6M Periodical Financial Information 2014 RESULTS
6M Periodical Financial Information
2014 RESULTS
Solid Insurance performance – Non-Life affected by floods & storms Group net result driven by Insurance – General Account impacted by legacies Shareholders’ equity up on UG/L
New share buy-back
Insurance net profit of EUR 340 mio (+3%) – Q2 EUR 195 mio
Inflow @ 100% of EUR 13.8 bn (+10%) – Q2 EUR 6.0 bn
Group combined ratio at 102.0% (vs.96.8%) Life Technical Liabilities at EUR 72.0 bn* (+4%)
Group net profit of EUR 31 mio (-93%) – Q2 EUR 1 mio
General Account net result of EUR (309) mio Incl. EUR (157) mio RPN(i) & EUR (130) mio FortisEffect provision
Shareholders’ equity at EUR 9.2 bn or EUR 41.11 per share Insurance solvency at 208%, Group solvency at 203% Net cash position General Account at EUR 1.6 bn
Starting as of 11/08/14 for EUR 250 mio
Main messages Ageas posts solid 6M 14 Insurance results
Periodic financial Information I 6M 14 Results I 6 August 2014 1 * Consolidated entities only
Up to EUR 250 mio of its outstanding shares Buy-back launched as of 11 August 2014 For a period ending at 31 July 2015 Independent broker mandated to execute Through open market purchases on NYSE Euronext Brussels
Shares to be held as treasury shares Cancellation of these shares subject to approval @ General meeting of Shareholders No impact on solvency position of Insurance activities
Ageas announces new share buy-back 4rth consecutive share buy-back confirming capital management strategy
June 12 Cancellation bought-back shares (7.3% of outstanding)
6 August 12 Ageas announces EUR 200 mio share buy-back
24 August 11 Ageas announces EUR 250 mio share buy-back
April 13 Cancellation bought-back shares (3.8% of outstanding)
2 August 13 Ageas announces EUR 200 mio share buy-back
Periodic financial Information I 6M 14 Results I 6 August 2014 2
April 14 Cancellation bought-back shares (1.1% of outstanding)
6 August 14
Ageas announces EUR 250 mio share buy-back*
September 13 Cancellation bought-back shares (0.2% of outstanding)
Since 2012
31,341,889 shares cancelled - around 12% of outstanding -
1 August 14 Ageas completes 2013
EUR 200 mio share buy-back - 6,513,207 shares
* Ageas has informed NBB this SBB can be considered as non-strategic according to article 36/3 §2 of the law 22/02/98 determining statute of NBB
Periodic financial Information I 6M 14 Results I 6 August 2014 3
Towards desired company profile Ageas takes full control of the Portuguese Non-Life activities (PR 26 May ‘14)
Ageas acquires remaining 49% Médis & Occidental Seguros for EUR 122.5 mio subject to price adjustment after 4 years linked to sales volume & quality targets
Upstream of EUR 290 mio dividend (Life & Non-Life, @ 100%) – net cash accretive for Ageas
Exclusive distribution agreement with BCP renewed up to 2029 ; Médis & Occidental Seguros free to enter in other agreements
No goodwill creation
Possibility to explore other distribution opportunities: strengthen foothold & enhance distribution reach
6M 14 combined ratio at 90.7% 6M 14 net result of EUR 9 mio (@100%)
Balance Life/Non-Life 0.9 pp in favour of Non-Life Positive impact on ROE: equity down EUR 72 mio, net profit up
Transaction details
Portuguese Non-Life activities
Impact on Vision 2015 targets (Based on 6M 14 figures)
Rationale
Periodic financial Information I 6M 14 Results I 6 August 2014 4
Towards desired company profile Ageas & BNPP Cardif take full ownership of Italian Non-Life activities (PR 6 August ‘14)
Ageas & BNPPC both acquire 25% of UBI Assicurazioni (now each 25%*) for EUR 75 mio, (each EUR 37.5 mio) subject to closing adjustment
Long-term distribution agreement with UBI Banca UBIA free to enter into other distribution agreements – potential of BNP
bank network through BNL & Findomestic Subject to regulatory approval - Expected to close in 2014
Further expand Non-Life bancassurance business Possibility to explore other distribution opportunities : strengthen foothold In Italy, one of more profitable Non-Life markets in Europe
6M 14 combined ratio at 92.1% 6M 14 net result of EUR 11 mio (@100%)
Balance Life/Non-Life 0.5 pp in favour of Non-Life Positive impact on ROE: net profit up
Transaction details
Italian Non-Life activities
Impact on Vision 2015 targets (Based on 6M 14 figures)
Rationale
* After the transaction Ageas will detain 50% + 1 share & will continue to consolidate
Periodic financial Information I 6M 14 Results I 6 August 2014 5
Towards desired company profile Ageas sells Ageas Protect (UK Life activities) to AIG (PR 6 August ‘14)
Transaction price of around EUR 228 mio (GBP 181 mio)
Net proceeds after costs & repayment internal loan of around EUR 33 mio (GBP 26 mio) will be up streamed to General Account
Subject to regulatory approval - Expected to close in 2014
UK Protect activities better chance to further develop in Life driven environment of AIG
Focus on developing the more material Non-Life business & distribution activities in UK
Launched in 2008, Covering over 305.000 lives, 4.8% share in Protection market
Continuous efforts in developing business & widening product portfolio reflected in 6M 14 increase in inflow & results
Balance Life/Non-Life 0.5 pp in favour of Non-Life Positive impact on ROE: activity with low ROE
Rationale
Impact on Vision 2015 targets (Based on 6M 14 figures)
Transaction details
Details on UK Protect
6
Amsterdam Court of Appeal renders judgment FortisEffect case Ageas announces appeal & accounting of provision
Accounting consequence
Main elements of ruling 29/07/14
Sale of Dutch entities remains unaffected Dutch State: confirmation of original ruling: no liability retained Ageas:
Miscommunication in period 29/09/08 – 01/10/08 Liability retained for indemnifying damages suffered –
existence of damages & amount to be decided upon in further proceedings
Ageas will file appeal before the Supreme Court Ageas sets up provision of EUR 130 mio
Provision of EUR 130 mio in 6M 14, based on
Methods & assumptions commonly used in the market Benchmarking with other cases Assumptions on # shares eligible, % participation
shareholders, relative share performance
Ageas’s position
Periodic financial Information I 6M 14 Results I 6 August 2014
9 66M 13 6M 14
Other Life Non-Life
74
37
5 2Q2 13 Q2 14
3.13.1
6M 13 6M 14
Life Non-Life
4.3 4.5
1.4 1.5
5.7 6.0
Q2 13 Q2 14
6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14
Net result: Strong Life more than offsets lower Non-Life In EUR mio In EUR bn
Non-Life combined ratio: estimated impact storms & floods of 4.6%
Inflow*: strong growth in Asia & CEU In EUR bn
Total Insurance: Headlines Solid 6M results despite floods & storms in Belgium & UK
Periodic financial Information I 6M 14 Results I 6 August 2014 7
Life Technical liabilities up both in conso & non conso
Operating margin Guaranteed: strong margin in Belgium
Operating margin Unit-Linked: lower fee income in Portugal
In % avg technical liabilities In % avg technical liabilities
201 285 93 157
119
49
329 340
172 195
9.4 10.7
12.513.8
109.6 117.5
96.8% 102.0% 94.7% 101.4% 0.89% 0.99% 0.93% 1.02%
0.43%
0.20%
0.38%
0.20%
* incl. non-consolidated partnerships @ 100%
In % NEP
69.2 70.5 72.0
40.9 43.4 45.5
FY 13 3M 14 6M 14
Conso Non-conso
113.9
6M 13 6M 146M 13 6M 14
Periodic financial Information I 6M 14 Results I 6 August 2014 8
Net result: Strong in Life; Non-Life negatively impacted by hailstorm
In EUR mio In EUR bn
Operating margin Guaranteed: solid investment margin
Non-Life combined ratio @ 100.2% excluding hailstorm
Inflow: Non-Life increased but offset by Life
Life Technical liabilities: Fidea’s group Life & shadow accounting
In EUR bn
Belgium : Headlines Strong operating results in Life offset by hailstorm effect in Non-Life
**
Operating margin Unit-Linked
In % avg technical liabilities In % avg technical liabilities
6
6M 13 6M 14
Life Non-Life
57
23
(6)Q2 13 Q2 14
2.1 2.1
1.0 1.0
3.1 3.1
6M 13 6M 14
Life Non-Life
1.1 1.0
0.4 0.4
1.5 1.4
Q2 13 Q2 14
Q2 13 Q2 14
In % NEP
Q2 13 Q2 146M 13 6M 14Q2 13 Q2 14
97.5% 105.7% 95.4% 109.9%
0.29%0.38%
0.27%0.41%
1.06%0.91%0.98%0.84%
121186
38
160
193
80
111
105
53.2 54.0 55.5
FY 13 3M 14 6M 14
6M 13 6M 14
When excluding weather, better Non-Life & Life results offset by Retail In EUR mio
United Kingdom: Headlines Strong recovery of operating results in Q2
Non-Life combined ratio Q1 weather impact, excellent Q2
9 6(1) 1
50
25
58
32
6M 13 6M 14
Life Other Non-Life
Q2 13 Q2 14
96.3% 100.7%94.0% 95.5%
50
5
Inflow* up 5%, flat excluding FX In EUR bn
In % NEP In EUR mio
Other Income: incl. positive contribution from legal settlement (EUR 6 mio)
0.1 0.1
1.1 1.1
1.2 1.2
6M 13 6M 14
Life Non-Life
0.0 0.00.6 0.6
0.6 0.6
Q2 13 Q2 14
6M 13 6M 14
59 59
Q2 13 Q2 14
122 129
* incl. non-consolidated partnerships @ 100%
51
(1) 1
31 35
35 38
Q2 13 Q2 14
9 Periodic financial Information I 6M 14 Results I 6 August 2014
Net profit Q2 13 included EUR 9 mio one-off in Turkey In EUR mio In EUR bn
Excellent Non-Life combined ratio improvement in Motor & Household
227% 210% 207%
Inflow* boosted by strong sales in Luxembourg Life In EUR bn
Continental Europe: Headlines Results on track with expectations
**
Operating margin Guaranteed: lower U/W & investment margin
Periodic financial Information I 6M 14 Results I 6 August 2014 10
Life Technical liabilities up 2%
In % avg technical liabilities
Operating margin Unit-Linked: lower fee income in Portugal In % avg technical liabilities
25 28
2010
46
37
6M 13 6M 14
Life Non-Life
13 9
16
4
28
13
Q2 13 Q2 14
1.82.3
0.6
0.62.4
2.8
6M 13 6M 14
Life Non-Life
0.91.4
0.3
0.31.2
1.6
Q2 13 Q2 14
6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14
95.5% 91.4% 94.4% 88.1%0.94% 0.82% 0.98% 0.58%
0.53%
0.17%
0.53%
0.10%
In % NEP
* incl. non-consolidated partnerships @ 100%
13.9 14.3 14.2
15.0 15.2 15.9
28.9 29.5 30.1
FY 13 3M 14 6M 14
Conso Non-conso
2432
4528
36
Q2 13 Q2 146M 13 6M 14 Q2 13 Q2 14
Inflow: successful sales campaigns & channel development in China & Thailand
10
8
6M 13 6M 14
Life Non-Life
10
8
6M 13 6M 14
Life Non-Life
Net result: strong growth due to good operational performance In EUR mio In EUR bn
Non-Life combined ratio reflects good underwriting performance
Life Technical liabilities up across all entities In EUR bn
Asia: Headlines New business & profit growth Life / Strong Non-Life underwriting result
Periodic financial Information I 6M 14 Results I 6 August 2014 11
**
In % avg technical liabilities In EUR mio
Result non-conso partnerships: up 30% on good Life operational performance
5.4 6.3
0.40.45.96.7
6M 13 6M 14Life Non-Life
2.3 2.1
0.2 0.2
2.5 2.3
Q2 13 Q2 14
Q2 13 Q2 146M 13 6M 14
94.2%89.1%
95.9%
89.1%
1.54% 1.53%
0.97%
1.60%
56 70
6678
49 64
59
72In % NEP
* incl. non-consolidated partnerships @ 100%
Life operating margin Hong Kong: improved due to capital gains
2435
4
52940
Q2 13 Q2 14
2.0 2.0 2.1
25.9 28.2 29.6
27.930.3 31.7
FY 13 3M 14 6M 14
Conso Non-conso
(6)
6M 13 6M 14
Q2 13 Q2 14
7
Q2 13 Q2 14
Net result driven by RPN(i) & legal provision of EUR 130 mio In EUR mio
Accounting value of remaining legacies
General Account: Headlines Impacted by revaluation RPN(i) liability & legal provision
Periodic financial Information I 6M 14 Results I 6 August 2014 12
Accounting value put option
In EUR mio In EUR mio
6M 13 6M 14
1.9 1.8 1.6
FY 13 3M 14 6M 14
143
(309) (195)
RPN(i) impact on P&L Staff & Operating expenses
Net cash position
8 9
12 12
20 21
6M 13 6M 14Staff Operating
In EUR mio In EUR mio In EUR bn
(370)(474) (527)
37 37 29
(130)
FY 13 3M 14 6M 14
RPN(i) RPI FortisEffect
3 4
76
9 11
Q2 13 Q2 14
(157)
(16)
(53)
1,255 1,274 1,282
FY 13 3M 14 6M 14
Periodic financial Information I 6M 14 Results I 6 August 2014 13
Shareholders’ equity roll forward Up on UG/L, net profit & put option In EUR mio
Shareholders’ equity per segment
Shareholders’ equity per share
FY 13 6M 14 FY 13 6M 14
Belgium 3,676 ► 4,254 Asia 1,592 ► 1,929UK 1,121 ► 1,191 Insurance 7,613 ► 8,595Continental Europe 1,224 ► 1,221 General Account 912 ► 581
6,206 6,333 6,379
1,939 1,2802,217
1,655912
581340
945 166 69
(309)(308) (106) (55) (72) (19)
EUR 37.65 EUR 41.11
9,799
8,5259,175
FY 12 FY 13 ResultInsurance
ResultGen Acc
ChangeUG/L
Dividend TreasuryShares
IAS 19 Revalput option
Forex PortugalNon-Life
Other 6M 14
InsuranceUG/L
InsuranceUG/L
Periodic financial Information I 6M 14 Results I 6 August 2014 14
Insurance Solvency up on net result & UG/L Group Solvency down on net result General Account & returns to shareholders
2.5 2.5
0.4 0.4 0.6 0.6 0.6 0.6
4.0 4.2 4.0 4.2
2.0 2.2
0.5 0.51.0 0.8 0.7 0.9
4.3 4.5
0.3 (0.2)
4.6 4.3
4.54.7
0.9 1.0 1.6 1.4 1.31.6
8.3 8.6 8.6 8.4
FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14
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
183% 188% 225% 226% 271% 238% 221% 244% 207% 208% 214% 203%Solvency ratio
Conclusions
Periodic financial Information I 6M 14 Results I 6 August 2014 15
Takeaways
Healthy growing inflow
Net profit Insurance impacted by one-offs in both directions
Progress in a number of strategic files - focus on more material business
- more power to develop
4th share buy back
16
Investor Dinner – Monday 29 September 2014 An opportunity to meet with Ageas’s Management Committee
Periodic financial Information I 6M 14 Results I 6 August 2014
Dear investor, dear analyst, You are kindly invited to a dinner hosted by Ageas in the Andaz Hotel in London on Monday 29 September. The event will be introduced by our CEO Mr Bart De Smet and will offer you the opportunity to meet with all members of Ageas’s Management Committee including Mr Filip Coremans, our new CRO. We look forward to welcoming you in London!
Drinks will be served as from 7:00pm (UK Time) and dinner is expected to finish around 10pm. For practical reasons, please confirm your attendance by the 8th of September at the latest via https://www.surveymonkey.com/s/JTLRJPC
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Periodic financial Information I 6M 14 Results I 6 August 2014 18
Key financials Strong Life performance
In EUR mio 6M 13 6M 14 Q2 13 Q2 14
Gross inflows 12,497 13,789 10% 5,744 5,992 4%
- of which inflows from non-consolidated partnerships 7,232 8,470 17% 3,107 3,463 11%
Net result Insurance 329 340 3% 172 195 14%
By segment: - Belgium 160 193 21% 80 105 31% - UK 58 32 (45%) 35 38 7% - Continental Europe 46 37 (19%) 28 13 (55%) - Asia 66 78 19% 29 40 39%
By type: - Life 201 285 42% 93 157 68%
- Non-Life 119 49 (59%) 74 37 (49%) - Other 9 6 (33%) 5 1 (73%)
Net result General Account 143 (309) - 7 (195) -
Net result Ageas 472 31 (93%) 179 1 (100%)
Earnings per share (in EUR) 2.05 0.14 (93%)
FY 13 6M 14Insurance Solvency 207% 208%Shareholders' equity 8,525 9,175 8%
Net equity per share (in EUR) 37.65 41.11Insurance ROE 8.3% 8.4%Insurance ROE excl.UG/L 10.4% 10.7%
Periodic financial Information I 6M 14 Results I 6 August 2014 19
Shareholders’ equity roll forward Up on UG/L, net profit & put option In EUR mio
Shareholders’ equity per segment
Shareholders’ equity per share
FY 13 6M 14 FY 13 6M 14
Belgium 3,676 ► 4,254 Asia 1,592 ► 1,929UK 1,121 ► 1,191 Insurance 7,613 ► 8,595Continental Europe 1,224 ► 1,221 General Account 912 ► 581
6,206 6,333 6,379
1,939 1,2802,217
1,655912
581340
945 166 69
(309)(308) (106) (55) (72) (19)
EUR 37.65 EUR 41.11
9,799
8,5259,175
FY 12 FY 13 ResultInsurance
ResultGen Acc
ChangeUG/L
Dividend TreasuryShares
IAS 19 Revalput option
Forex PortugalNon-Life
Other 6M 14
InsuranceUG/L
InsuranceUG/L
Periodic financial Information I 6M 14 Results I 6 August 2014 20
Tangible net equity High quality capital structure
10/03/2010 I page 20
EUR bn FY 13 6M 14
IFRS Shareholders' Equity 8.5 9.2Unrealised gains real estate 0.6 0.6Goodwill (0.7) (0.7)VOBA (Value of Business Acquired) (0.3) (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 0.425% tax adjustment DAC, VOBA & Other 0.3 0.3
IFRS Tangible net equity 7.7 8.2
IFRS Tangible net equity/ IFRS Shareholder's Equity 90% 89%
Periodic financial Information I 6M 14 Results I 6 August 2014 21
Insurance Solvency up on net result & UG/L Group Solvency down on net result General Account & returns to shareholders
2.5 2.5
0.4 0.4 0.6 0.6 0.6 0.6
4.0 4.2 4.0 4.2
2.0 2.2
0.5 0.51.0 0.8 0.7 0.9
4.3 4.5
0.3 (0.2)
4.6 4.3
4.54.7
0.9 1.0 1.6 1.4 1.31.6
8.3 8.6 8.6 8.4
FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14
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
183% 188% 225% 226% 271% 238% 221% 244% 207% 208% 214% 203%Solvency ratio
Annexes
Equity / Solvency
Insurance activities
Investment portfolio
General Account
General Information
Inflow @ 100% Growth driven by Asia & Luxembourg, excluding FX impact total inflows up 14%
Periodic financial Information I 6M 14 Results I 6 August 2014 23
EUR mio 6M 13 6M 14 6M 13 6M 14 6M 13 6M 14
Belgium 75% 2,126 2,063 (3%) 985 1,015 3% 3,111 3,077 (1%)
United Kingdom 51 64 25% 1,101 1,145 4% 1,152 1,209 5%Consolidated entities 51 64 25% 841 874 4% 892 938 5%Non-consolidated JV's 260 271 4% 260 271
Tesco 50% 260 271 4% 260 271 0% 0 0 Continental Europe 1,826 2,269 24% 553 566 2% 2,379 2,835 19%
Consolidated entities 805 832 3% 232 245 6% 1,037 1,078 4%Portugal 51% 605 634 5% 130 136 5% 734 770 5%France 100% 200 198 (1%) 200 198 (1%)Italy 25% 102 110 102 110
Non-consolidated JV's 1,021 1,437 41% 321 321 1,342 1,757 31%Turkey (Aksigorta) 36% 321 321 321 321 Luxembourg (Cardif Lux Vie) 33% 1,021 1,437 41% 1,021 1,437 41%0Asia 5,431 6,257 15% 424 411 (3%) 5,855 6,668 14%
Consolidated entities 225 227 1% 225 227 1%Hong Kong 100% 225 227 1% 225 227 1%
Non-consolidated JV's 5,206 6,030 16% 424 411 (3%) 5,630 6,442 14%Malaysia 31% 373 274 (26%) 319 301 (6%) 692 575 (17%)Thailand 31%-15% 767 884 15% 105 110 5% 871 994 14%China 25% 4,008 4,822 20% 4,008 4,822 20%India 26% 59 50 (16%) 59 50 (16%)
Ageas 9,435 10,653 13% 3,063 3,137 2% 12,497 13,789 10%# /0 # /0 # /0Consolidated entities 3,207 3,186 (1%) 2,058 2,134 4% 5,265 5,320 1%Non-consolidated JV's 6,227 7,467 20% 1,005 1,003 (0%) 7,232 8,470 17%
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 Life growth, excluding FX impact total inflows up 8% In EUR mio
Periodic financial Information I 6M 14 Results I 6 August 2014 24
1,595 1,547
51 64 849 1,000
1,590 1,798
4,085 4,410 739 761
971 1,010 207 212
114 110
2,032 2,092
(1%)
5% 15%
12%
6%
2,334 2,308
1,023 1,074 1,056 1,213 1,704
1,908
6,117 6,502
6M 13 6M 14 6M 13 6M 14 6M 13 6M 14 6M 13 6M 14 6M 13 6M 14
Insurance net result Strong Life result in all segments, Non-Life down on floods & storms
Belgium UK
CEU Asia
Total Ageas
Life Non-Life Life Non-Life Other Life Non-Life Life Non-Life Life Non-Life Other
9 6 9 6
121
186
(1)1 25 28
56 70
201
285 38
6
50 25
20 10
10 8
119
49
160
193
58
32 46 37
66 78
329 340
6M 13 6M 14 6M 13 6M 14 6M 13 6M 14 6M 13 6M 14 6M 13 6M 14
In EUR mio
Periodic financial Information I 6M 14 Results I 6 August 2014 25
10/03/2010 I page 26
Overview impairments & net capital gains on investments Higher capital gains realized, benefiting from favourable market conditions
*
Periodic financial Information I 6M 14 Results I 6 August 2014 26
EUR mio 6M 13 6M 14 6M 13 6M 14 6M 13 6M 14
Life 35 92 (17) (28) 18 64
Non-Life 7 5 (2) (0) 4 4
Total Belgium 42 96 (20) (28) 22 68 LifeNon-Life 4 3 4 3
OtherTotal UK 4 3 4 3
Life 13 2 (8) (5) 5 (3)
Non-Life (0) (0) (0) (0)
Total CEU 13 2 (8) (5) 5 (3)Life 21 23 (5) (4) 16 19
Non-Life 3 1 (0) 3 1
Total Asia 23 24 (5) (4) 19 20Life 69 116 (30) (37) 39 79
Non-Life 13 9 (2) (0) 11 9
Other
Total Ageas 82 125 (33) (37) 50 88
Capital gains/losses Impairments & Profit sharing Net impact
9 66M 13 6M 14
Other Life Non-Life
74
37
5 2Q2 13 Q2 14
3.13.1
6M 13 6M 14
Life Non-Life
4.3 4.5
1.4 1.5
5.7 6.0
Q2 13 Q2 14
6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14
Net result: Strong Life more than offsets lower Non-Life In EUR mio In EUR bn
Non-Life combined ratio: estimated impact storms & floods of 4.6%
Inflow*: strong growth in Asia & CEU In EUR bn
Total Insurance: Headlines Solid 6M results despite floods & storms in Belgium & UK
Periodic financial Information I 6M 14 Results I 6 August 2014 27
Life Technical liabilities: up on higher market values
Operating margin Guaranteed: strong margin in Belgium
Operating margin Unit-Linked: lower fee income in Portugal
In % avg technical liabilities In % avg technical liabilities
201 285 93 157
119
49
329 340
172 195
9.4 10.7
12.513.8
109.6 117.5
96.8% 102.0% 94.7% 101.4% 0.89% 0.99% 0.93% 1.02%
0.43%
0.20%
0.38%
0.20%
* incl. non-consolidated partnerships @ 100%
In % NEP
69.2 70.5 72.0
40.9 43.4 45.5
FY 13 3M 14 6M 14
Conso Non-conso
113.9
Periodic financial Information I 6M 14 Results I 6 August 2014 28
Insurance Combined ratio Impacted by storms & floods in Belgium & UK
Net earned premium in EUR mio
Combined ratio at 102.0% vs. 96.8%
Storms & floods in UK in Q1 & severe hailstorm in Belgium in June impacting combined ratio with 4.6%, influencing Motor, Household & Other
Household at 100.4% (vs.91.9%): storms & floods
Accident & Health: at 94.6% (vs.93.4%): strong ratio in CEU & improvement resulting from cleansing book in UK
Motor at 101.1% (vs. 100.5%): next to impact of floods & storms, improving operational performance
Claims ratio at 66.7% vs. 62.3%
CY claims ratio (70.4% vs. 66.7%) most significant impact in Household
PY claims ratio slightly down to release of 3.7% (vs. 4.4%), higher claims in TPL Belgium
Expense ratio at 35.3% vs. 34.5%
Integration costs UK
69.4% 73.2% 69.0% 68.1% 64.3% 62.3% 66.7% 59.8% 65.9%
33.1%32.8%
31.1% 31.0% 34.0% 34.5%35.3%
34.9%35.5%
102.5%106.0%100.1% 99.1% 98.3% 96.8%
102.0%94.7%
101.4%
(6.0%)(3.7%) (3.5%) (3.1%) (3.8%) (4.4%) (3.7%) (4.8%) (4.6%)
2009 2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
claims ratio expense ratio PY claims ratio
2,497 2,858 3,507 4,178 3,749 1,846 1,879 926 948
Periodic financial Information I 6M 14 Results I 6 August 2014 29
Combined ratio not reaching target Non-Life combined ratio & net result impacted by several negative events
No reinsurance intervention Impact on Ageas combined ratio around 2% Impact on Ageas net result around EUR 36 mio
Reinsurance event intervention Impact on Ageas combined ratio around 2.6% Impact on Ageas net result around EUR 24 mio Reserve strengthening Corrective measures launched – pruning & tariff increases
Q1: UK floods
Q2: BE hailstorm
Q2: BE TPL
4.6%
Main elements:
70.4% 74.3% 71.9% 70.5% 70.0% 67.7% 68.0%
23.6% 24.8% 25.0% 25.5% 25.6% 25.7% 26.6%
94.0% 99.1% 96.9% 96.0% 95.6% 93.4% 94.6%
2009 2010 2011 2012 2013 6M 13 6M 14
79.0% 78.4% 72.0% 73.6% 69.8% 70.4% 71.1%
29.3% 29.0%25.3% 25.4% 29.3% 30.1% 30.0%
108.3% 107.4%97.3% 99.0% 99.1% 100.5% 101.1%
2009 2010 2011 2012 2013 6M 13 6M 14
59.4%75.0%
61.9% 55.6% 51.5% 48.0% 55.5%
43.4%43.2%
41.5% 41.6% 44.0% 43.9%44.9%
102.8%118.2%
103.4% 97.2% 95.5% 91.9%100.4%
2009 2010 2011 2012 2013 6M 13 6M 14
51.7% 42.9%67.2% 66.5% 62.4% 55.1%
75.3%
45.8%41.2%
44.8% 44.9% 45.5%45.9%
51.4%97.5%
84.1%
112.0% 111.4% 107.9% 101.0%
126.7%
2009 2010 2011 2012 2013 6M 13 6M 14
Insurance Combined ratio per product line Impact adverse weather affecting Household & Motor
Motor: suffering from bad weather Accident & Health: strong ratio CEU
Other: higher claims & expenses in small part of portfolio
Household: impact of storms & floods in UK & BE
Periodic financial Information I 6M 14 Results I 6 August 2014 30
609 714 736 763 813 392 402 NEP NEP
NEP
1,012 1,134 1,571 2,058 1,557 769 790
673 750 892 1,007 986 486 505 203 261 308 349 394 199 182NEP
Insurance Life operating margin per product line Margins in Guaranteed in line with objectives Guaranteed: driven by investment margin Belgium Unit-linked: decrease in both Belgium & Portugal
Average technical liabilities Average technical liabilities
Underwriting margin lower due to negative one-off in Belgium (Q1)
Expense & other margin decrease related to lower fee income in Portugal
Investment margin benefiting from better recurring investment income & capital gains in Belgium
Underwriting margin slightly down in BE Expense margin stable
Periodic financial Information I 6M 14 Results I 6 August 2014 31
0.44% 0.41% 0.44% 0.43% 0.44% 0.40% 0.47% 0.32%
0.67%
(0.79%)
0.87% 0.83% 0.78% 0.91% 0.79% 1.01%
(0.33%)
(0.36%)
(0.33%) (0.31%) (0.33%) (0.32%) (0.32%) (0.31%)
0.78%
(0.74%)
0.99% 0.96% 0.89% 0.99% 0.93% 1.02%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
Expense & other m. Investment m. Underwriting m.
0.07%0.04%
0.11% 0.13% 0.14% 0.10% 0.13% 0.10%0.01%
0.01%
(0.02%)
0.27% 0.42%0.37%
0.18%0.29%
0.10%
0.25%
0.10%
0.35%0.45% 0.48%
0.28%
0.43%
0.20%
0.38%
0.20%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
50.4 52.3 54.0 55.5 55.3 56.5 55.3 56.5 20.2 12.4 11.8 12.3 12.1 12.6 12.1 12.6
6M 13 6M 146M 13 6M 14
Periodic financial Information I 6M 14 Results I 6 August 2014 32
Net result: Strong in Life; Non-Life negatively impacted by hailstorm
In EUR mio In EUR bn
Operating margin Guaranteed: solid investment margin
Non-Life combined ratio @ 100.2% excluding hailstorm
Inflow*: Non-Life increased but offset by Life
Life Technical liabilities: acquisition of Fidea’s group Life & shadow accounting In EUR bn
Belgium : Headlines Strong operating results in Life offset by hailstorm effect in Non-Life
**
Operating margin Unit-Linked
In % avg technical liabilities In % avg technical liabilities
6
6M 13 6M 14
Life Non-Life
57
23
(6)Q2 13 Q2 14
2.1 2.1
1.0 1.0
3.1 3.1
6M 13 6M 14
Life Non-Life
1.1 1.0
0.4 0.4
1.5 1.4
Q2 13 Q2 14
Q2 13 Q2 14
In % NEP
Q2 13 Q2 146M 13 6M 14Q2 13 Q2 14
97.5% 105.7% 95.4% 109.9%
0.29%0.38%
0.27%0.41%
1.06%0.91%0.98%0.84%
121186
38
160
193
80
111
105
53.2 54.0 55.5
FY 13 3M 14 6M 14
1,775 1,824
351 239
2,126 2,063
6M 13 6M 14
(3%)
Life In EUR mio
Non-Life In EUR mio
Unit-Linked
Guaranteed
Other
Household
Accident & Health
Motor
Periodic financial Information I 6M 14 Results I 6 August 2014 33
Belgium: Inflow @ 100% Guaranteed Life inflows increase offset by UL and Group, Non-Life increase
276 281
303 311
316 325
91 98985 1,015
6M 13 6M 14
+3%
Guaranteed Guaranteed interest rate in Individual Life reduced to 1.25% as of
01/06/14
Guaranteed Life products increased mainly driven by Savings products
Group Life inflow came down to EUR 545 mio (-7%)
Unit-linked Individual Unit-linked further down in Q2 to EUR 239 mio (-32%) as a
result of reduced customer appetite
Household, Motor, Other GWP up 3%, well spread across bank & broker distribtion, all product
lines contributing
Household (+3%): higher volume & tariff increases
Motor (+3%): mainly driven by tariff increases
Other (+8%): mainly driven by tariff increase in Legal Assistance (VAT on lawyer fees since 2013)
Accident & Health Accident & Health (+2%)
64.1% 68.7% 64.3% 62.7% 63.2% 60.4%67.7%
57.9%71.6%
36.8%36.4%
36.8% 36.8% 36.7% 37.1%38.0%
37.5%
38.4%
100.9%105.1%101.1% 99.5% 99.9% 97.5%
105.7%95.4%
110.0%
(8.0%) (6.6%) (7.3%) (4.5%) (3.6%) (5.9%) (4.2%) (5.0%) (3.5%)
2009 2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
claims ratio expense ratio PY claims ratio
Periodic financial Information I 6M 14 Results I 6 August 2014 34
Belgium: Combined ratio Impacted by severe hailstorm in June, weaker results in Other Lines
Net earned premium in EUR mio
Combined ratio at 105.7% vs. 97.5%
Severe hailstorm in June with impact on combined ratio of EUR 49 mio or 5.5% (after reinsurance)
Impact Household 12.5% - Motor 5.1%
Excluding hailstorm, positive evolution combined ratio in both products
Accident & Health at 96.3% vs. 93.9%, large claims in Workmen’s Compensation in Q1, significant improvement in Q2
Other Lines at 150.3% vs. 100,2% Higher claims TPL - pruning actions on portfolio launched & tariff increases foreseen
Claims ratio at 67.7% vs. 60.4%
CY ratio (71.9% vs. 66.3%) impacted by hailstorm in Motor & Household
PY ratio (4.2% vs. 5.9%), impacted mainly by Accident & Health & Other
Expense ratio at 38.0% vs. 37.1%, mainly Accident & Health
1,469 1,541 1,601 1,698 1,785 872 890 440 445
68.5% 71.0%58.9% 64.7% 64.7% 67.7% 66.6%
36.3% 35.7%35.3%
35.8% 36.3% 36.9% 37.3%
104.8% 106.7%94.2% 100.5% 101.0% 104.6% 103.9%
2009 2010 2011 2012 2013 6M 13 6M 14
68.9% 75.8% 73.8% 73.0% 73.7% 69.7% 70.8%
22.6%21.9% 23.8% 24.0% 23.8% 24.2% 25.5%
91.5% 97.7% 97.6% 97.0% 97.5% 93.9% 96.3%
2009 2010 2011 2012 2013 6M 13 6M 14
44.9%
10.4%
58.2% 65.9% 66.2%52.7%
101.1%
49.2%
50.9%
49.5%48.1% 47.2%
47.5%
49.2%
94.1%
61.3%
107.7% 114.0% 113.4%100.2%
150.3%
2009 2010 2011 2012 2013 6M 13 6M 14
60.5%75.6% 63.0% 50.5% 51.4% 47.2% 56.6%
47.1%47.1%
46.9%46.2% 45.6% 45.8%
46.4%
107.6%122.7%
109.9%96.7% 97.0% 93.0%
103.0%
2009 2010 2011 2012 2013 6M 13 6M 14
Belgium: Combined ratio per product line Positive evolution in Household and Motor offset by hailstorms, weak in Other lines
Motor: excluding hailstorm, @ 98.8% Accident & Health: large claims in Workmen’s Compensation in Q1, Q2 improved significantly
Household: excluding hailstorm @ 90.6% Other: Poor result in TPL, pruning actions taken
NEP NEP
NEP
Periodic financial Information I 6M 14 Results I 6 August 2014 35
424 451 451 480 507 244 249 465 498 525 540 552 270 277
453 463 484 530 564 278 283 127 129 142 149 162 80 81NEP
0.03%
(0.05%) 0.04% 0.04%0.03% (0.01%) 0.02%
0.02%
0.64%0.50% 0.44% 0.38% 0.38%
0.28%0.36%
0.27%
0.66%
0.45% 0.47%0.41% 0.41%
0.27%0.38%
0.29%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
Belgium Life operating margin per product line Guaranteed: solid investment result & higher capital gains
Unit-linked: lower mortality result
Avg techn liabilities Avg techn liabilities
Periodic financial Information I 6M 14 Results I 6 August 2014 36
Operating result amounted to EUR 8 mio Lower mortality result & one-off recorded in Q1 Average Technical Liabilities increased
Operating result amounted to EUR 233 mio, up 20% Operating margin rose to 0.98% vs. 0.84% driven by
investment margin Investment margin : solid investment result & higher
capital gains on both equities & fixed income Average Technical Liabilities up, mainly explained by
higher market values & acquisition Fidea (+EUR 0.5bn)
0.28% 0.32% 0.32% 0.32% 0.35% 0.32% 0.37% 0.30%
0.57%
(0.80%)
0.93% 0.88% 0.80% 0.96% 0.81% 1.08%
(0.21%)
(0.30%)
(0.29%) (0.31%) (0.31%) (0.30%) (0.28%) (0.32%)
0.64%
(0.78%)
0.96% 0.89% 0.84% 0.98% 0.91%1.06%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14Expense & other m. Investment m. Underwriting m.
40.7 42.9 44.9 46.4 46.2 47.4 46.2 47.4 6.0 5.6 5.2 5.4 5.3 5.6 5.3 5.6
6M 13 6M 14
When excluding weather, better Non-Life & Life results offset by Retail In EUR mio
United Kingdom: Headlines Strong recovery of operating results in Q2
Non-Life combined ratio Q1 weather impact, excellent Q2
9 6(1) 1
50
25
58
32
6M 13 6M 14
Life Other Non-Life
Q2 13 Q2 14
96.3% 100.7%94.0% 95.5%
50
5
Inflow* up 5%, flat excluding FX In EUR bn
In % NEP In EUR mio
Other Income: incl. positive contribution from legal settlement (EUR 6 mio)
0.1 0.1
1.1 1.1
1.2 1.2
6M 13 6M 14
Life Non-Life
0.0 0.00.6 0.6
0.6 0.6
Q2 13 Q2 14
6M 13 6M 14
59 59
Q2 13 Q2 14
122 129
* incl. non-consolidated partnerships @ 100%
51
(1) 1
31 35
35 38
Q2 13 Q2 14
37 Periodic financial Information I 6M 14 Results I 6 August 2014
1,101 1,145
51 641,152 1,209
6M 13 6M 14
44 40
730 755
231 24296 108
1,101 1,145
6M 13 6M 14
Motor
Non-Life
Life
Other Household
Accident & Health
Total In EUR mio
Non-Life In EUR mio
4%
5%
United Kingdom: Inflow @ 100% Inflow up 5% but flat at constant FX
Life Up 25%, +20% at constant FX
Continued development of the book & widening of product offering: launch of a new product: “Relevant Life Cover”
New business APE up 11%, as new products launched
Non-Life Up 4%, flat at constant FX.
Motor up 3%, flat at constant FX, due to volumes increase offset by lower premiums
Household up 5% as a result of the positive impact of Ageas Insurance Limited (AIL) becoming sole underwriter of Ageas’s over 50’s brands
Accident & Health remains broadly stable
Other lines (including Commercial & Special Risks) up 12% from growth in business schemes
Other Insurance (including Retail) YTD total income of EUR 129 mio, up 6% including a EUR 6 mio
positive contribution from a legal settlement
38 Periodic financial Information I 6M 14 Results I 6 August 2014
39
United Kingdom: Combined ratio COR recovers after excellent Q2
Net earned premium in EUR mio
Combined ratio at 100.7% vs. 96.3%
Strong Q2 in Motor & Household leading to Q2 combined ratio of 95.4%
Impact of Q1 storms & floods diminishes
Claims ratio at 66.7% vs. 63.4%
Claims ratio Weather impact of 4.7% - most important impact in Household
CY ratio (69.6% vs. 66.7%) primarily due to adverse weather in Q1
PY ratio: (release of 2.8% vs.3.3%) broadly in line with 6M 13
Expense ratio at 34.0% vs. 32.9%
Increased expense ratio due to higher commissions arising from greater business through MGAs & DAs
Integration costs recorded in Other
80.4% 81.5% 74.6% 73.3%65.6% 63.4% 66.7% 60.7% 61.3%
27.7% 28.0%25.3% 26.5%
32.2% 32.9%34.0%
33.3% 34.2%
108.1%109.5%99.9% 99.8% 97.8% 96.3%
100.7%94.0% 95.5%
(3.5%)(1.1%) 0.1% (2.1%) (4.0%) (3.3%) (2.8%) (4.9%) (5.0%)
2009 2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
claims ratio expense ratio PY claims ratio
834 948 1,524 2,083 1,562 775 783 386 397
Periodic financial Information I 6M 14 Results I 6 August 2014
not restated for deconsolidation Tesco Underwriting
83.5%97.9% 87.7% 78.1% 76.2% 72.8% 66.7%
26.2%24.0%
23.2%28.2% 34.3% 34.1% 36.7%
109.7%121.9%
110.9% 106.3% 110.5%106.9%
103.4%
2009 2010 2011 2012 2013 6M 13 6M 14
88.9% 82.9% 79.2% 77.2% 71.9% 70.8% 73.9%
22.8% 23.3% 19.5% 21.3% 25.0% 26.1% 25.7%
111.7% 106.2%98.7% 98.5% 96.9% 96.9% 99.6%
2009 2010 2011 2012 2013 6M 13 6M 14
61.2%77.4%
61.4% 62.3% 51.4% 46.2% 54.3%
38.0%38.2%
35.3% 36.7%42.4% 42.2%
43.8%
99.2%115.6%
96.7% 99.0% 93.8% 88.4%98.1%
2009 2010 2011 2012 2013 6M 13 6M 14
66.0% 75.1% 71.6% 67.7% 59.7% 59.0% 56.6%
38.1% 30.4% 39.3% 42.1% 44.5% 44.7% 54.6%
104.1% 105.5% 110.9% 109.8% 104.2% 103.7% 111.2%
2009 2010 2011 2012 2013 6M 13 6M 14
United Kingdom: Combined ratio per product line Loss ratios impacted by Q1 weather and Motor large claims
Motor: small number of large claims Accident & Health: Cleansing the book has improved loss ratio
Household: adverse weather impact Q1 Other: integration costs
40
53 58 65 57 79 36 35 524 532 949 1,420 907 450 464
187 248 366 434 374 185 197 69 110 143 173 202 105 87
NEP NEP
NEP NEP
not restated not restated
not restated not restated
Periodic financial Information I 6M 14 Results I 6 August 2014
Net profit Q2 13 included EUR 9 mio one-off in Turkey In EUR mio In EUR bn
Excellent Non-Life combined ratio improvement in Motor & Household
227% 210% 207%
Inflow* boosted by strong sales in Luxembourg Life In EUR bn
Continental Europe: Headlines Results on track with expectations
**
Operating margin Guaranteed: lower U/W & investment margin
Periodic financial Information I 6M 14 Results I 6 August 2014 41
Life Technical liabilities up 2%
In % avg technical liabilities
Operating margin Unit-Linked: lower fee income in Portugal In % avg technical liabilities
25 28
2010
46
37
6M 13 6M 14
Life Non-Life
13 9
16
4
28
13
Q2 13 Q2 14
1.82.3
0.6
0.62.4
2.8
6M 13 6M 14
Life Non-Life
0.91.4
0.3
0.31.2
1.6
Q2 13 Q2 14
6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14
95.5% 91.4% 94.4% 88.1%0.94% 0.82% 0.98% 0.58%
0.53%
0.17%
0.53%
0.10%
In % NEP
* incl. non-consolidated partnerships @ 100%
13.9 14.3 14.2
15.0 15.2 15.9
28.9 29.5 30.1
FY 13 3M 14 6M 14
Conso Non-conso
8411,366
986
9031,826
2,269
6M 13 6M 14
171 178
183 180
106 102
94 106
553 566
6M 13 6M 14
Accident & Health
Motor
Unit-Linked
Guaranteed
+24%
Other Household
Life In EUR mio
Non-Life In EUR mio
Continental Europe: Inflow @ 100% Higher sales both in Life & in Non-Life
+2%
Periodic financial Information I 6M 14 Results I 6 August 2014 42
Life Consolidated inflow up 3%
Portugal: +5% due to higher volumes in new saving products. UL slowed down but still 53% of total inflow
France: in line with last year’s sales
Luxembourg +41%, inflows more than doubled in Q2 with large Wealth business contracts concluded in Italy
Technical liabilities End of period technical liabilities: up 2%
Non-Life GWP consolidated entities up 6%
Portugal +5% outperforming local markets in A&H & growing in Motor
Italy +7%, better commercial performance in bank channel in all product lines, particularly Household & Consumer protection business
Turkey (Aksigorta) flat at EUR 321 mio, up 24% at constant FX: regaining momentum in Motor despite intense competition
A&H and Motor remain the major business lines in the portfolio
Periodic financial Information I 6M 14 Results I 6 August 2014 43
Continental Europe: Combined ratio Well below group target
Net earned premium in EUR mio
* Scope: only consolidated companies: 2009 Portugal; as from 2010 Portugal & Italy
62.4%71.0% 66.4% 63.6% 63.7% 66.2% 62.0% 64.7% 58.9%
27.6%
30.3%30.3% 29.8% 30.0% 29.3%
29.4% 29.7%29.2%
90.0%
101.3%96.7% 93.4% 93.7% 95.5% 91.4% 94.4%
88.1%
(1.3%)1.9%
(2.0%) (2.5%) (4.0%) (2.3%) (4.5%) (3.7%)(7.9%)
2009 2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
claims ratio expense ratio PY claims ratio
194 369 382 397 403 199 207 100 106
Combined ratio at 91.4%
Combined ratio further decreased vs. last year mainly due to improved ratio’s in Motor & Household
Combined ratio Turkey at 99.8% vs. 88.6%; due to some large claims & higher frequency partially due to adverse weather
Claims ratio at 62.0%
Claims ratio improved in Motor & Household
PY ratio: 4.5% release vs. 2.3% driven by positive reserve developments notably in Motor & Other Lines
Expense ratio at 29.4%
Expense ratio in line with last year
70.2% 64.2% 63.5% 63.3% 59.7% 61.7% 62.6%
25.7% 31.6% 27.8% 28.2% 26.6% 26.3% 26.1%
95.9% 95.8% 91.3% 91.5% 86.3% 88.0% 88.7%
2009 2010 2011 2012 2013 6M 13 6M 14
65.3%90.5%
71.8% 69.8% 79.3% 82.0% 70.9%
36.7%
27.0%
29.2% 28.1%29.2% 28.2%
28.7%
102.0%117.5%
101.0% 97.9%108.5% 110.2%
99.6%
2009 2010 2011 2012 2013 6M 13 6M 14
34.9%53.5% 53.7% 51.8% 53.5%
70.6%52.6%
22.9%
27.7% 34.2% 33.5% 38.8%
36.5%
36.9%57.8%
81.2% 87.9% 85.3%92.3%
107.1%
89.5%
2009 2010 2011 2012 2013 6M 13 6M 14
33.8%
73.3%94.5%
62.8% 59.6%40.6% 44.4%
58.6%
39.0%
50.0%
43.3% 43.7%
44.4% 44.3%
92.4%
112.3%
144.5%
106.1% 103.3%85.0% 88.7%
2009 2010 2011 2012 2013 6M 13 6M 14
Continental Europe: Combined ratio per product line Mixed performance between product lines
Motor: improved claims rations in Italy & Portugal Accident & Health: continued excellent claims
Household: lower weather impact in Portugal Other: minor increase in claims
Periodic financial Information I 6M 14 Results I 6 August 2014 44
132 205 220 226 227 112 118 23 104 97 99 99 49 49
33 39 42 44 48 23 25 7 21 23 28 29 14 15
NEP NEP
NEP NEP
0.01% 0.02% 0.02% 0.01% 0.01% 0.01% 0.01% 0.02%
0.18%
0.55%0.41% 0.51% 0.51%
0.17%
0.51%
0.08%
0.20%
0.56%
0.44%0.47% 0.53%
0.17%
0.53%
0.10%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
Continental Europe Life operating margin per product line
Guaranteed: lower underwriting & investment margin Unit-linked: decreasing expense & other margin
Avg techn liabilities Avg techn liabilities
Periodic financial Information I 6M 14 Results I 6 August 2014 45
Decrease expense & other margin related to lower fee income in the old Portuguese book, implemented to safeguard the commercial franchise
1.25% 1.00% 1.18% 1.06% 0.91% 0.88% 0.93% 0.80%
0.84%
(0.75%)
0.69% 0.68% 0.84% 0.76% 0.91%0.75%
(0.93%)
(1.08%)
(0.85%) (0.83%) (0.81%) (0.82%) (0.86%) (0.97%)
1.16%
(0.83%)
1.02% 0.91% 0.94% 0.82% 0.98%0.58%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
Expense & other m. Investment m. Underwriting m.
8.7 8.3 7.8 7.6 7.7 7.6 7.7 7.6 13.9 6.4 6.1 6.3 6.2 6.3 6.2 6.3
Investment margin below last year – high cap gains in 6M 13 Decline in underwriting margin YTD to reserve strengthening
in annuity business partially offset by strong technical performance in traditional business
Expenses & other margin in line
2432
4528
36
Q2 13 Q2 146M 13 6M 14 Q2 13 Q2 14
Inflow: successful sales campaigns & channel development in China & Thailand
10
8
6M 13 6M 14
Life Non-Life
10
8
6M 13 6M 14
Life Non-Life
Net result: strong growth due to good operational performance In EUR mio In EUR bn
Non-Life combined ratio reflects good underwriting performance
Life Technical liabilities up across all entities In EUR bn
Asia: Headlines New business & profit growth Life / Strong Non-Life underwriting result
Periodic financial Information I 6M 14 Results I 6 August 2014 46
**
In % avg technical liabilities In EUR mio
Result non-conso partnerships: up 30% on good Life operational performance
5.4 6.3
0.40.45.96.7
6M 13 6M 14Life Non-Life
2.3 2.1
0.2 0.2
2.5 2.3
Q2 13 Q2 14
Q2 13 Q2 146M 13 6M 14
94.2%89.1%
95.9%
89.1%
1.54% 1.53%
0.97%
1.60%
56 70
6678
49 64
59
72In % NEP
* incl. non-consolidated partnerships @ 100%
Life operating margin Hong Kong: improved due to capital gains
2435
4
52940
Q2 13 Q2 14
2.0 2.0 2.1
25.9 28.2 29.6
27.930.3 31.7
FY 13 3M 14 6M 14
Conso Non-conso
171 170
56 52 34 36
164 153
424 411
Q2 13 Q2 14
Other
Accident &HealthFire
Motor
5,253 6,095
178 162 5,431
6,257
Q2 13 Q2 14
Unit-Linked
Guaranteed
+15%
-3%
Life
Non-Life In EUR mio
In EUR mio
Asia: Inflow @ 100% Strong growth new business, boosted by sales campaigns & channel development
Periodic financial Information I 6M 14 Results I 6 August 2014 47
Life Hong Kong, +1%, New business impacted by new regulations on sales
procedures investment linked products. Continued focus on higher value products through combination of re-pricing, new product launches & refining sales incentives
China, +20%, New business bank channel up 12%, supported by very successful single premium campaign in Q1 & shift towards regular premiums in Q2 (up >60% vs. last year); agency sales up 43% thanks to expansion in number of agents & successful sales campaigns
Malaysia, -26%, New business down following transition in distribution strategy of both bank & agency channel from single premium sales towards more sustainable & profitable regular premium sales
Thailand, +15%, New business premiums up 24%; strong performance in both bank & the agency channel
India, -16%, Inflow down due to the continuation of a difficult regulatory environment.
Technical liabilities – end-of-period
Hong Kong : EUR 2.1 bn, up 8% vs. FY 13
Including non-consolidated JVs @ 100%: EUR 31.7bn, up 13%
Non-Life Malaysia, -6% due to FX impact. Excluding FX, inflows up 5% spread over all
product lines, except for Marine, Aviation and Transport
Thailand, +5%, growth in all product lines, especially in Motor
Hong Kong Life operating margin per product line Realized capital gains and higher fee income Guaranteed: slightly higher operating margin Unit-linked: improved margin due to higher fee income
from higher technical liabilities
Periodic financial Information I 6M 14 Results I 6 August 2014 48
Avg techn liabilities Avg techn liabilities
Underwriting margin deteriorated due to lower persistency
Expense & Other margin improved because of higher fee income derived from higher net asset value of the portfolio
Underwriting margin slightly improved due to better reinsurance result
Investment margin: higher realised capital gains Expense & Other margin deteriorated as a result of lower
sales of regular premium products
(0.15%)(0.71%)
(0.15%) (0.32%) (0.57%) (0.44%) (0.33%)
(2.35%)
3.62%
(0.57%)
(0.11%)0.27% 0.04% 0.18%
(0.86%)
0.22%
1.30%
3.52%2.52%
4.19%
2.91% 2.70% 3.11%
4.34%
4.77%
2.24%
2.26%
4.14%
2.38% 2.44% 1.92%
2.21%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
Expense & other m. Investment m. Underwriting m.
1.0 1.1 1.3 1.3 1.3 1.3 1.3 1.3
3.11%1.75% 2.13% 2.15% 2.65% 1.88%
2.61%1.59%
(0.06%) (0.14%)(2.40%)
(3.21%)
(0.95%)
(5.01%)(3.12%)
(2.10%)
(3.77%)
(1.18%)
0.70%
(1.47%)1.18%(2.86%)
(0.53%)(0.22%)
(1.30%)0.41%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
0.3 0.4 0.5 0.6 0.6 0.7 0.6 0.7
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Periodic financial Information I 6M 14 Results I 6 August 2014 50
In EUR bn
Asset mix
Asset mix relatively stable
Increased positions in bonds because of lower interest rates
Gross unrealized gains/losses on Available for Sale Total portfolio: up to EUR 6.6 bn (EUR 4.0 bn FY 13),
driven by UG/L on fixed income
Fixed income: at EUR 6.1 bn (EUR 3.5 bn FY 13) Sovereigns at EUR 4.2 bn (vs. EUR 2.3 bn) Corporates at EUR 1.9 bn (vs. EUR 1.2 bn)
Equities: slightly up, at EUR 0.5 bn
Gross UG/L on Real Estate: slightly down to EUR 1.2 bn (EUR 1.3 bn FY 13); - not reflected in shareholders’ equity
EUR 1.5 bn unrealized gains/losses on Held to Maturity - not reflected in shareholders’ equity
Treasury bills 0.3
Sovereign bonds 34.3
Sovereign bonds 35.8
Corporate bonds 23.8
Corporate bonds 25.2
Structured0.4
Structured0.4Loans 5.8
Loans 5.5Equities 3.2Equities 3.4Real Estate 4.6Real Estate 4.5Cash 2.2Cash 2.474.3
77.5
FY 13 6M 14
Investment portfolio Unrealized gains fixed income up because of lower interest rates
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Belgium18.4
Belgium18.6
France 5.1 France 5.7
3.4 4.0Austria 2.6
Austria 2.81.11.20.7
0.5Others 3.0Others 3.2
34.335.8
FY 13 6M 14
In EUR bn
Gross UG/L at EUR 4.2 bn (vs. EUR 2.3 bn) 94% investment grade; 87% 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
Periodic financial Information I 6M 14 Results I 6 August 2014 51
Gross UG/L at EUR 1.9 bn (vs. EUR 1.2 bn) Priority to investment grade industrials has led to
increased share within corporate bond portfolio of 46% (vs. 42% FY 13)
Credit quality remains very good with 95% investment grade; 69% rated A or higher
Corporate bond portfolio*
Banking 5.3 Banking 5.0
Other financials 1.7
Other financials 1.8
Non Financials
10.1
Non Financials
11.7
Government related 6.7
Government related 6.7
23.8 25.2
FY 13 6M 14
The Netherlands The Netherlands Germany
Germany
Southern Europe Southern Europe
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
In EUR bn
Loan portfolio (customers + banks)*
Loan & Equity portfolio More loans with guarantee
Loans to banks 1.6 Loans to
banks 0.9
RE 0.2
RE 0.2Infrastructure
0.1Infrastructure
0.1
Mortgages 1.5
Mortgages 1.5
Other 2.4Other 2.8
5.8 5.5
FY 13 6M 14
Increase in other: long term lending to social housing agencies in Belgium, benefiting from explicit guarantee by the region
Loans to banks down: priority to long-term secured loans
Periodic financial Information I 6M 14 Results I 6 August 2014 52
Equity portfolio*
Gross UG/L slightly up, at EUR 0.5 bn
Increase in equity portfolio supported by investments & strong equity markets
Equities 1.7 Equities 1.8
Equity funds 0.1
Equity funds 0.3
RE funds 0.7RE funds 0.7
Mixed funds & others 0.7
Mixed funds & others 0.7
3.2 3.4
FY 13 6M 14
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Periodic financial Information I 6M 14 Results I 6 August 2014 53
Real estate portfolio Real Estate development down because of sale of a project
10/03/2010
Gross UG/L slightly down to EUR 1.2 bn (not reflected in shareholders’ equity but contributing to available capital for solvency calculation)
In PR 18/07/2014 AG Real Estate announced sale of 39% stake in Interparking for EUR 376 mio – accounting in Q3 – car parks in asset mix will go down to 15% (vs.25%) – no P&L impact – shareholders’ equity up EUR 0.1 bn, solvency up around 7pp
Investment Offices 1.5
Investment Offices 1.6
Car Parks1.0
Car Parks1.0
Investment Retail 1.4
Investment Retail 1.4
0.4 0.10.3 0.4
4.6 4.5
FY 13 6M 14
In EUR bn
Real Estate portfolio*
Investment Warehouses RE Development
Investment Warehouses
RE Development
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
(6)
6M 13 6M 14
Q2 13 Q2 14
7
Q2 13 Q2 14
Net result driven by RPN(i) & legal provision of EUR 130 mio In EUR mio
Accounting value of remaining legacies
General Account: Headlines Impacted by revaluation RPN(i) liability & legal provision
Periodic financial Information I 6M 14 Results I 6 August 2014 55
Accounting value put option
In EUR mio In EUR mio
6M 13 6M 14
1.9 1.8 1.6
FY 13 3M 14 6M 14
143
(309)
(195)
RPN(i) impact on P&L Staff & Operating expenses
Net cash position
8 9
12 12
20 21
6M 13 6M 14Staff Operating
In EUR mio In EUR mio In EUR bn
(370)(474) (527)
37 37 29
(130)
FY 13 3M 14 6M 14
RPN(i) RPI FortisEffect
3 4
76
9 11
Q2 13 Q2 14
(157)
(16)
(53)
1,255 1,274 1,282
FY 13 3M 14 6M 14
56
General Account: components of Net result Result driven by legacies
* Including Interest Margin, Other Expenses & Other Losses (Realised/Unrealised)
In EUR mio
2013 driven by agreements on legacy items
(90)
(6) (8) (12)(12)270
143
RPI Call Option Reval RPN(i) Legalprovision
Staffexpenses
Otheroperatingexpenses
Other* Net result
(157)
(130)
(9) (12) (2)
(309)
Net result 2014 driven by non-cash volatility RPN(i)
Periodic financial Information I 6M 14 Results I 6 August 2014
1,9131,639
(309)(103) (7) (60)
(9) (126) (44)383 -
FY 13 dividend sharebuy-back
CASHES& FRESH
investmentin liquidassets
upstream capitalrestructuring
M&A other 6M 14
Periodic financial Information I 6M 14 Results I 6 August 2014 57
Net cash position General Account at EUR 1.6 bn 3rd Share buy-back completed as per 1 August 2014
EUR 126 mio invested in acquisition of remaining 49% in Portuguese Non-Life activities
EUR 1.4 dividend par share paid out in May 2014 -
Dividend upstream from operating companies will cover paid dividend & holding costs on FY basis – still upstream to be expected in H2 14
As per 01/08/2014 share buy-back 2013 completed : EUR 200 mio of which EUR 103 mio executed in 6M 14
Next to this, Ageas holds EUR 117 mio in liquid assets (original maturity > 1 year)
In EUR bn
Net cach position mainly down on return to shareholders
Priority 1: invest in business Priority 2: return to shareholders
Periodic financial Information I 6M 14 Results I 6 August 2014 58
Only 2 alternative uses for General Account net cash withheld Continuation of capital management principles since 2009
1. Invest in Businesses
Organic growth Selective acquisitions Create new partnerships
2. Return to shareholders
Dividend payment Share buy-back
≈ EUR 2.1 bn ≈ EUR 900 mio cash dividend over ‘09, ’10, ‘11 & ‘12 EUR 650 mio share buy-backs finalized’12, ‘13 & ’14 EUR 222 mio capital reduction from proceeds of BNPP Call
Option & RPI
EUR 250 mio share buy-back announced 06/08/14
≈ EUR 1.3 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 320 mio Asia (India, HK, China)
≈ EUR 160 mio CE (Portugal, Italy)
Periodic financial Information I 6M 14 Results I 6 August 2014 59
Status on various legal procedures
Timing & (financial) outcome remains hard to estimate
2014 expected next steps
Brussels Commercial Court re Sep/Oct 2008 transactions (Modrikamen) – interim judgement on procedural matters expected – pleadings on the merits in 2015
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
Age
as in
itiat
or
Aga
inst
Age
as
February 12 BNP P tender for CASHES & subsequent conversion into Ageas shares – partial settlement of RPN/RPN(I) – call Fortis Bank Tier 1 Debt Securities
February 12 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
March 14 T&I A Tribunal rejects appeal in AFM I
July 14 Amsterman Court of Appeal judges partly in favour of plaintiffs; appeal will be filed
Legal proceedings Managed in interest of shareholders Administrative proceedings
NL: AFM fine imposed 05/02/10 re price sensitive info June 08
NL: AFM 2nd fine imposed 19/08/10 re price sensitive information Sep 07
Final judgement 04/03/2014; appeal rejected
Final judgement 14/02/2014 in favour of Ageas BE: FSMA re communication in Q2 2008 Appeal filed before Court of Appeal
Criminal procedure
Brussels – several alleged crimes June 2007 – April 2008 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 partly in favour of plaintiffs; appeal will be filed
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 2007 - 08 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
Judgement procedural matters expected; Pleadings merits H1 2015 Proceedings ongoing Deminor: interim judgment procedural matters 28/04/2014
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
Other litigation
Brussels/Paris – RBS re alleged indemnity in context of ABN AMRO take- over
Proceedings before Brussels court & ICC arbitration in Paris initiated in April 2014
Periodic financial Information I 6M 14 Results I 6 August 2014 60
Situation 6 August 2014
Periodic financial Information I 6M 14 Results I 6 August 2014 61
Main characteristics Hybrids Leverage optimized at holding level and at AG Insurance
In EUR mio Ageas
Ageasfinlux Fresh
Ageas Hybrid Financing Hybrone
Fixed-to-Floating Rate
Callable
Fixed Rate Reset Perpetual
Subordinated Loans
Direct issue FBB, 2004 CASHES
% 3m EUR + 135 bps 5.125% 5.25% 6.75% 4.625% 3m EUR +200
bps Amount
outstanding 1,250 336 450 550 USD 1,000 1,110
ISIN XS0147484074 XS0257650019 BE6261254013 BE6251340780 BE0119806116 BE0933899800
Call date Undated,
strike 315.0 mandatory 472.5
Jun 16 Step up to 3M
Euribor +200 bps
Jun 24 Step up to 3M
Euribor +413 bps
Mar 19 Step up to 6yr USD
swap + 533 bps
Oct 14 Step up to 3M
Euribor+170 bps
Undated, strike 239.4,
mandatory 359.1
Other On lent to AG Insurance
Subscribed by Ageas & BNP Paribas Fortis
Public issue No stock settlement feature
Coupon served by FBB, trigger ACSM
linked to Ageas dividend
Market Price (30/06/14) 69.79 102.89 100.00 108.50 100.48 81.23
Fortis Bank (now BNP Paribas) AG Insurance (Belgium)
Annexes
Equity / Solvency
Insurance Activities
Investment portfolio
General Account
General Information
Periodic financial Information I 3M 14 Results I 14 May 2014 63
Shareholders structure Based on number of shares as at 6 August 2014
Ageas3.63%
Ping An
BlackRock, Inc.
Schroders
Franklin Mutual Advisers
Norges Bank Identified retail investors
16%
Identified institutional investors
41%
Other investors20%
AgeasPing An
BlackRock, Inc.Schroders
Franklin Mutual AdvisersNorges Bank
Identified retail investorsIdentified institutional investors
Other investors
Based upon press release 4 August 2014Based upon the number of shares mentioned in the notification received 6 May 2013Based upon the number of shares mentioned in the notification received 2 June 2014Based upon the number of shares mentioned in the notification received 5 August 2014Based upon the number of shares mentioned in the notification received 22 July 2013Based upon the number of shares mentioned in the notification received 20 August 2012Estimate byEstimate by
Periodic financial Information I 6M 14 Results I 6 August 2014 64
Financial calendar 2014 - 2015
12 February Annual results 2013
8 May 3M 2015 results
29 April Ordinary & Extraordinary shareholders’ meeting - Brussels
6 May Ex date
6 March Annual report 2013
8 May Payment 2013 dividend
5 August 6M 2015 results
4 November 9M 2015 results
6 August 6M 2014 results
5 November 9M 2014 results
Periodic financial Information I 6M 14 Results I 6 August 2014 65
Rating Improved rating for Portuguese entities
S&P MOODY'S FITCH
Operating AG Insurance (Belgium) A- / positive A2 / stable* A+ / stableentities Last change 20/12/13 02/10/13 29/05/13
Millenniumbcp Ageas Occidental Vida (Portugal) BB / stable BBB- / positiveLast change 16/05/14 16/04/14
Millenniumbcp Ageas Occidental (Portugal) BB / positive BBB- / positiveLast change 06/06/14 10/06/14
Millenniumbcp Ageas Médis (Portugal) BB / positive BBB- / positiveLast change 06/06/14 10/06/14
Ageas Insurance Co. (Asia) Baa1 / stable A / stableLast change 16/01/13 26/03/13
Muang Thai Life BBB+ / stable BBB+ / stableLast change 29/12/10 16/12/10
Etiqa Insurance Berhad (Malaysia) A / stableLast change 26/09/11
Holding ageas SA/NVLong-term BBB- / A-3 Baa3 / P-3 * BBB+ / F2Outlook positive negative stableLast change 20/12/13 02/10/13 24/01/14
* 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.
Periodic financial Information I 6M 14 Results I 6 August 2014 66
Disclaimer Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Future actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in Ageas’s core markets, (ii) performance of financial markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates, (viii) increasing levels of competition, (ix) changes in laws and regulations, including monetary convergence and the Economic and Monetary Union, (x) changes in the policies of central banks and/or foreign governments and (xi) general competitive factors, in each case on a global, regional and/or national basis. In addition, the financial information contained in this presentation, including the pro forma information contained herein, is unaudited and is provided for illustrative purposes only. It does not purport to be indicative of what the actual results of operations or financial condition of Ageas and its subsidiaries would have been had these events occurred or transactions been consummated on or as of the dates indicated, nor does it purport to be indicative of the results of operations or financial condition that may be achieved in the future.
Periodic financial Information I 6M 14 Results I 6 August 2014 67
Investor Relations
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+ 32 2 557 57 34 [email protected] www.ageas.com
Investor Relations