Asr Nederland N.v. · EURONEXT:ASRNL
Asr Nederland — Investor Day (June 2024)
37 slides from Asr Nederland's investor day presentation, Jun 27, 2024
Slide 1: Creating a leading insurer in The Netherlands - Capital Markets Day 2024
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Slide 2: Delivering profitable growth and sustainable value; Putting the balance sheet to work
1. Delivering profitable growth and sustainable value Strategy and targets Jos Baeten, CEO 2. Putting the balance sheet to work Capital deployment, generation and return Ewout Hollegien, CFO 2
Slide 3: Break-out sessions: Pensions, Non-life, Asset management
A. Break-out – Pensions Willem van den Berg, COO Life Folkert Pama, Director Pensions B. Break-out – Non-life Ingrid de Swart, COO / CTO Akkie Lansberg, Director Disability Robert van der Schaaf, Director P&C C. Break-out – Asset management segment Ewout Hollegien, CFO Patrick Klijnsmit, Director As
Slide 4: Delivering profitable growth and sustainable value
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Slide 5: Creating a leading insurer in The Netherlands
Solid track record in delivering profitable growth and sustainable value Successfully building strong foundations to deliver profitable growth and create sustainable value Disciplined execution of strategy, strong performance and consistent delivery on ambitious targets Proven track record in ration
Slide 6: Sustainable value creation for all stakeholders
1720 #2 60/30/10 4.5m 8,000 Founded in 1720 and Leading market Multi-channel Business mix1: Life, Customers: 4.3m Employees (FTEs); deeply rooted in the positions and solid #2 distribution and Non-life and Fee- individuals and 200k highly engaged Dutch society in the Netherlands multi-brand strategy
Slide 7: Executive Board and Management Board
Executive Board Management Board CEO CFO COO/CTO COO Life CRO CHRO Jos Baeten Ewout Hollegien Ingrid de Swart Willem van den Berg Rozan Dekker Jolanda Sappelli Industry experience Industry experience Industry experience Industry experience Industry experience Industry experience 44 years 17 years 27
Slide 8: Selected KPIs and targets 2019-2024
Developments 2023 2019-2021 2022-2024 triggering (incl H2 Selected KPIs target 2021 target 2022 reset of targets Aegon NL) SII ratio >160% >196% >160% >222% >176% Group OCC >€500m €594m €1.7-1.8bn2 €653m €938m IFRS 17 Operating ROE 12-14% 16.3% 12-14% 12.8% 12.4% Combined ratio1 94-96% 91.8% 93-95%
Slide 9: ESG ratings and rankings
2024 #1 #5 #8 B AA C+ (prime) #2 #1 2018 #13 #13 #13 B BB C- #2 #1 World European World D- CCC D- Dutch Dutch Insurance Insurance Insurance to A to AAA to A+ Insurance Insurance 9
Slide 10: Total capital return and shareholder return since IPO
Total capital return since IPO € 3.0bn Total shareholder return since IPO1 +265% Cumulative dividends: € 2.5bn Price development since IPO (SXIP and AEX rebased to a.s.r. share price) 260 Cumulative share buybacks: € 0.5bn 240 a.s.r. 610 SXIP 220 AEX 485 200 404 180 385 342 357 160 140 245 120 187 1
Slide 11: Unlocking potential in Non-life, fee related growth, optimising for value
Unlocking potential in Non-life Pursuing profitable growth in P&C and Disability P&C Disability Health #2 #2 #1 Leading market Pensions Mortgages positions and solid #2 Broad product offering; Leading insurer in Fee related growth businesses in the Netherlands ~34% market share1 mortgage origination
Slide 12: Key milestones
Key milestones 2024 2025-2026 • Completion of P&C and Disability policy migrations and • Expand partial internal model (PIM) to a.s.r. Life integration of operating activities. Legal mergers accomplished. Integration Non-life finalised at year-end 2024 • Effectuate remaining and planned legal merger
Slide 13: Value over volume, cost discipline, ample capital to deploy
Continued focus on value over volume Ample capital to deploy Maintaining our strong cost discipline Solid capital generation Bolt-on M&A, 12% ROI hurdle Maintaining strong balance sheet and robust € Attractive capital return Solvency II ratio, SII ratio > 160% 13
Slide 14: Strategic pillars for sustainable value and profitable growth
Pursue profitable growth in P&C and Disability, Maintain leadership position in ESG to create sustainable value for all stakeholders VIII I maintaining excellent combined ratio and underwriting performance Expand pension proposition in DC, Continue selected and strategic bolt-on M&A to add scale and
Slide 15: Ample capital to deploy, solid capital generation, attractive capital return
Ample capital to deploy Solid capital generation Attractive capital return € Solvency II ratio expected to benefit Rational capital deployment drives Progressive dividend and resumption of ~40%-pts during the plan period from four structural uplift in capital generation: SBB; potential for >€ 2.5bn
Slide 16: Potential M&A activity in Non-life and Life
Potential M&A activity Non-life1 Potential M&A activity Life1 • Expansion in identified core growth markets which fits into our • a.s.r. will stay alert for potential acquisitions that have a current integration activities meaningful contribution to return • Helps to protect our core business • Hori
Slide 17: Financial targets 2024-2026
Organic capital Operating return Solvency II ratio Capital return2 creation on equity Progressive SBB >160% € 1.35bn >12% dividend & € 125m FY24 Substantial capital for Mid-to-high single digit € 175m FY25 entrepreneurship In 2026 Per annum growth until 2026 € 225m FY26 Non-life3 combined ratio & Fe
Slide 18: Non-financial targets
Sustainable reputation Employee engagement2 Customer satisfaction Public recognition as a sustainable insurer Measured through annual Denison scan Net Promotor Score (NPS-i3) 38-43% >85 +4 Per annum In 2026 In 2026 Gender diversity4 Impact investments Carbon footprint reduction5 Female / male % of m
Slide 19: Summary: resilient balance sheet, growth, ESG, capital return
• SII-ratio expected to benefit ~40%-pts during the plan period from four catalysts Resilient balance sheet • Ample capital in the ‘entrepreneurial zone’ to deploy profitably and generate capital • Resilient balance sheet with strong financial flexibility • Compelling business plan to drive sustaina
Slide 20: Creating a leading insurer in The Netherlands
Solid track record in delivering sustainable value Successfully building strong foundations to deliver profitable growth and create sustainable value Disciplined execution of strategy, strong performance and consistent delivery on ambitious targets Proven track record in rational capital allocation
Slide 21: Putting the balance sheet to work
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Slide 22: Strong and resilient balance sheet
Strong and resilient balance sheet, solid foundation for current financial performance and future growth Ample opportunities for capital deployment in organic growth, pension buy-outs, re-risking and M&A Business plans and capital deployment drive higher OCC target; € 1.35 billion in 2026 Progressiv
Slide 23: Overview of capital wheel
Robust balance Overview of capital wheel sheet Robust balance sheet • Solid Solvency II ratio with manageable sensitivities and ample financial flexibility • High quality comprising diversified assets and liabilities Deployment of capital • Rational and economic capital allocation and deployment Inc
Slide 24: Solvency II management ladder
Robust balance sheet Increased CAPITAL Deployment shareholder return € WHEEL of capital Business and OCC growth Solvency II management ladder Potential additional capital returns Additional capital return level >175% In a way most efficient for our shareholders Halted if larger M&A occurs Business a
Slide 25: Four catalysts driving higher Solvency II ratio
Robust balance sheet Increased CAPITAL Deployment shareholder return € WHEEL of capital Business and OCC growth Four catalysts driving higher Solvency II ratio1 • Four catalysts that are expected to enable a.s.r. to add ~40%-p ~40%-points and to grow back into a robust balance sheet >5%-p • Capital
Slide 26: Own funds and SCR breakdown
Robust balance sheet Increased CAPITAL Deployment shareholder return € WHEEL of capital Business and OCC growth EOF breakdown 2021 (in %) EOF breakdown 2023 (in %) • Own funds and SCR evolved mainly due to higher interest rate environment over the last couple of years and the Aegon NL 5% 19% acquisi
Slide 27: Options for capital deployment
Robust balance sheet Increased € CAPITAL Deployment shareholder return WHEEL of capital Business and OCC growth Balance sheet re-risking Pension buy-outs M&A Options for capital Organic growth deployment Shareholder returns € € Organic growth Pension buy-outs Balance sheet re-risking M&A Shareholder
Slide 28: Pension buy-out market overview
Robust balance sheet Increased € CAPITAL Deployment shareholder return WHEEL of capital Business and OCC growth Market overview1 corporate pension funds • 92 corporate pension funds with € 292bn assets under management have three main choices; 92 292 A. convert existing entitlements to new DC contra
Slide 29: Targeting a balanced asset allocation
Robust balance sheet Increased € CAPITAL Deployment shareholder return WHEEL of capital Business and OCC growth Targeting a balanced asset allocation Investment portfolio (per FY 2023) • The target asset mix is re-evaluated at least annually. Potential OCC impact Execution is done patiently and base
Slide 30: OCC target for 2026
Robust balance sheet Increased CAPITAL Deployment shareholder return € WHEEL of capital Business and OCC growth OCC target1 for 2026 (in €m) Uplift of cost synergy target as presented in November 2023 (+€ 20m) € 1.35bn OCC contribution from pension buy-outs of c. € 40m in 2026 and expected to grow f
Slide 31: Illustrative 10-year OCC projection for Life segment
Robust balance sheet Increased CAPITAL Deployment shareholder return € WHEEL of capital Business and OCC growth Illustrative 10 years projection of OCC contribution from the Life segment • OCC contribution from the Life segment for the next ten years expected to be stable, absorbing the lower SCR re
Slide 32: Re-mapping of components and updated OCC methodology
Robust balance sheet Increased CAPITAL Deployment shareholder return € WHEEL of capital Business and OCC growth Re-mapping of components – improves insight in sources of capital Updated methodology – further alignment with free cash flow generation • Clear split in capital generated from business pe
Slide 33: Total capital return to date exceeds market cap at IPO
Robust balance sheet Increased CAPITAL shareholder € WHEEL Deployment of capital return Business and OCC growth Total capital return to date exceeds a.s.r.’s market cap at IPO Strong track record in delivering capital to our shareholders Total of € 3bn in first 8 years since IPO o/w cumulative divid
Slide 34: Dividend and share buyback intentions
Robust balance sheet Increased CAPITAL shareholder € WHEEL Deployment of capital return Business and OCC growth Dividend Share buyback In event of sell-down € Extension of progressive dividend policy with Progressive share buyback intention1, to be Intention to participate if Aegon decides mid-to-hi
Slide 35: Strong and resilient balance sheet, foundation for growth
Strong and resilient balance sheet, solid foundation for current financial performance and future growth Ample opportunities for capital deployment in organic growth, pension buy-outs, re-risking and M&A Business plans and capital deployment drive higher OCC target; € 1.35 billion in 2026 Progressiv
Slide 36: IR contact details
IR contact details Email: ir@asr.nl Tel: +31 (0)30 257 86 00 36
Slide 37: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements potential (partial) termination of the European currency: the Euro or the European Union; (13) changes in the frequency and severity of insured loss events; (14) catastrophes and terrorist related events; (15) changes affecting mortality and morbi