full year results 2012
TRANSCRIPT
9M Periodical Financial
Information
FY Periodical Financial
Information
2012 RESULTS
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information 1
Strong Insurance results across Life & Non-Life in all segments Group net result both Insurance & General Account contributing Shareholders’ equity up Solvency solid
Insurance net profit of EUR 624 mio Inflows at EUR 21.3 bn (+24%)
Group combined ratio at 99.1% (vs.100.1%)
Life Technical Liabilities at EUR 68.8 bn* (+7%)
Q4 Insurance net profit of EUR 175 mio Q4 Inflows at EUR 5.8 bn
Group net profit of EUR 743 mio
General Account net result of EUR 119 mio
Shareholders’ equity at EUR 42.75 per share
Insurance solvency at 206%, Group solvency at 231%
Net cash position General Account at EUR 1.2 bn
Main messages FY 12 results Ageas confirms strong insurance results
Periodic Financial Information I FY 12 Results I 20 February 2013 2
Proposed gross cash dividend of EUR 1.2 per share, up 50%
* Consolidated entities only
100.1% 99.1%
FY 11 FY 12
Insurance net result: 2011 heavily impacted by impairments In EUR mio In EUR mio
Insurance solvency stable* Combined ratio further improving in claims & expenses
Insurance excl. impairments: improving Life & Non-Life
227%
Shareholders’ equity up on net profit & unrealized gains EUR per share
210%
* Based on regulator’s view / ** pro forma recalculation for reverse 10 to 1 stock-split
207% 207% 206%
FY 11 FY 12
32.3042.75
FY 11 FY 12
Both Insurance & General Account contributing to group net result In EUR mio
(313)
624
(265)
119
(578)
743
FY 11 FY 12
Insurance General Account
Headlines Ageas confirms strong insurance results
Periodic Financial Information I FY 12 Results I 20 February 2013
(425)
430
82
223
30
(28)
(313)
624
FY 11 FY 12
Life Non-Life Other
**
446 501
11917230
11595683
FY 11 FY 12Life Non-Life Other
3
+15%
Periodic Financial Information I FY 12 Results I 20 February 2013 4
Confirm & further improve operational performance Adjusted net result up 15%
Life adjusted operating performance up 12%
Non-Life combined ratio further improved
Review/ Rethink strategic asset allocation Announcement to invest into infrastructure loans
Further reduction of SE sovereigns
Make further progress on unwinding legacy issues Settlements with BNP P and ABN AMRO & Dutch state resulted in substantial decrease in complexity legacy issues
Disciplined capital management Selective acquisitions : Groupama UK
Strong increase dividend : +50%
2nd share buy back announced in August nearly completed
Prepare for regulatory changes Solvency II internal preparation on track; deadlines delayed at European level
Announced Vision 2015 sets targets for the coming years
Ageas’s operational priorities 2012 Update on their status of realization
(3)
(299)
27
(274)
9 (28) 30
129
140
Progress in unwinding legacy issues Settlements reached in 2012 reduce complexity General Account
5
In EUR mio
----------------------- EUR (132) mio
net result impact of agreement
RPN(I) EUR (272) mio Revaluation between 31/12/12
& settlement date Indemnification paid to BNP P for
partial settlement & transaction costs
Tier 1 EUR 140 mio Revaluation: difference between amount
recieved & book value Amortisation Deferred tax impact Interest between 31/12/12 & 07/02/12
Interest
With BNP P on CASHES With ABN AMRO & Dutch state
Closing of all outstanding disputes between Dutch State & Ageas re equity transactions which resulted in take-over
Discontinuing of legal proceedings initiated by Ageas re MCS & FCC
One-off cash payment by ABN AMRO & net result impact of EUR 400 mio
Periodic Financial Information I FY 12 Results I 20 February 2013
Net cash wisely spent Balanced use of cash since 2009
Periodic Financial Information I FY 12 Results I 20 February 2013 6
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 – December 2012:
+/- EUR 0.9 bn +/- EUR 600 mio UK (Tesco, KFIS,
Castle Cover, Groupama) +/- EUR 200 mio CEU (Italy, Turkey) +/- EUR 100 mio Asia (India, HK)
+/- EUR 1.1 bn +/- EUR 600 mio constant dividend
over 2009, 2010 & 2011 EUR 450 mio share buy-back
finalized early 2013
+/- EUR 0.8 bn redemption in EMTN programme
+ EUR 270 mio proposed dividend 2012
Going forward : Lower growth in capital intensive savings business Increased proportion of Non-Life related business
7
Ageas grows selectively its insurance portfolio A view on our latest acquisitions and partnerships
Rationale of acquisition represents a strong strategic fit complements Ageas UK’s multi-channel distribution approach strengthens its presence in UK broker market
Our new position in the UK Pro forma FY 11 inflow of GBP 2.1 bn (EUR 2.4 bn) No 5 Non-Life Insurer (5.2% market share FY 11) No 4 Private Motor (11.7%) & No 4 Personal lines (7.1%) Groupama COR at 97.8%
Financial impact of acquisition Total consideration paid of EUR 145 mio EUR 63 mio badwill recognized EUR (6) mio reorganization costs
Groupama in FY 2012 results 6 weeks consolidated EUR 63 mio inflow EUR 4 mio net profit
Periodic Financial Information I FY 12 Results I 20 February 2013
Periodic Financial Information I FY 12 Results I 20 February 2013
Ageas proposes a dividend over 2012
Proposed gross dividend in cash 1.2 Euro per share
Up 50% on 2011
In line with 40%-50% pay-out ratio set out in dividend policy
Dividend to be approved at AGM on 24 April 2013 in Brussels
26 April : Ex-dividend date
6 May : Payment 2012 dividend
8
Periodic Financial Information I FY 12 Results I 20 February 2013
Buy-back programme launched as of 13 August
For an amount up to EUR 200 mio
For period ending 19 February 2013 at the latest
Independent broker mandated to execute programme
Open market purchases on NYSE Euronext Brussels
Shares to be held as treasury shares until formal approval of cancellation
On 31 December, Ageas bought back 7.1 mio shares (2.9%) for a total amount of EUR 137 mio
As per 15 February, Ageas acquired 9 mio shares for a total amount of EUR 188 mio (corresponding to 3.77% of the total amount of outstanding shares)
On 19 February, the Board of Ageas has decided to
postpone end of authorized period beyond 19/02/13 until full amount of EUR 200 mio is reached
propose cancellation of the shares bought back until 15 February 2013 on the next Shareholders’ meeting
Ageas announced a share buy-back programme on 6 August Ageas will complete its existing share buy-back programme
9
Periodic Financial Information I FY 12 Results I 20 February 2013
Evolution on realizing the targets set for 2015 As communicated at Investor Day 2012
FY 12 at 67/33 vs. 66/34 Calculation based on Inflows @ Ageas’s part (details slide 29)
FY 12 at 99.1% vs. 100.1% Calculation based on Non-Life Net Underwriting result in % Net earned premiums
FY 12 at 8.7% vs. (5.5%*) Calculation: Insurance result in % average Insurance equity
FY 12 at 12.1% vs. 15.2% Calculation: Equity of Turkey, China, Malaysia, Thailand & India as % Insurance equity
10 * ROE 2011 on adjusted basis of 7.1%
Creation of COO function Focus on realization Insurance targets & co-operation between companies
Periodic Financial Information I FY 12 Results I 20 February 2013 11
CFO
Bart De Smet
Christophe Boizard Kurt De Schepper
Antonio Cano
Barry Smith
Gary Crist Steven Braekeveldt
Executive committee
GRO
Emmanuel Van Grimbergen
CEO Belgium CEO UK CEO Asia CEO Continental Europe
Management committee
Board
CEO
CRO
COO
Andy Watson
responsible for • implementation of Group strategy • achievement of the targets set at Investor Day 2012 • further knowledge transfer & best practices sharing
in position to further strengthen focus on • Ageas’s strategic development • relations with investors, partners & external market • active involvement in operating entity Boards
EUR mio FY 12 FY 11 Q4 12 Q4 11
Gross inflows 21,269 17,220 5,805 4,336 - of which inflows from non-consolidated partnerships 10,215 5,982 2,933 1,522
Net result Insurance 624 (313) 175 (104)By segment: - Belgium 324 (327) 108 4 - UK 108 86 22 24 - Continental Europe 64 (8) 15 4 - Asia 129 (64) 30 (136)By type: - Life 430 (425) 137 (137) - Non-Life 223 82 79 25 - Other (28) 30 (41) 7
Net result General Account 119 (265) 50 60Net result Ageas 743 (578) 225 26
Earnings per share (in EUR) 3.13 (2.27)
Combined ratio 99.1% 100.1% 102.3% 99.9%Life technical liabilities (in EUR bn) * 68.8 64.4
Insurance Solvency 206% 207%
Shareholders' equity 9,911 7,760Net equity per share (in EUR) 42.75 32.30 *** Consolidated companies only // ** Following the reversed stock split completed on 7 August 2012, Ageas’s net equity per share has been multiplied by 10
Key financials FY 12 Y-o-Y comparison net result difficult, all ratios improving
Periodic Financial Information I FY 12 Results I 20 February 2013 12
Net result: 2011 impairments In EUR mio In EUR mio
Life Underwriting margin solid* Non-Life Combined ratio improving
Result excl. impairments
227% 210% 207%
Robust inflow growth In EUR mio
Headlines Belgium Strong Life inflows, Good operating performance in Life & Non-Life
Periodic Financial Information I FY 12 Results I 20 February 2013
**
13
321 313
39 70
360 383
FY 11 FY 12Life Non-Life
(330)
260
3
65
(327)
324
FY 11 FY 12
Life Non-Life
4,508 5,127
1,6711,759
6,1796,886
FY 11 FY 12Life Non-Life
101.1% 99.5%
FY 11 FY 12
0.28% 0.29%
FY 11 FY 12
(344)
419
68
113
(276)
532
FY 11 FY 12
Life Non-Life
Investment result In EUR mio
+11%
* in % of average technical liabilities
Net result In EUR mio In EUR mio
Other result adjusted**
Result excl. impairments
227% 210% 207%
Inflow flat at constant FX In EUR mio
Headlines UK Solid Non-Life results
Periodic Financial Information I FY 12 Results I 20 February 2013
**
14
In EUR mio
(4) (0)61
13730
(28)
86
108
FY 11 FY 12
Life Non-Life Other
(4)51
80
30
1186 91
FY 11 FY 12
Life Non-Life Other
6185
FY 11 FY 12
99.9% 99.8%
FY 11 FY 12
In EUR mio
* 2012 adjusted for EUR 63 mio badwill on GICL, EUR (15) mio reorganisation costs & EUR 4 mio net result GICL //** 2011 adjusted for EUR 9 mio incentive payment; 2012 adjusted for EUR (31) mio impairment charge , EUR (8) mio accelerated amortisation EUR (4) mio GICL transaction costs
+10%
Non-Life Combined ratio below 100% Non-Life result adjusted*
21 16
FY 11 FY 12
51 86
1,983 2,143
2,035 2,229
FY 11 FY 12
Life Non-Life
Net result: FY 11 hit by impairments In EUR mio In EUR mio
Non-Life Combined ratio improving
Result excl. impairments
227% 210% 207%
Inflow growth due to scope change** In EUR mio
Headlines Continental Europe Improved operational performance
Periodic Financial Information I FY 12 Results I 20 February 2013
**
15
Continued cost containment In EUR mio
(19)
50
11
14
(8)
64
FY 11 FY 12
Life Non-Life
47 52
1114
58 65
FY 11 FY 12Life Non-Life
2,2193,246
630
1,0262,849
4,272
FY 11 FY 12Life Non-Life
96.7%93.4%
FY 11 FY 12
0.57% 0.67%
FY 11 FY 12
Life Underwriting margin*
186154
FY 11 FY 12
* in % of average technical liabilities // ** Luxembourg, Turkey
+50%
Net result* In EUR mio In EUR mio
Non-Life Combined ratio
Result excl. impairments
227% 210% 207%
Inflow In EUR mio
Headlines Asia Strong inflows, Excellent year for Life, Non-Life profits held back by impact Thai floods
Periodic Financial Information I FY 12 Results I 20 February 2013
**
16
(72)
121
8
8
(64)
128
FY 11 FY 12
Life Non-Life
83
1378
8
91
144
FY 11 FY 12Life Non-Life
102.0%99.3%
FY 11 FY 12
5,5517,131
607
7516,158
7,882
FY 11 FY 12Life Non-Life
Net result Hong Kong
(84)
34
FY 11 FY 12
Net result non-conso’s
32
109
FY 11 FY 12
+28%
* Includes net result Hong Kong, non-consolidated partnerships & regional costs
3
90
(221)
(70)
69
(5)
14
60(21)
50
400 (132)
(2)
104 (161)
(91)
119
Deal withABN Amro &Dutch State
Agreementwith BNP
on CASHES& Tier 1
RPN(I)revaluation
RPI BNPCall option
Other GeneralAccount
4Q 129M 12
General Account: components of Net result Excellent results RPI over the year, Q4 mainly up on revaluation BNP P call option
Periodic Financial Information I FY 12 Results I 20 February 2013
In EUR mio
17
EUR 209 mio FY 12 impact of legacies
3
1.3
2.8
1.0
2.6
0.9
2.3
0.7
2.2
0.5
2.1
0.2
2.1
1.0 0.8 0.71.3 1.3 1.3 1.1
1.5 1.4 1.2
FY 09 3M10 6M10 9M10 FY10 3M11 6M11 9M11 FY11 3M12 6M12 9M12 FY12
Net cash position General Account at EUR 1.2 bn Significantly up after agreements in H1; impact buy-back & acquisition Groupama
The agreements with Fortis Bank & BNP P on the CASHES & Tier 1 (Q1) & with ABN AMRO & Dutch State on legal proceedings (Q2) had a joined positive impact on net cash position of EUR 1.1 bn
2011 dividend of 8 eurocent per share brought cash down with EUR 0.2 bn (Q2)
Further impacted by share buy-back programmes & funding of Groupama acquisition
Quarterly evolution net cash position* In EUR bn
* Until 6M 11 known as discretionary capital
in EUR mio FY 11 FY 12
Cash and cash equivalents 345 402Due from banks short term 600 1,000Debt certificates (EMTN) (257) (187)
Net cash position 688 1,216
Periodic Financial Information I FY 12 Results I 20 February 2013
Share buy-back programme announced 6 August 2012 will further reduce net cash
Net cash Discretionary capital
18
Investment portfolio as per 31 December 2012 Value up as result of volume growth & unrealized gains/losses In EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Increase mainly explained by volume growth, both in existing & new business and by unrealized gains/losses
Gross unrealized gains/losses up to EUR 6.7 bn on portfolio (EUR 1.8 in FY 11) mainly in fixed income
Investments in Belgian government bonds & corporate Non-Financials up
Infrastructure loans (part of loans to customers): 2 projects on balance sheet for EUR 0.1 bn; further commitments & outstanding bids for EUR 0.3 bn
Fixed Income
Gross unrealized gains/losses at EUR 5.2 bn; EUR 0.6 bn FY 11 Unrealized gain Sovereigns at EUR 3.3 bn Unrealized gain Corporates at EUR 1.9 bn
Equities
Gross unrealized gains up to EUR 0.2 bn vs. nearly breakeven end 2011
Real Estate
Gross unrealized gains marginally up to EUR 1.3 bn
Investment portfolio*
31.5 34.7
21.4
25.1
0.5
0.32.9
2.62.8
3.7
1.8
2.44.3
4.72.7
2.467.9
75.9
FY 11 FY 12
Cash & equivalents
Real Estate
Equities
Loans to customers
Loans to banks
Structured creditinstruments
Corporate bonds
Sovereign bonds
Periodic Financial Information I FY 12 Results I 20 February 2013 19
Insurance :
Continued strengthening & solidifying of business model in all countries
Overall improvement of operational performance
Balance sheet remains strong
General Account:
Important headway in solving legacies Complexity General Account further
reduced
2012 dividend strongly up Full commitment to deliver against the
Vision 2015 targets in 2013 and beyond
Conclusions
Periodic Financial Information I FY 12 Results I 20 February 2013 20
Investor Day 2013 Update on Vision 2015
Periodic Financial Information I FY 12 Results I 20 February 2013 21
Investor Day 2013 18 September 2013
Andaz Hotel - London
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Shareholders’ equity / share
Shareholders’ equity as per 31 December 2012 Up driven by unrealized gains, net profit & revaluation put option In EUR mio
Periodic Financial Information I FY 12 Results I 20 February 2013 23
5,582 6,306
423
1,9311,755
1,673624 119
1,540 208 8(188) (160)
EUR 32.30 EUR 42.75
7,760
9,911
FY 11 Net resultInsurance
Net resultGen Account
Change UG/L Dividend Buy back Revaluationput option
Forex& other
FY 12
InsuranceUG/L
InsuranceUG/L
Equity per segment FY 11 FY 12 FY 11 FY 12
Belgium 2,381 ► 4,028 Asia 1,687 ► 1,837UK 1,008 ► 1,183 Insurance 6,005 ► 8,237Continental Europe 929 ► 1,190 General Account 1,755 ► 1,673
Tangible net equity as per 31 December 2012 High quality capital structure
10/03/2010 I page 24 Periodic Financial Information I FY 12 Results I 20 February 2013
EUR bn FY 12 FY 11
Reported net Shareholders' Equity 9.9 7.8Unrealised gains real estate 0.6 0.6Goodwill (incl RPI) (0.7) (1.1)VOBA (Value of Business Acquired) (0.4) (0.4)DAC (Deferred Acquisition Cost) (0.9) (0.7)Other (0.4) (0.4)Goodwill, DAC, VOBA related to N-C interests 0.5 0.425% tax adjustment DAC, VOBA & Other 0.3 0.3
Tangible net equity 9.0 6.5
Tangible net equity / Reported net Shareholder's Equity 91% 84%
24
IFRS Solvency as per 31 December 2012 Insurance ratio stable, Ageas ratio impacted by value put option on AG Insurance
Periodic Financial Information I FY 12 Results I 20 February 2013 25
2.3 2.4
0.4 0.5 0.6 0.6 0.4 0.5
3.6 4.0 3.6 4.0
1.7 1.8
0.5 0.6 0.4 0.8 0.8 0.9
3.94.2
1.1 1.0
5.05.2
174%176%
234%224%
172%244% 292%
268%
207%206%
237%231%
3.9 4.2
0.91.1
1.01.4 1.3
1.4
7.58.2
8.69.2
FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12
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
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Detailed overview inflows By segment/business @ 100%
Periodic Financial Information I FY 12 Results I 20 February 2013 27
*
* Ageas holds a 50% stake in Tesco Underwriting
EUR mio FY 12 FY 11 FY 12 FY 11 FY 12 FY 11Belgium 75% 5,127 4,508 1,759 1,671 6,886 6,179United Kingdom 100% 86 51 2,143 1,983 2,229 2,0350 0Continental Europe 0% 3,246 2,219 1,026 630 4,272 2,849
Consolidated entities 0% 1,034 2,219 459 453 1,493 2,672Portugal 51% 763 1,071 240 237 1,003 1,308France 100% 271 290 0 0 271 290Luxembourg 50% 0 814 0 0 0 814Germany 100% 0 44 0 0 0 44Italy 25% 0 0 219 216 219 216
Non-consolidated JV's 2,213 0 2,213 0Turkey (Aksigorta) 36% 0 0 567 177 567 177Luxembourg (Cardif Lux Vie) 33% 2,213 0 0 0 2,213 00 0
Asia 7,131 5,551 751 607 7,882 6,1580 0Consolidated entities 447 353 0 0 447 353
Hong Kong 100% 447 353 0 0 447 353Non-consolidated JV's 6,684 5,198 751 607 7,436 5,805
Malaysia 31% 786 622 570 478 1,538 1,229Thailand 31%/15% 1,224 907 181 129 1,794 1,385China 25% 4,565 3,552 0 0 4,746 3,681India 26% 109 116 0 0 109 1160 0Total 15,590 12,329 5,680 4,891 21,269 17,220
Consolidated entities 6,693 7,131 4,362 4,107 11,054 11,239 Non-consolidated partnerships 8,897 5,198 1,318 784 10,215 5,982
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 @ 100% Driven by Asia & scope changes in Continental Europe
Periodic Financial Information I FY 12 Results I 20 February 2013
In EUR mio
28
4,508 5,127
51 86 2,219 3,246 5,551
7,131
12,329
15,590
1,671 1,759
1,983 2,143
630 1,026
607
751
4,891
5,680
+ 11%
+ 10%
+ 50%
+ 28%
+ 24%
6,179 6,886
2,035 2,229 2,849
4,272
6,158
7,882
17,220
21,269
FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12
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 Inflow up 16%, all segments showing double digit growth
Periodic Financial Information I FY 12 Results I 20 February 2013
In EUR mio
29
3,381 3,845
51 86 1,287 1,397 1,740 2,233
6,460 7,561 1,253
1,319
1,606 1,780 239 381 164
203
3,262
3,684
+ 11%
+ 13% + 17%+ 28%
+ 16%
4,634 5,164
1,657 1,865 1,526 1,779 1,905
2,436
9,722
11,245
FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12
Insurance net result 2011 result heavily hit by impairments
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Other Life Non-Life Life Non-Life Life Non-Life Other
(330)
260
(4) (0)(19)
50
(72)
121
(425)
430
3
65
61 137
11 14
8
8
82
223
30
(28 )30
(28 )
(327)
324
86
108
(8)64
(64)
128 (313)
624
FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12
Periodic Financial Information I FY 12 Results I 20 February 2013
In EUR mio
30
10/03/2010 I page 31 Periodic Financial Information I FY 12 Results I 20 February 2013 31
Overview impairments & net capital gains 2011 heavily hit by impairments, only limited influence of cap gains in Y-o-Y comparison
* Includes badwill & goodwill impairments of EUR 23 mio in UK
Greek bonds Equities Goodwill Total
EUR mio FY 12 FY 11 FY 11 FY 11 FY 12 FY 11
Life (53) (558) (94) (651) 104 142
Non-Life (5) (27) (10) (36) 20 2
Total Belgium (58) (584) (103) (687) 124 144Life 0 1
Non-Life 56 20 7
Other (39)Total UK 17 20 8
Life (2) (43) (22) (65) 6 (8)
Non-Life (1) (0) (1) 0 0
Total CEU (2) (43) (22) (66) 6 (8)Life (16) (56) (99) (155) 33 36
Non-LifeTotal Asia (16) (56) (99) (155) 33 36
Life (71) (600) (172) (99) (871) 143 171
Non-Life 51 (27) (10) (37) 39 9
Other (39)Total Ageas (59) (627) (182) (99) (908) 182 180
Impairments Cap gains/losses
*
Insurance net result adjusted for impairments Improved operational performance in Life & Non-Life
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Other Life Non-Life Life Non-Life Life Non-Life Other
Periodic Financial Information I FY 12 Results I 20 February 2013
In EUR mio
32
321 313
(4) 0 47 52 83 137
446 501
39 70
61 80 11 14 8
8
119
172
30 11
30
11
6%
6%13%
59%
15%
360 383
86 91 58 65
91
144
595
683
FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12 FY 11 FY 12
Insurance Lexicon on new disclosures as from FY 2012
Periodic Financial Information I FY 12 Results I 20 February 2013 33
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 Improved results both in Life and Non-Life & across all segments
Net profit of EUR 624 mio (vs. EUR (313) mio) 2011 results include EUR 908 mio impairment charge on Greek bonds,
equities & goodwill vs. EUR 59 mio Adjusted for impairments net result up +/-15%, mainly from Non-Life
Level of capital gains/losses stable
Life at EUR 430 mio (vs. EUR (425) mio) Belgium: Net result adjusted for impairments & cap gains.
CEU: Strong underwriting margins due to continued cost containment
Asia: Strong result in all major businesses
Non-Life at EUR 223 mio (vs. EUR 82 mio) Good results across all major business segments
Belgium: good averall operating performance tempered by non-recurring reserves strengthening, esp. in Motor
UK: net result includes impact of Groupama acquisition
CEU: all countries participate to good result
Asia: good underwriting performance tempered by tail end Thai floods
Other at EUR (28) mio (vs. EUR 30 mio) Commission & fee income broadly in line with last year
Includes EUR (43) mio one-off charges Competitive retail environment leads to pressure on net profit
Periodic Financial Information I FY 12 Results I 20 February 2013 34
EUR mio FY 12 FY 11
Gross inflow 21,269 17,220
- Life 15,590 12,329
- Non-Life 5,680 4,891
Fee, commission & other income
276 272
Operating costs (887) (850)
Operating result 868 (187)
- Life 590 (331)
- Non-Life 278 144
Profit before tax 1,120 (414)
Net profit 624 (313)
- Life 430 (425)
- Non-Life 223 82
- Other (28) 30
69.4% 73.2% 69.0% 68.1% 70.4% 71.6% 64.1% 66.5% 70.3%
33.1% 32.8%31.1% 31.0% 29.5% 30.3%
30.6% 30.7%32.0%
102.5% 106.0%100.1% 99.1% 99.9% 101.9%
94.7% 97.2%102.3%
(6.0%)(3.7%) (3.5%) (3.1%) (4.2%) (5.6%) (4.1%) (1.7%) (1.4%)
2009 2010 2011 2012 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
claims ratio expense ratio PY claims ratio
Combined ratio 2009 – 2012
Insurance Combined ratio Further improvement to 99.1%, below Ageas 100% target
Combined ratio at 99.1% vs. 100.1%
Q4 impacted by reserves strengthening & normal seasonality
Motor at 99.0% (vs. 97.3%): non-recurring reserves strengthening for bodily injuries in Belgium, positive impact of management action in UK
Household at 97.2% (vs.103.4%): continued good performance in CEU; lower climate impact & higher tariffs in Belgium; weather events in UK
Accident & Health: at 96.0% (vs.96.9%): good performance confirmed in Belgium; reserves strengthening in CEU
Claims ratio at 68.1% vs. 69.0%
CY claims ratio improving in all segments
PY claims ratio slightly down to 3.1% (vs. 3.5%), driven by reserves strengthening in Belgium
Expense ratio stable at 31%
Cost containment in CEU compensates for increasing commission in UK
Periodic Financial Information I FY 12 Results I 20 February 2013 35
Net earned premium in EUR mio 2,497 2,858 3,507 4,178 965 989 1,034 1,044 1,111
70.4% 74.3% 71.9% 70.5% 73.7% 73.1%
23.6% 24.8% 25.0% 25.5% 25.3% 29.0%
94.0% 99.1% 96.9% 96.0% 99.0% 102.1%
2009 2010 2011 2012 Q4 11 Q4 12
79.0% 78.4% 72.0% 73.6% 74.6% 78.3%
29.3% 29.0%25.3% 25.4% 22.5% 25.4%
108.3% 107.4%97.3% 99.0% 97.1%
103.7%
2009 2010 2011 2012 Q4 11 Q4 12
59.4%75.0%
61.9% 55.6% 56.7% 50.6%
43.4%
43.2%41.5%
41.6% 39.5% 42.3%
102.8%
118.2%103.4%
97.2% 96.2% 92.9%
2009 2010 2011 2012 Q4 11 Q4 12
51.7% 42.9%67.2% 66.5%
81.3% 72.5%
45.8%41.2%
44.8% 44.9%48.8%
46.9%97.5%
84.1%
112.0% 111.4%
130.1%119.4%
2009 2010 2011 2012 Q4 11 Q4 12
Insurance Combined ratio per product line All major product lines well below the targeted 100%
Periodic Financial Information I FY 12 Results I 20 February 2013 36
Motor: up on non-recurring reserves strengthening in BE
Accident & Health: good performance confirmed
Household: improving in BE; weather events in UK
Other: non-recurring reserves strengthening in BE; PY claims in UK commercial lines
609 714 736 763 181 193
1,012 1,134 1,571 2,058 462 550 673 750 892 1,007 245 265
203 261 308 349 78 103
NEP
NEP
NEP
NEP
0.33% 0.34% 0.38% 0.31% 0.40% 0.38% 0.46% 0.30%
0.48%
(0.64%)
0.72%
0.41%
0.84%
0.47%0.51%
1.08%
(0.16%)
(0.21%)
(0.20%) (0.23%) (0.18%) (0.19%) (0.24%) (0.20%)
0.66%
(0.51%)
0.90%
0.49%
1.05%
0.66%0.74%
1.17%
2010 2011 2012 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
Underwriting m. Investment m. Expense & other m.
Operating margin 2010 – 2012
Insurance Life operating margin All margins improving
37
Average technical liabilities in EUR bn
Operating margin at 0.90%
Operating margin: 2011 operating margin impacted by impairments on Greek sovereigns, equity & goodwill, offset by net capital gains on various rebalancing operation. On an adjusted basis, operating margin increased driven by better investment margin
Underwriting margin improved due to good mortality result in CEU & portfolio growth in Asia.
Investment margin 2011 impacted by financial turmoil
Expense & other margin stable
Technical liabilities
Year-end technical liabilities at EUR 68.8 bn, up 7% on a scope-on-scope basis. Strong growth in Belgium & Asia
Average technical liabilities up 2% reflecting an increase in Belgium & Asia and a decrease in CEU
Periodic Financial Information I FY 12 Results I 20 February 2013
70.6 64.7 65.8 64.7 64.8 65.0 65.4 65.8
Insurance Life operating margin per product line Guaranteed: driven by investment margin Unit-linked: all margins improving
38
0.44% 0.41% 0.44% 0.37% 0.35%
0.67%
(0.79%)
0.87%0.51%
1.31%
(0.33%)
(0.36%)
(0.33%) (0.38%) (0.30%)
0.56%
(0.60%)
0.81%
0.40%
1.12%
2010 2011 2012 Q4 11 Q4 12
Underwriting m. Investment m. Expense & other m.
Average technical liabilities Average technical liabilities
Decrease 2012 in expense & other margin related to Belgium & CEU
Underwriting margin improvement mainly coming CEU & Asia
Investment margin increased as previous year impacted by financial turmoil.
Improvement underwriting margin mainly coming CEU & Asia
Periodic Financial Information I FY 12 Results I 20 February 2013
0.07% 0.04%0.11% 0.06% 0.06%
0.01% 0.00%0.01%
0.00% 0.01%
0.27%0.42%
0.37%0.41%
0.22%
0.35%
0.45% 0.48%
0.47%
0.28%
2010 2011 2012 Q4 11 Q4 12
Underwriting m. Investment m. Expense & other m.
50.4 52.3 54.0 52.3 54.0 20.2 12.4 11.8 12.4 11.8
Net result: 2011 impairments In EUR mio In EUR mio
Life Underwriting margin solid* Non-Life Combined ratio improving
Result excl. impairments
227% 210% 207%
Robust inflow growth In EUR mio
Headlines Belgium Strong Life inflows, Good operating performance in Life & Non-Life
Periodic Financial Information I FY 12 Results I 20 February 2013
**
39
321 313
39 70
360 383
FY 11 FY 12Life Non-Life
(330)
260
3
65
(327)
324
FY 11 FY 12
Life Non-Life
4,508 5,127
1,6711,759
6,1796,886
FY 11 FY 12Life Non-Life
101.1% 99.5%
FY 11 FY 12
0.28% 0.29%
FY 11 FY 12
(344)
419
68
113
(276)
532
FY 11 FY 12
Life Non-Life
Investment result In EUR mio
+11%
* in % of average technical liabilities
Belgium Good operating performance both in Life and Non-Life
I page 40
Net profit at EUR 324 mio (vs. EUR (327) mio in 2011) 2011 heavily hit by impairments on Greek bonds & equities for
EUR (687) mio vs. EUR (58) mio
2011 impairment impact partly offset by capital gains (EUR 144 mio) vs. EUR 124 mio
Life at EUR 260 mio (vs. EUR (330) mio) Operating result up to EUR 456 mio (vs. EUR (309) mio)
Increase when excluding for impairments & cap gains mainly resulting from better investment margin, partly offset by lower return on own funds & higher effective tax rate
Non-Life at EUR 65 mio (vs. EUR 3 mio) On an adjusted 2012 & 2011 basis, improved operating result
reflecting better underwriting performance
Improved result in Household driven by previous corrective measures, lower impact of climatic events & higher prior year run off
Underlying performance in Motor remained good despite non-recurrent strengthening of reserves for bodily injuries
Accident & Health net underwriting performance increased strongly thanks to Workmen’s Compensation improvement
Other lines underwriting performance lower due to non-recurrent strengthening of bodily injuries reserves & higher claims in TPL
40
EUR mio FY 12 FY 11
Gross inflow 6,886 6,179
- Life 5,127 4,508
- Non-Life 1,759 1,671
Operating costs (471) (457)
Operating result 578 (266)
- Life 456 (309)
- Non-Life 122 43
Profit before tax 661 (470)
Net profit 324 (327)
- Life 260 (330)
- Non-Life 65 3
Periodic Financial Information I FY 12 Results I 20 February 2013
4,265 4,647
12434804,508
5,127
FY 11 FY 12
+14%
Life In EUR mio
Non-Life In EUR mio
Unit-Linked
Guaranteed
Other
Household
Accident & Health
Motor
+5%
Belgium Inflow Steady growth across Life and Non-Life
462 484
541 553
524 569144 154
1,671 1,759
FY 11 FY 12
Guaranteed Sales in Individual Savings amounted to EUR 3.2 bn (+12%), marked
by a sustained interest for guaranteed products despite continued lowering of the guaranteed rates.
Group Life inflows amounted to EUR 1.1 bn, a 7% growth supported by higher regular and single premiums.
Unit-linked Sales at EUR 0.5 bn, up (+98%) compared to a poor volume in 2011.
Strong increase driven by Bank channel & explained by a significant offer in close-ended fund and improved customer appetite.
Household, Motor & Others Most of the increase related to Household (+9%); well spread across
the Bank and Broker channels, driven by tariff increase on top of the ABEX-indexation & higher volume
Growth in Motor +2% driven by tariff increase.
Other lines inflow +7% driven by higher volume & tariff increase
Accident & Health Inflow up 5%. Mainly driven by Workmen's compensation +8%;
Accident +2%; Disability +4%; Healthcare +2%
41 Periodic Financial Information I FY 12 Results I 20 February 2013
64.1% 68.7% 64.3% 62.7% 64.2% 67.2%59.0% 60.5% 64.3%
36.8%36.4%
36.8% 36.8% 37.1% 36.9%36.6% 36.4%
37.2%
100.9%105.1% 101.1% 99.5% 101.3% 104.1%
95.6% 96.9%101.5%
(8.0%) (6.6%) (7.3%) (4.5%) (7.7%) (9.6%) (7.8%)(0.8%) (0.2%)
2009 2010 2011 2012 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
claims ratio expense ratio PY claims ratio
Combined ratio 2009 – 2012
Belgium Combined ratio Improved underwriting performance in Household and Workmen’s Compensation
Combined ratio at 99.5% vs. 101.1%
Household significantly improved
Accident & Health improved reflecting better performance in Workmen’s Compensation & continued good performance in Healthcare,
Motor combined ratio increased to 100.5% compared to an exceptionally strong 2011 COR of 94.2%. Increase mainly related to non-recurrent adjustment on reserves for bodily injuries. Adjusted COR in line with 2011
Claims ratio at 62.7% vs. 64.3%
CY ratio improved mainly in Household & Workmen’s Compensation
PY ratio non-recurrent strengthening of bodily injuries reserves (Q3 & Q4) & worsening of claims in TPL partly compensated by higher run off in Household
Expense ratio remains flat at 36.8%
42
Net earned premium in EUR mio 1,469 1,541 1,601 1,698 404 417 423 429 429
Periodic Financial Information I FY 12 Results I 20 February 2013
60.5%75.6%
63.0%50.5% 60.1%
49.4%
47.1%
47.1%46.9%
46.2%45.2%
46.3%
107.6%122.7%
109.9%96.7%
105.3%95.7%
2009 2010 2011 2012 Q4 11 Q4 12
44.9%
10.4%
58.2% 65.9% 68.8% 72.4%
49.2%
50.9%
49.5%48.1%
54.7% 45.6%94.1%
61.3%
107.7% 114.0%123.5% 118.0%
2009 2010 2011 2012 Q4 11 Q4 12
68.9% 75.8% 73.8% 73.0% 75.8% 74.9%
22.6%21.9% 23.8% 24.0% 24.7% 25.9%
91.5%97.7% 97.6% 97.0% 100.5% 100.8%
2009 2010 2011 2012 Q4 11 Q4 12
68.5% 71.0%58.9% 64.7% 57.3%
67.9%
36.3% 35.7%35.3%
35.8%34.8%
35.5%
104.8% 106.7%94.2%
100.5%92.1%
103.4%
2009 2010 2011 2012 Q4 11 Q4 12
Belgium Combined ratio per product line Improved underwriting performance in Household and Workmen’s Compensation Motor: non-recurring strengthening bodily injuries reserves
Accident & Health: good performance confirmed
Household: higher tariffs, lower climate impact & higher PY
43
Other: non-recurring strengthening bodily injuries reserves TPL
424 451 451 480 108 118
465 498 525 540 134 137 453 463 484 530 127 137
127 129 142 149 36 37
NEP
NEP
NEP
NEP
Periodic Financial Information I FY 12 Results I 20 February 2013
0.25% 0.28% 0.29% 0.27% 0.28% 0.27% 0.36% 0.25%
0.49%
(0.71%)
0.84%0.57%
0.99%
0.51%0.59%
1.28%
(0.10%)
(0.20%)
(0.21%) (0.18%) (0.23%) (0.19%) (0.26%) (0.18%)
0.64%
(0.64%)
0.91%
0.67%
1.03%
0.59%0.70%
1.34%
2010 2011 2012 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
Underwriting m. Investment m. Expense & other m.
Operating margin 2010 – 2012
Belgium Life operating margin Improved, driven by Investment margin
44
Operating margin at 0.91%
Operating margin: On an adjusted 2012 and 2011 basis (Impairment on Greek sovereigns and Equity, offset by net capital gains on various rebalancing operation), increase driven by a better investment margin
Underwriting margin stable
Investment margin improved significantly on higher yields & lower profit sharing reserving
Expense & other margin stable
Technical Liabilities Year-end technical liabilities at EUR 52.7 bn (+7%) :
higher intakes & shadow accounting
Guaranteed at EUR 47.4 bn, up 8% vs. end 11
Unit-linked TL relatively stable at EUR 5.3 bn
Average technical liabilities up 3% reflecting an increase in Guaranteed & a decrease in Unit-Linked
Average technical liabilities in EUR bn
Periodic Financial Information I FY 12 Results I 20 February 2013
46.7 48.5 50.1 48.5 49.3 49.6 49.8 50.1
Belgium Life operating margin per product line Guaranteed: better investment margin Unit-linked: better underwriting margin
45
Better underwriting margin due to improved risk margin on a YTD basis.
Average Technical Liabilities decreased by 7%
On an adjusted 2012 and 2011 basis operating margin increased driven by a better investment margin
Average Technical Liabilities up 5%, mainly due to strong intakes
0.28% 0.32% 0.32% 0.31% 0.28%
0.57%
(0.80%)
0.93%0.65%
1.42%
(0.21%)
(0.30%)
(0.29%) (0.29%) (0.25%)
0.64%
(0.78%)
0.96%
0.67%
1.45%
2010 2011 2012 Q4 11 Q4 12
Underwriting m. Investment m. Expense & other m.
0.03%(0.05%)
0.04% 0.02% (0.01%)
0.64%
0.50% 0.44%0.65%
0.44%
0.66%
0.45% 0.47%
0.66%
0.42%
2010 2011 2012 Q4 11 Q4 12
Underwriting m. Investment m. Expense & other m.
Avg techn liabilities Avg techn liabilities
Periodic Financial Information I FY 12 Results I 20 February 2013
40.7 42.9 44.9 42.9 44.9 6.0 5.6 5.2 5.6 5.2
Net result In EUR mio In EUR mio
Other result adjusted Non-Life Combined ratio improving
Result excl. impairments
227% 210% 207%
Inflow flat at constant FX In EUR mio
Headlines UK Solid Non-Life results
Periodic Financial Information I FY 12 Results I 20 February 2013
**
46
Non-Life result adjusted for GICL* In EUR mio
(4) (0)61
13730
(28)
86
108
FY 11 FY 12
Life Non-Life Other
(4)51
80
30
1186 91
FY 11 FY 12
Life Non-Life Other
51 86
1,983 2,143
2,035 2,229
FY 11 FY 12Life Non-Life
6185
FY 11 FY 12
99.9% 99.8%
FY 11 FY 12
In EUR mio
* 2012 adjusted for EUR 63 mio badwill on GICL, EUR (15) mio reorganisation costs & EUR 4 mio net result GICL //** 2011 adjusted for EUR 9 mio incentive payment; 2012 adjusted for EUR (31) mio impairment charge , EUR (8) mio accelerated amortisation EUR (4) GICL mio transaction costs
+10%
21 16
FY 11 FY 12
10/03/2010 I page 47
United Kingdom Strong net result driven by Motor business and realized capital gains
Net result at EUR 108 mio (vs. EUR 86 mio) Multi-distribution strategy creating good returns
Improved performance overall; especially in private Motor
Retail income in line with last year
Life at EUR (0.1) mio (vs. EUR (4) mio) Continued progress in line with stage of business development
Result includes additional charge of EUR 4 mio deferred acquisition costs to reflect more prudent assumptions, broadly offset by tax credit
Non-Life at EUR 136 mio (vs. EUR 61 mio): more than double
Includes EUR 63 mio excess fair value of Groupama offset partially by EUR (15) mio reorganisation costs
Improved Motor result through impact management actions, offsetting seasonal claims Household & large claims Commercial lines
Net profit AIL at EUR 56 mio; Tesco Underwriting EUR 13 mio, Groupama EUR 4 mio (6 weeks consolidation)
Net realized capital gains of EUR 18 mio (net of minority interests)
Other Insurance at EUR (28) mio (vs. EUR 30 mio) Includes one-off charges for goodwill impairment (EUR (31) mio),
accelerated amortization of intangible assets (EUR (8) mio) & transaction costs (EUR (4) mio)
2011 net result included EUR 9 mio incentive payment from commercial partner
Competitive retail environment leads to pressure on net profit
47
EUR mio FY 12 FY 11
Gross inflow 2,229 2,035
- Life 86 51
- Non-Life 2,143 1,983Fee, commission & other income
276 272
Operating costs (215) (167)
Operating result 106 66
- Life (7) (8)
- Non-Life 114 74
Profit before tax 147 121
Net profit 108 86
- Life (0) (4)
- Non-Life 137 61
- Other (28) 30
Periodic Financial Information I FY 12 Results I 20 February 2013
1,983 2,143
5186
2,0352,229
FY 11 FY 12
70 55
1,280 1,427
455 448178
2131,983 2,143
FY 11 FY 12
Motor
Non-Life
Life
Other
Property
Accident & Health
Total In EUR mio
Non-Life In EUR mio
+8%
+10%
United Kingdom Inflow Inflow levels in line with 2011 at constant exchange rates
Life Successful roll out of its proposition across the IFA market
and through affinity partnerships developed in 2011
Over 265,000 customers up 40% on same period last year
Non-Life Up 8%, flat at constant FX
Motor increased by 11%
Household declined by 2% due to commercial position after tariff increases
Other lines, including Commercial and special risks increased 20%
AIL: +10% with growth in Private car & special risks; Tesco below 2011 level due to competition from direct writers
EUR 63 mio Groupama inflow included since mid November
Other Insurance (including Retail) YTD total income of EUR 276 mio in line with last year.
48 Periodic Financial Information I FY 12 Results I 20 February 2013
80.4% 81.5% 74.6% 73.3% 77.0% 76.7% 69.6% 71.5% 75.4%
27.7% 28.0%25.3% 26.5% 22.8% 25.6%
26.0% 26.7%27.4%
108.1% 109.5%99.9% 99.8% 99.8% 102.3%
95.6% 98.2%102.8%
(3.5%)(1.1%) 0.1% (2.1%) (2.5%) (1.7%) (1.3%) (2.4%) (2.8%)
2009 2010 2011 2012 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12claims ratio expense ratio PY claims ratio
Combined ratio 2009 – 2012
UK Combined ratio Below 100%; within Ageas’s strategic targets
Combined ratio at 99.8%
Combined ratio Continued sub 100% performance
Improvement in all product lines
Claims ratio at 73.3%
Claims ratio Improvement across most lines of business due to rating actions & increasing fraud detection
CY ratio Slight deterioration primarily due to bad weather experience in Household partially offset by improvement in all other lines
PY ratio: release of 2.1% against strengthening of 0.1% in 2011 for escape of water claims December 2010
Expense ratio at 26.5%
Slight increase as commissions have increased across all lines
49
Net earned premium in EUR mio 834 948 1,524 2,083 465 479 510 521 573
Periodic Financial Information I FY 12 Results I 20 February 2013
83.5%97.9% 87.7% 78.1%
100.4%72.2%
26.2%24.0%
23.2%28.2%
23.2%
33.4%
109.7%121.9%
110.9% 106.3%
123.6%
105.6%
2009 2010 2011 2012 Q4 11 Q4 12
88.9% 82.9% 79.2% 77.2% 83.7% 81.9%
22.8% 23.3% 19.5% 21.3% 16.0% 21.4%
111.7% 106.2%98.7% 98.5% 99.7% 103.3%
2009 2010 2011 2012 Q4 11 Q4 12
61.2%77.4%
61.4% 62.3% 53.9% 54.3%
38.0%
38.2%
35.3% 36.7%34.1% 38.4%
99.2%
115.6%
96.7% 99.0%88.0% 92.7%
2009 2010 2011 2012 Q4 11 Q4 12
66.0% 75.1% 71.6% 67.7% 78.6% 75.2%
38.1% 30.4% 39.3% 42.2%46.0% 44.6%104.1% 105.5% 110.9% 109.9%124.6% 119.8%
2009 2010 2011 2012 Q4 11 Q4 12
UK Combined ratio per product line Household impacted by bad weather; improvements in all other lines Motor: positive impact management actions
Accident & Health
Household: weather events
50
Other: higher claims in commercial lines
53 58 65 57 17 16
524 532 949 1,420 304 388 187 248 366 434 108 115
69 110 143 173 36 54
NEP
NEP
NEP
NEP
Periodic Financial Information I FY 12 Results I 20 February 2013
Net result: 2011 impairments In EUR mio In EUR mio
Non-Life Combined ratio improving
Result excl. impairments
227% 210% 207%
Inflow growth due to scope change** In EUR mio
Headlines Continental Europe Improved operational performance
Periodic Financial Information I FY 12 Results I 20 February 2013
**
51
Continued cost containment In EUR mio
(19)
50
11
13
(8)
64
FY 11 FY 12
Life Non-Life
47 52
1113
58 65
FY 11 FY 12Life Non-Life
2,2193,246
630
1,0262,849
4,272
FY 11 FY 12Life Non-Life
96.7%93.4%
FY 11 FY 12
0.57% 0.67%
FY 11 FY 12
Life Underwriting margin*
186154
FY 11 FY 12
* in % of average technical liabilities // ** Luxembourg, Turkey
+50%
10/03/2010 I page 52
Continental Europe Excellent results achieved in both Life and Non-Life
Periodic Financial Information I FY 12 Results I 20 February 2013 52
EUR mio FY 12 FY 11
Gross inflow 4,272 2,849
- Life 3,246 2,219
- Non-Life 1,026 630
Operating costs (154) (186)
Operating result 149 (6)
- Life 106 (33)
- Non-Life 43 27
Profit before tax 181 (3)
Net profit 64 (8)
- Life 50 (19)
- Non-Life 14 11
Net result at EUR 64 mio (vs. EUR (8) mio) Results driven by strong underwriting result and cost containment
2011 impacted by impairment charges on bonds and equities
Life at EUR 50 mio (vs. EUR (19) mio) Operating result increased significantly reflecting strong net
underwriting due to lower claims in the risk business and improved investment result as last year impacted by impairment charges related to Greek bonds government bonds and equities
Operating costs on a like-for-like basis reduced by 4% to EUR 75 mio due to continued cost containment discipline
Non-Life at EUR 14 mio (vs. EUR 11 mio) Operating result driven by strong underwriting result in all lines of
business and equally strong investment performance
Operating costs level as continued focus on cost containment was offset in last quarter by an early retirement provision in Portugal
Improved net profit due to the full year inclusion and better results of Turkey, good performance of Italian activities and strong underwriting results in Portugal
690 556
1,5292,691
2,219
3,246
FY 11 FY 12
266 334
197
37092
168
75
154
630
1,026
FY 11 FY 12
Accident & Health
Motor
Unit-Linked
Guaranteed
+46%
Other
Household
Life In EUR mio
Non-Life In EUR mio
Continental Europe Inflow Up driven by scope change in Luxembourg & inclusion Turkey
Periodic Financial Information I FY 12 Results I 20 February 2013
+63%
53
Life Inflow +46%, including non-controlling interests @ 100%, driven by
success of merged Luxembourg entity (EUR 2.2 bn)
Consolidated inflow below last year (-24% scope on scope)
Portugal: volumes declined in savings and UL due to economic situation and because of focus on profitable and less capital intensive business. The Portuguese market decreased by 11% (end of November 2012)
France: drop in volumes influenced by economical downturn. UL still represents 34% of total sales compared to 13% market average
Non-Life Inflow + 63%, including non-controlling interests @ 100% driven by the
full year inclusion of our Turkish acquisition
GWP consolidated entities up 1% to EUR 459 mio
Turkey (Aksigorta) at EUR 567 mio
Although all lines increased significantly through the inclusion of Turkey, Motor and A&H remain the major business lines in the portfolio.
62.4%71.0% 66.4% 63.6% 64.3% 64.9% 57.4%
65.9% 66.4%
27.6%
30.3%30.3% 29.8% 30.3%
25.4% 29.3%26.9%
36.4%90.0%
101.3%96.7% 93.4% 94.6%
90.3% 86.7%92.8%
102.8%
(1.3%)1.9%
(2.0%) (2.5%)2.3%
(7.6%)(3.2%) (1.6%)
1.8%
2009 2010 2011 2012 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
claims ratio expense ratio PY claims ratio
Combined ratio* 2009 – 2012
Continental Europe Combined ratio With 93.4% well below Ageas’s target
Periodic Financial Information I FY 12 Results I 20 February 2013 54
Net earned premium in EUR mio
* Scope: only consolidated companies: 2009 Portugal; as from 2010 Portugal & Italy
194 369 382 397 96 93 101 95 109
Combined ratio at 93.4%
Combined ratio further improved in all product lines; largely due to the good performance of the Italian business & solid underwriting result in Portugal. Increase in Q4 sec related to early retirement provision in Portugal.
Claims ratio at 63.6%
Claims ratio further improvement related to better claims ratio in Motor & Other Lines (rate increases)
Better claims ratio in Portugal & Italy
PY ratio: 2.5% release vs. 2.0%
Expense ratio at 29.8%
Expense ratio continued focus on cost containment but in the last quarter 2012 the early retirement plan in Portugal partly offset the cost decrease
Combined ratio Turkey further improved to 97.5% as result of increased focus on profitability.
33.8%73.3%
94.5%62.8%
178.3%
60.4%
58.6%
39.0%
50.0%
43.3%
29.3%
61.8%92.4%
112.3%
144.5%
106.1%
207.6%
122.2%
2009 2010 2011 2012 Q4 11 Q4 12
34.9%53.5% 53.7% 51.8% 44.4%
28.8%
22.9%
27.7% 34.2% 33.5% 29.6%36.4%
57.8%
81.2%87.9% 85.3%
74.0%65.2%
2009 2010 2011 2012 Q4 11 Q4 12
65.3%90.5%
71.8% 69.8%54.3%
80.5%
36.7%
27.0%
29.2% 28.1% 38.0%
29.5%102.0%
117.5%101.0% 97.9% 92.3%
110.0%
2009 2010 2011 2012 Q4 11 Q4 12
70.2% 64.2% 63.5% 63.3% 61.1% 69.6%
25.7% 31.6% 27.8% 28.2% 27.2%34.4%
95.9% 95.8% 91.3% 91.5% 88.3%
104.0%
2009 2010 2011 2012 Q4 11 Q4 12
Continental Europe Combined ratio per product line Accident & Health slightly up on reserves review, all other lines improving Motor: both countries performing well; strengthening of reserves in Q4
Accident & Health: reserves review in Q4
Household: continued strong performance
Periodic Financial Information I FY 12 Results I 20 February 2013 55
Other: lower claims & volume growth in Italy
132 205 220 226 55 59
23 104 97 99 24 26 33 39 42 44 11 13
7 21 23 28 6 11
NEP
NEP
NEP
NEP
Operating margin 2010 – 2012
Continental Europe Life operating margin
Periodic Financial Information I FY 12 Results I 20 February 2013 56
0.49% 0.57% 0.67%0.54%
0.72% 0.69% 0.67% 0.59%
0.33%
(0.42%)
0.39%
0.02%
0.37% 0.42%0.31% 0.48%
(0.25%)
(0.37%)
(0.30%) (0.39%)(0.19%) (0.29%) (0.31%) (0.41%)
0.57%
(0.22%)
0.76%
0.17%
0.90% 0.82%0.67%
0.67%
2010 2011 2012 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
Underwriting m. Investment m. Expense & other m.
Average technical liabilities in EUR bn
Operating margin at 0.76%
Operating margin 2011 impacted by financial turmoil
Underwriting margin improved from 0.57% to 0.67% mainly thanks to a solid mortality result
Investment margin improved as PY suffered from the financial turmoil.
Expense & other margin cost containment leads to improved margin. Q4 12 slightly impacted by the Portuguese early retirement provision
Technical Liabilities Year-end technical liabilities at EUR 14.1 bn, up
3% on scope-on-scope consolidated basis . Luxembourg non-consolidated TL of EUR 14 bn
Average technical reserves slightly decreasing mainly because of lower savings business in Portugal
22.6 14.7 13.9 14.7 13.9 13.8 13.9 13.9
Continental Europe Life operating margin per product line
Guaranteed: all margins improving Unit-linked
Periodic Financial Information I FY 12 Results I 20 February 2013 57
1.25% 1.00% 1.18% 0.93% 1.05%
0.84%
(0.75%)
0.70%
0.03%
0.85%
(0.93%)
(1.08%)
(0.85%) (1.08%) (0.88%)
1.16%
(0.83%)
1.02%
(0.12%)
1.02%
2010 2011 2012 Q4 11 Q4 12
Underwriting m. Investment m. Expense & other m.
0.01% 0.02% 0.02% 0.02% 0.02%0.01% 0.00% 0.01% 0.00% 0.01%0.18%
0.55%0.41%
0.51%
0.20%
0.20%
0.56%
0.44%
0.53%
0.23%
2010 2011 2012 Q4 11
Underwriting m. Investment m. Expense & other m.
Avg techn liabilities Avg techn liabilities
Decrease 2012 in expense & other margin is a./o. related to maturing funds & lower fees resulting from lower inflows.
Investment margin increased as previous year impacted by financial turmoil.
Improved underwriting margin mainly coming from lower claims in the risk business
8.7 8.3 7.8 8.3 7.8 13.9 6.4 6.1 6.4 6.1
Net result In EUR mio In EUR mio
Non-Life Combined ratio
Result excl. impairments
227% 210% 207%
Inflow In EUR mio
Headlines Asia Strong inflows, Excellent year for Life, Non-Life profits held back by impact Thai floods
Periodic Financial Information I FY 12 Results I 20 February 2013
**
58
(72)
121
8
8
(64)
128
FY 11 FY 12
Life Non-Life
83
1378
8
91
144
FY 11 FY 12Life Non-Life
102.0%99.3%
FY 11 FY 12
5,5517,131
607
7516,158
7,882
FY 11 FY 12Life Non-Life
Net result Hong Kong
(84)
34
FY 11 FY 12
Net result non-conso’s
32
109
FY 11 FY 12
+28%
* Includes net result Hong Kong, non-consolidated partnerships & regional costs
10/03/2010 Periodic Financial Information I FY 12 Results I 20 February 2013
Net profit of EUR 128 mio (vs. EUR 64 mio negative) Hong Kong: Satisfactory organic growth
Non-consolidated partnerships: EUR 109 mio (vs. EUR 32 mio), strong organic growth of underlying businesses and recovery of financial markets
Life net profit at EUR 121 mio (vs. EUR 72 mio negative) Hong Kong : EUR 34 mio vs. EUR (84) mio
Good organic growth, supported by positive FX impact
2011 net result included goodwill impairment of EUR (99) mio
Non-consolidated partnerships : EUR 101 mio (vs. EUR 24 mio)
Reflection of excellent growth of underlying businesses & recovery of financial markets; supported by positive FX impact
Non-recurring impact on result of EUR 15 mio (vs. EUR (43) mio)
2012 result includes EUR (8) mio equity hedge cost
Regional costs : EUR 14 mio (vs. EUR 12 mio)
Non-Life net profit at EUR 8 mio (vs. EUR 8 mio) Good underwriting performance (excluding flood losses)
Negative impact from 2011 Thai floods of EUR 2 mio (vs. EUR 3.5 mio)
2011 result positively impacted by non-recurring tax recovery
Asia Strong result driven by organic growth and improvement of investment income
59
EUR mio FY 12 FY 11
Gross inflow 7,882 6,158
- Life 7,131 5,551
- Non-Life 751 607
Operating costs (47) (39)
Operating result 34 19
- Life 34 19
- Non-Life 0 0
Profit before tax 132 (62)
Net profit 128 (64)
- Life 121 (72)
- Non-Life 8 8
5.331 6.746
219
385 5.550
7.131
2011 2012
242 322
80 101 25
26 260
303
2011 2012
+28%
+24%
Fire
Motor
Guaranteed
Life
Non-Life In EUR mio
In EUR mio
Unit-Linked
Periodic Financial Information I FY 12 Results I 20 February 2013
Asia Inflow Excellent inflow levels, 28% up to EUR 7.9 bn
Life Hong Kong, +27%, Strong growth of 49% in new business premiums,
in particular from IFA channel
China, +29%, Focus on building book of higher-margin recurring premiums & excellent persistency resulted (+33% in regular premium) H2 pick-up of new business in bank channel; growth in agency channel supported by innovative product launches & investments in channel expansion.
Malaysia, +26%, New business premiums up 33% thanks to strong recovery bank channel activity
Thailand, +35%, Continued strong growth in both bank and agency channel
India, (6)%, New business down reflecting continued weak market sentiment. Relative market position improved, driven by strong increase of regular premium sales in bank channel
Non-Life Malaysia, +19%, driven by all lines of business and in particular Motor
Thailand, +40%, across all lines & distribution channels boosted by post-flood recovery & tariff increases
60
Accident & Health
Other
751
607
Operating margin 2010 – 2012
Hong Kong Life operating margin Improved margins due to organic growth and higher investment income
Periodic Financial Information I FY 12 Results I 20 February 2013 61
0.63%(0.09%)
0.46%(0.03%)
0.70%(0.07%)
1.13%
0.16%
2.75%
(0.43%)(0.08%)
(1.47%)
0.15%
(0.39%) (0.19%)0.09%
0.41%
1.83%1.60%
0.57%
2.14%
1.58%
1.43%
1.50%
3.80%
1.31%
1.98%
(0.94%)
2.99%
1.12%
2.38%
1.75%
2010 2011 2012 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
Underwriting m. Investment m. Expense & other m.
Average technical liabilities in EUR bn
Operating margin at 1.98%
Operating margin was higher due to organic growth of the portfolio & higher investment income
Underwriting margin improved because of lower medical claims & higher reinsurance recovery
Investment margin improved as a result of a higher average allocation to corporate bonds
Expense & other margin slightly deteriorating due increased acquisition costs resulting from strong sales growth
Technical liabilities
Year-end technical liabilities:
Hong Kong : EUR 1.9 bn, up 17%
Including non-consolidated partnerships @ 100%: EUR 24.1 bn, up 18%
Average technical liabilities growth in line with excellent sales performance over last 2 years
→ new calculation methodology, based on best estimates
1.3 1.4 1.7 1.4 1.6 1.6 1.7 1.7
Hong Kong Life operating margin per product line Improved margins due to organic growth and higher investment income Guaranteed: stable with underlying movements Unit-linked: organic growth
Periodic Financial Information I FY 12 Results I 20 February 2013 62
Avg techn liabilities Avg techn liabilities
3.11%1.75% 2.14% 1.47% 1.29%
(2.40%)(3.21%)
(0.95%)
(5.08%)
(1.90%)
0.70%
(1.47%)1.19%
(3.61%)(0.60%)
2010 2011 2012 Q4 11 Q4 12
Underwriting m. Investment m. Expense & other m.
(0.15%) (0.71%) (0.15%) (0.53%)(0.25%)
3.62%
(0.57%)
(0.11%)
(1.97%)
0.13%
1.30%
3.52%2.52% 2.46% 2.73%
4.77%
2.24%2.26% (0.04%) 2.61%
2010 2011 2012 Q4 11 Q4 12
Underwriting m. Investment m. Expense & other m.
All margins improved as result of organic portfolio growth Underwriting margin improved following lower loss ratio of medical claims & higher reinsurance recovery
Investment margin improved as result of higher average allocation to corporate bonds
Expense & Other margin deteriorated because of increase acquisition costs resulting from strong sales growth
→ new calculation methodology → new calculation methodology
1.0 1.1 1.3 1.1 1.3 0.3 0.4 0.5 0.4 0.5
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Investment portfolio as per 31 December 2012 Value up as result of volume growth & unrealized gains/losses In EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Increase mainly explained by volume growth, both in existing & new business and by unrealized gains/losses
Gross unrealized gains/losses up to EUR 6.7 bn on portfolio (EUR 1.8 in FY 11) mainly in fixed income
Investments in Belgian government bonds & corporate Non-Financials up
Infrastructure loans (part of loans to customers): 2 projects on balance sheet for EUR 0.1 bn; further commitments & outstanding bids for EUR 0.3 bn
Fixed Income
Gross unrealized gains/losses at EUR 5.2 bn; EUR 0.6 bn FY 11 Unrealized gain Sovereigns at EUR 3.3 bn Unrealized gain Corporates at EUR 1.8 bn
Equities
Gross unrealized gains up to EUR 0.2 bn vs. nearly breakeven end 2011
Real Estate
Gross unrealized gains marginally up to EUR 1.3 bn
Investment portfolio*
31.5 34.7
21.4
25.1
0.5
0.32.9
2.62.8
3.7
1.8
2.44.3
4.72.7
2.467.9
75.9
FY 11 FY 12
Cash & equivalents
Real Estate
Equities
Loans to customers
Loans to banks
Structured creditinstruments
Corporate bonds
Sovereign bonds
Periodic Financial Information I FY 12 Results I 20 February 2013 64
(0.9)
3.21.4
0.3
6.2
2.6
1.4 1.2
1.4
1.3
0.70.3
2.1
0.9
0.60.7
12.9
6.2
3.02.1
FY 09 FY 10 FY 11 FY 12
PortugalSpainItalyGreeceImpairment
14.218.4
4.6
4.83.9
3.32.4
2.91.6
1.41.8
0.73.1
3.231.534.7
FY 11 FY 12
Others
The Netherlands
Germany
Austria
SE Sovereigns
France
Belgium
In EUR bn
Gross UG/L at EUR 3.3 bn (vs. EUR 159 mio)
Divestments of bonds in S-E & some core countries, only partly reinvested; primarily in Belgium as part of re-domestication
95% investment grade; 89% rated A or higher
Sovereign bond portfolio*
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs // ** At amortized costs & @ Ageas’s part
SE sovereigns**
Sovereign bond portfolio as per 31 December 2012 Reduction of SE sovereigns & re-domestication within Belgian operations
Periodic Financial Information I FY 12 Results I 20 February 2013 65
Exposure on SE sovereigns at amortized cost, after impairments and @ Ageas’s part further reduced to EUR 2.1 bn
Additional reduction of primarily Italian & Spanish sovereigns of EUR 0.6 bn given increased liquidity and reduced spreads of SE sovereigns.
In EUR bn
Gross UG/L at EUR 1.8 bn (vs. EUR 432 mio) Priority to investment grade industrials (correlation
between financials & sovereigns) EUR 0.5 bn corporate bonds from emerging countries 93% investment grade; 76% rated A or higher Banking / Other financials : 91% investment grade
Corporate bond portfolio*
* All assets at fair value except the ‘Held to Maturityassets ’& loans which are valued at amortized costs
Loans portfolio (customers + banks)*
Corporate bond & Loans portfolio as per 31 December 2012 Focus on investment grade industrials & long term loans with regional guarantee
5.0 5.7
1.8 1.9
6.28.7
8.4
8.821.4
25.1
FY 11 FY 12
Government related
Non Financials
Other financials
Banking
Periodic Financial Information I FY 12 Results I 20 February 2013 66
2.9 2.6
0.10.1
1.6 1.5
1.2 2.0
5.76.3
FY 11 FY 12
Other
Mortgages
Infrastructure
Real Estate
Loans to banks
Increase mainly attributable to long term loans to regional agencies benefiting from explicit guarantee by the region
Infrastructure loans: 2 projects on balance sheet for EUR 0.1 bn; further commitments & outstanding bids for EUR 0.3 bn
Equity & Real estate portfolio as per 31 December 2012
10/03/2010
Gross UG/L marginally up to EUR 1.3 bn (not reflected in net equity)
Value increased mainly through investments in Investment Retail
Real Estate exposure mainly in Belgium (+/- 70%)
* At fair value
1.5 1.5
1.1 1.1
0.9 1.3
0.50.60.20.34.34.7
FY 11 FY 12
InvestmentWarehouses
RE Development
Investment Retail
Car Parks
Investment Offices
Periodic Financial Information I FY 12 Results I 20 February 2013 67
In EUR bn
Equity portfolio* Real Estate portfolio*
Gross UG/L up to EUR 0.2 bn, vs. nearly breakeven at end 2011
0.81.2
0.1
0.10.7
0.70.2
0.41.8
2.4
FY 11 FY 12
Mixed funds & others
Real Estate funds
Equity funds
Equities
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
General Account Driven by legacy related one-offs & revaluation BNP P call option
Net result General Account of EUR 119 mio
Net interest income includes EUR 39 mio Tier 1 amortisation of discount & received interest.
RPN(I) liability floor fairly stable since agreement on CASHES; EUR (2) mio net result impact after Q1 12.
Call option BNP P: Strong decrease mainly driven by sharp decline in volatilities from 49% end 2011 to 30% end 2012; positive result in Q4 following rise of BNP P share price
RPI: Ageas net profit of EUR 104 mio following higher market to market revaluations of portfolio & after goodwill impairment. Goodwill fully impaired
Legacy related one-off agreements Deal BNP P on CASHES & Tier 1 (EUR (132) mio in
Q1)
Settlement ABN AMRO & Dutch State on legal proceedings (EUR 400 mio in Q2)
Staff & operating expenses: slightly down
Periodic Financial Information I FY 12 Results I 20 February 2013 69
EUR mio FY 12 FY 11
Net interest income 28 26BNP P Call Option (161) (214)Result on RPN(I) (273) 275Result on sales & revaluations (mainly Tier 1)
122 (176)
Results of associates (mainly RPI)
98 (196)
Settlement ABN Amro 400 0Staff & operating expenses (50) (55)Profit before tax 147 (353)Net profit 119 (265)
Balance sheet items FY 12 FY 11
RPN(I) (165) (190)Call option BNP Paribas 234 395RPI 872 779
3
90
(221)
(70)
69
(5)
14
60(21)
50
400 (132)
(2)
104 (161)
(91)
119
Deal withABN Amro &Dutch State
Agreementwith BNP
on CASHES& Tier 1
RPN(I)revaluation
RPI BNPCall option
Other GeneralAccount
4Q 129M 12
General Account: components of Net result Quarterly result mainly up on revaluation BNP P call option
Periodic Financial Information I FY 12 Results I 20 February 2013
In EUR mio
70
EUR 209 mio FY 12 impact of legacies
3
1.3
2.8
1.0
2.6
0.9
2.3
0.7
2.2
0.5
2.1
0.2
2.1
1.0 0.8 0.71.3 1.3 1.3 1.1
1.5 1.4 1.2
FY 09 3M10 6M10 9M10 FY10 3M11 6M11 9M11 FY11 3M12 6M12 9M12 FY12
Net cash position General Account at EUR 1.2 bn Significantly up after agreements in H1; impact buy-back & acquisition Groupama
The agreements with Fortis Bank & BNP P on the CASHES & Tier 1 (Q1) & with ABN AMRO & Dutch State on legal proceedings (Q2) had a joined positive impact on net cash position of EUR 1.1 bn
2011 dividend of 8 eurocent per share brought cash down with EUR 0.2 bn (Q2)
Further impacted by share buy-back programmes & funding of Groupama acquisition
Quarterly evolution net cash position* In EUR bn
* Until 6M 11 known as discretionary capital
in EUR mio FY 11 FY 12
Cash and cash equivalents 345 402Due from banks short term 600 1,000Debt certificates (EMTN) (257) (187)
Net cash position 688 1,216
Periodic Financial Information I FY 12 Results I 20 February 2013
Share buy-back programme announced 6 August 2012 will further reduce net cash
Net cash Discretionary capital
71
Buy-back programme launched as of 13 August
For an amount up to EUR 200 mio
For period ending 19 February 2013 at the latest
Independent broker mandated to execute the programme
Open market purchases on NYSE Euronext Brussels
Shares to be held as treasury shares until formal approval of cancellation
On 31 December, Ageas bought back 7.1 mio shares (2.9%) for a total amount of EUR 137 mio
As per 15 February, Ageas acquired 9 mio shares for a total amount of EUR 188 mio (corresponding to 3.77% of the total amount of outstanding shares)
On 19 February, the Board of Ageas has decided to
postpone end of authorized period beyond 19/02/13 until full amount of EUR 200 mio is reached
propose cancellation of the shares bought back until 15 February 2013 on the next Shareholders’ meeting
Ageas announced a share buy-back programme on 6 August Ageas will complete its existing share buy-back programme
72
Balance sheet value In EUR mio
Net result impact In EUR mio
Valuation Call option BNP Paribas shares at 31 December 2012 Value down due to decrease in volatility, up in H2 following BNP share price
Valuation
Model parameters(Black & Scholes) FY 10 FY 11 FY 12
BNP Paribas share price EUR 47.69 EUR 30.35 EUR 42.54
Strike price EUR 66.67 EUR 66.67 EUR 66.67
Volatility 33% 49% 30%
Dividend yield 5.29% 5.98% 4.69%
609
395
174 234
FY 10 FY 11 9M 12 FY 12
(271)(214) (221)
(161)
FY 10 FY 11 9M 12 FY 12 Sensitivities FY 11 FY 12
Implied volatility +5% 24.5% 47.5%
Implied volatility -5% (23.6%) (41.3%)
Dividend yield -1% 2.8% 4.0%
Dividend yield +1% (1.1%) (2.5%)
73 Periodic Financial Information I FY 12 Results I 20 February 2013
4.6 4.8 4.2
0.6 0.60.5
2.00.6
7.2
6.0
4.7
FY 10 FY 11 FY 12
Ageas’s equity Value Net book value assets RPI* In EUR mio
In EUR bn
In EUR bn In EUR bn
Principal & interest collections In EUR mio
Outstanding debt - IFRS
Fair value - IFRS
Valuation Royal Park Investments as at 31 December 2012 Equity value up driven by positive RPI result, goodwill fully impaired
Net result impact – part Ageas In EUR mio
Commercial paper Other Senior + Super Senior
* Net book value = Economic recovery value as of 31 December 2012 at B-GAAP
Net result impact
Principal collections Interest collections
933
779872
FY 10 FY 11 FY 12
10.08.9
7.8
FY 10 FY 11 FY 12
131
(197)
104
FY 10 FY 11 FY 12 7.06.0 6.2
FY 10 FY 11 FY 12
1,5401,208 1,240
169
156 128
1,709
1,364 1,368
FY 10 FY 11 FY 12
Periodic Financial Information I FY 12 Results I 20 February 2013 74
Balance sheet Royal Park Investments (under IFRS at 100%) Goodwill fully impaired
IFRS -- in EUR mio FY 12 FY 11Assets 6,671 7,738Securities 6,213 6,043Deferred tax assets 324 712Goodwill - 782Other assets 135 201
Liabilities and shareholders’ equity 6,671 7,738Liabilities 4,720 5,995Other liabilities 28 35Commercial paper 4,224 4,792Funding, super senior - 649Funding, senior 468 519
Shareholders’equity 1,951 1,743Share capital 850 850Share premium (additional paid in capital) 850 850Hedging reserve 3 123Cash Flow hedge reserves 173 67Retained earnings 74 (148)
Periodic Financial Information I FY 12 Results I 20 February 2013 75
February 11 Claim re FRESH hybrid instrument dismissed by Brussels Court
November 11 Receipt report Belgian experts
Judgments received in various legal procedures No major new elements in Q4 12
Sep- Dec 10 Ageas starts legal procedure against Dutch State & ABN AMRO to obtain compensation in return for conversion Mandatory Convertible Securities (MCS) into Ageas’ shares
September 11 Exchange of uncalled Fortis Bank Tier 1 Debt Securities for cash by Ageas
Timing and (financial) outcome remains hard to estimate…. In many legal proceedings still at the stage of first instance Possible decisions first half 2013: - Administrative proceedings by FSMA (communication Q2 2008) - Further evolutions in criminal proceedings
May 11 - Claim dismissed of
VEB/Deminor and FortisEffect 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 and 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 May-June 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 and MCS, closing all outstanding disputes with Dutch State
Periodic Financial Information I FY 12 Results I 20 February 2013 76
Legal proceedings at 31 December 2012 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 Decision expected H1 2013 Criminal procedure File transmitted to the public prosecutor 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 and 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 Judgment Utrecht court 15/02/12 in favour of plaintiffs; 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
Court of Appeal confirmed no competence on Dutch defendants / Pleadings on the merits scheduled H1 2014
Proceedings ongoing Proceedings initiated in September 2012
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 FY 12 Results I 20 February 2013 77
Overview of main characteristics Hybrids Situation as per 31 December 2012
EUR mio Ageas
Ageasfinlux Fresh
Ageas Hybrid Financing Hybrone
Ageas Hybrid Financing
Nitsh I
Ageas Hybrid Financing
Nitsh II Direct issue FBB, 2004 CASHES*
% 3m EUR + 135 bp 5.125% 8.25% 8% 4.625% 3m EUR +200 bp Amount
outstanding 1,250 500 USD 750 625 1,000 1,110
ISIN XS0147484074 XS0257650019 XS0346793713 XS0362491291 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
Jun/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 YES
Dividend pusher YES YES YES YES YES NO
Dividend stopper NO YES YES YES YES YES
Trigger < 0.5% dividend trigger Liabilities > asset Liabilities > asset Liabilities > asset <8% CAD <0.5% Dividend
Other 500
on lent to AG Insurance
USD 750 on lent to FBB
250 on lent to AG Insurance; 375
on lent to FBB
No stock settlement feature as for Direct
issue FBB 2001
Coupon served by FBB, trigger ACSM linked to
Ageas dividend
Market Price (31/12/12) 43.5 77.7 100.5 100.7 95.5 53.1
Fortis Bank (now BNP Paribas)
* On 31 January 2012 BNPP announced that 63% of the holders have tendered CASHES for purchase by BNPP @ purchase price of 47.5% of the principal amount of the CASHES.
Periodic Financial Information I FY 12 Results I 20 February 2013 78
Main messages
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Total number of outstanding shares
80 Periodic Financial Information I FY 12 Results I 20 February 2013
Reverse stock split
Cancellation bought back shares
Agreement with BNP in February
situation 31/12/2011 situation 30/06/2012 situation 31/12/2012
Total Issued Shares 2,623,380,817 2,431,212,726 243,121,272
Shares not entitled to dividend and voting right 342,404,219 88,922,670 15,934,452
1. TREASURY SHARES Share buy-back 175,163,656 0 7,056,442FRESH 39,682,540 39,682,540 3,968,254Other treasury shares 2,244,740 2,801,088 265,852
2. CASHES 125,313,283 46,439,042 4,643,904
Shares entitled to dividend and voting rights 2,280,976,598 2,342,290,056 227,186,820
Total Issued Shares diminished with the 192,168,091 shares acquired through the Buy-back programme & cancellation granted at the shareholders' meetings of 24 and 25 April 2012 effective as at 29 June 2012.
Following the agreement with BNPP 63% of the outstanding CASHES has been converted into Ageas shares (63% of 125,313,283) with dividend and voting right.
Following the reverse stock split the total number of shareshas been divided by 10, effective as at 7 August 2012.
Buy back
Ageas5.51%
Ping An 4.98%
Franklin Mutual Advisers3.23%
BlackRock, Inc.3.05%
Norges Bank 2.98%
Fortis Bank1.91%
BNP Paribas 1.05%
Identified retail investors
16% Identified institutional investors
37%
Other investors23%
BNP Paribas Group2.96%
Shareholders structure Based on number of shares as at 15 February 2013
Periodic Financial Information I FY 12 Results I 20 February 2013 81
Ageas Based upon press release 18 February 2013Ping An Based upon the number of shares mentioned in the notification received March 2009
Franklin Mutual Advisers Based upon the number of shares mentioned in the notification received 30 April 2012BlackRock, Inc. Based upon the number of shares mentioned in the notification received 12 December 2012
Norges Bank Based upon the number of shares mentioned in the notification received 20 August 2012BNP Paribas Based upon the BNP Paribas notification 1 October 2012
Benelux Retail shareholders Estimate byIdentified institutional investors Estimate by
Financial Calendar 2012 - 2013
6 August 6M 2012 results
7 November 9M 2012 results
24 & 25 September Investor Day - London
24 April Ordinary & Extraordinary shareholders’ meeting - Brussels
20 February Annual results 2012
15 May 3M 2013 results
14 March Annual report 2012
26 April Ex-dividend date
6 May Payment 2012 dividend
2 August 6M 2013 results
6 November 9M 2013 results
Periodic Financial Information I FY 12 Results I 20 February 2013 82
Rating
Periodic Financial Information I FY 12 Results I 20 February 2013 83
S&P MOODY'S FITCH
Operating entities AG Insurance (Belgium)Insurance Financial Strength A- / stable A2 / negative A+ / stableLast change 29/11/12 26/07/12 14/12/12
Millenniumbcp Ageas (Portugal)Insurance Financial Strength BB / negative BBB- / negativeLast change 17/01/12 25/11/11
Ageas Insurance Co. (Asia)Insurance Financial Strength Baa1 / stable A- / stableLast change 16/01/13 05/01/12
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 29/11/12 26/07/12 14/12/12
* 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.
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.
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Investor Relations
Periodic Financial Information I FY 12 Results I 20 February 2013