Slide 1: Ageas – Debt Investor Presentation FY 2019
Ageas – Debt Investor Presentation FY 2019
Slide 2: Executive summary
Executive summary Ageas group International insurance group in Europe & Asia Diversified product portfolio with focus on Individuals & SME Clear strategic priorities & ambitious financial targets - set as part of Connect 21 strategic plan Solid & diversified investment portfolio Robust sol
Slide 3: ageas group, ageas SA/NV, appendix
1. ageas group 2. ageas SA/NV 3. appendix
Slide 4: International insurance group with focus on Europe & Asia
International insurance group with focus on Europe & Asia Leading market positions in most countries ASIA GROSS INFLOWS @ageas share AGEAS SA/NV BELGIUM 2019 TOTAL: EUR 15.0 bn Life & Non-Life Internal Reinsurance with Life & Non-Life 7 partnerships in 9 markets Life & Non-Life license #1 Life #5 Li
Slide 5: Diversified product portfolio
Diversified product portfolio Focus on Individuals & SME LIFE 2019 GROSS INFLOWS LIFE GROSS INFLOWS @ageas share mostly guaranteed products (consolidated entities) 2019 TOTAL: EUR 15.0 bn 22% 30% Guaranteed Unit-Linked products products 70% 78% Guaranteed products Unit-Linked products Life Non Life
Slide 6: Connect 21: A reflection of Group's Strategy, Values and KPIs
Connect 21* A reflection of Group’s Strategy, Values and KPIs *Announced on 19 September 2018 Ageas Debt Investor Presentation I FY 2019 6
Slide 7: Ageas group: Key financials & operational elements
Ageas group Key financials & operational elements Ageas net result Insurance Net result Inflows* @ageas share In EUR mio In EUR mio In EUR bn 1103 960 262 14.4 14.9 77 797 13.7 15 260 4.4 4.4 4.2 289 979 841 809 623 10.0 9.5 10.5 623 493 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 Life Non
Slide 8: Solid & diversified investment portfolio
Solid & diversified investment portfolio Stable asset mix & high quality investments Total investment portfolio @FY 19 Sovereign bond portfolio: over 99% Corporate bond portfolio: over 91%* investment grade – up to EUR 8.8^ bn investment grade – EUR 1.5 bn UG/L 4% UG/L 1% 7% 7% 3% 15% 14% 5% 6% 4% 1
Slide 9: Solvency II ageas Group @ 217%
Solvency IIageas Group @ 217% Solvency up on debt issuance - Tender FRESH not yet included (pro forma @205%) In EUR bn 8.6 7.7 7.4 7.9 7.9 8.0 Own Funds 6.9 6.3 6.4 3.9 4.0 3.7 4.0 SCR 2.9 2.7 2.8 1.4 1.0 1.1 3.7 4.0 0.8 0.8 0.9 0.7 0.7 0.6 0.5 0.5 0.5 0.7 0.6 0.6 0.1 0.1 (0.2) (0.2) (0.4) 0.2 0.4 0
Slide 10: Group Solvency II ageas sensitivities
Group Solvency IIageas sensitivities High Solvency ratio providing resilience against market or other external evolutions 30/09/19 31/12/18 SCR OF Solvency Solvency Base case 3,996 7,935 199% 215% Before stress Yield curve down 4,106 7,819 190% 205% Down 50 bps Yield curve up 3,887 7,996 206% 223% U
Slide 11: Risk Appetite & Capital management
Risk Appetite & Capital management Target level linked to Risk appetite Free Target Capital Capital 175% SCRageas Free Funds • Limited to 40% Group Own Funds Reminder: Risk Expected dividend already appetite • Measured under 1/30 loss event deducted from Solvency IIageas • Local risk profile & local
Slide 12: Solvency II guidance
Solvency II guidance Coupon servicing continues even if below 140% Solvency IIageas Available for strategic investments Dividend policy applied 175% SBB if no sizeable M&A Dividend policy still applied Ongoing SBB maintained - no new SBB 157% Risk reducing and/or capital strengthening me
Slide 13: Solvency PIM Group @ 203%
Solvency PIM Group @ 203% Solvency up on debt issuance - Tender FRESH not yet included (pro forma @192%) In EUR bn 8.7 8.1 7.7 7.5 7.9 7.7 6.6 6.3 5.9 Own Funds 1.7 1.4 1.4 4.0 3.6 4.2 4.1 3.7 4.3 3.0 2.8 3.2 0.9 0.9 SCR 0.8 0.7 0.7 0.1 0.1 (1.6)(1.1)(1.0) 0.1 0.6 0.5 0.5 0.5 0.6 0.5 0.5 0.1 0.1 0.1
Slide 14: Group Solvency PIM sensitivities
Group Solvency PIM sensitivities Ageas asset mix not in line with EIOPA reference portfolio 30/09/19 31/12/18 SCR OF Solvency Solvency Base case 4,182 8,060 193% 216% Before stress Yield curve down 4,255 7,986 188% 210% Down 50 bps Yield curve up 4,102 8,094 197% 222% Up 50 bps Equity 4,125 7,763 18
Slide 15: Outstanding Hybrids
Outstanding Hybrids Successful issuance of debt at holding level in April & December 2019 In EUR mio ageas SA/NV Ageasfinlux AG Insurance (Belgium) Perp Fixed Fixed-to- Fresh - Fixed-to- Fixed Rate Fixed Rate Rate Reset Floating Rate 65.50% tender Floating Rate Reset Reset Dated Temporary Callable i
Slide 16: Strong capitalization of the group
Strong capitalization of the group Pro forma Tender FRESH additional regulatory debt capacity of EUR 1.3 bn Capital quality – SCR PIM coverage @FY 19 3% 39% • Pro forma tender FRESH, Tier 2 additional regulatory debt capacity of EUR 1bn @FY 19 203% 32% 129% Unrestricted Tier 1 Restricted Tier 1 Tier
Slide 17: ageas group, ageas SA/NV, appendix
1. ageas group 2. ageas SA/NV 3. appendix
Slide 18: Diversified sources of income
Diversified sources of income Total cash inflows far exceed the holding costs Sources of cash Fixed use of cash Discretionary use of cash Dividend upstream External dividend (BE, UK, CEU & ASIA) Holding costs Reinsurance operations Share buy-back (including debt servicing) Organic & inorganic Intere
Slide 19: ageas SA/NV not a traditional holding company
ageas SA/NV not a traditional holding company Reinsurance sets path for increased capital fungibility 02/07/2018 ageas SA/NV obtains Life & Non-Life reinsurance license from the NBB With quota shares accepted from controlled Non-Life entities ageas SA/NV gains direct access to operational cash-f
Slide 20: ageas SA/NV solo Solvency II PIM @351%
ageas SA/NV solo Solvency II PIM @351% Primary issuing entity of the Group In EUR bn Own Funds 8.7 6.2 • ageas SA/NV Solvency II mainly driven by value of entities within Solvency II scope SCR 4.3 owned by Ageas Insurance International 1.8 203% 351% Ageas Group PIM ageas SA/NV The primary issuing en
Slide 21: ageas SA/NV Solvency PIM sensitivities
ageas SA/NV Solvency PIM sensitivities High Solvency ratio providing resilience against market or other external evolutions 30/09/19 31/12/18 SCR OF Solvency Solvency Base case 1,646 5,596 340% 402% Before stress Yield curve down 1,631 5,608 344% 403% Down 50 bps Yield curve up 1,652 5,542 336% 403%
Slide 22: Holding company is an operating company with operational cashflows
Holding company is an operating company with operational cashflows ageas SA/NV rated A positive /A+ stable, at par with AG Insurance S&P Fitch Operating / ageas SA/NV* A / positive A+ / stable Holding Entity Last change 21/11/2019 19/03/2020 Operating AG Insurance (Belgium) A /positive A+ / stable e
Slide 23: ageas group, ageas SA/NV, appendix
1. ageas group 2. ageas SA/NV 3. appendix
Slide 24: Disciplined cash upstream from operating companies
Disciplined cash upstream from operating companies Upstream more than covering dividend and holding costs on FY basis 622 632 8 Asia Asia 87 548 516 92 488 487 CEU HQ & RO Asia CEU 86 440 expenses 438 Asia Asia 77 85 132 Asia Asia 89 CEU UK 44 106 52 43 48 CEU CEU 19 CEU 36 UK 47 53 UK 82 CEU UK 50
Slide 25: Composition of Group PIM SCR & OF
Composition of Group PIM SCR & OF In EUR bn Group PIM SCR per risk type Tiering of Group PIM own funds Market risk main factor in SCR High quality of own funds 8.1 8.7 4.2 8.1 4.3 0.1 0.1 0.1 3.7 0.5 0.5 0.5 0.8 0.8 1.7 1.0 1.0 0.7 0.4 0.3 0.3 0.8 0.8 0.6 0.4 0.4 1.4 1.3 0.4 1.4 4.9 4.8 Non Diversif
Slide 26: Belgium: Headlines
Belgium: Headlines Net result Inflows @ageas share Life Technical Liabilities In EUR mio In EUR bn In EUR bn 438 426 5.0 415 4.6 4.3 146 125 1.6 128 1.5 1.4 58.3 57.3 61.3 292 287 302 3.1 3.4 2.8 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 Life Non-Life Life Non-Life Non-Life combined rati
Slide 27: Margin evolution Assets & Liabilities Belgium
Margin evolution Assets & Liabilities Belgium Yield & guaranteed rate on back book down at the same pace FY 16 FY 17 FY18 FY19 Guaranteed interest rate 2.49% 2.32% 2.17% 1.95% Life Fixed income yield 3.45% 3.34% 3.25% 3.06% Back book Liabilities Guaranteed (EUR bn) 52.9 50.4 49.1 51.5 FY 16 FY 17 FY
Slide 28: Margin evolution Assets & Liabilities Belgium
Margin evolution Assets & Liabilities Belgium Average rate on back book decreasing in line with evolution yield fixed income 45,000 3.5% Back book* vs fixed 40,000 income 3.0% investments 35,000 2.5% 30,000 25,000 2.0% 20,000 1.5% 15,000 1.0% 10,000 0.5% 5,000 0 0.0% 2020 2021 2022 2023 2024 2025 20
Slide 29: United Kingdom: Headlines
United Kingdom: Headlines Net result Inflows @ageas share Non-Life combined ratio In EUR mio In EUR mio In % of NEP 87 69 1,768 103.2 98.7 1,582 1,552 96.8 29 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 pro forma* Ageas Debt Investor Presentation I FY 2019 29
Slide 30: Continental Europe: Headlines
Continental Europe: Headlines Net result Inflows* @ageas share Life Technical liabilities In EUR mio In EUR bn In EUR bn 193 38.4 77 3.1 118 109 22.1 15 1.0 2.1 2.2 53 16.1 16.2 49 73 0.9 1.0 2.1 62 16.3 16.1 16.2 54 1.2 1.2 36 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 Life Non-Life cons
Slide 31: Asia: Headlines
Asia: Headlines Net result Inflows* @ageas share Life Technical liabilities In EUR mio In EUR bn In EUR bn 515 6.2 5.2 5.4 0.3 12 0.2 0.2 293 82.2 503 65.6 24 5.9 55.9 170 5.0 5.2 269 17 152 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 Life Non-Life divestments Life Non-Life Non-conso * Inf
Slide 32: Reinsurance: Headlines
Reinsurance: Headlines Shift from internal reinsurance through Intreas towards ageas SA/NV Net result Inflows Combined ratio In EUR mio In EUR mio In % NEP 8 8 1,689 103.9 (16) 75.7 82.6 52 61 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 pro forma* ageas SA/NV Implementation of an interna
Slide 33: Settlement around Fortis past final & in full execution
Settlement around Fortis past final & in full execution Vast majority of civil proceedings terminated 14/03/2016 Ageas offers to pay EUR 1.2 bn compensation – additional effort of EUR 0.1 bn announced 16/10/2017 No recognition of any wrongdoing by Ageas Commitment by eligible shareholders to a
Slide 34: Investor Relations
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 ma