Ageas Sa/nv · EURONEXT:AGS
Ageas Sa/nv — Investor Day (November 2023)
28 slides from Ageas Sa/nv's investor day presentation, Nov 21, 2023
Slide 1: Focused on turnaround to core
UK Focused on turnaround to core Sharp Focus. Better Results. Ant Middle, UK CEO Investor Day | 21 November 2023 Non-Confidential - Anyone
Slide 2: Agenda
AGENDA 1. Pre 2020 - a snapshot situational analysis 2. Transforming the UK business: the ingredients to win 3. Reaching new heights: delivering our priorities 4. The power of focus: a confident outlook Non-Confidential - Anyone Ageas Investor Day | Ageas UK | 21 November 2023 | page 2
Slide 3: Facing a demanding market in 2020 versus structural outperformers
As we started our strategic review …but there were clear structural in 2020, we were facing into a outperformers demanding market… Winning characteristics: Focused insurance models Limited growth (~2%), at best in line with GDP Challenging profitability with CORs greater than 97% Strong technical fo
Slide 4: Reflecting on Ageas UK over the years
Reflecting on Ageas UK over the years >400 products Personal lines A 12 brands complex SME Commercial 2,586 FTE business 7 fully occupied Life offices 112.2% 99.8% 102.1% 103.2% 96.8% 98.7% With £1.5bn market £1bn average performance 2014 2015 2016 2017 2018 2019 Ageas Protect (Life) Premium Commerc
Slide 5: Built on strong foundations
Built on strong foundations Customer service Loyal & engaged Time-tested, effective excellence workforce broker partnerships Loyal customers Energised workforce, above Supportive broker with above sector average Financial Service industry distribution franchise Net Promotor Score engagement benchmar
Slide 6: Agenda
AGENDA 1. Pre 2020 - a snapshot situational analysis 2. Transforming the UK business: the ingredients to win 3. Reaching new heights: delivering our priorities 4. The power of focus: a confident outlook Non-Confidential - Anyone Ageas Investor Day | Ageas UK | 21 November 2023 | page 6
Slide 7: Demanded a fundamental reassessment of the Ageas UK business
Demanded a fundamental reassessment of the Ageas UK business with three key considerations 1. 3. MARKET SEGMENT CHOICES EXECUTION APPROACH for participation to ensure transformation success 2. DIFFERENTIATNG CAPABILITIES to enable Ageas UK to win for the long term Non-Confidential - Anyone Ageas Inv
Slide 8: Smart market choices: strengthen & grow, or exit
1. Smart market choices: strengthen & grow, or exit Segment Ageas GWP Market Share Ageas COR 2019 (£m) 3yr average COR RAG Personal Lines Broker Standard status • Core products & established channel • Ageas pricing, products & claims 647 12% <97% • Instant data availability 97- 100% Personal Lines D
Slide 9: How to win for the long term
2. How to win for the long term Invest in differentiating capabilities Data & Analytics Technical Insurance Capabilities Insightful business decisions Outstanding core skills • Single data platform • Underwriting & Pricing • Data science tooling • Claims (inc. supply chain) • Centre of Excellence •
Slide 10: Setting up for successful transformation
3. Setting up for successful transformation Jonathan Price Finance CFO 70+ leaders engaged in strategy development & delivery Adam Clarke Underwriting CUO Adam Beckett Distribution CDO A broad, flat & agile leadership structure offering maximum control Evan Waks Risk CRO Reinforced leadership compos
Slide 11: Our strategy 2020-2024: Sharp Focus. Better Results.
Our strategy 2020-2024: Sharp Focus. Better Results. Clear Strengthen & grow core Personal lines. Exit non-standard, affinity & Commercial lines market Partner with current & future winners. business choices How we win: Invest in Technical Insurance Technology Efficiency differentiating Data & Analy
Slide 12: Agenda
Agenda 1. Pre 2020 - a snapshot situational analysis 2. Transforming the UK business: the ingredients to win 3. Reaching new heights: delivering our priorities 4. The power of focus: a confident outlook Non-Confidential - Anyone Ageas Investor Day | Ageas UK | 21 November 2023 | page 12
Slide 13: A focused Personal lines insurance business
A focused Personal lines insurance business ~100 products Personal A lines 2 brands simplified & focused SME Commercial >700 FTE reduction Price Run-off only business Comparison Websites 5 offices with Life 55% sublet space Leveraging core motor expertise… …with full market reach… …growing in resili
Slide 14: Underpinned by leading data-driven capabilities
Underpinned by leading data-driven capabilities One core platform Cloud-based Data Science Single source of truth at speed with Ability to quickly and effectively consistent, clean & trusted data productionise Machine Learning & cutting edge AI models 950+ data sources documented Data & Analytics: m
Slide 15: Outstanding core technical insurance skills
Outstanding core technical insurance skills Investing in outstanding Technical Insurance Capabilities Accelerating Underwriting Ground-breaking Best-in-class & Pricing sophistication Fraud prevention Claims management Dynamic real-time • Underwritingfraud tools Sophisticated Digital & data-led data
Slide 16: Creating competitive advantage through technology
Creating competitive advantage through technology A single cloud-based, next-generation platform fit for the future • Broader customer proposition breadth with new Modern product and embedding capability Digital Old legacy (legacy) to the core systems core • Market-leading speed to market of tailore
Slide 17: Top quartile cost efficiency to drive competitive advantage
Top quartile cost efficiency to drive competitive advantage £55m opex savings achieved Key contributors: Curtailment of Direct Marketing activity 21% Business optimisation £55m 50% Commercial run-off 20% Technology efficiency 10% Further material cost efficiencies expected from benefit of replatform
Slide 18: Expense efficiency supported by headcount reduction since 2019
Expense efficiency supported by headcount reduction since 2019 30% reduction in FTE (vs. pre-strategy position 2019) Includes impact of investment initiatives in areas such as advanced analytics and data science. -30% 2,586 2,417 2,047 1,868 1,810 2019 2020 2021 2022 2023 Shift to hybrid working als
Slide 19: Deepening stakeholder advocacy
Deepening stakeholder advocacy Loyal & engaged workforce Supportive Customer service excellence Committed to sustainability distribution franchise Above sector Sustainable operations Above benchmark customer sentiment* Employee Leading the way on Sector Green car parts Net Promoter Score average NPS
Slide 20: Agenda
Agenda 1. Pre 2020 - a snapshot situational analysis 2. Transforming the UK business: the ingredients to win 3. Reaching new heights: delivering our priorities 4. The power of focus: a confident outlook Non-Confidential - Anyone Ageas Investor Day | Ageas UK | 21 November 2023 | page 20
Slide 21: A pivotal point for UK Personal lines insurance
A pivotal point for UK Personal lines insurance Recent history Outlook AD claims notified (000)1 2,000 1,190 1,079 786 847 Claims frequency stabilised and Covid impact on claims frequency understood - 2019 2020 2021 2022 UK Inflation (CPI) 9.6% 4.7% Motor peak inflation expected to Rapid inflationar
Slide 22: Early action on pricing provided enhanced competitive position in 2023
Early action on pricing provided enhanced competitive position in 2023 50pt rate strength applied in Motor Average Premium since start 2022 35% +28% Sep-23 £365 vs Sep-22 £285 30% 25% Policies Motor market movement index 20% 15% +600k 10% Sep-23 policies in force vs. Sep-22 5% Peers Ageas 0% GWP +42
Slide 23: Top quartile motor market performer
Top quartile motor market performer 109.5% Outperforming market average on Motor COR performance 101.4% 96.6% 95.0% 90.3% 2018 2019 2020 2021 2022 A disciplined pricing approach ahead of the market alongside EY Results analysis Ageas Motor Combined Ratio broader strategic delivery driving top quarti
Slide 24: Enhanced Household rating in 2023 reflecting inflation & weather
Enhanced Household rating in 2023 reflecting inflation & weather ~30 points of rate applied across Household products Average Premium in 2023 30% 2022 COR >100% due to weather and inflation +31% 25% Sep-23 £170 vs Sep-22 £130 Household market movement index 20% Policies 15% 10% -100k Sep-23 policies
Slide 25: 2027 ambition evidences strategic progress in the UK
2027 ambition evidences strategic progress in the UK GWP Improved competitive < 2019 2024 2027 Premium position and significant growth in Pre 20-24 Ambition 2023 provides a platform for Strategy Strategy 2027 ambition in excess of £1.5bn GWP £1.0bn £1.3bn >£1.5bn Personal Lines Combined Ratio improv
Slide 26: UK Personal lines is a key contributor in a diversified group
UK Personal lines is a key contributor in a diversified group • Supports Ageas Group Non-Life portfolio balance Representing 25% of Ageas non-life premium (Ageas share) • Valuable knowledge & expertise synergies for Ageas Group Customer Experience | Data & Analytics | Pricing & Machine Learning • Co
Slide 27: Investor Relations
Investor Relations Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on Tel: + 32 2 557 57 32 management's current views and assumptions and involve known and E-mail: ir@ageas.com unknown risks and uncertainties that
Slide 28: November 2023 | page
UK Non-Confidential - Anyone Ageas Investor Day | Ageas UK | 21 November 2023 | page 28