Slide 1: Introduction to Ageas
Introduction to Ageas Corporate Presentation I March 2020 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 2019 TOTAL: EUR 15.0 bn Internal Reinsurance with Life & Non-Life 7 partnerships in 9 markets Life & Non-Life license #1 Life #5 Life in China #2 Non-Life #2 General t
Slide 3: Diversified product portfolio
Diversified product portfolio Focus on Individuals & SME LIFE 2019 GROSS INFLOWS LIFE mostly guaranteed products (consolidated entities) GROSS INFLOWS @ageas share 2019 TOTAL: EUR 15.0 bn 22% Guaranteed Unit-Linked products products 30% 78% 70% 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 leading companies in their local market Ageas’s Partner’s Insurance knowledge & expertise + Local knowledge & distribution capabilities Corp
Slide 5: Management structure
Management structure EXECUTIVE COMMITTEE Emmanuel Bart De Smet Christophe Boizard Antonio Cano Filip Coremans Van Grimbergen CEO CFO COO CDO CRO MANAGEMENT COMMITTEE Gary Crist Hans De Cuyper Andy Watson Steven Braekeveldt CEO Asia CEO Belgium CEO United Kingdom CEO Continental Europe Four geographi
Slide 6: Sustainable development
Sustainable development Ageas Group has committed to incorporate ESG issues into its investment analysis and decisions and signed on behalf of all its consolidated entities the UN PRI Corporate Presentation I March 2020 6
Slide 7: A Profile of Profitable Growth
A PROFILE OF PROFITABLE GROWTH Corporate Presentation I March 2020 7
Slide 8: Consistent inflow growth
Consistent inflow growth Belgium UK Continental Europe Asia in EUR bn CAGR +8% 35.9 33.8 34.4 31.5 29.2 25.2 22.6 20.0 21.0 24.3 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 3.2 2.1 1.7 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 6.6 2012 2013 2014 2015 2016 2017 2018 2019
Slide 9: Underlying Group net profit capacity of EUR 850-950 mio
Underlying Group net profit capacity of EUR 850-950 mio Belgium INSURANCE NET PROFIT UK 1,103 Continental Europe Asia 960 Reinsurance 721 8 In EUR mio 797 737 755 2 293 515 8 654 170 624 172 394 272 142 193 118 128 109 3 56 77 29 87 69 64 117 70 90 108 100 30 438 415 426 392 384 391 324 33
Slide 10: 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 622 632 Reinsurance 8 87 In EUR mio 92 548 516 488 488 86 77 85 HQ & RO 132 438 440 expenses 106 89 44 52 43 48 19 36 53 47 82 50 150 437 Paid 64 415 416
Slide 11: Strong Solvency II ageas position
Strong Solvency IIageas position In EUR bn 8.6 8.0 7.9 7.7 7.1 6.4 6.3 6.1 5.8 Own Funds 1.3 1.5 3.7 4.0 4.0 2.7 2.9 2.8 1.0 1.0 1.1 1.0 3.0 3.2 0.8 0.8 0.9 0.6 0.7 2.4 0.1 0.6 0.7 0.6 0.5 0.5 0.5 0.4 0.1 0.1 0.2 (0.3) (0.5) (0.6) 0.1 0.3 SCR (1.7) (1.6) (1.8) FY 18 9M FY 19 FY 18 9M FY 19 FY 18 9M
Slide 12: 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 6.4 bn UG/L investment grade – EUR 1.5 bn UG/L 7% 4% 1% 7% 3% 14% 15% 5% 6% 4% 12% 13% 7% EUR 8
Slide 13: 4 Regions, 14 Countries
4 REGIONS, 14 COUNTRIES Corporate Presentation I March 2020 13
Slide 14: Belgium
Belgium A market leader with robust profit levels #1 Life 29% market share #2 Non-Life 16% market share #1 Real Estate EUR 6.5 bn real estate value BELGIUM INSURANCE NET PROFIT 438 Non-Life 415 426 2019 Life 392 391 Policyholders Gross Inflows 384 (@ageas’ share) in EUR mio 335 324 55 103 102 14
Slide 15: United Kingdom
United Kingdom Focus on restoring profitability #6 Private car #6 Domestic property Staff Brokers Active customers 3,200 2,300 5 mio 2019 GROSS INFLOWS (@100%) UK INSURANCE NET PROFIT EUR 1.7 bn In EUR mio 2% 8% 21% 108 100 117 87 69 30 29 69% Accident & Health Motor (156) Household Other Lines 2012
Slide 16: Continental Europe
Continental Europe Portugal 3rd home market 3 markets : Portugal, France and Turkey (Italy divested in 2017 & Luxembourg in 2018) #2 in Life and #3 in Non-Life in Portugal #4 Non-Life in Turkey 2019 Combined ratio 2019 Gross Inflows Staff 2019 Net Result (@ageas share) 2,300 91.2% EUR 2.2 bn EUR 109
Slide 17: 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 PARTNERSHIPS X3 24.3 2
Slide 18: Strategy
STRATEGY Corporate Presentation I March 2020 18
Slide 19: Connect 21, our 3-year strategic plan
Connect 21, our 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
Slide 20: Connect 21: A reflection of Group's Strategy, Values and KPI's
Connect 21 A reflection of Group’s Strategy, Values and KPI’s Corporate Presentation I March 2020 20
Slide 21: M&A Strategy
M&A Strategy M&A Criteria Local presence CRITICAL SIZE Compete effectively in its market or niche comply with ageas’s quality standards MEANINGFUL In the medium term CONTRIBUTION Significant enough to justify management time while taking into account RETURN IN EXCESS OF - business specif
Slide 22: M&A Strategy
M&A Strategy Total available cash estimated at around EUR 1 bn Financing in case of a compelling M&A transaction can come out of: • Available Net Cash Ring-fenced for Settlement • Projected future cash flows TOTAL LIQUID ASSETS Fresh Tender transaction • Debt issuing capacity Net Cash and liqu
Slide 23: Investment Case
INVESTMENT CASE Corporate Presentation I March 2020 23
Slide 24: Shareholders return
Shareholders return EUR 5.6 bn returned to shareholders since 2009 TOTAL RETURNED TO SHAREHOLDERS Capital Reduction Share buy-back executed Paid Dividend 664 637 615 in EUR mio 579 582 600 Intended 518 223 247 427 208 184 348 209 250 244 Cash dividend 2019 144 of 230 188 160 EUR 2.65 417 407 4
Slide 25: Shareholders return
Shareholders return Total value creation X15 in 11 years SHAREHOLDERS at 31/12/2019 Fosun Identified retail AGEAS’ SHARE investors 22% Schroders Listed on Euronext Brussels BlackRock, Inc. BEL 20 index Identified Ping An ISIN BE0974264930 institutional investors Bloomberg AGS BB Ageas 44% Other Reut
Slide 26: Conclusion
Conclusion BUSINESS MODEL FINANCIAL DISCIPLINE AMBITION STRENGTHS & LEGACIES SOLVED FOR THE FUTURE Strong capital position Clear strategic priorities Balanced portfolio (FY 2019) to prepare the Group for the Markets/products/channels future Shareholder’s equity EUR 11.2 bn Financial targets Connect
Slide 27: 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