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6M Periodical Financial
Information
2013 RESULTS
Executive summary
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Insurance result reports strong second quarter Both Insurance & General Account contributing to Group net result Solvency relatively stable, Shareholders’ equity impacted by UG/L New share buy-back
Insurance net profit of EUR 329 mio (+9%) Inflows @ 100% of EUR 12.5 bn (+16%) Group combined ratio at 97.8% (vs.98.3%) Life Technical Liabilities at EUR 68.7 bn*
Q2 insurance net profit of EUR 172 mio
Group net profit of EUR 472 mio (+55%) General Account net result of EUR 143 mio
Q2 Group net profit of EUR 179 mio Shareholders’ equity at EUR 38.62 per share Insurance solvency at 206%, Group solvency at 226% Net cash position General Account at EUR 2.1 bn
Amount of EUR 200 mio, from 12/08/13 till 05/08/14 On top of 2012 dividend (EUR 1.2/share)
& capital reduction (EUR 1.0/share)
Main messages Ageas’s 6M results reinforce positive trend
Periodic financial Information I 6M 13 Results I 2 August 2013 2 * Consolidated entities only, compared to FY 2012
205 201
90 1198
9302329
6M 12 6M 13Life Non-Life Other
98.3% 97.8%
6M 12 6M 13
Insurance net result: Better Non-Life compensates stable Life result In EUR mio In EUR mio
Insurance solvency stable Combined ratio: improving CY claims ratio
227%
Shareholders’ equity down on UG/L EUR per share
210% 207% 204% 206%
FY 12 6M 13
42.27 38.62
FY 12 6M 13
Result General Account driven by transaction on RPI & Call Option In EUR mio
302 329
2
143305
472
6M 12 6M 13
Insurance General Account
Headlines Ageas Non-Life performance further improved
3
1.2
2.1
FY 12 6M 13
Net cash: Cash transactions RPI & Call option coming in earlier than expected
Periodic financial Information I 6M 13 Results I 2 August 2013
Periodic financial Information I 6M 13 Results I 2 August 2013
Net cash position General Account at EUR 2.1 bn Up in Q2 on transactions related to RPI & BNPP Call Option
Transactions RPI & BNPP Call option: expected cash inflow almost entirely received, most of remaining proceeds expected in H2 2013 (≈EUR 0.2 bn)
EUR 1.2 per share 2012 dividend paid out in May, upstream from operating companies more than compensating 2012 dividend & 2012 corporate center costs
Expected cash out in December related to capital reduction
4
In EUR bn
6881,216
2,055(68) (77)
(270)
(57)
340
827
144
FY 11 FY 12 buy-back capitalinjection
TPL
paiddividend
upstreamopco's
RPI call option other 6M 13
Up to EUR 200 mio of its outstanding common stock Buy-back launched as of 12 August 2013 For a period ending at 5 August 2014 Independent broker mandated to execute Through open market purchases on NYSE Euronext Brussels
Shares to be held as treasury shares until formal approval of cancellation No impact on solvency position of Insurance activities
Ageas announces share buy-back 3rd consecutive share buy-back illustrating disciplined capital management
29 June 12 Cancellation bought-back shares effective Ageas holds +/- 1.7% own shares
6 August 12 Ageas announces EUR 200 mio share buy-back
24 August 11 Ageas announces EUR 250 mio share buy-back
24 April 13 Cancellation bought-back shares effective Ageas holds +/- 2.1% own shares
27 April 13 Ageas announces agreement on RPI & BNPP Call Option EUR 1.0 capital reduction
2 August 13 Ageas announces EUR 200 mio share buy-back
Periodic financial Information I 6M 13 Results I 2 August 2013 5
Periodic financial Information I 6M 13 Results I 2 August 2013
Net result: strong operating result In EUR mio In EUR mio
Operating margin Guaranteed products: improved in Q2 13
Non-Life Combined ratio: improved underwriting mainly in Household
Anticipated inflow decrease in Life
227% 210% 207%
Life Technical liabilities stable In EUR bn
Belgium : Headlines Solid operating Q2 in Life & Non-Life
**
111 121
3338
144160
6M 12 6M 13Life Non-Life
2,6422,126
940985
3,5823,111
6M 12 6M 13
Life Non-Life
99.8% 97.5%
6M 12 6M 13
0.85% 0.84%
6M 12 6M 13
Operating costs In EUR mio
(13%)
52.7 52.8
FY 12 6M 13
93 96
145 152
238 248
6M 12 6M 13Life Non-Life
6
in % avg technical liabilities
Net result: Non-Life performance up In EUR mio In EUR mio
Operating margin Guaranteed products
Inflow up 4.5% at constant FX
In EUR mio
United Kingdom: Headlines Overall Non-Life performance substantially better
7
**
(0) (1)
44 50
895158
6M 12 6M 13
Life Non-Life Other
38 51
1,102 1,101
1,140 1,152
6M 12 6M 13
Life Non-Life
+1%
Operating costs: addition Groupama offset by cost reduction initiatives
Non-Life combined ratio: improved underwriting mainly in Household
98.8% 98.5%
6M 12 6M 13
Other Income down in a competitive market, changing commercial strategy
139122
6M 12 6M 13
15 16
91 117
129114
235 247
6M 12 6M 13
Life Non-Life Other
In EUR mio
(3.78%) (4.07%)
6M 12 6M 13
Periodic financial Information I 6M 13 Results I 2 August 2013
in % avg technical liabilities
Net profit increase driven by Turkey In EUR mio
In EUR mio
Non-Life Combined ratio: weather conditions Portugal vs. strong 2012
227% 210% 207%
Inflow* increased in nearly all countries
In EUR bn
Continental Europe: Headlines Strong top line performance & increased net profit including positive one-off
**
Operating costs remain stable In EUR mio
25 25
92034
46
6M 12 6M 13Life Non-Life
1,575 1,826
537553
2,112 2,379
6M 12 6M 13Life Non-Life
88.5%
95.5%
6M 12 6M 13
1.11% 0.94%
6M 12 6M 13
Operating margin Guaranteed products: lower risk result vs. exceptional 6M 12
+13%
Periodic financial Information I 6M 13 Results I 2 August 2013 8
Life Technical liabilities*: moderate growth
28.1 28.4
FY 12 6M 13
36 36
37 38
73 74
6M 12 6M 13Life Non-Life
in % avg technical liabilities
* Incl. non-consolidated partnerships @ 100%
Net result: Excluding one-offs, result fairly stable In EUR mio
In EUR mio
Non-Life Combined ratio in both Thailand & Malaysia
Inflow* fuelled by China & Thailand Life Technical liabilities* further up in non-consolidated entities In EUR bn
Asia: Headlines Pressure on profit in Life from boost in new business, Profitable organic growth in Non-Life
Periodic financial Information I 6M 13 Results I 2 August 2013 9
**
7056
510
7466
6M 12 6M 13
Life Non-Life
100.1%
94.2%
6M 12 6M 13
3,5805,431
402
424
3,981
5,855
6M 12 6M 13Life Non-Life
Result non-consolidated partnerships
6049
510
6559
6M 12 6M 13Life Non-Life
+47%
24.4 28.0
FY 12 6M 13
* Incl. non-consolidated partnerships @ 100%
in % avg technical liabilities In EUR mio
2.00%1.54%
6M 12 6M 13
Life operating margin Hong Kong
Net result driven by transactions on RPI & Call option In EUR mio In EUR mio
Main elements balance sheet: P&L impact transaction on RPI & Call option mainly in Q1
227% 210% 207%
General Account: Headlines Result & net cash driven by transaction RPI & Call option
Periodic financial Information I 6M 13 Results I 2 August 2013 10
**
Net cash position: cash on transactions partly in
2
143
6M 12 6M 13
1.2
2.1
FY 12 6M 13
In EUR bn
In EUR mio
(165) (171)
234
872
241
FY 12 6M 13RPN(i) Call Option RPI
8 8
15 12
2320
6M 12 6M 13Staff Op & admin
Operating costs further down
In EUR mio
232
42
142
(90)
Q1 Q2RPI Call Option
* Subject to absence of any creditor’s claim
net cash further influenced in H2 2013 by remaining cash RPI transaction coming in
(plus ≈EUR 200 mio) announced EUR 1 capital reduction
(minus ≈EUR 230 mio): 16/09 shareholders’ meeting 10/12 ex-date 13/12 payment date*
announced share buy-back (minus EUR 200 mio)
Shareholders’ equity / share
Shareholders’ equity Net profit impact offset by lower unrealized gains, dividend payment & put option In EUR mio
6,306 6,341
1,838 1,150
1,6551,350
329 143(759) (72) (270) (254) (74)
EUR 42.27 EUR 38.62
9,7998,840
FY 12 Net resultInsurance
Net resultGen Account
Change UG/L Buy back Dividend Revaluationput option
Forex& other
InsuranceUG/L Insurance
UG/L
Equity per segment FY 12 6M 13 FY 12 6M 13
Belgium 3,974 ► 3,417 Asia 1,837 ► 1,826UK 1,149 ► 1,055 Insurance 8,145 ► 7,491Continental Europe 1,185 ► 1,193 General Account 1,655 ► 1,350
Periodic financial Information I 6M 13 Results I 2 August 2013 11
Periodic financial Information I 6M 13 Results I 2 August 2013 12
Investment portfolio Portfolio slightly down on UG/L in fixed income, increased allocation to equities In EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Sovereign bonds 34.7
Sovereign bonds 34.2
Corporate bonds 25.1
Corporate bonds 24.9
Structured 0.3
Structured 0.4
Loans6.3
Loans6.3
Equities 2.4 Equities 2.8
Real Estate 4.7
Real Estate 4.6
Cash 2.4 Cash 2.375.9 75.5
FY 12 6M 13
Asset mix
Asset mix relatively stable
Increased positions in equities at the expense of cash & sovereigns continued in Q2
4th infrastructure project realised through partnership with Natixis
Gross unrealized gains/losses on Available for Sale
Total portfolio: down to EUR 3.8 bn (EUR 5.4 bn FY 12); exclusively down in fixed income
Fixed income: at EUR 3.6 bn (EUR 5.2 bn FY 12) Sovereigns at EUR 2.3 bn (vs. EUR 3.3 bn) Corporates at EUR 1.3 bn (vs. EUR 1.8 bn)
Equities: stable at EUR 0.2 bn
Real Estate: stable at EUR 1.3 bn - not reflected in equity
EUR 0.9 bn unrealized gains/losses on Held to Maturity not reflected in equity
Positive takeways well diversified result across all segments
satisfactory Life result despite low i-rate
continued operating progress Non-Life
Attention points ensure performance in all Life activities &
strive for right product mix
remain vigilant for Non-Life market challenges, especially Motor & UK
EUR 200 mio share buy-back
On top of 2012 dividend (EUR 1.2/share) & capital reduction (EUR 1.0/share)
Conclusions : 6M results reinforce positive trend
Periodic financial Information I 6M 13 Results I 2 August 2013 13
Executive summary
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Periodic financial Information I 6M 13 Results I 2 August 2013 16
Key financials Strong operational performance
EUR mio 6M 12 6M 13 Q2 12 Q1 13 Q2 13
Gross inflows 10,816 12,497 5,165 6,753 5,744 - of which inflows from non-consolidated partnerships 5,111 6,972 2,282 4,008 2,965
Net result Insurance 302 329 148 157 172By segment: - Belgium 144 160 66 80 80 - UK 51 58 34 23 35 - Continental Europe 34 46 16 17 28 - Asia 74 66 31 38 29By type: - Life 205 201 80 108 93 - Non-Life 90 119 63 46 74 - Other 8 9 4 4 5
Net result General Account 2 143 241 136 7Net result Ageas 305 472 389 293 179Earnings per share (in EUR) 1.28 2.05Combined ratio 98.3% 97.8% 94.7% 99.5% 96.1%Life technical liabilities (in EUR bn) * 68.8 68.7Insurance Solvency ** 204% 206%Shareholders' equity ** 9,799 8,840Net equity per share (in EUR) ** 42.27 38.62* Consolidated companies only, Compared with YE 2012** Compared with YE 2012, restated for IAS 19
Shareholders’ equity / share
Shareholders’ equity Net profit impact offset by lower unrealized gains, dividend payment & put option In EUR mio
6,306 6,341
1,838 1,150
1,6551,350
329 143(759) (72) (270) (254) (74)
EUR 42.27 EUR 38.62
9,7998,840
FY 12 Net resultInsurance
Net resultGen Account
Change UG/L Buy back Dividend Revaluationput option
Forex& other
InsuranceUG/L Insurance
UG/L
Equity per segment FY 12 6M 13 FY 12 6M 13
Belgium 3,974 ► 3,417 Asia 1,837 ► 1,826UK 1,149 ► 1,055 Insurance 8,145 ► 7,491Continental Europe 1,185 ► 1,193 General Account 1,655 ► 1,350
Periodic financial Information I 6M 13 Results I 2 August 2013 17
Tangible net equity High quality capital structure
10/03/2010 I page 18
EUR bn FY 12 6M 13
IFRS Shareholders' Equity 9.8 8.8Unrealised gains real estate 0.6 0.6Goodwill (0.7) (0.7)VOBA (Value of Business Acquired) (0.4) (0.4)DAC (Deferred Acquisition Cost) (0.9) (0.9)Other (0.4) (0.4)Goodwill, DAC, VOBA related to N-C interests 0.5 0.525% tax adjustment DAC, VOBA & Other 0.3 0.3
IFRS Tangible net equity 8.9 7.9
IFRS Tangible net equity/ IFRS Shareholder's Equity 91% 90%
Periodic financial Information I 6M 13 Results I 2 August 2013 18
IFRS Solvency Increasing RMM on growth in Asia; Capital General Account down on capital reduction
2.4 2.4
0.5 0.5 0.6 0.6 0.5 0.6
4.0 4.1 4.0 4.1
1.7 1.9
0.6 0.5 0.8 0.9 0.9 0.9
4.1 4.3
1.0 0.8
5.1 5.2
4.14.3
1.1 1.01.4 1.5 1.4 1.5
8.1 8.49.1 9.3
FY 12 6M 13 FY 12 6M 13 FY 12 6M 13 FY 12 6M 13 FY 12 6M 13 FY 12 6M 13 FY 12 6M 13
Belgium UK
CEU Asia
Total Ageas General Account
RMC Excess Capital RMC Excess Capital RMC Excess Capital RMC Excess Capital RMC Excess Capital Available Capital
In EUR bn
Periodic financial Information I 6M 13 Results I 2 August 2013 19
Solvency ratio 173% 180% 220% 213% 243% 253% 268% 243% 204% 206% 229% 226%
* +6% impact of change in dividend pey-out methodology
*
Executive summary
Annexes
Equity / Solvency
Insurance activities
Investment portfolio
General Account
General Information
Inflows @ 100% Growth driven by China, Thailand & Portugal
*
* Ageas holds a 50% stake in Tesco Underwriting Periodic financial Information I 6M 13 Results I 2 August 2013 21
EUR mio 6M 12 6M 13 6M 12 6M 13 6M 12 6M 13Belgium 75% 2,642 2,126 940 985 3,582 3,111 United Kingdom 100% 38 51 1,102 1,101 1,140 1,152 0 0 Continental Europe 1,575 1,826 537 553 2,112 2,379
Consolidated entities 546 805 235 232 780 1,037 Portugal 51% 407 605 126 130 533 734 France 100% 138 200 138 200 Italy 25% 109 102 109 102
Non-consolidated JV's 1,029 1,021 302 321 1,332 1,342 Turkey (Aksigorta) 36% 302 321 302 321 Luxembourg (Cardif Lux Vie) 33% 1,029 1,021 1,029 1,021
Asia 3,580 5,431 402 424 3,981 5,855 Consolidated entities 202 225 202 225
Hong Kong 100% 202 225 202 225 Non-consolidated JV's 3,378 5,206 402 424 3,780 5,630
Malaysia 31% 369 373 315 319 684 692 Thailand 31%/15% 589 767 87 105 675 871 China 25% 2,366 4,008 2,366 4,008 India 26% 55 59 55 59 0 0 Total 7,835 9,435 2,980 3,063 10,816 12,497 0 0
Consolidated entities 3,428 3,207 2,277 2,318 5,704 5,525 Non-consolidated partnerships 4,407 6,227 704 745 5,111 6,972
Life Non-Life Total
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Life Non-Life Life Non-Life Life Non-Life
Inflows @ Ageas’s part Strong growth in emerging markets, Guaranteed Life sales down following market trend In EUR mio
Periodic financial Information I 6M 13 Results I 2 August 2013 22
1,982 1,595
38 51 689 849 1,101 1,590
3,810 4,085 705
739
909 971 200 207
110
114
1,925 2,032
(13%)
8% 19%
41%
7%
2,687 2,334
948 1,023 889 1,056 1,211
1,704
5,735 6,117
6M 12 6M 13 6M 12 6M 13 6M 12 6M 13 6M 12 6M 13 6M 12 6M 13
Insurance net result Non-Life result up in all segments, Asia Life under pressure of strong inflow growth
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Other Life Non-Life Life Non-Life Life Non-Life Other
111 121
(0) (1) 25 25 70 56
205 201
33 38
44 50 9 20
5 10
90 119
8 9
8
9
144 160
51 58 34
46
74 66
302 329
6M 12 6M 13 6M 12 6M 13 6M 12 6M 13 6M 12 6M 13 6M 12 6M 13
In EUR mio
Periodic financial Information I 6M 13 Results I 2 August 2013 23
10/03/2010 I page 24
Overview impairments & net capital gains on investments Both cap gains & impairments slightly down compared to 6M12
*
Periodic financial Information I 6M 13 Results I 2 August 2013 24
EUR mio 6M 12 6M 13 6M 12 6M 13 6M 12 6M 13Life 50 35 (54) (17) (4) 18Non-Life 16 7 (4) (2) 13 4
Total Belgium 66 42 (57) (20) 9 22LifeNon-Life 7 4 7 4Other
Total UK 7 4 7 4Life 3 13 (0) (8) 3 5Non-Life 0 (0) 0 (0)
Total CEU 3 13 (0) (8) 3 5Life 17 21 (8) (5) 9 16Non-Life 1 2 (0) 1 2
Total Asia 18 23 (8) (5) 10 18Life 70 69 (62) (30) 9 38Non-Life 25 13 (4) (2) 21 11Other
Total Ageas 95 82 (66) (33) 30 49
Capital gains/losses Impairments & Profit sharing impact Total impact
25 Periodic financial Information I 6M 13 Results I 2 August 2013
Insurance Lexicon on new margin disclosures as from FY 2012 Life Non-Life + Underwriting
result + Premiums received from policyholders - actual payments made in risk contracts + penalties deducted in case of surrender + reinsurance result
+ Net Underwriting result
+ Net Earned Premium - all evolutions in claims reserves (CY & PY) + technical interest charges on technical liabilities - all expenses (marketing, intermediary, claims
handling & administration) + Expense &
Other result + expense loadings - actual expense charges + other results of technical nature
= Net Underwriting result + Other result + other results of technical nature
+ Investment result + Investment income on assets covering Life technical liabilities (recurring & cap gains)
- what is paid out to policyholders (guaranteed income & profit sharing)
+ Investment result + Investment income on assets covering Non-Life technical liabilities (recur. & cap gains)
- technical interest charges on technical liabilities
= Operating result = Operating result
Average technical liabilities
= average between technical liabilities at the beginning & at the end of each quarter of current year.
Net earned premium + Premiums received from policyholders - premiums covering risks future period - premiums paid to reinsurers
Life margins All Life margins calculated as % of average technical liabilities
Non-Life ratio’s All Non-Life ratio’s calculated in % of Net earned premiums
Combined ratio
Corresponds to 1minus net underwriting result in % of net earned premiums
Insurance Combined ratio On track to be substantially below 100%
Net earned premium in EUR mio
Periodic financial Information I 6M 13 Results I 2 August 2013 26
Combined ratio at 97.8% vs. 98.3%
Q2 confirms Q1 good operational performance with COR at 96.1%
Household at 91.3% (vs.103.0): benign weather in major markets, impact of corrective measures & tariff increases in Belgium
Accident & Health: at 93.4% (vs.93.6%): strong improvement claims ratio Belgium
Motor at 102.2% (vs. 96.5%): increase combined ratio in all segments
Claims ratio at 64.6% vs. 67.7%
CY claims ratio (67.6% vs. 72.5%) improvement in all product lines, most significant impact in Household
PY claims ratio down to release of 3.0% (vs. 4.8%), reserves strengthening in Motor in all segments
Expense ratio at 33.2% vs. 30.6% 2,497 2,858 3,507 4,178 2,023 2,146 1,034 1,077 1,069
69.4% 73.2% 69.0% 68.1% 67.7% 64.6% 64.1% 66.7% 62.4%
33.1%32.8%
31.1% 31.0% 30.6% 33.2% 30.6%32.8%
33.7%
102.5% 106.0%100.1% 99.1% 98.3% 97.8% 94.7%
99.5% 96.1%
(6.0%)(3.7%) (3.5%) (3.1%) (4.8%) (3.0%) (4.1%) (3.5%) (2.5%)
2009 2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13
claims ratio expense ratio PY claims ratio
Insurance Combined ratio per product line Household strongly improving
Motor: reserves strengthening Accident & Health: good performance confirmed
Other: improvement across all segments
NEP NEP
Household: benign weather in major markets
NEP NEP Periodic financial Information I 6M 13 Results I 2 August 2013 27
609 714 736 763 382 392 1,012 1,134 1,571 2,058 988 1,029
203 261 308 349 163 199673 750 892 1,007 491 526
70.4% 74.3% 71.9% 70.5% 69.2% 67.7%
23.6% 24.8% 25.0% 25.5% 24.4% 25.7%
94.0% 99.1% 96.9% 96.0% 93.6% 93.4%
2009 2010 2011 2012 6M 12 6M 13
79.0% 78.4% 72.0% 73.6% 71.1% 73.5%
29.3% 29.0%25.3% 25.4% 25.4% 28.7%
108.3% 107.4%97.3% 99.0% 96.5% 102.2%
2009 2010 2011 2012 6M 12 6M 13
59.4%75.0%
61.9% 55.6% 61.7%48.3%
43.4%43.2%
41.5% 41.6% 41.3%43.0%
102.8%118.2%
103.4% 97.2% 103.0%91.3%
2009 2010 2011 2012 6M 12 6M 13
51.7% 42.9%67.2% 66.5% 62.0% 55.1%
45.8%41.2%
44.8% 44.9% 43.9% 45.9%
97.5%84.1%
112.0% 111.4% 105.9% 101.0%
2009 2010 2011 2012 6M 12 6M 13
Insurance Life operating margin per product line Guaranteed: driven by investment margin Unit-linked: all margins improving
Average technical liabilities Average technical liabilities
Expense & other margin decrease related to Asia mainly
Underwriting margin improvement over all segments
Investment margin slightly or almost stable across all segments
۷ improvement in CEU & Asia ۷ only slightly down in Belgium despite low i-rate
Slight deterioration underwriting margin ۷ mainly coming from CEU (lower risk margin) & Asia ۷ improving in Belgium on increasing technical
liabilities
Periodic financial Information I 6M 13 Results I 2 August 2013
0.44% 0.41% 0.44% 0.49% 0.44% 0.36% 0.42% 0.47%
0.67%
(0.79%)
0.87% 0.76% 0.78%
0.42%0.78% 0.79%
(0.33%)
(0.36%)
(0.33%) (0.34%) (0.34%) (0.27%) (0.37%) (0.32%)
0.56%
(0.60%)
0.81% 0.92% 0.88%
0.70%
0.68% 0.93%
2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13Expense & other m. Investment m. Underwriting m.
50.4 52.3 54.0 53.5 55.3 53.5 55.2 55.3 20.2 12.4 11.8 11.6 12.1 11.6 12.3 12.1
0.07%0.04%
0.11% 0.12% 0.14%
(0.02%)
0.15% 0.13%0.01%0.01% 0.01%
0.27%0.42%
0.37%0.42%
0.29%
0.17%
0.32%0.25%
0.35%
0.45%0.48%
0.55%
0.43%
0.43%
0.47%0.38%
2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13Expense & other m. Investment m. Underwriting m.
28
Periodic financial Information I 6M 13 Results I 2 August 2013
Net result: strong operating result In EUR mio In EUR mio
Operating margin Guaranteed products: improved in Q2 13
Non-Life Combined ratio: improved underwriting mainly in Household
Anticipated inflow decrease in Life
227% 210% 207%
Life Technical liabilities stable In EUR bn
Belgium : Headlines Solid operating Q2 in Life & Non-Life
**
111 121
3338
144160
6M 12 6M 13Life Non-Life
2,6422,126
940985
3,5823,111
6M 12 6M 13
Life Non-Life
99.8% 97.5%
6M 12 6M 13
0.85% 0.84%
6M 12 6M 13
Operating costs In EUR mio
(13%)
52.7 52.8
FY 12 6M 13
93 96
145 152
238 248
6M 12 6M 13Life Non-Life
29
in % avg technical liabilities
2,4951,775
148
351
2,6422,126
6M 12 6M 13
(20%)
Life In EUR mio
Non-Life In EUR mio
Unit-Linked
Guaranteed
Other
Household
Accident & Health
Motor
Belgium: Inflow @ 100% Anticipated decrease Guaranteed products partly compensated by Non-Life & UL
267 276
294 303
295 31684 91
940 985
6M 12 6M 13
Periodic financial Information I 6M 13 Results I 2 August 2013 30
+5%
Guaranteed Sales of guaranteed products decreased 29% to EUR 1.8 bn
Decrease observed Individual Saving (down 41% to EUR 1,060 mio) & Individual Traditional (down 16% to EUR 132 mio)
Lower volumes due to historically low guaranteed interest rates & impact of Belgian government decision to increase insurance premium tax (from 1.1% to 2%; as at 01/01/2013).
Group Life inflows amounted to a strong EUR 583 mio supported by higher single premiums
Unit-linked Sales Individual Unit-Linked: continued success in Q2, more than
double in 6M 13 (+138% vs. 6M 12). Growth driven by significant offer in closed-end funds Bank channel & increasing customer appetite
Household, Motor, Other GWP increased in Bank & Broker channel & across all product lines,
mainly in Household
Household (+7%): higher volume & tariff increases
Motor (+2.8%): driven by tariff increase, threshold of 1 mio contracts crossed in Q2
Other (+8.4%): mainly driven by tariff increase in Legal Assistance
Accident & Health Accident & Health (+3.4%) supported by good momentum in Health
Care
Belgium: Combined ratio Strong underwriting result in Household and Accident & Health, weaker in Motor
Net earned premium in EUR mio
Periodic financial Information I 6M 13 Results I 2 August 2013 31
64.1% 68.7% 64.3% 62.7% 63.1% 60.4% 59.0% 62.9% 57.9%
36.8%36.4%
36.8% 36.8% 36.7% 37.1% 36.6%36.8%
37.5%
100.9%105.1% 101.1% 99.5% 99.8% 97.5% 95.6% 99.7%
95.4%
(8.0%) (6.6%) (7.3%) (4.5%)(8.7%)
(5.9%) (7.8%) (6.9%) (5.0%)
2009 2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13
claims ratio expense ratio PY claims ratio
1,469 1,541 1,601 1,698 840 872 423 432 440
Combined ratio at 97.5% vs. 99.8%
Strong second quarter ratio at 95.4%
Household (93.0%) confirmed the good Q1 performance reflecting previous corrective measures, rate increases & less weather related claims
Accident & Health at 93.9% vs.95.1%
Motor (104.6%) second quarter mainly impacted by the non-recurring impact of additional reserving for a few large claims.
Claims ratio at 60.4% vs. 63.1%
CY ratio (66.3% vs.71.8%) improvement mainly in Household, but also Accident & Health
PY ratio (5.9% release vs.8.7% release) reserves strengthening in Motor partly offset by higher releases in Other
Expense ratio increased slightly at 37.1%
Belgium: Combined ratio per product line Improved underwriting performance in Household & Other
Motor: one-off large claims reserves strengthening Acc & Health: few new large claims
Household: effect corrective measures - Q2 at 86.1% Other: strong Q2 at 97.4%
NEP NEP
NEP NEP Periodic financial Information I 6M 13 Results I 2 August 2013 32
68.9% 75.8% 73.8% 73.0% 71.4% 69.7%
22.6%21.9% 23.8% 24.0% 23.7% 24.2%
91.5% 97.7% 97.6% 97.0% 95.1% 93.9%
2009 2010 2011 2012 6M 12 6M 13
68.5% 71.0%58.9% 64.7% 61.3% 67.7%
36.3% 35.7%35.3%
35.8% 36.0%36.9%
104.8% 106.7%94.2% 100.5% 97.3%
104.6%
2009 2010 2011 2012 6M 12 6M 13
60.5%75.6% 63.0% 50.5% 57.2% 47.2%
47.1%47.1%
46.9%46.2%
46.4%45.8%
107.6%122.7%
109.9%96.7% 103.6%
93.0%
2009 2010 2011 2012 6M 12 6M 13
44.9%
10.4%
58.2% 65.9% 62.6% 52.7%
49.2%
50.9%
49.5%48.1% 48.6%
47.5%
94.1%
61.3%
107.7% 114.0% 111.2%100.2%
2009 2010 2011 2012 6M 12 6M 13
424 451 451 480 242 244 465 498 525 540 267 270
453 463 484 530 258 278 127 129 142 149 74 80
Belgium Life operating margin per product line Guaranteed: strong Q2 Unit-linked: increasing liabilities & lower
expense & other margin
Avg techn liabilities Avg techn liabilities 40.7 42.9 44.9 44.4 46.2 44.4 46.1 46.2 6.0 5.6 5.2 5.2 5.3 5.2 5.3 5.3
0.03%(0.05%) 0.04% 0.02% 0.03% 0.05% 0.02%
0.64%
0.50% 0.44% 0.43% 0.38% 0.44% 0.39%0.36%
0.66%
0.45%0.47%
0.45%0.41%
0.35% 0.44%0.38%
2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13
Expense & other m. Underwriting m.
0.28% 0.32% 0.32% 0.30% 0.35% 0.32% 0.33% 0.37%
0.57%
(0.80%)
0.93% 0.83% 0.80%0.57%
0.78% 0.81%
(0.21%)
(0.30%)
(0.29%) (0.28%) (0.31%) (0.26%) (0.34%) (0.28%)
0.64%
(0.78%)
0.96%0.85% 0.84%
0.62%0.77% 0.91%
2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13Expense & other m. Investment m. Underwriting m.
Operating result amounted to EUR 11 mio, down 7% Average Technical Liabilities increased by 4%
Operating result amounted to EUR 194 mio, up 2% on increase of technical liabilities
Operating margin 6M 13 stable on 6M 12 despite continued low i-rate environment
Investment margin Q2 margin up Q-on-Q with dividend, Q2 12 included huge negative impact of impairments
Average Technical Liabilities up 4%, mainly due to last year’s strong intakes
Periodic financial Information I 6M 13 Results I 2 August 2013 33
Net result: Non-Life performance up In EUR mio In EUR mio
Operating margin Guaranteed products
Inflow up 4.5% at constant FX
In EUR mio
United Kingdom: Headlines Overall Non-Life performance substantially better
34
**
(0) (1)
44 50
895158
6M 12 6M 13
Life Non-Life Other
38 51
1,102 1,101
1,140 1,152
6M 12 6M 13
Life Non-Life
+1%
Operating costs: addition Groupama offset by cost reduction initiatives
Non-Life combined ratio: improved underwriting mainly in Household
98.8% 98.5%
6M 12 6M 13
Other Income down in a competitive market, changing commercial strategy
139122
6M 12 6M 13
15 16
91 117
129114
235 247
6M 12 6M 13
Life Non-Life Other
In EUR mio
(3.78%) (4.07%)
6M 12 6M 13
Periodic financial Information I 6M 13 Results I 2 August 2013
in % avg technical liabilities
1,102 1,101
38 511,140 1,152
6M 12 6M 13
30 44
758 730
214 23199 96
1,102 1,101
6M 12 6M 13
Motor
Non-Life
Life
Other
Property
Accident & Health
Total In EUR mio
Non-Life In EUR mio
(0.1%)
1%
United Kingdom: Inflow @ 100% Inflow stable, up 4.5% at constant FX
Life Successful roll out of its proposition across the IFA market and
through affinity partnerships developed in 2012
Over 286,000 customers up 27% on same period last year
Non-Life Down 0.1%, growth of 3.3% at constant FX
Motor down 4% mainly due to lower average premiums, following market trend of rate decreases & focus on risk mix improvement
Household up 8% primarily due to the inclusion of Groupama Insurance Company Ltd (GICL)
Accident & Health up 45% due to the inclusion of GICL
Other lines, including Commercial & Special Risks down 4% due to management actions to improve profitability, offset partially by inclusion of GICL
EUR 196 mio Groupama inflow included
Other Insurance (including Retail) YTD total income of EUR 122 mio ,12% below last year.
Periodic financial Information I 6M 13 Results I 2 August 2013 35
United Kingdom: Combined ratio Below 100% reflecting continued strong performance in Household
Net earned premium in EUR mio
Combined ratio at 98.5%
Combined ratio continued sub 100% performance
Impact Groupama: greater proportion delegated authority schemes with higher expense ratio but lower claims in portfolio
Claims ratio at 67.6%
Claims ratio Reduction across all lines of business with greatest impact in Household due to benign weather
CY ratio (68.4% vs. 74.5%) significant reduction primarily due to benign weather experience in Household
PY ratio: release of 0.8% vs. 1.5% in 6M 12
Expense ratio at 30.9%
Increase from combination of pressure on earned premium in Tesco & addition of Groupama with greater proportion of delegated authority schemes.
Periodic financial Information I 6M 13 Results I 2 August 2013 36
80.4% 81.5% 74.6% 73.3% 73.0% 67.6% 69.6% 69.4% 65.8%
27.7% 28.0%25.3% 26.5% 25.8% 30.9% 26.0% 30.5% 31.2%
108.1% 109.5%99.9% 99.8% 98.8% 98.5% 95.6%
99.9% 97.0%
(3.5%)(1.1%) 0.1% (2.1%) (1.5%) (0.8%) (1.3%) (1.2%) (0.3%)
2009 2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13
claims ratio expense ratio PY claims ratio
834 948 1,524 2,083 989 1,075 510 546 529
United Kingdom: Combined ratio per product line Reduced loss ratios in all products, partially offset by expense ratios
Motor: premium strain on expense ratio (TU)
NEP
Accident & Health: GICL impacting expense ratio
Household: benign weather impact Other: positive impact mgmt actions (AIL) & inclusion of GICL
NEP Periodic financial Information I 6M 13 Results I 2 August 2013 37
83.5%97.9% 87.7% 78.1% 76.3% 72.8%
26.2%24.0%
23.2%28.2% 25.9% 34.1%
109.7%121.9%
110.9% 106.3% 102.2% 106.9%
2009 2010 2011 2012 6M 12 6M 13
88.9% 82.9% 79.2% 77.2% 75.7% 75.1%
22.8% 23.3% 19.5% 21.3% 20.7% 25.6%
111.7% 106.2%98.7% 98.5% 96.4% 100.7%
2009 2010 2011 2012 6M 12 6M 13
53 58 65 57 28 36 524 532 949 1,420 673 710
61.2%77.4%
61.4% 62.3% 67.9%47.4%
38.0%
38.2%
35.3% 36.7% 36.5%
40.2%
99.2%115.6%
96.7% 99.0% 104.4%87.6%
2009 2010 2011 2012 6M 12 6M 13
66.0% 75.1% 71.6% 67.7% 62.9% 59.0%
38.1% 30.4% 39.3% 42.2% 41.4% 44.7%
104.1% 105.5% 110.9% 109.9% 104.3% 103.7%
2009 2010 2011 2012 6M 12 6M 13187 248 366 434 211 225 69 110 143 173 77 105
NEP
NEP
Net profit increase driven by Turkey In EUR mio
In EUR mio
Non-Life Combined ratio: weather conditions Portugal vs. strong 2012
227% 210% 207%
Inflow* increased in nearly all countries
In EUR bn
Continental Europe: Headlines Strong top line performance & increased net profit including positive one-off
**
Operating costs remain stable In EUR mio
25 25
92034
46
6M 12 6M 13Life Non-Life
1,575 1,826
537553
2,112 2,379
6M 12 6M 13Life Non-Life
88.5%
95.5%
6M 12 6M 13
1.11% 0.94%
6M 12 6M 13
Operating margin Guaranteed products: lower risk result vs. exceptional 6M 12
+13%
Periodic financial Information I 6M 13 Results I 2 August 2013 38
Life Technical liabilities*: moderate growth
28.1 28.4
FY 12 6M 13
36 36
37 38
73 74
6M 12 6M 13Life Non-Life
in % avg technical liabilities
* Incl. non-consolidated partnerships @ 100%
432 514
421409
853923
6M 12 6M 13
98 98
86 83
45 5646 55
275 292
6M 12 6M 13
Accident & Health
Motor
Unit-Linked
Guaranteed
+16%
Other Household
Life In EUR mio
Non-Life In EUR mio
Continental Europe: Inflow @ 100% Higher Life sales in Portugal & France, Non-Life driven by Turkey
+3%
Life Inflow +16%, including non-controlling interests @ 100%, reflecting
higher sales in Portugal and France
Consolidated inflow up 48%
Portugal: volumes up by 49% driven by the UL business as a result of successful sale campaign in June
France: up by 45% continue to benefit from the 1st quarter UL single premium payment
Technical liabilities End of period technical liabilities: up 4% vs. year-end 2012 technical
ones
Average technical liabilities growth in line with excellent sales performance over last 2 years
Non-Life Inflow + 6%, including non-controlling interests @ 100% driven by
Turkey
GWP consolidated entities in line with last year
Turkey (Aksigorta) at EUR 321 mio
A&H and Motor remain the major business lines in the portfolio. Motor slight decline due to Italy (economic recession leading to further reduction car sales) and Turkey (less MTPL sales due to focus on profitable growth)
Periodic financial Information I 6M 13 Results I 2 August 2013 39
Continental Europe: Combined ratio Well below group target even with severe winter weather in Portugal
Net earned premium in EUR mio
* Scope: only consolidated companies: 2009 Portugal; as from 2010 Portugal & Italy
Combined ratio at 95.5%
Combined ratio higher than PY mainly due to severe weather impact in Portugal (household) and exceptionally low claims ratio’s last year.
Claims ratio at 66.2%
Claims ratio mainly higher due to mid-January storms in Portugal and higher volume of claims reported
Claims ratio Italy in line with previous quarter but slightly higher than PY
PY ratio: 2.3% release vs. 5.3%
Combined ratio Turkey further improved to 88.6%.from 101.3%
Expense ratio at 29.3%
Expense ratio continued focus on cost containment (LY was influenced by a one off release in Italy), commission ratio slightly up due to product mix
Periodic financial Information I 6M 13 Results I 2 August 2013 40
62.4%71.0% 66.4% 63.6% 61.0% 66.2%
57.4%67.8% 64.7%
27.6%
30.3%30.3% 29.8%
27.5%29.3%
29.3%
28.9% 29.7%
90.0%
101.3%96.7% 93.4%
88.5%95.5%
86.7%96.7% 94.4%
(1.3%)1.9%
(2.0%) (2.5%) (5.3%)(2.3%) (3.2%) (0.9%) (3.7%)
2009 2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13
claims ratio expense ratio PY claims ratio
194 369 382 397 194 199 101 99 100
Continental Europe: Combined ratio per product line Overall combined ratio within expectations (only related to consolidated companies)
Motor: exceptionall strengthening PY reserves (cleaning old claims)
Accident & Health: product mix drives increase commission ratio
Household: impact of weather in Portugal Other: higher commission due to product mix
Periodic financial Information I 6M 13 Results I 2 August 2013 41
70.2% 64.2% 63.5% 63.3% 62.7% 61.7%
25.7% 31.6% 27.8% 28.2% 25.4% 26.3%
95.9% 95.8% 91.3% 91.5% 88.1% 88.0%
2009 2010 2011 2012 6M 12 6M 13132 205 220 226 112 112
65.3%90.5%
71.8% 69.8% 61.5%82.0%
36.7%
27.0%
29.2% 28.1%31.9%
28.2%
102.0%117.5%
101.0% 97.9% 93.4%110.2%
2009 2010 2011 2012 6M 12 6M 1323 104 97 99 48 49
34.9%53.5% 53.7% 51.8% 54.6%
70.6%22.9%
27.7% 34.2% 33.5% 27.8%
36.5%
57.8%
81.2% 87.9% 85.3% 82.4%
107.1%
2009 2010 2011 2012 6M 12 6M 1333 39 42 44 22 23
33.8%
73.3%94.5%
62.8% 53.5% 40.6%
58.6%
39.0%
50.0%
43.3%29.7% 44.4%
92.4%112.3%
144.5%
106.1%
83.2% 85.0%
2009 2010 2011 2012 6M 12 6M 137 21 23 28 12 14
NEP
NEP
NEP
NEP
Continental Europe Life operating margin per product line
Guaranteed: lower underwriting margin partially offset by higher investment margin
Unit-linked: stable
Avg techn liabilities Avg techn liabilities
Decrease expense & other margin is a./o. related to maturing funds & lower fees resulting from lower inflows.
Investment margin improved vs. PY Although decline in underwriting margin YTD due to higher
claims in the risk business & fewer premiums (change payment frequency), improvement on quarterly basis
Cost containment lead to stable expense margin
1.25% 1.00% 1.18% 1.22%0.91% 1.20%
0.89% 0.93%
0.84%
(0.75%)
0.70% 0.69%0.84%
0.73%0.76% 0.92%
(0.93%)
(1.08%)
(0.85%) (0.80%) (0.81%) (0.87%) (0.76%) (0.86%)
1.16%
(0.83%)
1.02% 1.11% 0.94%1.06%
0.89%0.98%
2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13Expense & other m. Investment m. Underwriting m.
8.7 8.3 7.8 7.9 7.7 7.9 7.7 7.7 13.9 6.4 6.1 6.0 6.2 6.0 6.4 6.2
0.01% 0.02% 0.02% 0.02% 0.01% 0.03% 0.01% 0.01%
0.01% 0.01% 0.01% 0.01% 0.01%
0.18%
0.55%0.41%
0.51% 0.51% 0.48% 0.50% 0.51%0.20%
0.56%
0.44%
0.54% 0.53% 0.51% 0.52% 0.53%
2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13
Expense & other m. Investment m. Underwriting m.
Periodic financial Information I 6M 13 Results I 2 August 2013 42
Net result: Excluding one-offs, result fairly stable In EUR mio
In EUR mio
Non-Life Combined ratio in both Thailand & Malaysia
Inflow* fuelled by China & Thailand Life Technical liabilities* further up in non-consolidated entities In EUR bn
Asia: Headlines Pressure on profit in Life from boost in new business, Profitable organic growth in Non-Life
Periodic financial Information I 6M 13 Results I 2 August 2013 43
**
7056
510
7466
6M 12 6M 13
Life Non-Life
100.1%
94.2%
6M 12 6M 13
3,5805,431
402
424
3,981
5,855
6M 12 6M 13Life Non-Life
Result non-consolidated partnerships
6049
510
6559
6M 12 6M 13Life Non-Life
+47%
24.4 28.0
FY 12 6M 13
* Incl. non-consolidated partnerships @ 100%
in % avg technical liabilities In EUR mio
2.00%1.54%
6M 12 6M 13
Life operating margin Hong Kong
152 171 50 56 12 13 188 184
402 424
6M 12 6M 13
3.380
5.253 200
178
3.580
5.431
6M 12 6M 13
+52%
+8%
Fire Motor
Guaranteed
Life
Non-Life In EUR mio
In EUR mio
Unit-Linked
Asia: Inflow @ 100% Strong growth new business, boosted by very successful sales campaigns
Accident & Health
Other
Periodic financial Information I 6M 13 Results I 2 August 2013 44
Life Hong Kong, +12%, Strong 22% APE growth, with both agency & IFA channel
contributing
China, +69%, 48% of inflow from regular business, new business bank channel up 150% after extraordinarily successful campaign; sales agency channel up 134% thanks to expanding number of agents & successful regular business campaign
Malaysia, +1%, New business premiums & renewal premiums stable
Thailand, +30%, New business premiums up 39%; particular strong performance in bank channel
India, +9%, Despite continued difficult regulatory environment, new business up almost 30% in bank channel
Technical liabilities
End-of-period technical liabilities:
Hong Kong : EUR 1.9 bn, up 4%
Including non-consolidated JVs @ 100%: EUR 28.0 bn, up 15%
Average technical liabilities growth in line with excellent sales performance over last 2 years
Non-Life Malaysia, +1%, Growth in high-retention lines Motor & Household, offset by
lower premiums in Marine, Aviation & Transport
Thailand, +21%, Concentrated in Motor business. Household & Personal Accident business also showed good growth
Hong Kong Life operating margin per product line Improved margin due to organic growth & higher investment income Guaranteed: improving expense & investment margin Unit-linked: pressure on margin from new business growth
Periodic financial Information I 6M 13 Results I 2 August 2013
Avg techn liabilities Avg techn liabilities
Underwriting margin improved following organic growth Expense & Other margin deteriorated in 6M 13 following
new business growth & change in product mix. 6M 12 expense margin included EUR 4 mio positive non-recurring adjustment.
Underwriting margin deteriorated in 6M 13 due to higher reinsurance costs & better persistency
Investment margin improved as result of higher net income from larger bond portfolio & some realised capital gains
Expense & Other margin improved due to organic growth
(0.15%)(0.71%)
(0.15%) (0.42%) (0.57%) (0.91%) (0.82%)(0.33%)
3.62%
(0.57%)
(0.11%)(0.16%)
0.04%
(0.52%)
1.00%
(0.90%)
1.30%
3.52%2.52% 2.66% 2.90% 2.87%
2.73%
3.11%
4.77%
2.24%
2.26% 2.05%2.38% 1.40%
2.92%1.92%
2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13Expense & other m. Investment m. Underwriting m.
→ new calculation methodology
1.0 1.1 1.3 1.2 1.3 1.2 1.3 1.3
3.11%
1.75% 2.14% 2.43% 2.65% 2.38% 2.68% 2.61%
(0.06%) (0.14%)
(2.40%)(3.21%)
(0.95%) (0.57%)
(3.12%)(2.19%) (2.46%)
(3.77%)
0.70%
(1.47%)1.19% 1.86% (0.53%) 0.19% 0.22% (1.30%)
2010 2011 2012 6M 12 6M 13 Q2 12 Q1 13 Q2 13Expense & other m. Investment m. Underwriting m.
→ new calculation methodology
0.3 0.4 0.5 0.4 0.6 0.4 0.6 0.6
45
Executive summary
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Periodic financial Information I 6M 13 Results I 2 August 2013 47
Investment portfolio Value of portfolio down on UG/L in fixed income, increased allocation to equities In EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Sovereign bonds 34.7
Sovereign bonds 34.2
Corporate bonds 25.1
Corporate bonds 24.9
Structured 0.3
Structured 0.4
Loans6.3
Loans6.3
Equities 2.4 Equities 2.8
Real Estate 4.7
Real Estate 4.6
Cash 2.4 Cash 2.375.9 75.5
FY 12 6M 13
Asset mix
Asset mix relatively stable
Increased positions in equities at the expense of cash & sovereigns continued in Q2
4th infrastructure project realised through partnership with Natixis
Gross unrealized gains/losses on Available for Sale
Total portfolio: down to EUR 3.8 bn (EUR 5.4 bn FY 12); exclusively down in fixed income
Fixed income: at EUR 3.6 bn (EUR 5.2 bn FY 12) Sovereigns at EUR 2.3 bn (vs. EUR 3.3 bn) Corporates at EUR 1.3 bn (vs. EUR 1.8 bn)
Equities: stable at EUR 0.2 bn
Real Estate: stable at EUR 1.3 bn - not reflected in equity
EUR 0.9 bn unrealized gains/losses on Held to Maturity not reflected in equity
18.4 18.2
4.8 5.0
3.3 3.42.9 2.71.4 1.20.7 0.53.2 3.1
34.7 34.2
FY 12 6M 13
Others
The Netherlands
Germany
Austria
SE Sovereigns
France
Belgium
In EUR bn
Gross UG/L at EUR 2.3 bn (vs. EUR 3.3 bn) 96% investment grade; 88% rated A or higher Exposure on SE sovereigns at amortized cost, after
impairments & @ Ageas’s part at EUR 2.1 bn; stable on FY 12 Maturity sovereign bond portfolio unchanged & close to
maturity liabilities , limited interest rate sensitivity
Sovereign bond portfolio*
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Sovereign & Corporate bond portfolio Value fixed income portfolio heavily impacted by evolution unrealized gains
Periodic financial Information I 6M 13 Results I 2 August 2013 48
Gross UG/L at EUR 1.3 bn (vs. EUR 1.8 bn) Priority to investment grade industrials has led
to increased share in corporate bond portfolio over 6M 13 of 40% (vs. 37% FY 12)
Credit quality remains very good with 94% investment grade; 74% rated A or higher
Corporate bond portfolio*
6.1 5.5
1.9 2.0
9.3 9.9
7.8 7.4
25.1 24.9
FY 12 6M 13
Government related
Non Financials
Other financials
Banking
In EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Loan portfolio (customers + banks)*
Loan & Equity portfolio More loans with region guarantee
2.6 2.3
0.10.10.10.1
1.51.5
2.0 2.3
6.3 6.3
FY 12 6M 13
Other
Mortgages
Infrastructure
Real Estate
Loans to banks
Increase in other: long term loans to regional agencies (Belgium) benefiting from explicit guarantee by the region
Loans to banks down: priority to long-term secured loans
Infrastructure loans: since start collaboration with Natixis 4 projects realized (highway, railroad, prison & airport) for total amount of EUR 0.2 bn (of which EUR 0.1 bn already financed).
Periodic financial Information I 6M 13 Results I 2 August 2013 49
Equity portfolio*
Gross UG/L stable at EUR 0.2 bn
1.2 1.4
0.10.1
0.70.7
0.40.72.4
2.9
FY 12 6M 13
Mixed funds & others
Real Estate funds
Equity funds
Equities
Real estate portfolio
10/03/2010
Gross UG/L stable at EUR 1.3 bn (not reflected in net equity)
Real Estate exposure mainly in Belgium (+/- 70%)
1.5 1.4
1.1 1.1
1.3 1.4
0.6 0.4
0.3 0.3
4.7 4.6
FY 12 6M 13
InvestmentWarehouses
RE Development
Investment Retail
Car Parks
Investment Offices
In EUR bn
Real Estate portfolio*
Periodic financial Information I 6M 13 Results I 2 August 2013 50 * All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Executive summary
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Net result driven by transactions on RPI & Call option In EUR mio In EUR mio
Main elements balance sheet: P&L impact transaction on RPI & Call option mainly in Q1
227% 210% 207%
General Account: Headlines Result & net cash driven by transaction RPI & Call option
Periodic financial Information I 6M 13 Results I 2 August 2013 52
**
Net cash position: cash on transactions partly in
2
143
6M 12 6M 13
1.2
2.1
FY 12 6M 13
In EUR bn
In EUR mio
(165) (171)
234
872
241
FY 12 6M 13RPN(i) Call Option RPI
8 8
15 12
2320
6M 12 6M 13Staff Op & admin
Operating costs further down
In EUR mio
232
42
142
(90)
Q1 Q2RPI Call Option
* Subject to absence of any creditor’s claim
net cash further influenced in H2 2013 by remaining cash RPI transaction coming in
(plus ≈EUR 200 mio) announced EUR 1 capital reduction
(minus ≈EUR 230 mio): 16/09 shareholders’ meeting 10/12 ex-date 13/12 payment date*
announced share buy-back (minus EUR 200 mio)
143
232
42
(90) (6) (8)(11)
(17)
RPI / Q1 Call option /Q1
RPI / Q2 Reval RPN(i) Staff exp. Op.& admin.exp.
Investment &InterestResult*
GeneralAccount
General Account: components of Net result 6M result driven by Q1 transactions on legacy items In EUR mio
Periodic financial Information I 6M 13 Results I 2 August 2013 53 * Including Interest Margin, Other Expenses & Other Losses (Realised/Unrealised)
Q2 additional profit on RPI resulting from the final settlement, currency effects & review tax position
Non-cash charge of increasing RPN(I) liability partly driven by increasing price CASHES, partly by lower credit spread used for discounting the expected cash flows
Periodic financial Information I 6M 13 Results I 2 August 2013
Net cash position General Account at EUR 2.1 bn Up in Q2 on transactions regarding RPI & BNPP Call Option
Transactions RPI & BNPP Call option: expected cash inflow almost entirely received, most of remaining proceeds expected in H2 2013
EUR 1.2 per share 2012 dividend paid out in May, upstream from operating companies more than compensating 2012 dividend & 2012 corporate center costs
Expected cash out of EUR 0.4 bn in the coming months related to capital reduction & share buy-back
54
6881,216
2,055340
827
144
(≈234)
(68) (77)(270)
(57)(≈200)≈213
FY 11 FY 12 buy-back capitalinjection
TPL
paiddividend
upstreamopco's
RPI calloption
other 6M 13
RPI transaction share buy-back capital reduction
In EUR bn
announced cash movements
Periodic financial Information I 6M 13 Results I 2 August 2013 55
Net cash equally spent over 3 alternative uses Balanced use of cash since 2009
Invest in Businesses
Organic growth Selective acquisitions Create new partnerships
Return to debtholders Redemption of Debt (EMTN)
Return to shareholders Dividend payment Share buy-back
May 2009 – August 2013:
+/- EUR 1.0 bn +/- EUR 600 mio UK (Tesco, KFIS,
Castle Cover, Groupama) +/- EUR 200 mio CEU (Italy, Turkey) +/- EUR 200 mio Asia (India, HK,
China)
+/- EUR 1.3 bn +/- EUR 900 mio cash dividend over
2009, ’10, ’11 & 2012 EUR 450 mio share buy-backs
finalized early 2012 & 2013
+/- EUR 0.8 bn redemption in EMTN
+/- EUR 0.4 bn EUR 1.0 proceeds of BNP Call
Option & RPI EUR 200 mio share buy-back
announced 02/08/13
Up to EUR 200 mio of its outstanding common stock Buy-back launched as of 12 August 2013 For a period ending at 5 August 2014 Independent broker mandated to execute Through open market purchases on NYSE Euronext Brussels
Shares to be held as treasury shares until formal approval of cancellation No impact on solvency position of Insurance activities
Ageas announces share buy-back 3rd consecutive share buy-back illustrating disciplined capital management
29 June 12 Cancellation bought-back shares (7.3% of total outstanding) effective
6 August 12 Ageas announces EUR 200 mio share buy-back
24 August 11 Ageas announces EUR 250 mio share buy-back
24 April 13 Cancellation bought-back shares (3.8% of total outstanding) effective
27 April 13 Ageas announces agreement on RPI & BNPP Call Option EUR 1.0 capital reduction
2 August 13 Ageas announces EUR 200 mio share buy-back
Periodic financial Information I 6M 13 Results I 2 August 2013 56
February 11 Claim re FRESH hybrid instrument dismissed by Brussels Court
Judgments received in various legal procedures No major new elements in 6M 13
Sep- Dec 10 Ageas starts legal procedure against Dutch State & ABN AMRO to obtain compensation in return for conversion MCS (Mandatory Convertible Securities) into Ageas’ shares
Timing and (financial) outcome remains hard to estimate Most civil proceedings still at the stage of first instance Possible decisions 2013:
- Administrative proceedings AFM I (info June 2008) & AFM II (info Sep 2007) - total amount of fines: EUR 864.000
- Dutch Supreme Court re mismanagement (ondernemingskamer) - no direct financial consequences
- Court of Appeal Amsterdam in Stichting FortisEffect case - first instance in favour of Ageas
May 11 - Claim VEB/Deminor
& FortisEffect dismissed by Amsterdam Court
- Rotterdam court confirmed fine AFM I, appeal filed
Initi
ated
by
Age
as
Act
ions
aga
inst
Age
as
February 12 BNP P tender for CASHES & subsequent conversion into Ageas shares – partial settlement of RPN/RPN(I) – call Fortis Bank Tier 1 Debt Securities
February 12 - Rotterdam court
confirmed fine AFM II, appeal filed
- Utrecht court re communication Q2 2008 in favour of plaintiffs, appeal filed
March 12 Brussels Commercial Court rules in favour of Ageas in MCS-case, appeal filed
2011 2012 2009... 2010 ...
April 12 Ondernemingskamer Amsterdam re mismanagement mainly in favour of plaintiffs, appeal filed
June 12 Agreement with ABN AMRO to settle legal proceedings concerning FCC & MCS, closing all outstanding disputes with Dutch State
2013
June 13 Fine imposed by FSMA, appeal filed
Periodic financial Information I 6M 13 Results I 2 August 2013 57
Legal proceedings Managed in interest of shareholders
Administrative proceedings
AFM fine imposed 05/02/10 re price sensitive info June 08
AFM 2nd fine imposed 19/08/10 re price sensitive information Sep 07
Appeal filed against both before The Hague “College van Beroep voor het bedrijfsleven”; proceedings ongoing
FSMA re communication in Q2 2008 Appeal filed before Court of Appeal
Criminal procedure Public prosecutor requests referral of 7 individuals
Enterprise Court (Ondernemingskamer)
At request of VEB re 2007-2008 Report June 10; Judgment 05/04/12 re mismanagement, mainly in favour plaintiffs. Appeal before Supreme Court
Civil Lawsuits
Amsterdam - VEB re alleged miscommunication 2007-08 against Ageas, former directors/executives & banks
Amsterdam - Stichting FortisEffect, re sale of Dutch activities against Dutch State & Ageas
Proceedings ongoing
Judgement in favour of Ageas; appeal filed by Stichting FortisEffect before Court of Appeal
Utrecht - Stichting Investor Claims Against Fortis re alleged miscommunication 2007-08 against Ageas & 2 financial institutions
Utrecht - 2nd case by Stichting on behalf of certain shareholders for damages from same defendants & certain former directors/executives
Proceedings ongoing
Proceedings initiated in August 2012 ; at present unclear whether both actions will be joined
Arnhem - Mr.Bos, re alleged miscommunication May June 2008 Appeal filed before Arnhem Court of Appeal
Brussels - Modrikamen, re Sep/Oct 2008 transactions
Brussels - Deminor, re alleged miscommunication 2007 - 08 Brussels - Fortis shareholder re 2007 rights issue Brussels – Arnauts, re alleged miscommunication 2007 – 08
Court of Appeal confirmed no competence on Dutch defendants / Pleadings on the merits scheduled H1 2014
Proceedings ongoing Proceedings ongoing Initiated 29 April 2013
Financial instruments
Brussels Court of Appeal - MCS-holders contesting validity of conversion Judgment Brussels court 23/03/12 in favour of Ageas; Appeal by certain MCS-holders; no judgment before 2015
Periodic financial Information I 6M 13 Results I 2 August 2013 58
Situation 30 June 2013
Main characteristics Hybrids Hybrone partly tendered, NITCH II reimbursed & NITSH II call announced
EUR mio Ageas
Ageasfinlux Fresh
Ageas Hybrid Financing Hybrone
Ageas Hybrid Financing
Nitsh I Direct issue FBB, 2004 CASHES
% 3m EUR + 135 bp 5.125% 8.25% 4.625% 3m EUR +200 bp Amount
outstanding 1,250 336 USD 750 1,000 1,110
ISIN XS0147484074 XS0257650019 XS0346793713 BE0119806116 BE0933899800
Call date Undated exchange,
strike 315.0, mandatory 472.5
Jun/2016 Step up to 3M Euribor +200
Aug/2013 No step up
Oct/2014 Step up to 3M Euribor+170
Undated exchange, strike 239.4, mandatory 359.1
ACSM YES YES YES YES YES
Dividend pusher YES YES YES YES NO
Dividend stopper NO YES YES YES YES
Trigger < 0.5% dividend trigger Liabilities > asset Liabilities > asset <8% CAD <0.5% Dividend
Other 336 on lent to AG Insurance
USD 750 on lent to FBB
No stock settlement feature
Coupon served by FBB, trigger ACSM linked to
Ageas dividend
Market Price (30/06/13) 51.24 96.97 100 97.5 56.17
Fortis Bank (now BNP Paribas)
Periodic financial Information I 6M 13 Results I 2 August 2013 59
PR 03/06/13: call &
redemption announced
Executive summary
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
situation 31/12/2011 situation 31/12/2012 situation 01/08/2013
Total Issued Shares 2,623,380,817 243,121,272 233,955,818
Shares not entitled to dividend and voting right 340,160,729 15,886,832 9,627,960
1. TREASURY SHARES Share buy-back 175,163,656 7,056,442 469,705FRESH 39,682,540 3,968,254 3,968,254Other treasury shares 1,250 218,232 546,097
2. CASHES 125,313,283 4,643,904 4,643,904
Shares entitled to dividend and voting rights 2,283,220,088 227,234,440 224,327,858
Total Issued Shares diminished with the 9,635,159 shares acquired through the Buy-back programmeup to 15 February 2013 & cancellation granted at the shareholders' meetings.
Following the reverse stock split the number of shares at 31/12/2011has been divided by 10, effective as at 7 August 2012.
Cancellation bought back shares
Agreement with BNP in February
Periodic financial Information I 6M 13 Results I 2 August 2013 61
Total number of outstanding shares Bought back shares cancelled following approval AGM April 2013
Cancellation bought back shares
Shareholders structure Based on number of shares as at 01 August 2013
Ageas2.13%
Ping An 5.17%
BlackRock, Inc.5.01%
Franklin Mutual Advisers3.13%
Norges Bank
BNPP & Fortis Bank Identified retail
investors16%
Identified institutional investors
39%
Other investors23%
Ageas Based upon press release 18 February 2013Ping An Based upon the number of shares mentioned in the notification received 6 May 2013
Franklin Mutual Advisers Based upon the number of shares mentioned in the notification received 8 April 2013BlackRock, Inc. Based upon the number of shares mentioned in the notification received 22 July 2013
Norges Bank Based upon the number of shares mentioned in the notification received 20 August 2012BNP P & Fortis Bank Based upon BNP Paribas notification 01 October 2012
Benelux Retail shareholders Estimate byIdentified institutional investors Estimate by
Periodic financial Information I 6M 13 Results I 2 August 2013 62
2 August 6M 2013 results
6 November 9M 2013 results
Periodic financial Information I 6M 13 Results I 2 August 2013 63
16 September Extraordinary shareholders’ meeting - Brussels
10 December Ex date
13 December Payment capital reduction*
Financial calendar 2013 - 2014 Extraordinary shareholders’ meeting in September re EUR 1 distribution
* Subject to absence of any creditor’s claim
19 February Annual results 2013
14 May 3M 2014 results
30 April Ordinary & Extraordinary shareholders’ meeting - Brussels
5 May Ex date
19 March Annual report 2013
13 May Payment 2013 dividend
6 August 6M 2014 results
5 November 9M 2014 results
Rating
Periodic financial Information I 6M 13 Results I 2 August 2013 64
S&P MOODY'S FITCH
Operating entities AG Insurance (Belgium)Insurance Financial Strength A- / stable A2 / negative* A+ / stableLast change 05/07/13 26/07/12 29/05/13
Millenniumbcp Ageas (Portugal)Insurance Financial Strength BB / negative BBB- / negativeLast change 10/07/13 09/07/13
Ageas Insurance Co. (Asia)Insurance Financial Strength Baa1 / stable A / stableLast change 16/01/13 26/03/13
Muang Thai LifeInsurance Financial Strength BBB+ / stable BBB+ / stableLast change 29/12/10 16/12/10
Etiqa Insurance Berhad (Malaysia)Insurance Financial Strength A / stableLast change 26/09/11
Holdings ageas SA/NVLong-term BBB- / A-3 Baa3 / P-3 * BBB+ / F2Outlook stable negative stableLast change 05/07/13 26/07/12 14/12/12
Disclaimer
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 materially from those expressed or implied in such statements. Future actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in Ageas’s core markets, (ii) performance of financial markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates, (viii) increasing levels of competition, (ix) changes in laws and regulations, including monetary convergence and the Economic and Monetary Union, (x) changes in the policies of central banks and/or foreign governments and (xi) general competitive factors, in each case on a global, regional and/or national basis. In addition, the financial information contained in this presentation, including the pro forma information contained herein, is unaudited and is provided for illustrative purposes only. It does not purport to be indicative of what the actual results of operations or financial condition of Ageas and its subsidiaries would have been had these events occurred or transactions been consummated on or as of the dates indicated, nor does it purport to be indicative of the results of operations or financial condition that may be achieved in the future.
Periodic financial Information I 6M 13 Results I 2 August 2013 65
Investor Relations
Tel: E-mail: Website:
+ 32 2 557 57 34 [email protected] www.ageas.com
Investor Relations
Periodic financial Information I 6M 13 Results I 2 August 2013 66