Asr Nederland N.v. · EURONEXT:ASRNL
Asr Nederland — FY2023 Earnings Presentation
37 slides from Asr Nederland's earnings presentation, Feb 29, 2024
Slide 1: 2023 Full-year results
2023 Full-year results Analyst conference call 29 February 2024 Jos Baeten, CEO Ewout Hollegien, CFO
Slide 2: Strong financial performance includes results Aegon Nederland (2H23)
Strong financial performance includes results Aegon Nederland (2H23) • Operating result increased € 311m to € 1.1bn driven by the contribution of Aegon NL and Organic capital Operating result Solvency II ratio1 favorable results Non-life, Life and fee-based creation businesses • Solvency II ratio of
Slide 3: Value creation for all stakeholders, compelling ESG credentials
Value creation for all stakeholders, compelling ESG credentials Non-financial KPI’s (a.s.r. only) Sustainable insurer Sustainable insurer Sustainable employer Sustainable Sustainable investor investor Sustainable investor Net promoter score (NPS-r) Public recognition sustainable insurer Employee eng
Slide 4: Integration is well on-track, key milestones achieved
Integration is well on-track, key milestones achieved • Integration activities have been initiated and progressing well in line with developed target operating model • Works council requests have been submitted and process well on track • Cultural fit (gap) analysis completed and the roll-out of cul
Slide 5: Non-life segment delivering higher operating result and portfolio growth
Non-life segment delivering higher operating result and portfolio growth Operating result (in €m) Premiums received (in €m) • Strong organic premium growth in all three product OISR1 P&C lines and inorganic growth through the addition of +46.9% OIFR2 +25.7% Disability Aegon NL Other Health 381 5,375
Slide 6: Life segment higher operating result driven by insurance service result
Life segment higher operating result driven by insurance service result Operating result (in €m) Operating insurance service result (in €m) • Operating result of Life segment increased by € 98m primarily related to the addition of Aegon NL Other CSM release Experience variance OISR1 Release RA Loss
Slide 7: Results uplift fee-based business includes Aegon mortgage business
Results uplift fee-based business includes Aegon mortgage business Segment Asset Management • The operating result of the Asset Management segment increased mainly as result of the Operating result inclusion of Aegon NL (mortgage business) (in €m) • Total AuM for third parties increased by € 0.8bn t
Slide 8: Bank segment growth and higher holding interest charges
Bank segment growth and higher holding interest charges Segment Bank • Bank segment consists of the Aegon NL banking activities (Knab) for the second half of 2023 Operating result (in €m) • Operating result reflects the interest margin driven by higher interest rate levels and growth of the book 139
Slide 9: Solvency and capital position
Solvency and capital position Ewout Hollegien, CFO 9
Slide 10: Robust SII-ratio post-acquisition
Robust SII-ratio post-acquisition Solvency II ratio1 (%) • Solvency II ratio is at a level of 176% at year-end • Strong organic capital creation of OCC 14%-p, € 938 m € 938m 221% • Impact of market movements of market & operational developments: • Revaluations of real estate -31% 1% -1% • Mortgage s
Slide 11: OCC development 2023
OCC development 2023 OCC development (in €m) Business capital generation (€ +206m) 36 43 938 • Addition of Aegon NL 206 653 • Higher contribution from Disability and Health • Lower contribution due to lower asset valuations, increased hybrid costs and higher holding expenses OCC 2022 Business capita
Slide 12: Diversified and robust investment portfolio
Diversified and robust investment portfolio Investment portfolio € 82.3bn (in %) Investment portfolio development1 (in € bn) • General account assets portfolio increased > € 40bn as a result of the Aegon NL addition 6% 4% Fixed income FY2022 39.7 • High quality asset portfolio with over 85% fixed in
Slide 13: Diversified Real Estate portfolio
Diversified Real Estate portfolio Real estate portfolio € 8.8bn (in %) Real estate portfolio development (in €bn) • Real Estate portfolio increased with € 4.0bn as FY2022 5.1 result of Aegon transaction (Amvest portfolio) 5% 9% a.s.r. stand alone -0.3 • Aegon NL Real Estate portfolio; Aegon NL Direc
Slide 14: Solid balance sheet provides ample financial flexibility
Solid balance sheet provides ample financial flexibility Eligible Own Funds and SII headroom1 (in €m) S&P IFS rating RT1 T2+T3 Headroom RT1/T2/T3 € 1,563m € 326m A 529 2,435 472 11,578 8,142 Stable Outlook Unrestricted Tier 1 Restricted Tier 1 Tier 2 Tier 3 Eligible Own Funds Financial leverage (in
Slide 15: Robust solvency and cash positions support businesses and dividends
Robust solvency and cash positions support businesses and dividends HoldCo liquidity (in €m) • HoldCo liquidity at YE 2023 stood at € 700 -482 • Higher coupon payments compared to 2,142 1,180 2022 due to issue of € 1bn T2 capital -171 instrument in November 2022 -1,969 • Cash upstream from Life and
Slide 16: Wrap-up
a. Wrap-up Jos Baeten, CEO s.r. 16
Slide 17: Key take-aways
Key take-aways Solid performance in all segments bolstered by the contribution of Aegon NL in second half-year Strong commercial results driven by both organic and inorganic growth Solid SII ratio of 176% absorbed impact Aegon NL transaction. Pro forma ratio including Knab transaction amounts to 189
Slide 18: Titel van de a.s.r. presentatie
Titel van de a.s.r. presentatie 18
Slide 19: IR contact details
Nog op te pakken door tekst en design IR contact details Email: ir@asr.nl Tel: +31 (0)30 257 86 00 19
Slide 20: Appendix
Appendix
Slide 21: Appendices
Appendices A. Financial ratios J. Investment portfolio B. Combined ratio per product line K. Details of fixed-income portfolio C. Calculation of operating ROE L. Details of Corporates, Financials and Alternative fixed income portfolio D. IFRS profit vs. operating result per segment M. Credit rating
Slide 22: A. Financial ratios
A. Financial ratios Net result (in €m) Operating result (in €m) ROE Operating ROE3 1,086 15.4% 1,117 12.4% 10.6% 805 -1,709 -31.2% 2022 2023 2022 2023 2022 2023 2022 2023 Combined ratio Non-life1 Solvency II ratio2 Total IFRS equity (in €m) Financial leverage 94.4% 93.5% 221% 9,377 32.0% 176% 23.7%
Slide 23: B. Combined ratio per product line
B. Combined ratio per product line 2022 2023 Net insurance contract revenue (in €m) 1,607 1,803 Claims ratio 56.6% 58.3% Property & Casualty Expense ratio 8.5% 8.9% Commission ratio 27.4% 26.4% Combined ratio 92.5% 93.6% Net insurance contract revenue (in €m) 1,424 1,622 Claims ratio 79.5% 76.1% Dis
Slide 24: C. Calculation of operating ROE
C. Calculation of operating ROE (in €m) 2022 2023 Operating result (before tax) 805 1,117 Tax effect (25.8%) 208 288 Operating result (net of taxes) 598 829 (in €m) Equity attributable to shareholders 5,146 8,339 Minus: Unrealised gains and losses reserve 0 55 Minus: IFRS equity discontinued 24 36 A
Slide 25: D. IFRS profit vs. operating result per segment
D. IFRS profit vs. operating result per segment Non- Non- IFRS Investment Operating IFRS Investment Operating investment investment profit related result profit related result related related (pre-tax) incidentals (pre-tax) (pre-tax) incidentals (pre-tax) incidentals incidentals 2022 (in €m) 2023 (i
Slide 26: E. IFRS equity and Solvency II EOF multi-year development
E. IFRS equity and Solvency II EOF multi-year development IFRS equity (in €m) Solvency II Eligible Own Funds1 (in €m) 11,578 9,377 2,907 1,004 8,270 7,192 7,441 1,004 6,177 2,061 1,837 1,004 8,339 8,671 6,170 6,209 5,146 5,605 18 27 35 2021 2022 2023 2021 2022 2023 Hybrids Non-controlling interest H
Slide 27: F. CSM overview
F. CSM overview CSM development Life (in €m) • CSM increase is mainly driven by the addition of Aegon NL (€ 3.3bn) 76 74 52 4,932 • The valuation methodology of the NB CSM uses the discount -210 curve of 1 January 3,179 • Higher new business in Life is reflecting the impact of indexation of funeral
Slide 28: G. Sensitivities Solvency II ratio
G. Sensitivities Solvency II ratio Total impact expressed as % of group solvency ratio1 1 0 0 0 176% -1 -2 -2 SII ratio (%) -5 -6 -7 -8 VA Sovereign Corporate Interest Interest Interest Equities Equities Real estate Mortgage Inflation -10bps spread credit spread +50bps -50bps steepening -20% + 20% -
Slide 29: H. Sensitivities Solvency II ratio – UFR
H. Sensitivities Solvency II ratio – UFR Solvency II ratio (‘stock’) • As of 1 January 2024, EIOPA set UFR at the level of 3.30%. Level in 2023 was 169% 174% 176% 3.45% 151% 161% • Lowering the UFR would lead to lower ‘stock’ of capital but would increase organic capital creation (‘flow’) because of
Slide 30: I. UFR drag methodology of Solvency II
I. UFR drag methodology of Solvency II • The absolute value of the UFR benefit in Solvency II Own 20Y EUR SWAP1 (in %) Funds and therefore the unwind of the benefit (UFR drag) 3.5 depends on; 3.0 • The current level of interest rates and 2.5 • The shape of the curve 2.0 1.5 • UFR benefit amortised o
Slide 31: J. Investment portfolio
J. Investment portfolio Assets (in €bn, fair value) 2022 2023 Delta % of total • General account assets portfolio increased > € 40bn as result of the Aegon NL transaction Fixed income 20.7 37.6 16.8 46% • Lower interest rates increased the value of the portfolio Derivatives -0.1 2.1 2.2 3% • Exposur
Slide 32: K. Details of fixed-income portfolio
K. Details of fixed-income portfolio • The core of the FI portfolio consists of AAA and AA government bonds, with Mortgages (in €m) 2022 2023 Delta % of total selective peripheral sovereign exposure NHG 2,229 5,977 168% 24% • Next to the addition of the Aegon NL portfolio, the FI portfolio also incr
Slide 33: L. Details of Corporates, Financials and Alternative fixed income portfolio
L. Details of Corporates, Financials and Alternative fixed income portfolio Comments on Corporates, Financials and Alternative fixed income Credits (in €m) 2022 2023 Delta % of total portfolio Automotive 250 304 21% 6% • Structured portfolio stable with the addition of exposure CLO’s through the acq
Slide 34: M. Credit rating Governments fixed income portfolio
M. Credit rating Governments fixed income portfolio Market value governments (in €m) 0-1 1-2 2-3 3-5 5-10 10-20 20-30 30+ Total Delta1 % of total AAA 526 162 78 376 564 5,988 2,488 1,000 11,183 6,312 60% AA 244 65 50 136 819 981 2,183 2,183 6,661 2,846 36% A 12 20 3 53 332 9 174 7 611 -137 3% BBB 9
Slide 35: N. Credit rating Corporates, Financials and Alternative FI portfolio
N. Credit rating Corporates, Financials and Alternative FI portfolio Market value credits (in €m) 0-1 1-2 2-3 3-5 5-10 10-20 20-30 30+ Total Delta1 % of total AAA 263 31 18 42 726 2,152 10 23 3,264 2,647 20% AA 180 85 59 209 421 296 37 1 1,288 505 8% A 552 408 588 1,047 1,749 411 55 6 4,817 1,491 29
Slide 36: O. Details of equities and real estate portfolio
O. Details of equities and real estate portfolio Real estate (in €m) 2022 2023 Delta Equity1 (in €m) 2022 2023 Delta Offices 209 211 1% Equity 1,778 2,358 33% Residential 1 2,347 n.m.1 Equity Funds 364 777 113% Retail 146 142 -3% Private Equity 133 130 -2% Rural 201 207 3% Mezzannine - 213 n.m. Park
Slide 37: Disclaimer
Disclaimer Cautionary note regarding forward-looking statements institutions, countries/states and/or other counterparties; (9) technological developments; (10) changes in the implementation and execution of ICT systems or outsourcing; (11) changes in the availability of, and costs associated with,