 612 4,547 4,265 202 10,213 -970 56% AA 18 38 105 107 938 686 2,294 2,345 6,531 -130 36% A 9 0 31 105 308 21 622 46
Slide 40: N. Details of mortgage portfolio
N. Details of mortgage portfolio a.s.r. Mortgages General account mortgage portfolio1 AuM a.s.r. Mortgages (in €bn) Mortgage production (in €bn) General account portfolio (in €bn) Portfolio by interest reset date 86.6 0-5 years 84.2 9% 25.3 27.4 22% 5-10 years 9.2 17% 10-20 years 20+ years 5.5 FY 20
Slide 41: O. Details of real estate and equities portfolio
O. Details of real estate and equities portfolio Real estate (in €m) FY 2023 FY 2024 Delta Equity (in €m) FY 2023 FY 2024 Delta Residential 2,347 2,512 165 Equity 2,318 3,039 721 Offices 211 285 74 Equity Funds 271 253 -18 Retail 142 142 0 Private Equity 471 556 85 Rural 207 220 13 Mezzanine 213 196
Slide 42: Disclaimer
Disclaimer Cautionary note regarding forward-looking statements implementation and execution of ICT systems or outsourcing; (11) changes in the availability of, and costs associated with, sources of liquidity; (12) consequences of a potential (partial) Cautionary note regarding forward-looking state