ASR Nederland N.V. · EURONEXT:ASRNL
ASR Nederland — FY2008 Earnings Presentation
27 slides from ASR Nederland's earnings presentation, Apr 2, 2009
Slide 1: ASR Nederland Annual results 2008
ASR Nederland Annual results 2008 Lessons from past and 2008 loss prompt revised strategy ASR Nederland | 2 April 2009
Slide 2: Key messages
Key messages 2008 • Net loss EUR 640 million due to adverse effect of financial market turmoil and addition to a provision for compensation for unit-linked policies • Buffer capital year-end 2008 stood at 233% (EUR 3,5 billion) • Gross written premiums up 10% to EUR 5,8 billion 2009 • “Lessons learn
Slide 3: Agenda
Agenda Recent developments - ASR Nederland profile - Dutch State became shareholder of ASR Nederland - Full support from Dutch State - Changes in corporate governance following the separation - Focus on smooth disentanglement Strategy Financial results 2008 Concluding remarks ASR Nederland | Annual
Slide 4: ASR Nederland is a well-established company in the Dutch market
ASR Nederland is a well-established company in the Dutch market ASR Nederland • Top 4 insurer in the Netherlands • Complete product range: Individual Life, Group Life, Accident & Health, Property & Casualty (Retail and SME) • Operating model: full-service insurer ASR Verzekeringen and niche players:
Slide 5: Dutch State became sole shareholder of ASR Nederland
Dutch State became sole shareholder of ASR Nederland 29 September Benelux governments provide support for Fortis Bank 03 October Dutch State nationalises Fortis Bank Nederland (Holding) N.V., Fortis Verzekeringen Nederland N.V. and Fortis Corporate Insurance N.V. Since then the Dutch State has been
Slide 6: Dutch State: ASR Nederland can remain an independent insurer
Dutch State: ‘ASR Nederland can remain an independent insurer and the priority is to stabilise the company • The Dutch State has committed to return ASR to the private sector within the next 2 to 5 years, but has not set a timeline • The Dutch State has said that ASR will be returned to the private
Slide 7: Changes in corporate governance following separation
Changes in corporate governance following separation • From privately-owned to State-owned; the Dutch State acts as our shareholder • Nomination and installation of new Supervisory Board • Board of Directors: new CFO and enlarged from 5 to 6 members ASR Nederland | Annual results 2008 | 2 April 2009
Slide 8: Limited impact of disentanglement from Fortis
Limited impact of disentanglement from Fortis • ASR Nederland was already operating ‘stand-alone’ within Fortis • Disentanglement confined largely to supporting activities (HQ departments), e.g. HR, IST • Loss of Fortis Bank Nederland banking distribution can be counterbalanced by distribution at ot
Slide 9: Agenda
Agenda Recent developments Strategy Financial results 2008 Concluding remarks ASR Nederland | Annual results 2008 | 2 April 2009 | 9
Slide 10: Management asked to formulate a proposal for the future of the company
The management of ASR Nederland has been asked to formulate a proposal for the future of the company • ASR Nederland will operate as a stand-alone insurer for the time being • Dutch State’s shareholding in ASR Nederland is temporary, but no timeline has been set • The Board of Directors and Supervis
Slide 11: 'Lessons learned' provide a clear view of the future
‘Lessons learned’ provide a clear view of the future … • Products must satisfy the standards of ‘tomorrow’ Unit-linked • Proactively doing what is good for our customer will get greater policies appreciation • Avoid potential dossiers like unit-linked policies • Continuity cannot be taken for grante
Slide 12: Building blocks for a new strategy
… and provide the building blocks for a new strategy The customers trust Adaptability Cost-efficiency Transparency Flexibility in distribution, accessibility Sustainability and continuity ASR Nederland | Annual results 2008 | 2 April 2009 | 12
Slide 13: Cost-efficiency programme already started
Cost-efficiency programme already started • Until mid-2010: cost-efficiency programme of EUR 100 million on total gross cost base of EUR 730 million • Measures will include: • merging the back-offices of ASR Verzekeringen and De Amersfoortse • merging support departments • accelerating our current p
Slide 14: Agenda
Agenda Recent developments Strategy Financial results 2008 Concluding remarks ASR Nederland | Annual results 2008 | 2 April 2009 | 14
Slide 15: Key figures
Key figures EUR million 31 December 2008 31 December 2007 % Gross Written Premiums 5.758 5.217 10% Net Profit -640 890 -172% Operating Costs 591 561 5% Cost-premium ratio (net) 14,7% 15,1% Total technical provision 29.413 30.678 -4% Total equity (including revaluation of real estate) 1.757 3.487 -50
Slide 16: Net result 2008 versus 2007
Net result 2008 versus 2007 542 100 161 890 248 186 Guarantee Compensation Compensation Financial Net result provisions unit-linked unit-linked markets 2007 -640 615 Net result Financial 2008 markets Net result in 2008 substantially lower because of: • Turmoil in the financial market that erupted in
Slide 17: Strong commercial performance in 2008 despite financial turmoil
ASR Nederland sustained its strong commercial performance in 2008, despite the financial turmoil and disentanglement of Fortis EUR million 5,758 5,217 3,491 10% 3,108 2,111 2,268 12% 7% Life Non-Life Total • GWP in Life grew mainly due to an increase of single premiums of EUR 299 million • Growth in
Slide 18: Life insurance: net result hit by financial markets
Life insurance: net result hit by financial markets Gross written Annual premium Net result premiums equivalent -3% +12% 313 305 658 3.108 3.491 -198% 2007 2008 2007 2008 2007 2008 -647 • Group (+41%) and Individual (+3%) both contributed to growth • Growth of Individual achieved partly thanks to fe
Slide 19: Non-Life insurance: growth in almost all sectors
Non-Life insurance: growth in almost all sectors Gross written premiums Combined ratio Net result 92.5% 94.1% 17,3% 16,2% +7% 15,9% 15,8% 232 -97% 2.111 2.268 59,3% 62,1% 6 2007 2008 2007 2008 2007 2008 Commission ratio Cost ratio Claims ratio • GWP: All product lines, except Fire, achieved an incre
Slide 20: Investments in ASR Nederland Asset Management Portfolio
Investments in ASR Nederland Asset Management Portfolio 31 December 2008 Amounts in EUR x 1 million Asset Class Fair Value Fixed Income 16,6 Cash Shares 1,1 Mortgages 3% 9% Real Estate 3,7 Mortgages 2,2 Cash 0,8 Real Estate 15% Asset Management Portfolio 24,4 Unit Linked 5,7 Shares 4% Separated Acco
Slide 21: Fixed Income Portfolio December 2008
Fixed Income Portfolio 31 December 2008 Amounts in EUR x 1 million Sector Fair Value Financials per Rating Governments 6.818 Corporates 2.290 Rating Fair Value % Financials 6.614 AAA 619 9,4% Structured Instruments 925 AA 1.203 18,2% A 3.598 54,4% BBB 844 12,8% Total Fixed Income 16.648 BB 152 2,3%
Slide 22: Equity & Real Estate
Equity & Real Estate 31 December 2008 Amounts in EUR x 1 million • ASR Nederland reduces its equity risk using an option strategy Equity Sector % (notional underlying as per 31-12-08 EUR 635 million) Shares 65,8% • The gross equity exposure on March 27th 2009 was EUR 873 Private equity 7,5% million.
Slide 23: Exchange offer outstanding hybrid securities upcoming
Exchange offer outstanding hybrid securities upcoming Announcement on 26 March 2009: • "ASR Nederland ("ASR") is the new name for Fortis Verzekeringen Nederland, and operates in the Netherlands under various names, including ASR Verzekeringen and Amersfoortse Verzekeringen. The Dutch State acquired
Slide 24: Agenda
Agenda Recent developments Strategy Financial results 2008 Concluding remarks ASR Nederland | Annual results 2008 | 2 April 2009 | 24
Slide 25: Concluding remarks
Concluding remarks ASR Nederland … financial markets and extraordinary items drove the downturn in results … disentanglement from Fortis will be completed in 2009 … gross written premiums up 10% to EUR 5.8 billion ASR Nederland … Dutch State is sole shareholder … cost efficiency programme of EUR 100
Slide 26: Disclaimer
Disclaimer All information disclosed for the purpose of publication of the annual results, including but not confined to information supplied during the conference call and subsequently audible in the recording thereof, was obtained from sources that may be deemed reliable. Despite the care devoted
Slide 27: ASR Nederland Annual results 2008
ASR Nederland Annual results 2008 Lessons from past and 2008 loss prompt revised strategy ASR Nederland | 2 April 2009