Slide 1: Introduction to Ageas
Introduction to Ageas Corporate Presentation I March 2019 1
Slide 2: An international insurance Group with a focus on Europe and Asia
An international insurance Group with a focus on Europe and Asia ASIA AGEAS SA/NV BELGIUM GROSS INFLOWS @ageas share Life & Non-Life 2018 TOTAL: EUR 14.5 bn Internal Reinsurance with Life & Non-Life 6 partnerships in 9 markets Life & Non-Life license #1 Life #5 Life in China #2 Non-Life #1 General t
Slide 3: Diversified product portfolio
Diversified product portfolio Focus on Individuals & SME LIFE 2018 GROSS INFLOWS LIFE GROSS INFLOWS @ageas share mostly guaranteed products (consolidated entities) 2018 TOTAL: EUR 14.5 bn 24% 29% Guaranteed Unit-Linked products products 76% 71% Guaranteed products Unit-Linked products Life Non Life
Slide 4: Multiple distribution channels to reach our clients
Multiple distribution channels to reach our clients BANKS AGENTS BROKERS DIRECT Proven competency in developing strong, long-term and dynamic partnerships with companies leader in their local market + Ageas’s Partner’s Insurance knowledge Local knowledge and and expertise distribution capabilities C
Slide 5: Management structure
Management structure A business driven organization EXECUTIVE COMMITTEE Bart De Smet Christophe Boizard Filip Coremans Antonio Cano CEO CFO CRO COO MANAGEMENT COMMITTEE Gary Crist Hans De Cuyper Andy Watson Steven Braekeveldt Emmanuel CEO Asia CEO Belgium CEO United Kingdom CEO Continental Van Grimb
Slide 6: A Profile of Profitable Growth
A PROFILE OF PROFITABLE GROWTH Corporate Presentation I March 2019 6
Slide 7: Consistent inflow growth
Consistent inflow growth < Belgium < UK < Continental Europe < Asia in EUR bn CAGR +9% 33.8 34.4 31.5 29.2 25.2 22.6 20.0 21.0 20.7 17.8 15.9 11.4 9.3 7.4 4.3 5.2 5.6 5.2 5.4 6.1 5.4 2.1 2.2 2.3 2.5 2.2 2.0 1.8 6.9 6.0 5.9 5.7 6.1 5.7 6.1 2012 2013 2014 2015 2016 2017 2018 All non-consolidated partn
Slide 8: Underlying insurance net profit capacity of EUR 850-950 mio
Underlying insurance net profit capacity of EUR 850-950 mio < Belgium < UK INSURANCE NET PROFIT < Continental Europe < Asia < Reinsurance In EUR mio 960 721 8 797 737 755 2 3 293 654 8 624 394 170 172 272 128 142 193 118 56 77 117 29 87 64 70 90 108 100 30 392 391 438 415 335 384 324 (156) 2012 2013
Slide 9: Disciplined cash upstream from local entities
Disciplined cash upstream from local entities Upstream more than covering dividend and holding costs < Belgium < UK < Continental Europe < Asia 622 < Reinsurance 8 In EUR mio 92 516 488 488 77 85 438 440 106 89 407 52 43 48 19 36 53 47 82 50 150 437 64 391 333 294 268 168 Upstream during 2013 2014 2
Slide 10: Strong Solvency II ageas position
Strong Solvency IIageas position In EUR bn 7.7 7.9 8.0 7.4 6.9 6.4 5.8 4.9 Own Funds 1.4 3.9 4.0 3.7 3.7 2.9 2.7 1.0 (1.0) 0.8 0.8 (1.4) 0.6 1.9 2.4 0.7 0.1 0.1 (0.2) (0.2) 0.2 0.5 0.6 SCR 0.5 0.0 0.1 0.1 0.1 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 F
Slide 11: Solid & diversified investment portfolio
Solid & diversified investment portfolio Stable asset mix & high quality investments Total investment portfolio Sovereign bond portfolio: over 99% Corporate bond portfolio: over 91% investment grade – EUR 4.6 bn UG/L investment grade – EUR 1.0 bn UG/L 7% 4% 2% 7% 3% 16% 6% 17% 5% 3% 9% 12% 7% EUR 79
Slide 12: 4 Regions, 14 Countries
4 REGIONS, 14 COUNTRIES Corporate Presentation I March 2019 12
Slide 13: Belgium
Belgium A market leader with robust profit levels #1 Life 29% market share #2 Non-Life 16% market share #1 Real Estate EUR 6.3 bn real estate value BELGIUM INSURANCE NET PROFIT 438 < Non-Life 415 2018 < Life 392 Policyholders Gross Inflows 384 391 (@ageas’ share) in EUR mio 324 335 55 103 102 146 12
Slide 14: United Kingdom
United Kingdom Focus on profitability #4 Private car #4 Motorcycle Staff Brokers Active customers 3,500 2,500 5 mio 2018 GROSS INFLOWS (consolidated entities) UK INSURANCE NET PROFIT EUR 1.4 bn In EUR mio 2% 11% 108 100 117 87 23% 30 29 64% Accident & Health Mo tor (156) Household Other Lines 2012 2
Slide 15: Continental Europe
Continental Europe Portugal 3rd home market 3 markets : Portugal, France and Turkey (Italy divested in 2017 & Luxembourg in 2018) #1 in Life and #2 overall insurer in Portugal #4 Non-Life in Turkey 2018 Combined ratio 2018 Gross Inflows Staff 2018 Net Result (@ageas share) 2,400 92.4% EUR 2.8 bn EUR
Slide 16: Asia
Asia A fast growing contribution Partnerships in 9 markets : China, India, Malaysia, Thailand, Vietnam, Philippines, Singapore, Laos, Cambodia #5 Life in China #1 General in Malaysia #3 Life & #4 Non-Life in Thailand GROSS INFLOWS (@100%, in EUR bn) EXPANDING OUR REACH THROUGH PARTNERSIPS X2.6 20.0
Slide 17: Strategy
STRATEGY Corporate Presentation I March 2019 17
Slide 18: Our new 3-year strategic plan
Our new 3-year strategic plan An evolution from the past & preparing for the future 2009 2 012 2 015 2 018 Financial Prepare for Insurance & Stabilization repositioning the future beyond § Focus on long term sustainable growth § Keeping all stakeholders in mind Solid insurance Regain Create an § Off
Slide 19: Connect 21
Connect 21 A reflection of Group’s Strategy, Values and KPI’s Corporate Presentation I March 2019 19
Slide 20: M&A Strategy
M&A Strategy M&A Criteria EXISTING MARKET NON-LIFE Priority to strengthen positions in Clear preference for Non-Life existing markets FAST GROWING BUSINESS GROWTH EMERGING MARKETS OPPORTUNITIES Further expansion in fast growing Flexibility for opportunities where Ageas emerging markets while respect
Slide 21: M&A Strategy
M&A Strategy Total Financing capacity estimated at around EUR 1.8 bn Financing in case of a compelling M&A transaction can come out of: • Available Net Cash TOTAL LIQUID ASSETS • Projected future cash flows • Debt issuing capacity : • ~ EUR 0.8 bn @ FY 2018 < Ring-fenced for Settlement • ~EUR 1.2 bn
Slide 22: Investment Case
INVESTMENT CASE Corporate Presentation I March 2019 22
Slide 23: Shareholders return
Shareholders return EUR 5.2 bn returned to shareholders since 2009 TOTAL RETURNED TO SHAREHOLDERS < Capital Reduction < Share buy-back executed < Paid Dividend 663 655 637 622 in EUR mio 579 582 Proposed 518 223 244 247 427 208 348 209 250 244 Cash dividend 2019 144 of 230 188 160 EUR 2.20 419 408 4
Slide 24: Conclusion
Conclusion BUSINESS MODEL FINANCIAL DISCIPLINE AMBITION STRENGTHS & LEGACIES SOLVED FOR THE FUTURE Clear strategic priorities Strong capital position Balanced portfolio to prepare the Group for the (FY 2018) future Markets/products/channels Shareholder’s equity EUR 9.4 bn Financial targets Connect 2
Slide 25: 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