q2 2019 results - ageas · 2019-08-07 · q2 18 q2 19 result benefited from ogden rate review &...

Q2 2019 RESULTSPeriodical Financial Information

1

2

Slides used during analyst call 2

Segment information 16

Equity / Solvency 51

Investment portfolio 63

Legal Settlement 68

General Information 71

Content

Content

Periodical financial information I Q2 19 results I 7 August 2019

Ageas

3

Main developments of the quarter

Claims filing period ended on 28 July

EUR 593 mio compensation paid to eligible shareholders of which EUR 140

mio coming from D&O insurers

Issuance of EUR 500 mio Tier 2 bond by ageas SA/NV

9th consecutive SBB announced for EUR 200 mio

Best half year Group net result ever, driven by Non-Life operational

performance & helped by some one-offs in Asia & UK

Solid sales momentum across all regions, except UK

Solvency > 200% despite yield impact

Strategy

Results

Legal


Ageas announces 9th consecutive share buy-back

bringing amount returned through SBB to EUR 2 bn

06/08/12Ageas announces EUR 200 mio SBB



Ageas

4

07/08/19

Ageas announces

EUR 200 mio SBB

running from 19/08/19 until

05/08/20

Over 8 programmes

66,795,650 shares bought back

of which

almost 64 mio shares cancelled or

24% of outstanding shares end 2011

02/08/19

Ageas completes 2018

EUR 200 mio SBB

- 4,501,516 shares







373485

102

116

(34)

5441

606

6M 18 6M 19

Life Non-Life GA

In EUR mio In EUR bnIn EUR bn

Ageas

Headlines

5

In bps avg technical liabilities In bps avg technical liabilities

* incl. non-consolidated partnerships @ 100%

In % NEP

121

26255

81

18

12

194

355

Q2 18 Q2 19

17.0 17.7

3.1 3.4

20.121.0

6M 18 6M 19

Life Non-Life

6.8 6.6

1.4 1.6

8.3 8.2

Q2 18 Q2 19

97.8 95.7

6M 18 6M 19

96.7 93.1

Q2 18 Q2 19

110

79

6M 18 6M 19

8371

Q2 18 Q2 19

28 22

6M 18 6M 19

24 27

Q2 18 Q2 19

Net result: solid operating performance across all regions

Non-Life combined ratio: excellent Q2 driven by BE & CEU

Inflows up 7% in Q2 excl. Luxembourg Life Technical liabilities up in conso (3% excl. shadow) & non-conso

Margin Guaranteed: timing investment income & reserve strengthening

Operating margin Unit-Linked: up in BE & down in CEU

Strong Non-Life performance and exceptional items in Asia and the UK support Q2 net result


71.5 73.1 73.9

1.8 2.9 4.0

65.675.3 76.5

139.0151.2 154.3

FY 18 3M 19 6M 19

excl shadow shadow non-conso

2,1102,437

1,079

1,126

3,188

3,562

6M 18 6M 19

Life Non-Life

62 77

2138

83

114

Q2 18 Q2 19

In bps avg technical liabilities In bps avg technical liabilitiesIn % NEP

Belgium

6Periodical financial information I Q2 19 results I 7 August 2019

Strong quarterly operating performance in Life & Non-LifeHeadlines

In EUR mio In EUR bn In EUR bn

181145

39

50

220195

6M 18 6M 19

Life Non-Life

1,196 1,029

450465

1,6461,494

Q2 18 Q2 19

55.9 56.9 57.3

1.4 2.3 3.1

57.3 59.2 60.4

FY 18 3M 19 6M 19

excl shadow shadow

108

82

6M 18 6M 19

98.8 97.6

6M 18 6M 19 proforma

97.491.1

Q2 18 Q2 19 proforma

3643

Q2 18 Q2 19

4334

6M 18 6M 19

7585

Q2 18 Q2 19

Life Technical Liabilities mainly up on Group Life & Unit-Linked

Operating margin Unit-Linked: timing difference in sales campaigns

Net result: strong Q2 performance - YTD impacted by lower realized capital gains

Inflows: continued strong growth across most product lines

Non-Life COR: strong operational performance in most business lines

Operating margin Guaranteed: seasonality in RE investment result

99.0 96.9


In EUR mio

UK


Headlines

In % of NEPIn EUR bn


31

52

6M 18 6M 19

20

41

Q2 18 Q2 19

97.3 98.3


921881

6M 18 6M 19

474 456

Q2 18 Q2 19

Result benefited from Ogden rate review & internal

reinsurance agreementNet result in both years impacted by non-recurring items

Inflows* down 5% @ constant FX Non-Life combined ratio strong despitelarge losses in Motor

CEU


Headlines


2916

2440

5357

6M 18 6M 19

Life Non-Life

164

10

21

26 25

Q2 18 Q2 19

2,003

1,047

682

710

2,685

1,757

6M 18 6M 19

Life Non-Life

952485

299

338

1,251

823

Q2 18 Q2 19

91.6 90.2


92.988.8


121

66


133

-6

Q2 18 Q2 19

12 8

6M 18 6M 19

12 7

Q2 18 Q2 19



Non-Life COR: driven by excellent operating performance

Operating margin Unit-Linked mainly down on lower sales

Net result supported by strong Non-Life profit

Net result Q2 up 8% scope-on-scope –Life impacted by reserve strengthening

15.7 16.2 16.6

0.4 0.6 0.8

16.1 16.8 17.4

FY 18 3M 19 6M 19

excl shadow shadow

Q2 inflows up 22% scope-on-scope, driven by Life & Non-Life

Life Technical liabilities consolidated entities up driven by higher inflows

Operating margin Guaranteed down due to reserve strengthening (116 bps in Q2)


Asia


Headlines

In % NEP

*Incl. non-consolidated partnerships @ 100%

All growth rates are at constant FX

164

3247

8

170

331

6M 18 6M 19

Life Non-Life

12,884 14,168

450652

13,33414,819

6M 18 6M 19

Life Non-Life

65.675.3 76.5

FY 18 3M 19 6M 19

87.9

103.2

Q2 18 Q2 19

89.999.3

6M 18 6M 19

Exceptionally high quarter driven by operating performance, capital gains & one-off

4,699 5,077

205 360

4,9045,437

Q2 18 Q2 19

43

182

3

3

46

185

Q2 18 Q2 19

12.0 13.2

0.91.0

12.914.2

6M 18 6M 19

regular single

In EUR bn

Regular premium: strong growth -exceeding 90% of Life inflows

4.3 4.7

0.40.4

4.75.1

Q2 18 Q2 19

Net result : solid operational performance, capital gains & tax change

Inflows* up 12% in Q2 -continued solid growth trend

Life Technical liabilities up 15% YTD

Non-Life COR reflecting acquisition in India

In EUR mio

Reinsurance

Headlines

10

In % NEPIn EUR mio

ageas SA/NV

reinsurance activities


2

(34)

6M 18 6M 19

0

(22)

Q2 18 Q2 19

29

1,137

6M 18 6M 19

14

275

Q2 18 Q2 19

91.3% 84.8%


100.8%89.4%


Q2 negatively impacted by exceptional items in the UK

Net result: Q2 negatively impacted by ramp up phase & motor large losses in UK

Inflows: EUR 220 mio in Q2 from new QS agreements

Pro-forma combined ratio benefit from PY releases

Implementation of an internal reinsurance programme within ageas SA/NV in order to

enhance capital fungibility in the group

Non-Life Quota Share (QS) Treaties: 30% with AG Insurance in Belgium*, 30% with Ageas

Insurance Limited in the UK, and 20% with all Portuguese Non-Life Entities

Loss Portfolio Transfers (LPT): 30% with Ageas Insurance Limited in the UK, and 20%

with the Portuguese Non-Life Entities

The reinsurance protection programme formerly carried out by Intreas is now managed by

ageas SA/NV

The Pillar I Solvency II for ageas SA/NV amounted to 353%

Net result positive following RPN(i) revaluation & lower expensesIn EUR mio

Value legacies – Settlement liability down on payments

Profit driven by positive RPN(i) revaluation & lower

expenses

GA


Headlines

Stable total liquid assets

In EUR mio

Impact on P&L from RPN(i) Lower staff & operating expenses

In EUR bn

In EUR mio

(34)

5

6M 18 6M 19

1812

Q2 18 Q2 19

15 14

2435

39

49

6M 18 6M 19

Staff & Intercompany Operating

9 7

1613

25

20

Q2 18 Q2 19

9

61

6M 18 6M 19

4734

Q2 18 Q2 19

In EUR mioIn EUR mio

Upstream Opcos – EUR 4 mio in Q3

599 629

6M 18 6M 19

(359) (332) (298)

7 5 6

(812)(764)

(626)

FY 18 3M 19 6M 19

RPN(i) RPI Settlement

1.71.5

1.7

FY 18 3M 19 6M 19

Belgium268

Belgium168

Belgium294

Belgium333

Belgium391

Belgium437

Belgium415

UK 82

UK 64

UK 50

UK 47

UK 44

CEU 36

CEU150

CEU53

CEU 19

CEU48

CEU85

CEU86

Asia52

Asia106

Asia43

Asia89

Asia77

Asia92

Asia88

438

488

440

487 516

622 633

416

2013 2014 2015 2016 2017 2018 2019 dividendpaid in2019

Ageas


EUR 633 mio upstreamed in 2019Dividend upstream

Upstream duringbased on net result of the year

before

In EUR mioBelgium main contributor of cash

Dividend from Asia includes EUR 4 mio received in Q3

Upstream more than covering dividend & holding costs on FY basis

Solvency


Solvency strong despite drop in yield curveSolvency IIageas

Solvency IIageas

in %

Own Funds

SCR

Non EU

Non-controlled

participations*

Belgium UK CEU Reinsurance GA eliminations Group

2.7 2.8 2.9

0.5 0.5 0.5 0.6 0.6 0.6

0.1 0.30.3 0.1 0.0

0.0

(0.2) (0.4) (0.4)

3.7 3.9 4.0

2.4 2.8 2.8

6.46.0

6.3

0.8 0.9 0.81.0 1.0 1.0

0.1

0.6 0.6 0.6

(0.2)

0.1

(1.0) (0.9) (1.0)

8.0

7.57.9

5.8

6.6 6.6

FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19

235% 215% 223% 167% 175% 161% 178% 170% 160% 196% 200% 192% 215% 194% 201% 241% 237% 236%

Free CapitalGeneration


Operational FCG of EUR 257 mio

2,143

1,769

414

271

163 58(15)

(97)

(119)

(185)

(416)

2,557

2,040

94

FY 18 Model changes MarketImpact

Operationalimpact

Exceptionalitems

Capitaltransactions

M&A Paid dividend 6M 19

expected

dividend

Operational impact – includes EUR 94 mio dividend upstream Non-European NCP’s

Market: sharp drop in yield curve

Exceptional items: implementation new internal reinsurance agreements & Ogden

Capital transactions = call & issue debt instruments, SBB & injection in Asia

M&A: Acquisition in India

* FCG Non-European NCP’s of

EUR 294 mio over Q1 2019 of

which EUR 113 mio operational, is

not included

Based on 175% SCR

Solvency IIageas

Solvency IIageas

In EUR mio*


Conclusions

1. Record result supported by some exceptionals

2. Good sales momentum continued

3. Ninth consecutive SBB – EUR 200 mio

Content


Content





Legal Settlement 68


Net result


Strong operational performance supported by one-offs in Asia & UK

Belgium UK CEU Asia Reins. GA ageas

5 (34)

5

181 145

29 16

164

324 373

485

39

50

24 40

7

8

102

116

220 195

31 52 53 57

170

331

2

(34)

(34)

441

606

6M 18 6M 19 6M 18 6M 19 6M 18 6M 19 6M 18 6M 19 6M 18 6M 19 6M 18 6M 19 6M 18 6M 19

Non-Life

Life

In EUR mio

General Account

Lower support of net cap gains

Result benefited from Ogden rate review & internal reinsurance agreement

Strong performance in Non-life / Life impacted by low i-rate (Luxembourg out of scope)

Higher contribution of cap gains & tax change in China

Suffering from ramp up phase, bad weather in Belgium & large losses UK

Positive contribution of RPN(i)

Belgium

UK

CEU

Asia

Reinsurance

General Account

Inflows


Double digit growth* across all segments except in UK

In EUR mio

EUR mio 6M 18 6M 19 6M 18 6M 19 6M 18 6M 19

Belgium 75% 2,110 2,437 15% 1,079 1,126 4% 3,188 3,562 12%

United Kingdom - 921 881 (4%) 921 881 (4%)

Consolidated entities 100% - 722 698 (3%) 722 698 (3%)

Non-consolidated JV's 50% 199 183 (8%) 199 183 (8%)

Continental Europe 2,003 1,047 (48%) 682 710 4% 2,685 1,757 (35%)

Consolidated entities 817 1,047 28% 344 373 8% 1,161 1,419 22%

Portugal 51% - 100% 646 833 29% 344 373 8% 990 1,206 22%

France 100% 171 213 25% 171 213 25%

Non-consolidated JV's 338 337 (0%) 338 337 (0%)

Turkey (Aksigorta) 36% 338 337 (0%) 338 337 (0%)

Luxembourg (Cardif Lux Vie) 33% 1,186 1,186

Asia Non-consolidated JV's 12,884 14,168 10% 450 652 45% 13,334 14,819 11%

Malaysia 31% 440 472 7% 290 343 18% 730 816 12%

Thailand 31% - 15% 1,317 1,196 (9%) 160 175 9% 1,477 1,370 (7%)

China 25% 10,983 12,322 12% 10,983 12,322 12%

Philippines 50% 10 15 40% 10 15 40%

Vietnam 32% 15 36 136% 15 36 136%

India 26% - 40% 118 127 8% 133 118 261 120%

Insurance Ageas 16,997 17,651 4% 3,132 3,368 8% 20,129 21,018 4%

Reinsurance 29 1,137 29 1,137accepted from Consolidated entities 29 1,129 29 1,129

accepted from Non-consolidated partnerships 8 8

Life Non-Life Total

@ 100%

* Inflows excluding Luxembourg, divested in 2018

Inflows


Double digit growth* across all segments except in UK

1,582 1,827 919 666

3,318 3,635

5,820 6,129

809 844

822 789

466 494

114 186

2,210 2,314

+12%

-4%

-16%

+11%

+5%

2,391 2,672

1,385 1,160

3,432 3,821

8,029 8,442

29

1,137

6M 18 6M 19 6M 18 6M 19 6M 18 6M 19 6M 18 6M 19 6M 18 6M 19 6M 18 6M 19

Belgium UK CEU Asia Insurance Reins.

Non-Life

Life

In EUR mio

Double digit growth in Life

Volumes lower on strategic choices

Luxembourg out of scope / Strong growth in Guaranteed business

Maintaining strong sales momentum

Inflows include one-offs related to ramp up phase QS agreements

Belgium

UK

CEU

Asia

Reinsurance

@ ageas part

* Inflows excluding Luxembourg,

divested in 2018

Net realisedcap gains*


Lower support of realised capital gains in Europe - Asia benefiting from strong equity markets

In EUR mio

6M 18 6M 19 Q2 18 Q2 19

Life 72 50 6 17 Seasonality in realisation

Non-Life 7 3 0 (0)

Belgium 79 53 6 16

UK 2 4 0 1

Life 5 5 3 3

Non-Life 1 2 (0) 0

CEU 6 7 3 3

Life (19) 70 (44) 21 IFRS cap gains on equities

Non-Life 0 (1) 0 (1) in China

Asia (19) 69 (44) 20

Reinsurance (0) 4 (0) 4 linked to process of liquidation Intreas

Life 58 125 (35) 40

Non-Life 11 11 0 4

General Account

& Eliminations

3 (4)

Total Ageas 71 133 (35) 44

* Net capital gains include capital gains, impairments & related changes in profit sharing (consolidated entitities),

net of tax & @ ageas’s part – CEU JV’s not included

Ageas


Excellent Q2 compensating for weather impact in Q1Combined ratio

Net earned premium (In EUR mio)

In % Net earned premium

Combined ratio

Quarter

Strong CY performance in Belgium & Portugal

Further support from Ogden rate review in UK

Year-to-date

Favourable vs. LY on lower weather impact (2.6 pp vs. 4.7 pp)

Strong performance in most product lines besides the weather

impact

Claims ratio

CY ratio improving compared to last year across all

segments

PY ratio: higher in Accident & Health and Household

Expense ratio stable

64.3 64.4 62.267.0

59.7 58.5 61.7 59.7 59.9 56.3

34.0 35.2 34.734.1

35.5 35.836.1 36.0 36.8

36.8

98.3 99.696.9

101.195.2 94.3

97.8 95.7 96.793.1

(3.8) (4.0)(5.9)

(3.0) (5.6) (7.7) (8.2) (9.2) (9.1)(12.1)

2013 2014 2015 2016 2017 2018 6M 18 6M 19 Q2 18 Q2 19

claims ratio expense ratio PY claims ratio

3,749 3,843 4,038 4,112 4,148 3,890 1,949 1,912 975 967

Ageas


Combined ratio

70.0 67.3 65.4 67.5 64.8 67.4 73.3 71.5 75.0 71.0

25.6 27.0 28.3 27.2 27.5 25.425.8 25.4 26.6

26.5

95.6 94.3 93.7 94.7 92.3 92.899.1 96.9

101.6 97.5

2013 2014 2015 2016 2017 2018 6M 186M 19 Q2 18Q2 19

69.8 69.6 69.178.2

68.7 61.2 59.4 63.6 59.7 66.5

29.3 29.7 30.529.7

31.633.0 33.0

33.033.0

33.4

99.1 99.3 99.6107.9

100.394.2 92.4 96.6 92.7

99.9

2013 2014 2015 2016 2017 2018 6M 186M 19 Q2 18Q2 19

51.5 51.5 50.4 50.5 43.8 51.861.0

48.4 53.532.1

44.0 44.6 41.6 42.745.1

44.846.1

45.047.6

47.0

95.5 96.1 92.0 93.2 88.996.6

107.1

93.4101.1

79.1

2013 2014 2015 2016 2017 2018 6M 186M 19 Q2 18Q2 19

62.4 71.257.9 60.4

51.0 43.9 47.7 41.5 44.5 36.9

45.550.6

46.4 44.445.1

47.8 45.053.2 46.5

53.3

107.9

121.8

104.3104.896.1 91.7 92.7 94.7 91.0 90.2

2013 2014 2015 2016 2017 2018 6M 186M 19 Q2 18Q2 19

Accident & Health: improved claims ratio in Belgium Motor: large losses in UK

Household: YTD LY impacted by poor weather in BE & UK

(16.4 pp)Other lines: higher expense ratio / small portfolio

NEP 394 385 424 418 410 356 189 161 93 81

Excellent performance in Household


NEP 813 813 811 838 884 871 425 450 214 231 NEP 1,557 1,616 1,724 1,790 1,782 1,636 819 808 409 406

NEP 986 1,029 1,078 1,067 1,072 1,028 516 493 259 249

Ageas


Guaranteed: seasonality investment income & reserve strengthening - UL up in BE & down in CEU

In bps Avg techn. liabilities

Operating margins

Life Unit-Linked

Quarter

Below target mainly due to lower sales in Continental

Europe

Year-to-date

Lower in Belgium (exceptional result last year) and

Portugal (lower sales)

Life Guaranteed

Quarter

Negative impact from reserve strengthening in Portugal

due to low i-rate environment

Year-to-date

Below target due to timing difference in investment

margin (seasonality real estate) and reserve

strengthening in Portugal

13 1217

4 3 2 2 2 3 2

(2)

2

1

2

(1) (1)

18

6

18

19 2423

27

20

2224

28

20

36

2527

2528

2224 27

2013 2014 2015 2016 2017 2018 6M 18 6M 19 Q2 18 Q2 19

Operating margin

Expense & other m.

Investment m.

Underwriting m.

43 38 33 41 39 41 39 34 4031

83 9080

88 96 89112

98 85 102

(31) (39)(23)

(36) (42) (42) (41)(53)

(42)(61)

96 8990

9393 88

110

7983

71

2013 2014 2015 2016 2017 2018 6M 18 6M 19 Q2 18 Q2 19

Avg techn liabilities (In EUR bn)

55.5 56.9 57.9 57.3 55.9 55.9 55.7 56.4 55.7 56.4


12.3 12.6 13.0 12.1 15.1 15.7 15.9 16.3 15.9 16.3

2,1102,437

1,079

1,126

3,188

3,562

6M 18 6M 19

Life Non-Life

62 77

2138

83

114

Q2 18 Q2 19


Belgium


Strong quarterly operating performance in Life & Non-LifeHeadlines


181145

39

50

220195

6M 18 6M 19

Life Non-Life

1,196 1,029

450465

1,6461,494

Q2 18 Q2 19

55.9 56.9 57.3

1.4 2.3 3.1

57.3 59.2 60.4

FY 18 3M 19 6M 19

excl shadow shadow

108

82

6M 18 6M 19

98.8 97.6


97.491.1


3643

Q2 18 Q2 19

4334

6M 18 6M 19

7585

Q2 18 Q2 19

Life Technical Liabilities mainly up on Group Life & Unit-Linked

Operating margin Unit-Linked: timing difference in sales campaigns

Net result: strong Q2 performance - YTD impacted by lower realized capital gains

Inflows: continued strong growth across most product lines

Non-Life COR: strong operational performance in most business lines

Operating margin Guaranteed: seasonality in RE investment result

Life

Belgium

25

Net result & Life liabilitiesIn EUR mio


181

145 145

39

50 40

220

195185

6M 18 6M 19 pro forma

Life Non-Life

In EUR bn

Strong Q2 performance - continued growth of Life technical liabilities

Quarter

• Life result up on higher investment result compensating lower net underwriting

result

• Excellent non-life result across most business lines

Year-to-date

• Lower investment results in both Life and Non-Life due to lower net capital gains

(EUR 26 mio lower) & exceptional investment income in first quarter last year.

• The new internal reinsurance program contributed positively to the non-life net

result with EUR 10 mio

Year-to-date

Life technical liabilities (+6%), mainly explained by :

• Growth in Life Bank, especially in Unit Linked thanks to strong inflows

• Continued high growth in Group Life liabilities

• Increase in the shadow accounting reserve due to the decrease in interest

rates

6277 77

21

38 3883

114 114

Q2 18 Q2 19 pro forma

Life Non-Life

55.9 56.9 57.3

1.4 2.3 3.1

57.3 59.2 60.4

FY 18 3M 6M 19

excl shadow shadow

Net result

Life technical liabilities

295 314

325 336

347360

111116

+4%

1,0791,126

6M 18 6M 19

1,5411,863

568

573

+15%

2,110

2,437

6M 18 6M 19

Life

Belgium

26

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio


Quarter

• Unit-linked – inflows decreased due to timing difference in UL sales campaign

through the bank channel (Q1 2019 vs. Q2 2018)

• Guaranteed - Inflows up mostly driven by savings products in Bank channel and

Group Life

Year-to-date

• Unit-linked - Strong inflow in line with last year thanks to a successful sales

campaign in Q1 2019

• Guaranteed - Inflows increased in all channels especially in Bank Channel

(+38%) and mainly in Invest products and in Group Life (+13%)

Quarter

• Increased across all business lines continuing the strong growth of the previous

quarters

Year-to-date

• Strong inflows with significant increase in Accident & Health (+7%)

• Increase in Household (+4%) mostly explained by tariff indexation

• Growth of more than 3% in Motor and Other

Significant increase in Savings & Group Life –Non-Life growth in all business lines

796891

400 138

-14%1,196

1,029

Q2 18 Q2 19

109 114

148 151

149 154

44 46

450 465

Q2 18 Q2 19

+3%

Non-Life

Life

Belgium


Combined ratio


Net earned premium (in EUR mio)

Strong operating performance despite weather events in the first quarter

The new internal reinsurance agreement has an important impact on the combined

ratio. For ease of comparability, the pro forma combined ratio commented in this

section excludes all impacts from this internal reinsurance agreement.

Combined ratio

Quarter

Excellent across almost all business lines

Limited negative impact of adverse weather (1pp) vs. 4pp impact in Q2 18

Year-to-date

Improved compared to LY thanks to lower current year claims ratio

Weather events impacted the combined ratio (5.5pp), in line with last year.

However, the impact on Q2 figures is significantly lower than last year

Claims ratio

CY ratio improved compared to last year in Motor and Household, stable in

A&H, increased in Other, mainly in TPL

PY ratio: stable year-on-year

Expense ratio remained stable year-on-year

63.2 63.556.9 58.3

53.1 56.061.2 59.9 59.6

53.5

36.7 37.7

37.8 37.737.9

37.437.6 37.7 37.8

37.6

99.9 101.2

94.7 96.091.0 93.4

98.8 97.6 97.491.1

(3.6) (3.4)(7.2) (8.2) (7.7) (8.3) (9.1) (9.0)

(10.1) (10.1)

2013 2014 2015 2016 2017 2018 6M 18 6M 19pro

forma

Q2 18 Q2 19pro

forma


1,785 1,815 1,832 1,836 1,861 1,944 958 994 480 505

Belgium


Combined ratio

73.7 70.1 70.4 70.0 68.0 71.080.1 77.3 84.5

76.2

23.8 25.4 27.6 27.6 26.9 24.425.1 24.9

25.325.1

97.5 95.5 98.0 97.6 94.9 95.4

105.2102.2

109.8101.3

2013 2014 2015 2016 2017 2018 6M 186M 19pro

forma

Q2 18Q2 19pro

forma

64.7 62.6 56.2 59.7 58.0 55.3 54.6 58.1 56.0 60.5

36.3 37.236.4 36.4 36.8 37.3 37.6 37.8 37.4

38.0

101.0 99.892.6 96.1 94.8 92.6 92.2 95.9 93.4

98.5

2013 2014 2015 2016 2017 2018 6M 186M 19pro

forma

Q2 18Q2 19pro

forma

51.4 51.7 43.9 47.8 38.649.3

59.3 53.3 49.534.1

45.6 45.745.2 44.8

45.646.6

46.646.6 46.5

46.6

97.0 97.489.1 92.6

84.295.9

105.999.9 96.0

80.7

2013 2014 2015 2016 2017 2018 6M 186M 19pro

forma

Q2 18Q2 19pro

forma

66.187.5

65.8 58.346.8 40.3 38.5 39.6 37.8 31.3

47.2

47.6

45.044.6

44.843.0 42.3 43.9 44.0

43.3

113.3

135.1

110.8102.9

91.683.3 80.8 83.5 81.8

74.6

2013 2014 2015 2016 2017 2018 6M 186M 19pro

forma

Q2 18Q2 19pro

forma


Strong operational performance despite adverse weather events

Accident & Health: improved thanks to strong PY Motor: slightly worse than LY due to lower PY claims

Household: Strong 2nd quarter compensating Q1 weather events –

YTD impact of 16.6 ppOther lines : strong 2nd quarter – YTD slight deterioration in Third Party

Liability

NEP 564 579 595 605 609 621 307 315 154 159 NEP 162 170 185 190 193 206 103 107 50 54

NEP 552 562 568 570 578 596 294 299 149 150NEP 507 504 484 472 481 522 255 273 128 141

Belgium


Operating marginsIn bps Avg techn. liabilities

4 (2) 1 1 1 1 1 1 1

38

32 31 3133

39 42

34 3542

41

30 3231

3440

43

34 36

43

2013 2014 2015 2016 2017 2018 6M 186M 19 Q2 18 Q2 19

Operating margin

Investment m.

Expense & other m.

Underwriting m.

32 30 25 29 27 31 30 23 2819

88 9588

91 94 91

115

99 82 105

(31) (38)(27) (34) (36) (37) (37) (40) (36) (39)

89 8786

86 85 85

108

8275

85

2013 2014 2015 2016 2017 2018 6M 186M 19 Q2 18 Q2 19


5.4 5.7 5.9 6.1 7.6 8.1 8.2 8.8 8.2 8.8


46.4 47.5 48.1 48.7 48.0 47.7 47.7 47.8 47.7 47.8

Guaranteed – seasonality in Real estateUL – timing difference sales campaign

Life Unit-Linked

Quarter

Operating margin improved compared to Q2 2018 due to timing

difference of the commercial cost of the sales campaign (Q1 2019

vs. Q2 2018)

Year-to-date

Operating result decreased compared to last year as 2018 included

a one-off result

Life Guaranteed

Quarter

Operating margin up on higher net capital gains compensating

the lower net underwriting result

Year-to-date

Operating margin lower than last year due to the seasonality in

realisation of real estate

FY 16 FY 17 FY18 6M 19

Guaranteed interest rate 2.49% 2.32% 2.17% 2.05%

Fixed income yield 3.45% 3.34% 3.25% 3.14%

Liabilities Guaranteed (EUR bn) 52.9 50.4 49.1 51.1

FY 16 FY 17 FY 18 6M 19

Fixed income yield 1.71% 1.88% 1.96% 1.88%

Reinvested amount (EUR bn) 4.5 2.9 3.2 2.1

Newly invested money mostly in corporate bonds (non-financial sector), government

bonds & related loans and mortgage loans.

Belgium


Yield & guaranteed rate on back book down at the same pace

Evolution assets & liabilities

Back book

Life

New money

Life & Non-Life

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q32014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Guaranteed interest rate Total fixed income yield

3.14%

2.05%

Belgium


Margin on back book stable since 2012 Evolution assets & liabilities

99.0 96.9


In EUR mio

UK


Headlines

In % of NEPIn EUR bn


31

52

6M 18 6M 19

20

41

Q2 18 Q2 19

97.3 98.3


921881

6M 18 6M 19

474 456

Q2 18 Q2 19

Result benefited from Ogden rate review & internal

reinsurance agreementNet result in both years impacted by non-recurring items

Inflows* down 5% @ constant FX Non-Life combined ratio strong despitelarge losses in Motor

UK

33

Ogden benefit offset by Motor large losses - Pricing discipline & exit of unprofitable business impacting inflows

Net result & Inflows

Other

Household

Accident & Health

Motor

Net result

Quarter:

Q2 result benefited from the Ogden rate change review from minus 0.75%

to minus 0.25% (EUR 30 mio) & the impact of the ramp up phase of the

internal reinsurance agreement (EUR 23 mio)

Motor large losses suffering from higher frequency & severity

Year-to-date:

Including restructuring costs of EUR 13 mio

18 17

633 618

186 176

8370

-4%921

881

6M 18 6M 19

In EUR mio

Inflows 6M *

Motor down 3%: continued pricing discipline in a competitive Motor market;

lower intermediated & TU volumes - continued growth in Direct sales

through aggregator platforms & good broker pipeline.

Household down 6% resulting from strategic exits of underperforming

business in the intermediated channel & lower Direct renewal inflows.

Other down 16% reflecting planned run off in Special Risks and

discontinued MGA relationship in Commercial.

Accident & Health down 8% - marginal impact on total.

* incl. non-consolidated partnerships @ 100% & @ constant exchange rate

20

41

18


31

52

32


11 11

327 319

92 89

45 38

-4%476

456

Q2 18 Q2 19


UK

34

Ogden benefit offset by Motor large losses - strong Household COR

Combined ratio


The new internal reinsurance agreement has an important impact on the

combined ratio. For sake of comparability of the performance the pro forma

combined ratio commented in this section excludes all impacts from this

internal reinsurance agreement.

Q2 Combined ratio

Slightly up compared to last year driven by Motor as Ogden rate change

benefit not fully compensating for Motor large loss experience

Combined ratio Tesco Underwriting 90.5% (vs. 95.8%) reflecting benign

weather & one-off Ogden rate change benefit

Q2 Claims ratio

CY ratio: Strong Household & Commercial performance supported by

benign weather partly offset by Motor large loss experience.

PY ratio: Driven by Ogden release

Q2 Expense ratio

Lower overhead costs

Higher investments & increased Non-Risk income related to growth in

Direct channel

65.6 66.3 69.380.7

68.360.2 62.2 59.3 59.2 58.8

32.2 33.532.8

31.5

34.9

36.6 36.8

37.6

38.1 39.5

97.8 99.8 102.1

112.2

103.296.8 99.0 96.9 97.3 98.3

(4.0) (4.6) (4.4)

4.5(1.4)

(9.2) (9.1)

(8.0)

(9.5)(9.2)

2013 2014 2015 2016 2017 2018 6M 18 6M 19pro

forma

Q2 18 Q2 19pro

forma




1,562 1,613 1,751 1,598 1,493 1,321 684 641 340 323

UK

35

Excellent Household & Commercial - Motor impactedby large losses

Combined ratio

Motor: One-off Ogden benefit offset by large loss experienceAccident & Health: Small portfolio, marginal impact on total

Other: Benign weather & favourable PY in CommercialHousehold: Strong performance on top of benign weather

76.266.0

55.8 58.4 56.1 57.8 56.9 55.7 53.1 59.7

34.338.7

43.3 40.9 46.7 51.4 51.6 51.0 52.954.0

110.5104.7

99.1 99.3 102.8109.2 108.5 106.7 106.0

113.7

2013 2014 2015 2016 2017 2018 6M 18 6M 19pro

forma

Q2 18 Q2 19pro

forma

71.9 74.6 75.891.0

75.063.7 61.1 68.1 60.0

70.3

25.0 25.1 27.2

25.5

27.6

29.7 29.530.7

29.5

31.2

96.9 99.7 103.0

116.5

102.693.4 90.6

98.889.5

101.5

2013 2014 2015 2016 2017 2018 6M 18 6M 19pro

forma

Q2 18 Q2 19pro

forma

51.4 51.062.2 57.6 51.7 56.9

67.2

40.962.3

33.4

42.4 43.3

37.340.6

47.845.1

48.9

49.4

53.6

56.1

93.8 94.399.5 98.2 99.5 102.0

116.1

90.3

115.9

89.5

2013 2014 2015 2016 2017 2018 6M 18 6M 19pro

forma

Q2 18 Q2 19pro

forma

59.8 56.0 55.373.7 67.0

46.359.0

46.9 49.5 43.1

44.4 54.3 48.6

44.947.0

56.7

49.6

50.0 50.451.0

104.2110.3

103.9

118.6 114.0103.0

108.696.9 99.9

94.1

2013 2014 2015 2016 2017 2018 6M 18 6M 19pro

forma

Q2 18 Q2 19pro

forma


NEP 79 71 72 39 30 30 15 15 8 8 NEP 907 958 1,062 1,014 947 844 430 411 213 207

NEP 374 399 413 361 341 309 160 143 80 72 NEP 202 185 204 185 175 138 79 73 40 36

CEU


Headlines


2916

2440

5357

6M 18 6M 19

Life Non-Life

164

10

21

26 25

Q2 18 Q2 19

2,003

1,047

682

710

2,685

1,757

6M 18 6M 19

Life Non-Life

952485

299

338

1,251

823

Q2 18 Q2 19

91.6 90.2


92.988.8


121

66


133

-6

Q2 18 Q2 19

12 8

6M 18 6M 19

12 7

Q2 18 Q2 19



Non-Life COR: driven by excellent operating performance

Operating margin Unit-Linked mainly down on lower sales

Net result supported by strong Non-Life profit

Net result Q2 up 8% scope-on-scope –Life impacted by reserve strengthening

15.7 16.2 16.6

0.4 0.6 0.8

16.1 16.8 17.4

FY 18 3M 19 6M 19

excl shadow shadow

Q2 inflows up 22% scope-on-scope, driven by Life & Non-Life

Life Technical liabilities consolidated entities up driven by higher inflows

Operating margin Guaranteed down due to reserve strengthening (116 bps in Q2)

CEU

37

Very strong Non-Life businessLife impacted by reserve strengthening

Net result & Life liabilitiesIn EUR mio


29

16 16

2440 38

5357

54


Life Non-Life

Net result

• Life: net result impacted by reserve strengthening in Portugal’s

Guaranteed business related to low interest rate environment

Last year EUR 5 mio contribution from Luxembourg (EUR 2 mio in

Q1 & EUR 3 mio in Q2)

• Non-life: strongly up thanks to improved claims ratio

Internal reinsurance: positive contribution in Q1

(EUR 3 mio) & negative impact in Q2 (EUR 1 mio)

Life technical liabilities

• Up on higher sales in Guaranteed business

16

4 4

10

21 22

26 25 26


15.7 16.2 16.6

0.4 0.6 0.8

16.1 16.8 17.4

FY 18 3M 19 6M 19

excl shadow shadow

CEU

38

Strong increase in Guaranteed Business –Non-Life growth in all business lines

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio

533

800

284

247

+28%

817

1,047

6M 18 6M 19

212 228

277 277

124 139

6966

+4%

682 710

6M 18 6M 19

* Excluding Luxembourg Periodical financial information I Q2 19 results I 7 August 2019

Life Unit-Linked

• Inflows down due to fewer underwriting in Portugal & France

related to the financial market volatility - Decrease limited to 1% in

Q2 compared to 22% in Q1

Life Guaranteed

• Q2 Inflows up 43% mainly related to higher sales in Savings in

Portugal – confirming trend Q1

Non-Life

• Up 27% at constant FX in Q2 (heavily impacted by FX rate in

Turkey)

• Strong sales in Portugal continued with main contributors being

Health Care, Household, Motor (pushed by new business and

inforce business) & Workers’ Compensation (new & inforce

business)

90 98

130146

55642429

+13%

299338

Q2 18 Q2 19

252361

126

124

+28%

378

485

Q2 18 Q2 19

*

63.7 61.355.9 58.6 59.2 62.7 62.1 61.2 62.2 58.5

30.030.8

29.530.1 31.2

29.7 29.5 28.9 30.730.3

93.7 92.185.4

88.7 90.4 92.4 91.6 90.292.9

88.8

(4.0) (4.3) (6.5) (6.5) (8.0)(2.9) (4.2) (3.7)

(6.1) (7.2)

2013 2014 2015 2016 2017 2018 6M 18 6M 19pro

forma

Q2 18 Q2 19pro

forma


CEU


Combined ratio



Combined ratio well below group target

The new internal reinsurance agreement has an important impact on

the combined ratio. For sake of comparability of the performance the

pro forma combined ratio commented in this section excludes all

impacts from this internal reinsurance agreement.

Combined ratio

Q2 Combined ratio of consolidated companies ended at 88.8%,

reflecting a continued excellent operating performance

Q2 Combined ratio in Turkey (@99.4% vs. 99.9%) stable

Claims ratio

CY ratio improved versus LY, driven by Motor & excellent ratio in

Household

PY ratio: PY releases slightly decreasing over the 6M period

Expense ratio improved compared to LY

403 415 454 664 768 594 292 319 148 162

59.7 61.9 58.8 64.9 61.4 62.5 63.9 65.4 61.9 65.4

26.6 26.7 25.225.1 26.8 24.8 24.5

24.326.0 26.1

86.3 88.684.0

90.0 88.2 87.3 88.4 89.7 87.9 91.5

2013 2014 2015 2016 2017 2018 6M 186M 19pro

forma

Q2 18 Q2 19pro

forma

CEU

40

Combined ratio

79.360.1

71.5 65.5 70.4 68.0 65.7 64.9 69.1 63.7

29.2

31.6

32.332.5

35.0 35.3 34.934.3 35.7

34.6

108.5

91.7

103.898.0

105.4 103.3 100.6 99.2104.8

98.3

2013 2014 2015 2016 2017 2018 6M 186M 19pro

forma

Q2 18 Q2 19pro

forma

53.5 54.0

36.1 42.3 46.5 48.5 45.8 40.7 40.627.7

38.8 40.3

35.938.0

34.7 34.2 35.0 33.636.0

34.3

92.3 94.3

72.080.3 81.2 82.7 80.8

74.3 76.6

62.0

2013 2014 2015 2016 2017 2018 6M 186M 19pro

forma

Q2 18 Q2 19pro

forma

59.672.3

31.712.1 3.9

72.6 63.0

26.5

92.4

1.3

43.745.1

40.8

41.339.2

41.537.8

38.5

40.5

44.4

103.3117.4

72.5

53.443.1

114.1100.8

65.0

132.9

45.7

2013 2014 2015 2016 2017 2018 6M 186M 19pro

forma

Q2 18 Q2 19pro

forma

Continued excellent operating performance

Other: very small & volatile portfolio


Accident & Health: CoR increased due to higher claims ratio Motor: good performance driven by better claims

Household: very good claims ratio & improved expense ratio

NEP 227 238 255 328 373 318 155 170 79 86 NEP 99 96 94 202 249 188 93 102 47 52

NEP 48 51 70 91 105 74 37 41 19 22 NEP 29 30 35 43 41 13 7 7 4 3

CEU


Operating marginsIn bps Avg techn. liabilities

Guaranteed margin up on lower claims and strong sales ; UL margin down on lower sales

In EUR bn

0 1 20 (1) (2) 0

(1)1

12 5 4 4 3 5 4

9 4 5

16

610

5

93

107 7

21

912

8

12

7

2014 2015 2016 2017 2018 6M 18 6M 19 Q2 18 Q2 19

Operating margin

Expense & other m.

Underwriting m.

Investment m.

95 100 110 111 99 92 98 109 96

77 5976

10680 99 92

10183

(102)(71) (65) (78) (71) (70)

(124)(78)

(184)

70 88121

139108 121 66

133(6)

2014 2015 2016 2017 2018 6M 18 6M 19 Q2 18 Q2 19

Life Unit-Linked

• Decrease driven by lower inflows in all countries, due to

financial markets volatility

• Remains around FY 2018 margin

Life Guaranteed

• Down due to Portugal

• Underwriting margin: slightly up on higher risk margin

• Investment margin: slightly lower due to lower investment

income

• Expense & other margin: impacted by reserve

strengthening related to low interest rate environment


6.3 6.2 6.1 6.0 7.5 7.6 7.7 7.6 7.7 7.6


7.6 7.7 8.0 8.7 7.9 8.1 8.0 8.5 8.0 8.5


Asia


Headlines

In % NEP

*Incl. non-consolidated partnerships @ 100%


164

3247

8

170

331

6M 18 6M 19

Life Non-Life

12,884 14,168

450652

13,33414,819

6M 18 6M 19

Life Non-Life

65.675.3 76.5

FY 18 3M 19 6M 19

87.9

103.2

Q2 18 Q2 19

89.999.3

6M 18 6M 19

Exceptionally high quarter driven by operating performance, capital gains & one-off

4,699 5,077

205 360

4,9045,437

Q2 18 Q2 19

43

182

3

3

46

185

Q2 18 Q2 19

12.0 13.2

0.91.0

12.914.2

6M 18 6M 19

regular single

In EUR bn

Regular premium: strong growth -exceeding 90% of Life inflows

4.3 4.7

0.40.4

4.75.1

Q2 18 Q2 19

Net result : solid operational performance, capital gains & tax change

Inflows* up 12% in Q2 -continued solid growth trend

Life Technical liabilities up 15% YTD

Non-Life COR reflecting acquisition in India

Asia

43

Solid operating performance, higher capital gains and tax benefit

Net result & Life liabilitiesIn EUR mio Net result

Life Technical liabilities


164

3247

8

170

331

6M 18 6M 19

Life Non-Life

43

182

3

3

46

185

Q2 18 Q2 19

65.675.3 76.5

FY 18 3M 19 6M 19

• Exceptionally high Life Net Result driven by :

• Good underlying results from all operating companies;

• Favourable evolution of equity markets leading to higher

capital gains;

• Positive evolution of the interest rates in China;

• Retroactive 2018 tax benefit in China

• Non-Life Result : adverse claims experience and impairments

were offset by favourable cost management

• Life Technical liabilities driven by top line growth and high

persistency levels

Asia

44

Growth in Life driven by renewals –Non-Life inflows supported by all business lines

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio

12,33413,538

549630

12,88314,168

6M 18 6M 19

199

334

53

63

66

84

133

171

451

652

6M 18 6M 19

incl. non-consolidated partnerships @ 100%



Life

• Life gross inflows up 9% in Q2, driven by strong

persistency and continued channel developments

• New business premiums down 11% in Q2, in a

challenging economic environment in China, but more

than compensated by strong persistency with renewals up

19%

• Regular premium up 10% in Q2

Non-Life

• Scope-on-scope inflows up 27% in Q2, supported by all

countries and all business lines, especially Motor (+75%)

and Household (+41%)

• EUR 133 mio contribution from the new Indian activity

since acquisition in Q1

Vietnam: continued rapid growth

Malaysia: up 19%, supported by both Life

and Non-Life

China: up 13% in Q2 driven by strong

renewals

10,98312,322

6M 18 6M 19

Asia

45

Solid growth across the regionInflows per country In EUR mio

1,317 1,196

160175

14771370

6M 18 6M 19

Life Non-Life

10

15

6M 18 6M 19


All growth rates are at constant FX Periodical financial information I Q2 19 results I 7 August 2019

10

22

6M 18 6M 19

440 472

290343

730816

6M 18 6M 19

Life Non-Life

118 127

133

118

261

6M 18 6M 19

Life Non-Life

36 39

91

36

130

Q2 18 Q2 19

3,776 4,1

81

Q2 18 Q2 19

68

6M 18 6M 19

15

36

6M 18 6M 19

222 236

126

181

348

417

Q2 18 Q2 19

India: up 3% in Life – newly acquired

business in Non-Life

Philippines: continued upward trend

649 592

7988

727 679

Q2 18 Q2 19

Thailand: down 13% - impact of paid-

up policies, New business up 28%

In EUR mio

Reinsurance

Headlines

46

In % NEPIn EUR mio

ageas SA/NV

reinsurance activities


2

(34)

6M 18 6M 19

0

(22)

Q2 18 Q2 19

29

1,137

6M 18 6M 19

14

275

Q2 18 Q2 19

91.3% 84.8%


100.8%89.4%


Q2 negatively impacted by exceptional items in the UK

Net result: Q2 negatively impacted by ramp up phase & motor large losses in UK

Inflows: EUR 220 mio in Q2 from new QS agreements

Pro-forma combined ratio benefit from PY releases

Implementation of an internal reinsurance programme within ageas SA/NV in order to

enhance capital fungibility in the group

Non-Life Quota Share (QS) Treaties: 30% with AG Insurance in Belgium*, 30% with Ageas

Insurance Limited in the UK, and 20% with all Portuguese Non-Life Entities

Loss Portfolio Transfers (LPT): 30% with Ageas Insurance Limited in the UK, and 20%

with the Portuguese Non-Life Entities

The reinsurance protection programme formerly carried out by Intreas is now managed by

ageas SA/NV

The Pillar I Solvency II for ageas SA/NV amounted to 353%

47

202

743

144

29

1,137

6M 18 6M 19

Reinsurance

47

Significant one-off impacts Net result & Inflows

Portugal

UK

Former Intreas

Belgium

Quarter

• EUR 220 mio from the new quota share agreements

• EUR 31 mio from prior year unearned premiums in Portugal

• EUR 24 mio from protection programme formerly managed by Intreas

Year-to-date

• EUR 459 mio from the new quota share agreements

• EUR 464 mio from the LPT

• EUR 166 mio from prior year unearned premiums in UK & Portugal

• EUR 47 mio from protection programme formerly managed by Intreas -

strong growth thanks to a new participation in India non-life and in Motor &

Third Party Liability in the UK


Net result

Gross inflows

Quarter

• EUR 5 mio contribution from traditional protection programme

• Negative impact from ramp up phase & motor large losses in the UK

Year-to-date

• EUR 7 mio positive contribution from former Intreas

• EUR 13 mio loss from the QS treaty in Belgium due to bad weather &

prudent initial reserving for CY claims

• EUR 25 mio loss from the UK related to ramp up phase & motor large

losses

• EUR 3 mio loss from Portugal coming from the LPT

24

84

102

65

14

275

Q2 18 Q2 19

2

(34)

7


0

(22)

5


Net result positive following RPN(i) revaluation & lower expensesIn EUR mio

Value legacies – Settlement liability down on payments

Profit driven by positive RPN(i) revaluation & lower

expenses

GA


Headlines

Stable total liquid assets

In EUR mio

Impact on P&L from RPN(i) Lower staff & operating expenses

In EUR bn

In EUR mio

(34)

5

6M 18 6M 19

1812

Q2 18 Q2 19

15 14

2435

39

49

6M 18 6M 19

Staff & Intercompany Operating

9 7

1613

25

20

Q2 18 Q2 19

9

61

6M 18 6M 19

4734

Q2 18 Q2 19

In EUR mioIn EUR mio

Upstream Opcos – EUR 4 mio in Q3

599 629

6M 18 6M 19

(359) (332) (298)

7 5 6

(812)(764)

(626)

FY 18 3M 19 6M 19

RPN(i) RPI Settlement

1.71.5

1.7

FY 18 3M 19 6M 19

GA


Cash upstream covering paid dividend, holdcocosts & part of SBB

Cash position

In EUR mio

All upstreams received from operating companies – EUR 4 mio received in Q3

Successful issue of Tier 2 bond & loan to Belgian opco

M&A relates to India & capital injections in The Philippines

2018 SBB finalised – 9th consecutive SBB announced

EUR 0.6 bn ring-fenced for Fortis settlement

≈ 600≈ 900

settlementsettlement

SBBSBBM&A

(416) (190)(129)

(53)

(72)(10)

629 275

(17)

FY 18 Upstream Dividend Cap mgmt M&A Settlement HQ & ROexpenses

Sharebuy-back

Other 6M 19

HQ

RO

GA


Successful issuance of debt at holding level in April 2019Outstandinghybrids

In EUR mio ageas SA/NV Ageasfinlux

Fixed-to-Floating

Rate Callable

Tier 2

Fresh

Tier 1

Fixed-to-Floating Rate

Callable

Tier 2

Fixed Rate Reset Perpetual

Subordinated LoansTier 1

Fixed Rate Reset Dated

Subordinated NotesTier 2

CASHES

% 3.25%3m EUR + 135

bps5.25% 6.75% 3.5% 3m EUR +200 bps

Amount outstanding 500 1,250 450 550 USD 400 948

ISIN BE0002644251 XS0147484074 BE6261254013 BE6251340780 BE6277215545 BE0933899800

Call dateJuly 2029

Step up to 3M Euribor +380 bps

Undated, strike 315.0 mandatory

472.5

June 2024

Step up to 3M

Euribor +413 bps

Mar 2019

Step up to 6yr USD

swap + 533 bps

June 2027

Step up after 12

years of 100bps

Undated,

strike 239.4,

mandatory 359.1

Other Public issue

Subscribed by

Ageas & BNP

Paribas Fortis

Public issue Public issue

Coupon served by

FBB, trigger

ACSM linked to

Ageas dividend

Market Price (30/06/19) 104.63 48.30 115.70 107.96 72.16

Fortis Bank (now BNP PF)

AG Insurance (Belgium)


ContentSlides used during analyst call 2




Legal Settlement 68


Equity


Equity up on net result & positive impact of financial markets

In EUR mio

6,799 6,888

2,613 3,337

606 725 40

(416) (74) (54) (13)

EUR 48.42 EUR 53.07

9,411

10,225

FY 18 result changeUG/L

dividend treasuryshares

FX IAS 19 other 6M 19

Shareholders’ equity

per segment Belgium 4,843 ► 4,947 Asia 2,354 ► 3,132

UK 896 ► 921 Reinsurance 116 ► 91

Continental Europe 1,220 ► 1,259 General Account (17) ► (124)

Shareholdersequity

Equity per share

Unrealised gains &

losses

Equity per segment

Equity


Debt leverage slightly down on debt initiativesTangible net equity

I page 53

FY 18 6M 19

IFRS Shareholders' Equity 9,411 10,225

Unrealised gains real estate 649 499

Goodwill (602) (595)

VOBA (Value of Business Acquired) (73) (65)

DAC (Deferred Acquisition Cost) (408) (422)

Other (423) (459)

Goodwill, DAC, VOBA related to N-C interests 331 347

25% tax adjustment DAC, VOBA & Other 146 153

IFRS Tangible net equity 9,031 9,682

IFRS Tangible net equity/ IFRS Shareholder's Equity 96% 95%

Debt leverage on tangible net equity * 20.2% 19.7%

* Leverage calculated as

(Subordinated liabilities + Senior

debt) / (Tangible net equity +

Subordinated liabilities + Senior

debt)

In EUR mio

Solvency


Solvency strong despite drop in yield curveSolvency IIageas

Solvency IIageas

in %

Own Funds

SCR

Non EU

Non-controlled

participations*

Belgium UK CEU Reinsurance GA eliminations Group

2.7 2.8 2.9

0.5 0.5 0.5 0.6 0.6 0.6

0.1 0.30.3 0.1 0.1 0.1

(0.3) (0.5) (0.5)

3.7 3.9 4.0

2.4 2.8 2.8

6.46.0

6.3

0.8 0.9 0.81.0 1.0 1.0

0.1

0.6 0.6

1.3

0.5

1.0

(1.7) (1.6)(1.9)

8.0

7.57.9

5.8

6.6 6.6

FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19 FY 18 3M 196M 19

235% 215% 223% 167% 175% 161% 178% 170% 160% 196% 200% 192% 215% 194% 201% 241% 237% 236%

Solvency II


Expected dividend over the 6M period covered by positive impact from operations

Solvency IIageas

Impact on Solvency IIageas* FY ’18 6M ’19

215 201%

3M ’19 6M ’19

194% 201%

Debt initiatives +4 pp Call in Q1 / Issuance in Q2 +13%

Model refinements - 1 pp -2 pp

Market movements (incl. RPN(i))

-6 pp(+2 pp)

Yield curve 0 pp

(+1 pp)

Internal reinsurance & Ogden -4 pp LACDT, diversification & Ogden -1 pp

Operational +7 pp +3 pp

Acquisition India -5 pp Outside Solvency II scope

SBB -2 pp -1 pp

Expected dividend -7 pp - 4 pp

* Impact including secondary impact, diversification & non-transferable



Operational FCG of EUR 257 mio

2,143

1,769

414

271

163 58(15)

(97)

(119)

(185)

(416)

2,557

2,040

94


Operationalimpact

Exceptionalitems

Capitaltransactions


expected

dividend

Operational impact – includes EUR 94 mio dividend upstream Non-European NCP’s

Market: sharp drop in yield curve

Exceptional items: implementation new internal reinsurance agreements & Ogden

Capital transactions = call & issue debt instruments, SBB & injection in Asia

M&A: Acquisition in India

* FCG Non-European NCP’s of

EUR 294 mio over Q1 2019 of

which EUR 113 mio operational, is

not included

Based on 175% SCR

Solvency IIageas

Solvency IIageas

In EUR mio*



Evolution SCR & OF split between types of impact Solvency IIageas

Own Funds

SCR

7,999 7,945

414 27115

71282

58(21) (185)

(416)

8,412 8,217


Operationalimpact

Exceptionalitems

Capitaltransactions


3,728

3,955

135

1556


Operationalimpact

Exceptionalitems

Capitaltransactions


In EUR mio



Operational FCG driven by Belgium – Initial negative impact from start internal reinsurance

Exceptional YTD

OF SCR FCG internal reinsurance

& ogden

Belgium 265 (22) 304 7 OF affected by bad weather

UK 8 23 (32) 28 large Motor losses

SCR up on expected book increase

CEU 71 21 35 25 OF driven by operating performance

SCR up on asset mix changes

Reinsurance 8 11 (12) (478) SCR up on build-up of accepted risks

General Account 10 5 1 (15) including dividend NCP's

Group eliminations (79) (23) (38) 314 new accepted risks highly diversified

Total Ageas 282 15 257 (119) stable OF generation

Solvency II scope

Operational YTD

In EUR mio

Solvency IIageas

Solvency

59

High Solvency ratio providing resilience against market or other external evolutions

Solvency IIageas

sensitivities

As per 31/12/18

SCR OF Solvency

Base case Before stress 3,728 7,998 215%

Yield curve Down 50 bps 3,837 7,883 205%

Up 50 bps 3,619 8,060 223%

Equity Down 25% 3,682 7,704 209%

Property Down 10% 3,788 7,728 204%

Spread* Spreads on corporate & government bonds up 50 bps 3,724 7,693 207%

Corporate spread Up 50 bps 3,698 7,895 213%

Sovereign spread Up 50 bps 3,758 7,796 207%

UFR – base case 4.05% Down 15 bps 3,730 7,989 214%

Down 45 bps 3,750 7,944 212%

* Spread sensitivity doesn’t take into

account any credit rating movement Periodical financial information I Q2 19 results I 7 August 2019

Solvency


Solvency strong despite drop in yield curvePIM

Solvency II PIM

in %

Own Funds

SCR

* Based on local solvency

requirements

2.8 3.0 3.1

0.5 0.5 0.5 0.5 0.5 0.50.1 0.3 0.3 0.1 0.1 0.1 (0.3) (0.5) (0.5)

3.7 4.0 4.1

2.4 2.8 2.8

6.35.8

6.1

0.9 0.9 0.81.4 1.4 1.4

0.10.6 0.6

1.3

0.51.0

(1.9)(1.7)

(2.0)

8.1 7.5 8.0

5.8

6.6 6.6

FY 18 3M 19 6M 19 FY 18 3M 19 6M 19 FY 18 3M 19 6M 19 FY 18 3M 19 6M 19 FY 18 3M 19 6M 19 FY 18 3M 19 6M 19 FY 18 3M 19 6M 19 FY 18 3M 19 6M 19

In EUR bn

Belgium UK CEU Reinsurance GA eliminations Group Non EU

Non-controlled

participations*

222% 195% 195% 169% 168% 156% 288% 283% 276% 191% 197% 190% 216% 190% 194% 241% 237% 236%

Solvency

61

Ageas asset mix not in line with EIOPA reference portfolio

PIMsensitivities

As per 31/12/18

SCR OF Solvency

Base case Before stress 3,728 8,059 216%

Yield curve Down 50 bps 3,801 7,985 210%

Up 50 bps 3,648 8,092 222%

Equity Down 25% 3,671 7,762 211%

Property Down 10% 3,759 7,801 208%

Spread* Spreads on corporate & government bonds up 50 bps 3,928 7,446 190%

Corporate spread Up 50 bps 3,618 8,048 222%

Sovereign spread Up 50 bps 4,101 7,440 181%

UFR – base case 4.05% Down 15 bps 3,730 8,049 216%

Down 45 bps 3,740 8,004 214%

* Credit rating movement not taken

up in spread sensitivity Periodical financial information I Q2 19 results I 7 August 2019

( 1.4 ) ( 1.5 ) ( 1.6 )

( 1.0 ) ( 1.1 ) ( 1.2 )

( 0.9 )( 0.9 ) ( 0.9 )

4.4 4.7 4.9

0.4 0.3

0.4 0.6 0.7

0.8 0.3 0.4

0.4 0.7 0.8

0.8 0.5 0.5

0.5 3.7 4.0 4.1

FY 18 3M 19 6M 19

Non Diversifiable

Non-life UW

Health UW

Life UW

Counterparty Default

Market

Loss-Absorption Deferred Taxes

Loss-Absorption Techn. Liab.

Diversification

Solvency


Composition of SCR & OFComposition of SCR & OF

Diversification

Loss-Absorption Deferred Taxes

Insurance SCRageas per risk type

Market risk main factor in SCR

Tiering of Group PIM own funds

High quality of own funds

5.6 5.6 5.5

1.4 1.3 1.3

1.0 0.6

1.2

0.1

0.1 0.1

8.1

7.5 8.0

FY 18 3M 19 6M 19

Tier 3

Tier 2

Tier 1 restricted

Tier 1

In EUR bn


Content





Legal Settlement 68


Investment portfolio


Investment portfolio up on higher UG/L

* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs

Gross UG/L on

Available for Sale

Gross UG/L on Real

Estate

Gross UG/L on Held

to Maturity

Sovereign bonds 36.9

Sovereign bonds 38.7

Corporate bonds 19.9

Corporate bonds 20.9

Structured0.1

Structured0.1

Loans9.7

Loans10.2

Equities 4.5

Equities 4.2

Real Estate5.6

Real Estate5.7

Cash 2.9

Cash 3.179.682.9

FY 18 6M 19

Total portfolio: up to EUR 8.9 bn (vs. EUR 5.9 bn)

Fixed income: up to EUR 8.3 bn (vs. EUR 5.6 bn)

° Sovereigns at EUR 6.7 bn (vs. EUR 4.6 bn)

° Corporates at EUR 1.6 bn (vs. EUR 1.0 bn)

Equities: up to EUR 0.6 bn (vs. EUR 0.4 bn)

at EUR 1.9 bn

• not reflected in shareholders’ equity

Up to EUR 2.5 bn (vs. EUR 1.9 bn)

• not reflected in shareholders’ equity

Ageas Group has joined the commitment to incorporate ESG issues into its investment analysis

and decisions and signed on behalf of all its consolidated entities the UN PRI

In EUR bn



Value fixed income assets up on higher UG/L


Corporate bond

portfolio*

Belgium18.0

Belgium18.5

France 6.3 France 6.7

Austria 2.6Austria 2.7

Portugal 2.4Portugal 2.7

Spain 1.8Spain 2.2Italy, 1.2Italy, 1.4Germany 1.2

Germany 1.2Ireland 0.5

Ireland 0.6Other 2.9

Other 2.736.9

38.7

FY 18 6M 19

Banking 3.1 Banking 3.1

Other financials 2.1

Other financials 2.4

Non Financials

11.2

Non Financials

12.1

Government related 3.4

Government related 3.4

19.920.9

FY 18 6M 19

Gross UG/L up to EUR 6.7 bn (vs. EUR 4.6 bn)

Over 99% investment grade; 89% rated A or

higher

Belgium duration gap close to zero – matched

portfolio


Credit quality remains high with 91%

investment grade - 54% rated A or higher

Sovereign bond

portfolio*

In EUR bn



More infrastructure loans

In EUR bn


Equity portfolio*

Loan portfolio

(customers & banks)*

Higher exposure in infrastructure loans

Other: mostly government related loans

benefiting from an explicit guarantee by

the Belgian regions, the French State or

the Dutch State


Equities 2.2 Equities 2.3

Equity funds0.3

Equity funds0.3

RE funds 0.9 RE funds 0.9

Mixed funds & others 1.1

Mixed funds & others 0.7

4.54.2

FY 18 6M 19

Loans to banks0.9 Loans to

banks 0.7

RE 0.1RE 0.2

Infrastructure0.9

Infrastructure0.9

Mortgages 1.2 Mortgages 1.2

Other 6.6 Other 7.2

9.710.2

FY 18 6M 19



Real Estate exposure mainly in Belgium


Real estate portfolio* Gross UG/L at EUR 1.9 bn (not reflected

in shareholders’ equity but contributing to

available capital for solvency calculation)

In EUR bn

Investment Offices 2.4

Investment Offices 2.4

Car Parks1.2

Car Parks1.3

Investment Retail 1.3

Investment Retail 1.3

0.3 0.30.4 0.3

5.6 5.7

FY 18 6M 19


Content





Legal Settlement 68


Legal


Settlement in full execution mode

Ageas offers to pay EUR 1.2 bn compensation – additional effort of EUR 0.1 bn announced

16/10/2017

Cash impact of EUR 1.0 bn

No recognition of any wrongdoing by Ageas

Commitment by eligible shareholders to abandon any ongoing civil proceeding & not to start

any legal proceeding related to the events

Publication of binding declaration notice on 27/07/2018 launched execution of the settlement

Early filing & opt-out period ended on 31/12/2018

< 250 opt-outs received for ≈1% of total settlement amount*

Computershare Investor Services plc acting as independent claims administrator

Further information available on www.FORsettlement.com

≈290K claims received of which ≈159K have received early payment

≈EUR 593 mio compensation paid to eligible shareholders of which EUR 140 mio coming from

D&O insurers – more payments scheduled

Due to higher than expected number of claims dilution possible in certain cases

70% of estimated per share compensation guaranteed for claimants filing before 31/12/2018

Announcement

14/03/2016

Court’s decision to declare the settlement binding on 13/07/2018

Binding declaration and

claims filing period

Claims validation &

payments ongoing

Claims filing ended on 28/07/2019

* Based on indicative per share

compensation & per 28/07/2019

http://www.forsettlement.com/

Legal


Proceedings related to the past that remain outstanding

Administrative proceedings

Criminal investigation

Civil proceedings

Other proceedings

None

Public prosecutor has announced discontinuation of proceeding

Public prosecutor has to present his proposal to Chambre du Conseil on referral

Opt-out cases from settlement

< 250 opt-outers for ≈1% of settlement amount

Patrinvest: first instance in favour of ageas, appeal filed by plaintiff

Several individual cases

Mr. Modrikamen: suspended awaiting outcome criminal procedure

MCS: appeal Court ruled in favour of ageas, appellants filed appeal before Supreme

Court






Legal Settlement 68


Outstandingshares


Another 4 mio shares canceled at Shareholders’ meeting in May 2019

* After deduction of shares for management plans

*

Total Issued Shares

Shares not entitled to dividend nor voting rights

1. TREASURY SHARES Share buy-back

FRESH

Other treasury shares

2. CASHES

Shares entitled to dividend & voting rights

situation 31/12/2018 situation 30/06/2019 situation 02/08/2019

203,022,199 198,374,327 198,374,327

12,574,985 9,629,223 10,413,819

4,647,872 1,702,110 2,486,706

3,968,254 3,968,254 3,968,254

0 0 0

3,958,859 3,958,859 3,958,859

190,447,214 188,745,104 187,960,508

Shareholdersstructure


Ageas3.3%

Ping An

BlackRock, Inc.

Schroders

Fosun Identified retail investors

22%

Identified institutional investors

45%Other

investors14%

Based upon press release 13 May 2019

Based upon the number of shares mentioned in the notification received 6 May 2013

Based upon the number of shares mentioned in the notification received 2 August 2019

Based upon the number of shares mentioned in the notification received 8 June 2018

Based upon the number of shares mentioned in the notification received 16 May 2019

Estimate by

Estimate by

Ageas

Ping An

BlackRock, Inc.

Schroders

Fosun

Identified retail investors

Identified institutional investors

Financial calendar


20 February

FY 2018 results

15 May

3M 2019 results

15 May

Ordinary shareholders’ meeting

Brussels

27 May

Ex-dividend date

5 April

Annual report 2018 29 May

Payment 2018 dividend

7 August

6M 2019 results

6 November

9M 2019 results

14 November

9M 2018 results

Ratings


S&P MOODY'S FITCH

Operating entities AG Insurance (Belgium) A / stable A2 / stable* A+ / stable

Last change 22/11/18 26/03/19 07/12/18

unsollicited

Ageas Insurance Limited A / stable A+ / stable

Last change 06/11/15 23/11/16

Muang Thai Life BBB+ / stable A- / stable

Last change 27/11/17 01/04/19

Etiqa Insurance Berhad (Malaysia) A / stable

Last change 11/04/19

China Taiping Life A+ / stable


Intreas A / stable


Holding ageas SA/NV A / stable A3 / stable* A+ / stable

Last change 10/12/18 25/03/19 07/12/18

unsollicited

* Ageas has requested in early 2009 that this rating should be withdrawn. Ageas no longer participates in Moody's credit rating process.

Ageas does not provide, for purposes of Moody's rating, access to the books, records and other relevant internal documents of these rated entities.


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.

Investor Relations

Tel:

E-mail:

Website:

+ 32 2 557 57 32

[email protected]

www.ageas.com

q2 2019 results - ageas · 2019-08-07 · q2 18 q2 19 result benefited from ogden rate review &...

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