full year results 2013

FULL YEAR Periodical Financial Information

2013 RESULTS

Changes in Executive Committee Kurt De Schepper retiring, replaced by Filip Coremans as per 1 July 2014

1

Executive Committee

Emmanuel Van Grimbergen

GRO Antonio Cano CEO Belgium

Andy Watson CEO UK

Gary Crist CEO Asia

Steven Braekeveldt CEO CEU

Management Committee

Board

Bart De Smet

CEO

Barry Smith COO

Kurt De Schepper Filip Coremans

CRO CRO Christophe Boizard

CFO

current function:

CFO/CRO Asia

Periodic financial Information I FY 13 Results I 19 February 2014

Solid full year

Insurance

performance – weaker Non-Life Q4

Group net result

driven by Insurance – Q4 impacted by RPN(i)

Balance sheet

remains strong

Proposed 2013

gross dividend

Progress in legal

legacies

Insurance net profit of EUR 654 mio (+5%) - Q4 EUR 157 mio

Inflow @ 100% of EUR 23.2 bn (+9%) - Q4 EUR 5.5 bn

Group combined ratio at 98.6% (vs.99.1%)

Life Technical Liabilities at EUR 69.2 bn* (stable)

Group net profit of EUR 570 mio (-23%) - Q4 EUR 57 mio, incl. RPN(i)

General Account net result of EUR (85) mio

Shareholders’ equity at EUR 8.5 bn or EUR 37.65 per share

Insurance solvency at 207%, Group solvency at 214%

Net cash position General Account at EUR 1.9 bn

Cash EUR 1.40 per share (+17%)

AFM fine II re communication on subprime exposure annulled (14/02/14)

Main messages Ageas reports solid FY 13 results & proposes 17% dividend increase

Periodic financial Information I FY 13 Results I 19 February 2014 2

* Consolidated entities only


What we said at Investors Update 2013 Realizing ROE target based on 2 tracks & combining a series of small steps

Numerator

1. Consolidated Life operating margin

2. Consolidated Non-Life combined

ratio

3. Focus on higher ROE activities &

product lines

4. Gradually increase profits from fast

growing emerging market activities

Denominator

1. Capital efficiency is an operational day-to-day concern

2. Capital allocation of means is a

strategic choice

Actions to improve ROE - numerator Progress made with respect to most operating objectives


Operating margin Guaranteed: above target

range of 85-90 bps In % avg technical liabilities

Gradually move towards higher ROE products in Life

0.99% 0.96%

FY 12 FY 13

99.1% 98.6%

FY 12 FY 13

125

153

FY 12 FY 13

83%74%

17%26%

FY 12 FY 13

Unit-linked

Guaranteed

In EUR mio

Non-Life combined ratio: all segments below 100% - objective of 97% in current low interest rate environment

In % NEP

Increased profit from non-consolidated partnerships


New strategy announced at

Investors Update

2013

Partly on-lend FRESH capital to operating companies* via internal SII

compliant hybrid loans against upstream of around EUR 400 mio capital

Optimizing capital structure improves Insurance ROE - Liquidity neutral for holding

* only consolidated entities

In EUR mio

Actions to improve ROE - denominator Increase leverage in Insurance Opco’s

1° realization

Belgium near

optimal leverage

Subordinated

liabilities

Subordinated

liabilities

AG Insurance issued EUR 450 mio Subordinated Note @ 5.25% rate

EUR 150 mio to replace existing loan & EUR 300 mio to increase leverage

EUR 350 mio subscribed by Ageas & EUR 100 mio by BNP P

50% RMM2,044

50% RMM1,225

6M 131,945

6M 13899

FY 132,012

FY 131,177

Ageas Belgium


Actions to improve ROE - denominator Upstream of dividend from operating companies more than EUR 600 mio

Significant

upstream from

Insurance companies

243225

82

Portugal 20

France 5Turkey 6

Luxembourg 5

Malaysia 11Thailand 5

Hong Kong 36

36

52

Belgiumordinary

Belgiumextra

UK Continental Europe Asia

All segments contributing

Upstream more than covering dividend & holding costs

Extra-ordinary dividend in Belgium as part of active capital management

Upstream with respect of local solvency requirements & Ageas 200% IFRS

solvency ratio target In EUR mio


Status on Vision 2015 targets

FY 13 at 67/33 (vs. 67/33)

Steady growth Non-Life – target cannot be reached with organic growth alone Calculation based on Inflows @ Ageas’s part

FY 13 at 98.6% (vs. 99.1%)

Improving in UK & CEU, Belgium impacted by governmental measures Calculation based on Non-Life Net Underwriting result in % Net earned premiums

FY 13 at 12.6% (vs. 12.1%)

Capital increase & retained earnings in Asia, high upstream in Belgium Equity of Turkey, China, Malaysia, Thailand & India as % total Insurance equity

FY 13 at 8.3% (vs. 8.7%)

ROE excl. UGL FY 13 at 10.4% (vs. 10.7%)

Higher net profit not compensating for higher average shareholder’s equity - higher

UGL, retained earnings & acquisition Groupama Insurance result in % average Insurance equity (Beginning of period + End of period)/2


What we said at Investors Update 2013 Net cash General Account allocation priorities

Disciplined cash management

Use funds in priority to invest in business

& return to shareholders

1. Disciplined M&A approach along precise criteria

2. Existing dividend policy reconfirmed

3. Intention to return cash to shareholders

if no adequate M&A opportunities

4. Continued active capital management

Ageas proposes a gross cash dividend of EUR 1.40 per share In line with dividend policy, 17% up on 2012

Proposed gross

dividend in cash

456391

(313)

624 624 654

188 197 188

270

493

310

2009 2010 2011 2012 2012dividend +

cap reduction

2013

Insurance result

Dividend

To be approved at

AGM

gross amount / share 0.80 0.80 0.80 1.20 2.20 1.40

pay-out ratio 41% 50% - 43% - 47%

dividend yield* 4.2% 4.6% 6.3% 4.7% - 4.5%

In EUR mio

EUR 1.40 per share - up 17% on 2012

In line with 40%-50% pay-out ratio of Insurance result

set out in dividend policy

AGM: 30 April Brussels

Ex-dividend date: 5 May

Payment dividend : 13 May

Dividend payments

in line with

announced policy

* calculation based on day before ex-dividend date closing price – 2013 yield based on 31/12/2013 share price


Simple shareholder

return*

Since end ‘08: 243%

Since end ’10: 86%

Since end ’12: 43%

€ 7.53

€ 31.88

12/08 04/09 08/09 12/09 04/10 08/10 12/10 04/11 08/11 12/11 04/12 08/12 12/12 04/13 08/13 12/13

Total shareholder

return*

outperformance vs.

Stoxx Insurance 600

Since end ‘08: 321% +221% vs Stoxx Insurance 600

Since end ’10: 122% +61%

Since end ’12: 55% +26%

≈ EUR 1.4 bn

dividends & capital reduction

≈ EUR 850 mio dividend over 09, 10, 11 & 12

EUR 222 mio capital reduction paid in 2013

≈ EUR 310 mio proposed dividend over 2013

EUR 650 mio share buy-backs

EUR 450 mio share buy-backs finalized

early 12 & 13

EUR 200 mio ongoing share buy-back

launched 12/08/13

Use of net cash General Account: Return to shareholders Ageas substantially outperformed Stoxx Insurance 600 since 2009

* calculation ended 31/01/2014 – external source

Ageas share price

evolution


12

FY 12 FY 13

Other Life Non-Life

1

79

30

Q4 12 Q4 13

5.75.9

FY 12 FY 13

Non-Life Life

4.5 4.1

1.31.4

5.85.5

Q4 12 Q4 13 FY 12 FY 13

Non-conso Conso

9M 13 FY 13

FY 12 FY 13 Q4 12 Q4 13 FY 12 FY 13 Q4 12 Q4 13 FY 12 FY 13 Q4 12 Q4 13

Net result: Strong Q4 in Asia, lower in UK & Belgium In EUR mio In EUR bn

Non-Life combined ratio: improving CY claims ratio

Inflow*: strong growth in Asia & CEU In EUR bn

Total Insurance: Headlines Solid FY performance, Q4 impacted by weaker Non-Life results


Life Technical liabilities: stable in consolidated, up in non-consolidated

Operating margin Guaranteed: above target range due to one-offs in Asia

Operating margin Unit-Linked: out of target range due to one-offs in Asia

In % avg technical liabilities In % avg technical liabilities

430 438137 126

223 204

624 654175

157

15.6 17.4

21.3

23.2

68.8 69.2

36.5 40.9

105.3110.2

99.1% 98.6% 102.3% 101.5% 0.99% 0.96% 1.37% 1.23%

0.48%0.28%

0.28%

(0.28%)

(28) (41)

69.0 69.2

39.9 40.9

108.9 110.2

* incl. non-consolidated partnerships @ 100%

In % NEP

FY 12 FY 13FY 12 FY 13


Net result: solid YTD performance In EUR mio

In EUR bn

Operating margin Guaranteed: at high end of target range

Non-Life combined ratio: solid full year, despite weaker Q4

Inflow*: Individual Guaranteed Life

down, Unit-linked & Non-Life up Life Technical liabilities stable In EUR bn

Belgium : Headlines Strong FY Life operating margin & Non-Life combined ratio

**

Operating margin Unit-Linked: Satisfactory YTD margin


FY 12 FY 13

Life Non-Life

95 84

134

88

Q4 12 Q4 13

5.14.1

1.8

1.9

6.9

6.0

FY 12 FY 13

Life Non-Life

1.51.1

0.4

0.4

1.8

1.5

Q4 12 Q4 13

Q4 12 Q4 13

In % NEP

Q4 12 Q4 13FY 12 FY 13Q4 12 Q4 13

99.5% 99.9% 101.5% 106.3%

0.34%0.42%0.41%0.47%

1.03%1.45%0.89%0.96%

260274

6561

324335

FY 12 FY 13 9M 13 FY 13

52.7 53.2 52.9 53.2

108


Better Non-Life operating result offset by Retail & FX impact In EUR mio

United Kingdom: Headlines Stable inflow, strong contribution from acquired Groupama activities


Non-Life combined ratio: improved underwriting mainly in Household

12(0) (2)

90

FY 12 FY 13

Other Non-Life Total

1

(1)

(0)

64

13

22

14

Q4 12 Q4 13

FY 12 FY 13 Q4 12 Q4 13

99.8% 98.4%102.8% 99.2%

137

108

100

(28) (41) (12) (15)

28 24

16

9

FY 12 FY 13

Holding costs Retail

In EUR mio

2012 adjusted from EUR (28) mio

to EUR 16 mio for :

• impairment charge

• accel. amortisation

• GICL acquisition costs

2013 adjusted for EUR 4

mio deferred tax benefit 87 90

FY 12 FY 13

2012 adjusted from EUR 137 mio

to EUR 87 mio:

• badwill on GICL

• reorganisation costs

Non-Life adjusted result: 2012 impacted by exceptionals In EUR mio

In % NEP In EUR bn

Inflow* up 2% after negative FX of 5%

Other Income further down in a competitive market In EUR mio

0.1 0.1

2.1 2.2

2.2 2.3

FY 12 FY 13

Life Non-Life

0.0 0.00.5 0.5

0.5 0.5

Q4 12 Q4 13 FY 12 FY 13

64 54

Q4 12 Q4 13

276 235

Other adjusted result: 2012 & 2013 impacted by exceptionals


Net profit increase driven by EUR 9 mio one-off in Turkey In EUR mio In EUR bn

Non-Life combined ratio still good despite adverse weather in Portugal

227% 210% 207%

Inflow* boosted by strong sales, especially in Portugal & Turkey In EUR bn

Continental Europe: Headlines Excellent top line performance & increased Non-Life net profit including positive one-off

**

Operating margin Guaranteed: lower risk margin vs. excellent 2012


Life Technical liabilities stable

In % avg technical liabilities

Operating margin Unit-Linked: FY margin in line with objective In % avg technical liabilities

50 44

1332

64

77

FY 12 FY 13

Life Non-Life

148

16

15 14

Q4 12 Q4 13

3.24.1

1.0

1.14.3

5.2

FY 12 FY 13

Life Non-Life

1.1 1.2

0.30.3

1.41.5

Q4 12 Q4 13 FY 12 FY 13

Non-conso Conso

9M 13 FY 13


93.4% 93.7%102.8% 91.4%

1.02% 0.91% 1.02% 0.94%0.44% 0.47%

0.23% 0.20%

14.0 15.0 14.4 15.0

14.1 13.9 14.0 13.9

28.1 28.9 28.4 28.9

In % NEP


Net result: Excluding one-offs, strong growth of underlying profit In EUR mio In EUR bn

Non-Life combined ratio improved over 2013

Inflow growth fuelled by China & Thailand

Life Technical liabilities up across all entities In EUR bn

Asia: Headlines New business boost & underlying profit growth Life / Strong Non-Life underwriting result


**

In % avg technical liabilities In EUR mio

Life operating margin Hong Kong: Q4 13 margin impacted by one-off

Result non-conso partnerships: excluding one-offs up almost 20%

821

FY 12 FY 13

Life Non-Life

2835

2

630

41

Q4 12 Q4 13

7.1

9.1

0.8

0.87.9

9.8

FY 12 FY 13

Life Non-Life

1.9 1.7

0.2 0.2

2.11.9

Q4 12 Q4 131.9 2.0

FY 12 FY 13

Non-conso Conso

2.0 2.09M 13 FY 13

24 21

2 6

26 28

Q4 12 Q4 13

8 21

FY 12 FY 13

Life Non-Life

Q4 12 Q4 13FY 12 FY 13Q4 12 Q4 13FY 12 FY 13

99.3% 95.4% 94.5% 97.4% 1.98% 1.95% 1.75% 3.59%

22.5 25.9 25.8 25.9

24.427.9 27.8 27.9

121 122

129142

101 100

109120

In % NEP



Investment portfolio UG/L fixed income down, asset allocation broadly stable In EUR bn

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

Asset mix

Asset mix relatively stable

Slightly increased positions in equities & customer loans

at the expense of cash continued

Gross unrealized gains/losses on Available for Sale

Total portfolio: down to EUR 4.0 bn (EUR 5.4 bn FY 12);

due to fixed income

Fixed income: at EUR 3.5 bn (EUR 5.2 bn FY 12)

Sovereigns at EUR 2.3 bn (vs. EUR 3.3 bn)

Corporates at EUR 1.2 bn (vs. EUR 1.8 bn)

Equities: up to EUR 0.5 bn (vs. EUR 0.2 bn)

Gross UG/L on Real Estate: stable at EUR 1.3 bn - not

reflected in shareholders’ equity

EUR 0.9 bn unrealized gains/losses on Held to Maturity

bonds - not reflected in shareholders’ equity

Sovereign bonds 34.7


Corporate bonds 25.1


Structured 0.3Structured 0.4

Loans6.3

Loans5.7

Equities 2.4 Equities 3.2

Real Estate 4.7 Real Estate 4.6

Cash 2.4 Cash 2.2

75.9 75.1

FY 12 FY 13

(5)

Q4 12 Q4 13

Q4 12 Q4 13 FY 12 FY 13

Net result driven by Q1 transactions & revaluation RPN(i) In EUR mio

Accounting value of remaining legacies:

General Account: Headlines Impacted by revaluation RPN(i) liability


Net cash position: increase driven by settlement RPI & Call option

In EUR bn In EUR mio

FY 12 FY 13

1.2

2.0 1.9

FY 12 9M 13 FY 13

119

(85)

50

(100)

RPN(i) impact on P&L RPI & Call Option impact on P&L

Staff & Operating expenses down

FY 12 FY 13

Call Option RPI

(273)(205)

(91)

In EUR mio In EUR mio

In EUR mio

(165) (279) (370)

234

872

24237

FY 12 9M 13 FY 13

RPN(i) Call Option RPI

104276

(161)

(90)60

14

1

Q4 12 Q4 13

17 18

33 27

5045

FY 12 FY 13

Staff Operating

5 5

8 7

13 12

Q4 12 Q4 13

(57)

186


Shareholders’ equity roll forward Net profit offset by lower unrealized gains, return to shareholders & put option

In EUR mio

5,5106,206 6,333

430

1,939 1,2801,742

1,655

912

654

49

(85)(720) (149) (270) (223)

(357) (175)

EUR 42.27 EUR 37.65

7,683

9,799

8,525

FY 11 FY 12 Net resultInsurance

Net resultGen Acc

ChangeUG/L

TreasuryShares

Dividend Capitalreduction

Revalput option

Forex Other FY 13

InsuranceUG/L

InsuranceUG/L

FY 12 FY 13 FY 12 FY 13

Belgium 3,974 ► 3,676 Asia 1,837 ► 1,592

UK 1,149 ► 1,121 Insurance 8,145 ► 7,613

Continental Europe 1,185 ► 1,224 General Account 1,655 ► 912

Shareholders’

equity per

segment

Shareholders’

equity per share

2013 return to shareholders


Insurance Solvency up on Net result & capital injection China Group Solvency down on returns to shareholders, revaluation put option & RPN(i)

2.4 2.5

0.5 0.5 0.6 0.6 0.5 0.6

4.0 4.1 4.0 4.1

1.72.0

0.6 0.60.8 1.0 0.9 0.7

4.14.4

1.00.3

5.1 4.7

4.1 4.5

1.1 1.0 1.41.6

1.4 1.3

8.1

8.59.1 8.8

FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13

Belgium

UK

CEU

Asia

Total Ageas

General Account

RMC Excess Capital

RMC Excess Capital

RMC Excess Capital

RMC Excess Capital

RMC Excess Capital

Available Capital

In EUR bn

173% 183% 220% 223% 243% 271% 268% 221% 204% 207% 229% 214%Solvency ratio

Takeaways

Strong inflow levels - solid market positions

Operating margins in Life & Non-Life in line with objectives

Complexity & risk profile Ageas further

reduced

Disciplined use of net cash

Increased dividend underlining deliberate

focus on shareholder return

Conclusions: positive trend continued


Annexes

Equity / Solvency

Insurance Activities

Investment portfolio

General Account

General Information


Key financials Strong operational performance

In EUR mio FY 12 FY 13 Q4 12 Q3 13 Q4 13

Gross inflows 21,269 23,220 5,805 5,270 5,454 - of which inflows from non-consolidated partnerships 10,215 12,194 2,933 2,590 2,632

Net result Insurance 624 654 175 168 157By segment:

- Belgium 324 335 108 87 88

- UK 108 100 22 29 14

- Continental Europe 64 77 15 17 14

- Asia 129 142 30 35 41

By type:

- Life 430 438 137 110 126

- Non-Life 223 204 79 55 30

- Other (28) 12 (41) 3 1

Net result General Account 119 (85) 50 (127) (100)

Net result Ageas 743 570 225 41 57Earnings per share (in EUR) 3.13 2.49

FY 12 FY 13

Insurance Solvency 204% ** 207%

Shareholders' equity 9,799 ** 8,525Net equity per share (in EUR) 42.27 ** 37.65

Insurance ROE 8.7% 8.3%

Insurance ROE excl.UG/L 10.7% 10.4%

** restated for IAS 19


Shareholders’ equity roll forward Net profit offset by lower unrealized gains, return to shareholders & put option

In EUR mio

5,5106,206 6,333

430

1,939 1,2801,742

1,655

912

654

49

(85)(720) (149) (270) (223)

(357) (175)

EUR 42.27 EUR 37.65

7,683

9,799

8,525

FY 11 FY 12 Net resultInsurance

Net resultGen Acc

ChangeUG/L

TreasuryShares

Dividend Capitalreduction

Revalput option

Forex Other FY 13

InsuranceUG/L

InsuranceUG/L

FY 12 FY 13 FY 12 FY 13

Belgium 3,974 ► 3,676 Asia 1,837 ► 1,592

UK 1,149 ► 1,121 Insurance 8,145 ► 7,613

Continental Europe 1,185 ► 1,224 General Account 1,655 ► 912

Shareholders’

equity per

segment

Shareholders’

equity per share

2013 return to shareholders


Tangible net equity High quality capital structure

10/03/2010 I page 24

EUR bn FY 12 FY 13

IFRS Shareholders' Equity 9.8 8.5

Unrealised gains real estate 0.6 0.6

Goodwill (0.7) (0.7)

VOBA (Value of Business Acquired) (0.4) (0.3)

DAC (Deferred Acquisition Cost) (0.9) (0.9)

Other (0.4) (0.4)

Goodwill, DAC, VOBA related to N-C interests 0.5 0.5

25% tax adjustment DAC, VOBA & Other 0.3 0.3

IFRS Tangible net equity 8.9 7.7

IFRS Tangible net equity/ IFRS Shareholder's Equity 91% 90%


IFRS Insurance Solvency up on Net result & capital injection TPL General Account down on capital reduction, revaluation put option & RPN(i)

2.4 2.5

0.5 0.5 0.6 0.6 0.5 0.6

4.0 4.1 4.0 4.1

1.72.0

0.6 0.60.8 1.0 0.9 0.7

4.14.4

1.00.3

5.1 4.7

4.1 4.5

1.1 1.0 1.41.6

1.4 1.3

8.1

8.59.1 8.8

FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13

Belgium

UK

CEU

Asia

Total Ageas

General Account

RMC Excess Capital

RMC Excess Capital RMC Excess Capital RMC Excess Capital RMC Excess Capital Available Capital

In EUR bn

173% 183% 220% 223% 243% 271% 268% 221% 204% 207% 229% 214%Solvency ratio

Annexes

Equity / Solvency

Insurance activities


General Account

General Information

12

FY 12 FY 13

Other Life Non-Life

1

79

30

Q4 12 Q4 13

5.75.9

FY 12 FY 13

Non-Life Life

4.5 4.1

1.31.4

5.85.5

Q4 12 Q4 13 FY 12 FY 13

Non-conso Conso

9M 13 FY 13


Net result: Strong Q4 in Asia, lower in UK & Belgium In EUR mio In EUR bn

Non-Life combined ratio: improving CY claims ratio

Inflow*: strong growth in Asia & CEU In EUR bn

Total Insurance: Headlines Solid FY performance, Q4 impacted by weaker Non-Life results


Life Technical liabilities: stable in consolidated, up in non-consolidated

Operating margin Guaranteed: above target range due to one-offs in Asia

Operating margin Unit-Linked: out of target range due to one-offs in Asia


430 438137 126

223 204

624 654175

157

15.6 17.4

21.3

23.2

68.8 69.2

36.5 40.9

105.3110.2

99.1% 98.6% 102.3% 101.5% 0.99% 0.96% 1.37% 1.23%

0.48%0.28%

0.28%

(0.28%)

(28) (41)

69.0 69.2

39.9 40.9

108.9 110.2


In % NEP

Inflow @ 100% Growth driven by China, Portugal & Thailand

* Ageas holds a 50% stake in Tesco Underwriting


EUR mio FY 12 FY 13 FY 12 FY 13 FY 12 FY 13

Belgium 75% 5,127 4,101 1,759 1,855 6,886 5,956

United Kingdom 100%* 86 108 2,143 2,176 2,229 2,284 0 0

Continental Europe 3,246 4,092 1,026 1,064 4,272 5,156 Consolidated entities 1,034 1,840 459 462 1,493 2,302

Portugal 51% 763 1,486 240 251 1,003 1,737

France 100% 271 354 271 354

Italy 25% 219 211 219 211

Non-consolidated JV's 2,213 2,252 567 602 2,779 2,854 Turkey (Aksigorta) 36% 567 602 567 602

Luxembourg (Cardif Lux Vie) 33% 2,213 2,252 2,213 2,252

Asia 7,131 9,058 751 766 7,882 9,824 Consolidated entities 447 485 447 485

Hong Kong 100% 447 485 447 485

Non-consolidated JV's 6,684 8,574 751 766 7,436 9,340

Malaysia 31% 786 594 570 552 1,357 1,145 Thailand 15%/31% 1,224 1,476 181 214 1,405 1,690

China 25% 4,565 6,397 4,565 6,397

India 26% 109 108 109 108 0 0

Total 15,590 17,359 5,680 5,861 21,269 23,220 0 0

Consolidated entities 6,693 6,534 4,362 4,493 11,054 11,027

Non-consolidated partnerships 8,897 10,826 1,318 1,368 10,215 12,194

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

Inflow @ Ageas’s part Strong growth in emerging markets, Guaranteed Life sales down in Belgium

In EUR mio


3,845 3,076

86 108 1,397

1,862 2,233 2,745

7,561 7,791

1,319

1,391

1,780 1,916

381 398 203

203

3,684 3,907

(13%)

8% 27%

21%

4%

5,164

4,467

1,865 2,024 1,779

2,260 2,436 2,947

11,245 11,698

FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13

Insurance net result Further up despite negative FX impact, all segments up except UK

Belgium

UK

CEU

Asia

Total Ageas

Life Non-Life

Life Non-Life Other

Life Non-Life

Life Non-Life

Life Non-Life Other

260 274

(0)

(2)

50 44

121 122

430 438

65 61

137 90 13 32

8 21

223 204

(28)12

(28)12

324 335

108

100

64 77

129 142

624 654

FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13

In EUR mio


10/03/2010 I page 31

Overview impairments & net capital gains on investments Impairments substantially lower vs. FY 12

*


EUR mio FY 12 FY 13 FY 12 FY 13 FY 12 FY 13

Life 115 89 (71) (25) 44 64

Non-Life 22 15 (4) (4) 18 11

Total Belgium 137 104 (75) (29) 62 75

Life

Non-Life 20 11 (6) 14 11

Other

Total UK 20 11 (6) 14 11

Life 4 15 (1) (13) 4 2

Non-Life 0 0 0 0

Total CEU 5 15 (1) (13) 4 3

Life 31 36 (16) (7) 15 29

Non-Life 2 4 (0) (0) 2 4

Total Asia 33 40 (16) (7) 17 33

Life 150 140 (88) (44) 63 95

Non-Life 44 30 (10) (4) 34 26

Other

Total Ageas 195 170 (98) (48) 97 122

Capital gains/lossesImpairments &

Profit sharing Net impact


Insurance Lexicon on new margin disclosures as from FY 2012

Life Non-Life

+ Underwriting

result

+ Premiums received from policyholders

- actual payments made in risk contracts

+ penalties deducted in case of surrender

+ reinsurance result

+ Net Underwriting

result

+ Net Earned Premium

- all evolutions in claims reserves (CY & PY)

+ technical interest charges on technical liabilities

- all expenses (marketing, intermediary, claims

handling & administration)

+ Expense &

Other result

+ expense loadings

- actual expense charges

+ other results of technical nature

= Net Underwriting result + Other result + other results of technical nature

+ Investment result + Investment income on assets covering

Life technical liabilities (recurring & cap

gains)

- what is paid out to policyholders

(guaranteed income & profit sharing)

+ Investment result + Investment income on assets covering Non-Life

technical liabilities (recur. & cap gains)

- technical interest charges on technical liabilities

= Operating result = Operating result

Average technical

liabilities

= average between technical liabilities at

the beginning & at the end of each quarter

of current year.

Net earned premium + Premiums received from policyholders

- premiums covering risks future period

- premiums paid to reinsurers

Life margins All Life margins calculated as % of average

technical liabilities Non-Life ratio’s All Non-Life ratio’s calculated in % of Net

earned premiums

Combined ratio

Corresponds to 1minus net underwriting

result in % of net earned premiums


Insurance Combined ratio On track to be substantially below 100%

Net earned premium in EUR mio

Combined ratio at 98.6% vs. 99.1%

Q4 weaker performance due to storms &

floods

Household at 95.3% (vs.97.2%): good

performance despite storms & floods in Q4–

Q4 at 108.8%

Accident & Health: at 95.6% (vs.96.0%):

strong improvement in CEU– Q4 at 98.4%

Motor at 99.6% (vs. 99.0%): flat in UK despite

challenging market conditions, large losses in

CEU– Q4 at 95.6%

Claims ratio at 65.9% vs. 68.1%

CY claims ratio (69.4% vs. 71.2%) most

significant impact in Household

PY claims ratio slightly up to release of 3.5%

(vs. 3.1%), run-off mainly up in A&H CEU &

Motor UK

Expense ratio at 32.7% vs. 31.0%

lower average premium levels & higher

commissions in UK

69.4% 73.2% 69.0% 68.1% 65.9% 70.3% 70.0%

33.1%32.8%

31.1% 31.0% 32.7%32.0% 31.5%

102.5%106.0%

100.1% 99.1% 98.6%102.3% 101.5%

(6.0%)(3.7%) (3.5%) (3.1%) (3.5%)

(1.4%)(5.4%)

2009 2010 2011 FY 12 FY 13 Q4 12 Q4 13

claims ratio expense ratio PY claims ratio

2,497 2,858 3,507 4,178 4,315 1,111 1,090

70.4% 74.3% 71.9% 70.5% 70.0%

23.6%24.8% 25.0% 25.5% 25.6%

94.0%99.1% 96.9% 96.0% 95.6%

2009 2010 2011 FY 12 FY 13

79.0% 78.4% 72.0% 73.6% 72.0%

29.3% 29.0%25.3% 25.4% 27.6%

108.3% 107.4%97.3% 99.0% 99.6%

2009 2010 2011 FY 12 FY 13

59.4%75.0%

61.9% 55.6% 52.2%

43.4%

43.2%

41.5%41.6% 43.1%

102.8%

118.2%

103.4%97.2% 95.3%

2009 2010 2011 FY 12 FY 13

51.7%42.9%

67.2% 66.5% 62.4%

45.8%

41.2%

44.8% 44.9% 45.5%

97.5%

84.1%

112.0% 111.4% 107.9%

2009 2010 2011 FY 12 FY 13

Insurance Combined ratio per product line Household strongly improving

Motor: improving claims not compensating increase in

expense ratio

Accident & Health: good performance confirmed

Other: improvement across all segments Household: benign weather in major markets


NEP NEP

NEP NEP

609 714 736 763 813 1,012 1,134 1,571 2,058 2,043

673 750 892 1,007 1,066 203 261 308 349 394

Insurance Life operating margin per product line Margins in Guaranteed & UL mostly in line with objectives

Guaranteed: driven by investment margin Unit-linked: decrease driven by one-offs Hong Kong

Average technical liabilities Average technical liabilities

Underwriting margin improvement both in CEU &

Hong Kong

Expense & other margin decrease related to one-offs

in Hong Kong mainly

Investment margin FY 2012 included some positive one-

offs

Steady underwriting margin

Expense margin stable


0.44% 0.41% 0.44% 0.43% 0.35% 0.44%

0.67%

(0.79%)

0.87% 0.83%1.31%

0.96%

(0.33%)

(0.36%)

(0.33%) (0.31%) (0.30%)(0.18%)

0.78%

(0.74%)

0.99% 0.96%

1.37%

1.23%

2010 2011 FY 12 FY 13 Q4 12 Q4 13

Expense & other m. Investment m. Underwriting m.

0.07% 0.04%

0.11% 0.13%

0.06%

0.10%0.01%

0.01%

(0.02%)

0.01%

(0.10%)

0.27%0.42%

0.37%

0.18%0.22%

(0.28%)

0.35%

0.45%0.48%

0.28% 0.28%(0.28%)

2010 2011 FY 12 FY 13 Q4 12 Q4 13


50.4 52.3 54.0 55.5 54.0 55.5 20.2 12.4 11.8 12.3 11.8 12.1

FY 12 FY 13FY 12 FY 13


Net result: solid YTD performance In EUR mio

In EUR bn

Operating margin Guaranteed: at high end of target range

Non-Life combined ratio: solid full year, despite weaker Q4

Inflow*: Individual Guaranteed Life

down, Unit-linked & Non-Life up Life Technical liabilities stable In EUR bn

Belgium : Headlines Strong FY Life operating margin & Non-Life combined ratio

**

Operating margin Unit-Linked: Satisfactory YTD margin


FY 12 FY 13

Life Non-Life

95 84

134

88

Q4 12 Q4 13

5.14.1

1.8

1.9

6.9

6.0

FY 12 FY 13

Life Non-Life

1.51.1

0.4

0.4

1.8

1.5

Q4 12 Q4 13

Q4 12 Q4 13

In % NEP

Q4 12 Q4 13FY 12 FY 13Q4 12 Q4 13

99.5% 99.9% 101.5% 106.3%

0.34%0.42%0.41%0.47%

1.03%1.45%0.89%0.96%

260274

6561

324335

FY 12 FY 13 9M 13 FY 13

52.7 53.2 52.9 53.2

108


4,6473,541

480

561

5,127

4,101

FY 12 FY 13

(20%)

Life In EUR mio

Non-Life In EUR mio

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor


Belgium: Inflow @ 100% Life Individual Guaranteed decrease partly compensated by higher UL & Non-Life

484 516

553 570

569 601

154 1671,759 1,855

FY 12 FY 13

+5%

Guaranteed

Sales of guaranteed products decreased by 24% to EUR 3.5 bn

Decline particularly evident in Individual Savings

Lower sales compared to very high sales levels last year due to

persistent low interest rates and increase of insurance premium tax

(from 1.1% to 2%; as at 01/01/2013)

Group Life inflow remained strong at EUR 1.1 bn

Unit-linked

Sales increased by 17% to EUR 561 mio, mainly thanks to a marked

customer appetite for closed-end structured products reflected in

higher average invested amounts

Household, Motor, Other

GWP increased in both Bank & Broker channels & across all product

lines, mainly in Household

Household (+6%): higher volume & tariff increases

Motor (+3%): driven by volume & tariff increases

Other (+9%): mainly driven by tariff increase in Legal Assistance

Accident & Health

Accident & Health (+7%)


Belgium: Combined ratio Solid FY ratio despite governmental measures, Q4 impacted by weather events


64.1% 68.7% 64.3% 62.7% 63.2% 64.3%70.2%

36.8%36.4%

36.8% 36.8% 36.7% 37.2%36.1%

100.9%105.1%

101.1% 99.5% 99.9% 101.5%106.3%

(8.0%)(6.6%) (7.3%)

(4.5%) (3.6%)(0.2%)

(1.9%)

2009 2010 2011 FY 12 FY 13 Q4 12 Q4 13


Combined ratio at 99.9% vs. 99.5%

Weaker Q4 at 106.3% due to storms, floods &

large claims

Household at 97.0% vs. 96.7%: Solid

performance with strong claims ratio for the first

9 months partly offset by weather events in Q4

Q4 at 107.9%

Accident & Health remains strong at 97.5% vs.

97.0% - Q4 at 107.0%

Motor at 101.0% vs. 100.5%: solid H2 (COR

below 100%), H1 impacted by faster bodily

injuries reserving & adverse developments in a

few large claims - Q4 at 99.8%

Claims ratio at 63.2% vs. 62.7%

CY ratio (66.8% vs. 67.2%) improvement

mainly in Household, small improvement in

Motor

PY ratio (3.6% vs. 4.5%), lower prior year

run-off due to Q2 non-recurring additional

reserving for a few large claims (Motor) &

reserving for VAT lawyer fees (mainly Other

Lines)

Expense ratio stable

1,469 1,541 1,601 1,698 1,785 429 462

Belgium: Combined ratio per product line Solid FY combined ratio in Household and Accident & Health

Motor: both Q3 & Q4 below 100% Accident & Health: solid FY ratio

Household: strong 9M, weather events in Q4 Other: reservation VAT lawyer fees, mainly Legal Assistance

NEP NEP

NEP NEP


68.9% 75.8% 73.8% 73.0% 73.7%

22.6%21.9% 23.8% 24.0% 23.8%

91.5%97.7% 97.6% 97.0% 97.5%

2009 2010 2011 FY 12 FY 13

68.5% 71.0%58.9% 64.7% 64.7%

36.3% 35.7%

35.3%35.8% 36.3%

104.8% 106.7%

94.2%100.5% 101.0%

2009 2010 2011 FY 12 FY 13

60.5%75.6%

63.0%50.5% 51.4%

47.1%

47.1%

46.9%

46.2% 45.6%

107.6%

122.7%

109.9%

96.7% 97.0%

2009 2010 2011 FY 12 FY 13

44.9%

10.4%

58.2% 65.9% 66.2%

49.2%

50.9%

49.5%48.1% 47.2%

94.1%

61.3%

107.7%114.0% 113.4%

2009 2010 2011 FY 12 FY 13

424 451 451 480 507 465 498 525 540 552

453 463 484 530 564 127 129 142 149 162

Belgium Life operating margin per product line

Guaranteed: solid margin, at high end of target range Unit-linked: increasing liabilities & lower

expense & other margin

Avg techn liabilities Avg techn liabilities

0.03%

(0.05%)

0.04% 0.04%

(0.01%)

(0.02%)

0.64%

0.50% 0.44%0.38% 0.44%

0.36%

0.66%

0.45%0.47%

0.41% 0.42%

0.34%

2010 2011 FY 12 FY 13 Q4 12 Q4 13

Expense & other m. Underwriting m.

0.28% 0.32% 0.32% 0.32% 0.28% 0.25%

0.57%

(0.80%)

0.93% 0.88%

1.42%

1.09%

(0.21%)

(0.30%)

(0.29%) (0.31%) (0.25%) (0.31%)

0.64%

(0.78%)

0.96% 0.89%

1.45%

1.03%

2010 2011 FY 12 FY 13 Q4 12 Q4 13Expense & other m. Investment m. Underwriting m.


Operating result amounted to EUR 22 mio, down 10%

Average Technical Liabilities increased by 4% thanks to

new inflows

Operating result amounted to EUR 411 mio, down 5%

Operating margin FY13 at high end of the 0.85-0.90%

objective, despite low i-rate environment & higher

insurance premium tax

Steady Investment margin - FY 2012 included some

positive one-offs

Average Technical Liabilities up 3% notwithstanding very

high intakes last year

40.7 42.9 44.9 46.4 44.9 46.4 6.0 5.6 5.2 5.4 5.2 5.4

Better Non-Life operating result offset by Retail & FX impact In EUR mio

United Kingdom: Headlines Stable inflow, strong contribution from acquired Groupama activities


Non-Life combined ratio: improved underwriting mainly in Household

12(0) (2)

90

FY 12 FY 13

Other Non-Life Total

1

(1)

(0)

64

13

22

14

Q4 12 Q4 13

FY 12 FY 13 Q4 12 Q4 13

99.8% 98.4%102.8% 99.2%

137

108

100

(28) (41) (12) (15)

28 24

16

9

FY 12 FY 13

Holding costs Retail

In EUR mio

2012 adjusted from EUR (28) mio

to EUR 16 mio for :

• impairment charge

• accel. amortisation

• GICL acquisition costs

2013 adjusted for EUR 4

mio deferred tax benefit 87 90

FY 12 FY 13

2012 adjusted from EUR 137 mio

to EUR 87 mio:

• badwill on GICL

• reorganisation costs

Non-Life adjusted result: 2012 impacted by exceptionals In EUR mio

In % NEP In EUR bn

Inflow* up 2% after negative FX of 5%

Other Income further down in a competitive market In EUR mio

0.1 0.1

2.1 2.2

2.2 2.3

FY 12 FY 13

Life Non-Life

0.0 0.00.5 0.5

0.5 0.5

Q4 12 Q4 13 FY 12 FY 13

64 54

Q4 12 Q4 13

276 235

Other adjusted result: 2012 & 2013 impacted by exceptionals


2,143 2,176

86 108

2,229 2,284

FY 12 FY 13

55 83

1,427 1,397

448 488

213 209

2,143 2,176

FY 12 FY 13

Motor

Non-Life

Life

Other

Household

Accident & Health

Total In EUR mio

Non-Life In EUR mio

2%

2%

United Kingdom: Inflow @ 100% Inflow up 7% at constant FX

Life

Successful roll out of its proposition across the IFA market

Over 305,000 customers up 15% on same period last year

Non-Life

Up 2%, growth of 7% at constant FX

Motor down 2% mainly due to lower average premiums, following

market trend of rate decreases (9-14% year-on-year) & focus on risk

mix improvement. Record 3.6 mio Motor policies underwritten

Household up 9% primarily due to inclusion GICL, pricing discipline &

positive impact of Ageas Insurance Limited (AIL) becoming sole

underwriter of Ageas’s over 50’s brands.

Accident & Health up 49% due to the inclusion of GICL

Other lines, including Commercial & Special Risks down 2% due to

actions to cleanse the book.

FY Groupama inflow included (EUR 381mio) vs. only 5 weeks in

FY 12 (EUR 63 mio) – Legal transfer GICL into AIL completed

Other Insurance (including Retail)

YTD total income of EUR 235 mio,16% below last year, reflecting

continued competitive market



United Kingdom: Combined ratio Below 100% reflecting continued strong performance in Household


80.4% 81.5%74.6% 73.3%

68.5%75.4% 71.8%

27.7% 28.0%

25.3% 26.5%29.9%

27.4%27.4%

108.1% 109.5%

99.9% 99.8% 98.4%102.8%

99.2%

(3.5%)(1.1%) 0.1% (2.1%) (3.3%) (2.8%)

(7.8%)

2009 2010 2011 FY 12 FY 13 Q4 12 Q4 13


Combined ratio at 98.4%

Combined ratio continued sub 100%

performance

Impact Groupama: greater proportion

delegated authority schemes with higher

expense ratio but lower claims in portfolio

Claims ratio at 68.5%

Claims ratio Reduction across all lines of

business with greatest impact in Household

due to benign weather

CY ratio (71.7% vs. 75.4%) significant

reduction primarily due to improved

Household experience.

PY ratio: (3.3%) v (2.1%) driven by a release

of reserves in Motor in Q4

Expense ratio at 29.9%

FY ratio increase: combination of pressure on

earned premium in Tesco & addition of

Groupama with greater proportion of

delegated authority schemes.

834 948 1,524 2,083 2,127 573 524

88.9% 82.9% 79.2% 77.2% 74.4%

22.8%23.3%

19.5% 21.3% 24.1%

111.7%106.2%

98.7% 98.5% 98.5%

2009 2010 2011 FY 12 FY 13

83.5%97.9%

87.7%78.1% 76.2%

26.2%

24.0%

23.2%28.2% 34.3%

109.7%

121.9%110.9% 106.3% 110.5%

2009 2010 2011 FY 12 FY 13

61.2%77.4%

61.4% 62.3%53.0%

38.0%

38.2%

35.3% 36.7%40.6%

99.2%

115.6%

96.7% 99.0%93.6%

2009 2010 2011 FY 12 FY 13

66.0%75.1% 71.6% 67.7% 59.7%

38.1%30.4% 39.3% 42.1%

44.5%

104.1% 105.5%110.9% 109.8%

104.2%

2009 2010 2011 FY 12 FY 13

United Kingdom: Combined ratio per product line Reduced loss ratios in all products, partially offset by expense ratios

Motor: loss ratio improved, premium strain on

expense ratio continues (TU)

NEP

Accident & Health: GICL impacting expense ratio

Household: benign weather impact Other: positive impact management actions

(AIL) & inclusion of GICL

NEP


53 58 65 57 79 524 532 949 1,420 1,393

187 248 366 434 454 69 110 143 173 202

NEP

NEP

Net profit increase driven by EUR 9 mio one-off in Turkey In EUR mio In EUR bn

Non-Life combined ratio still good despite adverse weather in Portugal

227% 210% 207%

Inflow* boosted by strong sales, especially in Portugal & Turkey In EUR bn

Continental Europe: Headlines Excellent top line performance & increased Non-Life net profit including positive one-off

**

Operating margin Guaranteed: lower risk margin vs. excellent 2012


Life Technical liabilities stable

In % avg technical liabilities

Operating margin Unit-Linked: FY margin in line with objective In % avg technical liabilities

50 44

1332

64

77

FY 12 FY 13

Life Non-Life

148

16

15 14

Q4 12 Q4 13

3.24.1

1.0

1.14.3

5.2

FY 12 FY 13

Life Non-Life

1.1 1.2

0.30.3

1.41.5

Q4 12 Q4 13 FY 12 FY 13

Non-conso Conso

9M 13 FY 13


93.4% 93.7%102.8% 91.4%

1.02% 0.91% 1.02% 0.94%0.44% 0.47%

0.23% 0.20%

14.0 15.0 14.4 15.0

14.1 13.9 14.0 13.9

28.1 28.9 28.4 28.9

In % NEP


1,3701,942

1,876

2,150

3,246

4,092

FY 12 FY 13

334 328

370 378

168 192

154 165

1,026 1,063

FY 12 FY 13

Accident & Health

Motor

Unit-Linked

Guaranteed

+26%

Other

Household

Life

In EUR mio

Non-Life In EUR mio

Continental Europe: Inflow @ 100% Higher Life sales in Portugal & France, Non-Life driven by Turkey

+4%


Life

Inflow +26%, including non-controlling interests @ 100%, reflecting

higher sales in all operating companies

Consolidated inflow up 78%

Portugal: volumes nearly doubled driven by the UL business and

savings as a result of successful campaigns and new product

launches

France: up by 31% continue to benefit from the 1st quarter UL

single premium payment

Technical liabilities

End of period technical liabilities: consolidated slightly below year-

end 2012

Non-Life

Inflow +4%, including non-controlling interests @ 100% driven by

Turkey

GWP consolidated entities in line with last year (+1%)

Turkey (Aksigorta) at EUR 602 mio

A&H and Motor remain the major business lines in the portfolio.

Motor growing in Portugal (Mobis product) & regaining momentum

in Turkey despite intense competition


Continental Europe: Combined ratio Well below group target even with severe winter weather in Portugal


* Scope: only consolidated companies: 2009 Portugal; as from 2010 Portugal & Italy

62.4%71.0% 66.4% 63.6% 63.7% 66.4%

60.2%

27.6%

30.3%30.3%

29.8% 30.0%

36.4%

31.2%

90.0%

101.3%96.7%

93.4% 93.7%

102.8%

91.4%

(1.3%)1.9%

(2.0%) (2.5%) (4.0%)

1.8%

(8.6%)

2009 2010 2011 FY 12 FY 13 Q4 12 Q4 13


194 369 382 397 403 109 104

Combined ratio at 93.7%

Combined ratio slightly higher than PY mainly

due to severe weather impact in Portugal

(Household) & exceptionally low claims ratios

last year

Combined ratio Turkey at 90.1% vs. 97.5%

Claims ratio at 63.7%

Claims ratio overall remained stable

PY ratio: 4.0% release vs. 2.5% driven by

positive reserve developments notably in

Accident & Health

Expense ratio at 30.0%

Expense ratio continued focus on cost

containment (LY was influenced by a one off

release in Italy), commission ratio slightly up due

to product mix

65.3%

90.5%71.8% 69.8%

79.3%

36.7%

27.0%

29.2% 28.1%

29.2%

102.0%

117.5%

101.0% 97.9%108.5%

2009 2010 2011 FY 12 FY 13

70.2% 64.2% 63.5% 63.3% 59.7%

25.7% 31.6% 27.8% 28.2%26.6%

95.9% 95.8% 91.3% 91.5%86.3%

2009 2010 2011 FY 12 FY 13

34.9%53.5% 53.7% 51.8% 53.5%

22.9%

27.7% 34.2% 33.5%38.8%57.8%

81.2%87.9% 85.3%

92.3%

2009 2010 2011 FY 12 FY 13

33.8%

73.3%94.5%

62.8% 59.6%

58.6%

39.0%

50.0%

43.3% 43.7%

92.4%

112.3%

144.5%

106.1% 103.3%

2009 2010 2011 FY 12 FY 13

Continental Europe: Combined ratio per product line Overall combined ratio within expectations

Motor: large losses occurring at year-end Accident & Health: favourable claims experience

Household: impact of weather in Portugal Other: higher commission due to product mix


7 21 23 28 2933 39 42 44 48

23 104 97 99 99132 205 220 226 227NEP

NEP

NEP

NEP

Continental Europe Life operating margin per product line

Guaranteed: lower underwriting margin partially

offset by higher investment margin

Unit-linked: increasing expense & other margin


1.25%1.00% 1.18% 1.06% 1.05%

1.48%

0.84%

(0.75%)

0.69%0.68% 0.85% 0.19%

(0.93%)

(1.08%)

(0.85%) (0.83%) (0.88%) (0.75%)

1.16%

(0.83%)

1.02%0.91%

1.02%0.94%

2010 2011 FY 12 FY 13 Q4 12 Q4 13


0.01% 0.02% 0.02%

0.01%

0.02%

0.02%0.01% 0.01%

(0.05%)

0.01%

(0.20%)

0.18%

0.55%

0.41%0.51%

0.20%

0.38%0.20%

0.56%

0.44%

0.47%

0.23%

0.20%

2010 2011 FY 12 FY 13 Q4 12 Q4 13



8.7 8.3 7.8 7.6 7.8 7.6 13.9 6.4 6.1 6.3 6.1 6.3

Increase expense & other margin related to higher

fees

Q4 influenced by lower fee income

Investment margin slightly below last year

Decline in underwriting margin YTD :the Portuguese risk

business enjoyed a particularly low claims ratio in 2012 and

went back to normal ratios this year

Cost containment leading to slightly decreasing expenses

& other margin

Net result: Excluding one-offs, strong growth of underlying profit In EUR mio In EUR bn

Non-Life combined ratio improved over 2013

Inflow growth fuelled by China & Thailand

Life Technical liabilities up across all entities In EUR bn

Asia: Headlines New business boost & underlying profit growth Life / Strong Non-Life underwriting result


**

In % avg technical liabilities In EUR mio

Life operating margin Hong Kong: Q4 13 margin impacted by one-off

Result non-conso partnerships: excluding one-offs up almost 20%

821

FY 12 FY 13

Life Non-Life

2835

2

630

41

Q4 12 Q4 13

7.1

9.1

0.8

0.87.9

9.8

FY 12 FY 13

Life Non-Life

1.9 1.7

0.2 0.2

2.11.9

Q4 12 Q4 131.9 2.0

FY 12 FY 13

Non-conso Conso

2.0 2.09M 13 FY 13

24 21

2 6

26 28

Q4 12 Q4 13

8 21

FY 12 FY 13

Life Non-Life

Q4 12 Q4 13FY 12 FY 13Q4 12 Q4 13FY 12 FY 13

99.3% 95.4% 94.5% 97.4% 1.98% 1.95% 1.75% 3.59%

22.5 25.9 25.8 25.9

24.427.9 27.8 27.9

121 122

129142

101 100

109120

In % NEP


322 339

101 103 26 31

302 293

751 766

FY 12 FY 13

6,746

8,737

385

321 7,131

9,058

FY 12 FY 13

+27%

+2%

Fire

Motor

Guaranteed

Life

Non-Life In EUR mio

In EUR mio

Unit-Linked

Asia: Inflow @ 100% Strong growth new business, boosted by very successful sales campaigns

Accident & Health

Other


Life

Hong Kong, +8%, New business premiums up 15% - continued focus on

more profitable products through combination of re-pricing, new product

launches & refining sales incentives

China, +40%, New business bank channel up 51% after very successful

single premium campaign; agency sales up 127% thanks to the expansion

in number of agents & successful sales campaigns

Malaysia, -25%, New business premiums down following transition in

distribution strategy of both bank & agency channel from single premium

sales towards more sustainable regular premium

Thailand, +21%, New business premiums up 25%; strong performance in

both bank & the agency channel

India, -1%, Inflow down due to negative FX impact; new business up 20%

in bank channel despite FX & continued difficult regulatory environment

Technical liabilities – end-of-period

Hong Kong : EUR 1.9 bn, up 6%

Including non-consolidated JVs @ 100%: EUR 27.9bn, up 15%

Non-Life

Malaysia, -3%, Growth high-retention lines Household & Personal Accident,

offset by lower premiums in Marine, Aviation & Transport

Thailand, +19%, almost all product lines growing; especially Motor

Hong Kong Life operating margin per product line Non-recurring adjustments, organic growth & capital gains

Guaranteed: improving expense & investment margin Unit-linked: pressure on margin from new business growth



(0.15%) (0.71%)(0.15%)

(0.32%) (0.25%) 0.39%

3.62%

(0.57%)(0.11%)

0.27% 0.13%0.93%

1.30%

3.52%2.52%

4.19%

2.69%

8.67%4.77%

2.24% 2.26%

4.14%

2.61%

10.12%

2010 2011 FY 12 FY 13 Q4 12 Q4 13


3.11%1.75% 2.13% 2.15%

1.28%2.10%

(2.40%)(3.21%)

(0.95%)

(5.01%)

(1.90%)

(12.82%)

0.70% (1.47%)1.18%

(2.86%)

(0.60%)

(10.72%)

2010 2011 FY 12 FY 13 Q4 12 Q4 13Expense & other m. Investment m. Underwriting m.

Underwriting margin improved following organic growth

Expense & Other margin deteriorated following new

business growth, change in product mix & some one-

offs; FY 12 expense margin included EUR 8 mio positive

one-off

Q4 13 expense margin included EUR 14 mio negative

one-off

Underwriting margin deteriorated due to higher reinsurance

costs

Investment margin improved substantially; higher net income

from larger bond portfolio & some realised capital gains

Expense & Other margin improved due to accounting

methodology & assumption review

Q4 13 expense margin included EUR 22 mio positive one-off

1.0 1.1 1.3 1.3 1.3 1.3 0.3 0.4 0.5 0.6 0.5 0.6

Annexes

Equity / Solvency



General Account

General Information


In EUR bn


Asset mix

Asset mix relatively stable

Increased positions in equities & customer loans at the

expense of cash continued

Gross unrealized gains/losses on Available for Sale

Total portfolio: down to EUR 4.0 bn (EUR 5.4 bn FY 12);

exclusively down in fixed income

Fixed income: at EUR 3.5 bn (EUR 5.2 bn FY 12)

Sovereigns at EUR 2.3 bn (vs. EUR 3.3 bn)

Corporates at EUR 1.2 bn (vs. EUR 1.8 bn)

Equities: up to EUR 0.5 bn (vs. EUR 0.2 bn)

Gross UG/L on Real Estate: stable at EUR 1.3 bn - not

reflected in shareholders’ equity

EUR 0.9 bn unrealized gains/losses on Held to Maturity - not reflected in shareholders’ equity





Structured 0.3Structured 0.4

Loans6.3

Loans5.7

Equities 2.4 Equities 3.2

Real Estate 4.7 Real Estate 4.6

Cash 2.4 Cash 2.2

75.9 75.1

FY 12 FY 13

Investment portfolio UG/L fixed income down, increased allocation equities & customer loans

Belgium18.4

Belgium18.3

France 4.8 France 5.1

3.3 3.4

Austria 2.9 Austria 2.61.4 1.1

0.7 0.6Others 2.8 Others 3.3

34.7 34.5

FY 12 FY 13

In EUR bn

Gross UG/L at EUR 2.3 bn (vs. EUR 3.3 bn)

95% investment grade; 88% rated A or higher

Maturity sovereign bond portfolio unchanged & close to

maturity liabilities , limited interest rate sensitivity

Sovereign bond portfolio*

Sovereign & Corporate bond portfolio Value fixed income portfolio impacted by evolution unrealized gains


Gross UG/L at EUR 1.2 bn (vs. EUR 1.8 bn)

Priority to investment grade industrials has led to

increased share within corporate bond portfolio of

42% (vs. 37% FY 12)

Credit quality remains very good with 94% investment

grade; 72% rated A or higher

Corporate bond portfolio*

Banking 6.1 Banking 5.4

Other financials 1.9

Other financials 1.8

Non Financials

9.3

Non Financials

10.3

Government related 7.9

Government related 7.0

25.1 24.5

FY 12 FY 13


The Netherlands The Netherlands

Germany Germany

Southern Europe Southern Europe

In EUR bn

Loan portfolio (customers + banks)*

Loan & Equity portfolio More loans with guarantee

Loans to banks 2.6 Loans to

banks 1.6

RE 0.1

RE 0.2

Infrastructure

0.1

Infrastructure

0.1

Mortgages 1.5

Mortgages 1.5

Other 2.0

Other 2.3

6.3

5.7

FY 12 FY 13

Increase in other: long term lending to social housing

agencies in Belgium, benefiting from explicit guarantee by

the region

Loans to banks – mainly short term bank deposits - down:

priority to long-term secured loans


Equity portfolio*

Gross UG/L increased up to EUR 0.5 bn

(vs. EUR 0.2 bn)

Increase in equity portfolio supported by

investments & strong equity markets

Equities 1.2

Equities 1.6

Equity funds 0.1

Equity funds 0.1

RE funds 0.7

RE funds 0.7Mixed funds & others 0.4

Mixed funds & others 0.7

2.4

3.2

FY 12 FY 13



Real estate portfolio

10/03/2010

Gross UG/L stable at EUR 1.3 bn (not reflected in

shareholders’ equity but contributing to available

capital for solvency calculation)

Real Estate exposure mainly in Belgium (+/- 70%)

Investment Offices 1.5

Investment Offices 1.5

Car Parks1.1

Car Parks1.0

Investment Retail 1.3

Investment Retail 1.4

0.6 0.4

0.30.3

4.7 4.6

FY 12 FY 13

In EUR bn

Real Estate portfolio*

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

Investment Warehouses

RE Development

Investment

Warehouses

RE Development

Annexes

Equity / Solvency



General Account

General Information

(5)

Q4 12 Q4 13

Q4 12 Q4 13 FY 12 FY 13

Net result driven by Q1 transactions & revaluation RPN(i) In EUR mio

Accounting value of remaining legacies:

General Account: Headlines Impacted by revaluation RPN(i) liability


Net cash position: increase driven by settlement RPI & Call option

In EUR bn In EUR mio

FY 12 FY 13

1.2

2.0 1.9

FY 12 9M 13 FY 13

119

(85)

50

(100)

RPN(i) impact on P&L RPI & Call Option impact on P&L

Staff & Operating expenses down

FY 12 FY 13

Call Option RPI

(273)(205)

(91)

In EUR mio In EUR mio

In EUR mio

(165) (279) (370)

234

872

24237

FY 12 9M 13 FY 13

RPN(i) Call Option RPI

104276

(161)

(90)60

14

1

Q4 12 Q4 13

17 18

33 27

5045

FY 12 FY 13

Staff Operating

5 5

8 7

13 12

Q4 12 Q4 13

(57)

186

60

General Account: components of Net result Result driven by transactions on legacies & valuation methodology RPN(i)

* Including Interest Margin, Other Expenses & Other Losses (Realised/Unrealised)

Periodic financial Information I FY 13 Results I 19 February 2014

(132)(161)

(2)(17)

(33)

(41)

400

104

119

(90)

(205)

(18)(27)

(21) (85)

276

Agreementwith ABN

AMRO &Dutch State

Agreementwith BNP on

CASHES &Tier 1

RPI Call Option RevalRPN(i)

Staffexpenses

Otheroperating

expenses

other* Net result

Net result 2012

driven by agreements

on legacy items

In EUR mio

Net result 2013

driven by agreements

on legacy items &

non-cash volatility

RPN(i)

legacy items solved

over 2012 & 2013

RPN(i) causing non-cash volatility

688

1,216

1,913(270)

(222)(144)

(205)(99)

(125)

1,176

462

FY 11 FY 12 paiddividend

capitalreduction

sharebuy-back

RPI &call option

upstream &capital

restructuring

capitalinjections

other FY 13


Net cash position General Account at EUR 1.9 bn Incoming cash partly returned to shareholders, partly invested in business

EUR 1,176 mio cash received from transactions RPI & BNPP Call option

EUR 1.2 per share 2012 dividend paid out in May, upstream from operating companies more than

compensating 2012 dividend & 2012 corporate centre costs

EUR 1.0 per share capital reduction paid out in December

EUR 75 mio of 2013 share buy-back already executed at YE – EUR 100 mio as per 14/02/2014

EUR 205 mio capital injections in China over 2013

expected cash-out for

share buy-back

In EUR bn

≈


Only 2 alternative uses for General Account net cash withheld About EUR 700 mio returned to shareholders in 2013

1. Invest in Businesses

Organic growth

Selective acquisitions

Create new partnerships

2. Return to shareholders

Dividend payment

Share buy-back

≈ EUR 1.8 bn

≈ EUR 600 mio cash dividend over ‘09, ’10 & ‘11

EUR 450 mio share buy-backs

finalized early ‘12 & ’13

EUR 270 mio cash dividend over 2012

EUR 200 mio share buy-back launched 12/08/13

EUR 222 mio capital reduction from proceeds of

BNPP Call Option & RPI

≈ EUR 1.1 bn from net cash on

top of retained earnings ≈ EUR 600 mio UK (Tesco, KFIS, Castle

Cover, Groupama)

≈ EUR 200 mio CE (Italy, Turkey)

≈ EUR 100 mio Asia (India, HK, China)

≈ EUR 220 mio Asia (TPL)


Status on various legal procedures

Timing & (financial) outcome remains hard to estimate

H1 2014 expected next steps

Appeal administrative proceedings AFM I (communication solvency position & EC-remedies June 2008) - fine: EUR 576,000

Amsterdam Court of Appeal in Stichting FortisEffect case - first instance in favour of Ageas

Brussels Commercial Court re alleged miscommunication 2007-08 (Deminor) -interim judgment on procedural matters

Brussels Commercial Court re Sep/Oct 2008 transactions (Modrikamen) – pleadings ongoing

February 11

Claim re FRESH

hybrid instrument

dismissed by

Brussels Court

Sep- Dec 10

Ageas starts legal procedure against Dutch

State & ABN AMRO to obtain compensation

in return for conversion MCS (Mandatory

Convertible Securities) into Ageas’ shares

May 11

- Claim VEB/Deminor

& FortisEffect

dismissed by

Amsterdam Court

- Rotterdam court

confirmed fine AFM I,

appeal filed

Age

as initia

tor

Aga

inst A

ge

as

February 12

BNP P tender for CASHES & subsequent

conversion into Ageas shares – partial

settlement of RPN/RPN(I) – call Fortis

Bank Tier 1 Debt Securities

February 12

- Rotterdam court

confirmed fine AFM

II, appeal filed

- Utrecht court re

communication Q2

2008 in favour of

plaintiffs, appeal filed

March 12

Brussels Commercial Court

rules in favour of Ageas in

MCS-case, appeal filed

2011 2012 2009... 2010 ...

December 13

Supreme Court rejects appeal against

judgement Ondernemingskamer re

mismanagement mainly in favour of plaintiffs

June 12

Agreement with ABN AMRO to settle

legal proceedings concerning FCC &

MCS, closing all outstanding disputes

with Dutch State

2013

June 13

Fine imposed by

FSMA, appeal filed

February 14

Trade & Industry Appeals Tribunal

renders final judgment on AFM II

in favour of Ageas

2014


Dutch Trade & Industry Appeal Tribunal renders final judgment

in appeal against AFM II in favour of Ageas

9 February 12

Rotterdam court

confirmed fine AFM II

- appeal filed

2011... 2012... 2010 ... 2013...

Main reasoning

judgment

Quality of investments – 95% rated AA or AAA

Expected subprime impact not material & disclosed in trading update - EUR 110 mio on expected net result of EUR 4.2 bn

AFM never disputed the figures

Belgian regulator agreed with trading update as element of prospectus in context of capital increase

The risk assessment made by Fortis at that time was not unreasonable

2014...

19 August 10

AFM levied a fine (AFM II), re

disclosure on subprime

exposure– total amount:

EUR 288,000 – appeal filed

9 February 11

AFM confirms AFM II

– proceedings

initiated before

Rotterdam court

14 February 14

Dutch Trade & Industry

Appeal Tribunal renders final

judgment in favour of

Ageas

AFM‘s view Fortis had price-sensitive information about subprime exposure end August 2007

Conditions were met to delay disclosure until trading update in context of capital increase (Sep 2007)

From that moment on, Fortis was in breach of its legal disclosure obligations

Legal proceedings Managed in interest of shareholders

Administrative proceedings

AFM fine imposed 05/02/10 re price sensitive info June 08

AFM 2nd fine imposed 19/08/10 re price sensitive information Sep 07

Final judgement expected early March 2014

Final judgement 14/02/2014 in favour of Ageas

FSMA re communication in Q2 2008 Appeal filed before Court of Appeal

Criminal procedure Public prosecutor requests referral of 7 individuals

Enterprise Court (Ondernemingskamer)

At request of VEB re 2007-2008 Final judgement 06/12/13 re mismanagement, mainly in favour plaintiffs.

Civil Lawsuits

Amsterdam - VEB re alleged miscommunication 2007-08 against Ageas, former directors/executives & banks

Amsterdam - Stichting FortisEffect, re sale of Dutch activities against Dutch State & Ageas

Proceedings ongoing

Judgement in appeal expected early March 2014

Utrecht - Stichting Investor Claims Against Fortis re alleged miscommunication 2007-08 against Ageas & 2 financial institutions

Utrecht - 2nd case by Stichting on behalf of certain shareholders for damages from same defendants & certain former directors/executives

Proceedings ongoing

Proceedings initiated in August 2012 ; at present unclear whether both actions will be joined

Arnhem - Mr.Bos, re alleged miscommunication May June 2008 Appeal filed before Arnhem Court of Appeal

Brussels - Modrikamen, re Sep/Oct 2008 transactions

Brussels – Various lawsuits initiated by shareholders re alleged miscommunication 2007 - 08

Pleadings on the merits scheduled H1 2014

Proceedings ongoing

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


Situation 19 February 2014


Main characteristics Hybrids General Account Hybrone partly tendered, NITSH I & II reimbursed, no intention to buy back FRESH

In EUR mio Ageas

Ageasfinlux Fresh

Ageas Hybrid Financing Hybrone

Direct issue FBB, 2004 CASHES

% 3m EUR + 135 bps 5.125% 4.625% 3m EUR +200 bps

Amount outstanding 1,250 336 1,000 1,110

ISIN XS0147484074 XS0257650019 BE0119806116 BE0933899800

Call date Undated exchange, strike 315.0, mandatory 472.5

Jun/2016 Step up to 3M Euribor +200 bps

Oct/2014 Step up to 3M Euribor+170 bps

Undated exchange, strike 239.4, mandatory 359.1

ACSM YES YES YES YES

Dividend pusher YES YES YES NO

Dividend stopper NO YES YES YES

Trigger < 0.5% dividend trigger Liabilities > asset <8% CAD <0.5% Dividend

Other on lent to AG Insurance No stock settlement

feature

Coupon served by FBB, trigger ACSM linked to

Ageas dividend

Market Price (31/12/13) 57.61 101.56 101.06 67.88

Fortis Bank (now BNP Paribas)


Optimization capital structure at AG Insurance Successful debt placement of USD 550 mio & EUR 450 mio

December 2013: Successful placement Subordinated Note of EUR 450 mio

5.25% rate, payable annually in June

first call date June 2024

after call date: 3m EUR + 4.316%, payable quarterly

Subscribed by shareholders: Ageas (EUR 350 mio) & BNP Paribas Fortis (EUR 100 mio)

Proceeds used to redeem outstanding internal loan & improve cost of capital

probable to qualify as Tier 2 capital under Solvency II

March 2013: Successful placement Subordinated Note of USD 550 mio

6.75% rate, perpetual, payable semi-annually, reset in year 6

Subscribers: key institutional investors & global private banks in Asia & Europe mix of stable,

long-term support & on-going retail buying interest

Proceeds used to redeem Nitsh II on loan & EUR 163.6 mio nominal of Hybrone on-loan

EUR 7 mio capital gains tender offer Hybrone on-loan

Guarantees granted on AHF hybrid debt reduce significantly: lower financing costs, increased

transparency, new capital more likely to be Solvency II compliant


Changes in debt composition in Hong Kong Successful debt placement for total amount of USD 250 mio in March-April 13

Successful placement debt by Hong Kong entity

10-year senior debt of USD 250 mio

4.215% rate

issued early April 2013

Subscribers: Key institutional investors & global private banks in Asia & Europe

mix of stable, long-term support & on-going retail buying interest

Proceeds used for refinancing & general corporate purposes

Annexes

Equity / Solvency



General Account

General Information

situation 31/12/2012 situation 31/12/2013

Total Issued Shares 243,121,272 233,486,113

Shares not entitled to dividend and voting right 15,886,832 11,648,176

1. TREASURY SHARES Share buy-back 7,056,442 2,489,921

FRESH 3,968,254 3,968,254

Other treasury shares 218,232 546,097

2. CASHES 4,643,904 4,643,904

Shares entitled to dividend and voting rights 227,234,440 221,837,937

Cancellation bought back

shares + new buy back


Total number of outstanding shares 4% of outstanding shares (9.6 mio) cancelled during 2013


Shareholders structure

Based on number of shares as at 31 December 2013

Ageas3.02%

Ping An 5.18%

BlackRock, Inc.5.02%

Franklin Mutual Advisers2.97%

Norges Bank

BNPP & Fortis Bank Identified retail

investors16%

Identified institutional investors

39%

Other investors23%

Ageas Based upon press release 6 January 2014

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

Franklin Mutual Advisers Based upon the number of shares mentioned in the notification received 22 August 2013

BlackRock, Inc. Based upon the number of shares mentioned in the notification received 22 July 2013

Norges Bank Based upon the number of shares mentioned in the notification received 20 August 2012

BNP P & Fortis Bank Based upon BNP Paribas notification 01 October 2012

Identified retail investors Estimate by

Identified institutional investors Estimate by


Financial calendar 2014

19 February

Annual results

2013

14 May

3M 2014

results

30 April

Ordinary & Extraordinary

shareholders’ meeting - Brussels

5 May

Ex date

19 March

Annual report

2013

13 May

Payment 2013

dividend

6 August

6M 2014

results

5 November

9M 2014

results


Rating Improved rating for operating entities & holding

S&P MOODY'S FITCH

Operating entities AG Insurance (Belgium)

Insurance Financial Strength A- / positive A2 / stable* A+ / stable

Last change 20/12/13 02/10/13 29/05/13

Millenniumbcp Ageas (Portugal)

Insurance Financial Strength BB / negative BBB- / negative

Last change 24/01/14 09/07/13

Ageas Insurance Co. (Asia)

Insurance Financial Strength Baa1 / stable A / stable

Last change 16/01/13 26/03/13

Muang Thai Life

Insurance Financial Strength BBB+ / stable BBB+ / stable

Last change 29/12/10 16/12/10

Etiqa Insurance Berhad (Malaysia)

Insurance Financial Strength A / stable

Last change 26/09/11

Holding ageas SA/NV

Long-term BBB- / A-3 Baa3 / P-3 * BBB+ / F2

Outlook positive negative stable

Last change 21/12/13 02/10/13 14/12/12


Disclaimer

Certain of the statements contained herein are statements of

future expectations and other forward-looking statements that are

based on management's current views and assumptions and

involve known and unknown risks and uncertainties that could

cause actual results, performance or events to differ materially

from those expressed or implied in such statements. Future actual

results, performance or events may differ materially from those in

such statements due to, without limitation, (i) general economic

conditions, including in particular economic conditions in Ageas’s

core markets, (ii) performance of financial markets, (iii) the

frequency and severity of insured loss events, (iv) mortality and

morbidity levels and trends, (v) persistency levels, (vi) interest rate

levels, (vii) currency exchange rates, (viii) increasing levels of

competition, (ix) changes in laws and regulations, including

monetary convergence and the Economic and Monetary Union, (x)

changes in the policies of central banks and/or foreign

governments and (xi) general competitive factors, in each case on

a global, regional and/or national basis. In addition, the financial

information contained in this presentation, including the pro forma

information contained herein, is unaudited and is provided for

illustrative purposes only. It does not purport to be indicative of

what the actual results of operations or financial condition of

Ageas and its subsidiaries would have been had these events

occurred or transactions been consummated on or as of the dates

indicated, nor does it purport to be indicative of the results of

operations or financial condition that may be achieved in the

future.


Investor Relations

Tel:

E-mail:

Website:

+ 32 2 557 57 34

[email protected]

www.ageas.com

Investor Relations

full year results 2013

Economy & Finance

q4 eur

eur mio actions

rate eur

bn cash eur

solid fy

insurance q4

stable group net profit

mio inflow