3m 2019 results - ageas · investment portfolio 62 legal settlement 67 general information 70....
TRANSCRIPT
3M 2019 RESULTSPeriodical Financial Information
Slides used during analyst call 2
Segment information 15
Equity / Solvency 50
Investment portfolio 62
Legal Settlement 67
General Information 70
Content
Periodic financial information I 3M 19 results I 15 May 2019 2
Ageas
3
Main developments
India: acquisition 40% stake RSGI finalised with EUR 185 mio cash impact
Reinsurance quota share agreements up & running with Belgium, UK &
Portugal
Dedicated function in executive committee to develop the company in line
with Connect21 ambitions
Call of USD 550 mio bond by AG Insurance in Q1
Issuance of EUR 500 mio bond by ageas SA/NV in Q2
Group net result in line with strong result delivered last year despite lower
contribution of net capital gains
Solid sales momentum with inflows up 8%, particularly high in Belgium
≈ EUR 455 mio compensation paid to eligible shareholders since start
execution settlement, of which EUR 140 mio coming from D&O insurers
Next payment scheduled end of May
Strategy
Results
Legal
Capital management
Periodic financial information I 3M 19 results I 15 May 2019Periodic financial information I 3M 19 results I 15 May 2019
In EUR mio In EUR bnIn EUR bn
Ageas
4Periodic financial information I 3M 19 results I 15 May 2019
Net result at same strong level as last yearHeadlines
In bps avg technical liabilitiesIn bps avg technical liabilities
* incl. non-consolidated partnerships @ 100%
In % NEP
Net result: Lower cap gains contribution, UK restructuring & RPN(i) support
Non-Life combined ratio impacted by bad weather in both periods
Inflows*: Strong sales momentum in BE, Portugal & China
Life Technical liabilities* increasing both in conso & non-conso
Operating margin Guaranteed: lower investment result – still in target range
Operating margin Unit-Linked: impacted by costs sales campaign in Be
(52)
(7)
252223
48
35
248
251
3M 18 3M 19
GA Life Non-Life
10.1 11.1
1.71.7
11.912.8
3M 18 3M 19
Life Non-Life
98.8 98.3
3M 18 3M 19
137
88
3M 18 3M 19
3218
3M 18 3M 19
71.5 73.1
1.8 2.9
65.675.3
139.0151.2
FY 18 3M 19
conso shadow non-conso
Belgium268
Belgium168
Belgium294
Belgium333
Belgium391
Belgium437
Belgium415
UK 82
UK 64
UK 50
UK 47
UK ≈ 45
CEU 36
CEU150
CEU53
CEU 19
CEU48
CEU85
CEU≈ 85
Asia 52
Asia106 Asia 43
Asia89
Asia77
Asia92
Asia≈95
438
488
440
487 516
622 > 630
414
2013 2014 2015 2016 2017 2018 expected2019
dividend tobe paid in
2019
Ageas
5Periodic financial information I 3M 19 results I 15 May 2019
Expected upstream during 2019 above EUR 630 mioDividend upstream
Upstream duringbased on net result of the year
before
In EUR mio
Belgium main contributor of cash – UK dividend upstream confirmed
Upstream more than covering dividend & holding costs on FY basis
In bps avg technical liabilities In bps avg technical liabilitiesIn % NEP
Belgium
6
Solid first quarter despite lower capital gains & weather eventsHeadlines
In EUR mio In EUR mio In EUR bn
119
69
18
12
136
81
3M 18 3M 19
Life Non-Life
914
1,407
629
6611,543
2,068
3M 18 3M 19
Life Non-Life
55.9 56.9
1.4 2.3
57.3 59.2
FY 18 3M 19
excl shadow shadow
100.3 104.2
3M 18 3M 19
141
78
3M 18 3M 19
51
26
3M 18 3M 19
Net result: decrease mainly due to lower investment income
Inflows: considerable growth in both Life (+54%) & Non-Life (+5%)
Life Technical Liabilities increased mostly as a result of strong Unit-Linked inflows
Non-Life combined ratio impacted by weather – flat thanks to internal reinsurance
Operating margin Guaranteed suffered from lower investment income
Operating margin Unit-Linked – mostly impacted by the sales campaign
Periodic financial information I 3M 19 results I 15 May 2019
In EUR mio
UK
7
Continued strong operating performanceHeadlines
In % of NEPIn EUR bn
* incl. non-consolidated partnerships @ 100%
Net result impacted by internal reinsurance & restructuring costs
Inflows* down 6% @ constant FX Non-Life combined ratio @ 111.2%* afterinternal reinsurance transactions
11 11
3M 18 3M 19
445 425
3M 18 3M 19
100.7 95.5
3M 18 3M 19
Periodic financial information I 3M 19 results I 15 May 2019Periodic financial information I 3M 19 results I 15 May 2019
CEU
8
Headlines
In EUR mio
In EUR bn In EUR bn
In bps avg technical liabilities In bps avg technical liabilitiesIn % NEP
13 12
1419
27
32
3M 18 3M 19
Life Non-Life
1,051
562
383
372
1,434
934
3M 18 3M 19
Life Non-Life
15.7 16.2
0.40.6
16.1 16.8
FY 18 3M 19
excl shadow shadow
90.2 91.7
3M 18 3M 19
110
140
3M 18 3M 19
12
8
3M 18 3M 19
Net result supported by strong Non-Life profit
Net result up 27% scope-on-scope Inflows up 14% scope-on-scope thanks to Life segment
Life Technical liabilities up on higher sales in Guaranteed business
Operating margin Guaranteed up on improved risk margin
Operating margin Unit-Linked mainly down on lower sales
Periodic financial information I 3M 19 results I 15 May 2019
Non-Life combined ratio @ 77.8% after new internal reinsurance agreement
In EUR mioIn EUR bn In EUR bn
Asia
9
Solid operational performance and favourable equity markets
Headlines
In % NEP
* incl. non-consolidated partnerships @ 100%
Higher Non-Life combined ratio following the acquisition in India
Inflows* up 9% @ constant FX: driven by Life new business & renewals
Life Technical liabilities up 15% fromNB growth & strong renewals
In EUR bn
Regular premium: strong growth -remaining above 90% of Life inflows
120142
3
5124
147
3M 18 3M 19
Life Non-Life
8,1859,090
246292
8,4319,382
3M 18 3M 19
Life Non-Life
91.9% 94.2%
3M 18 3M 19
65.6
75.3
FY 18 3M 19
7,7298,515
4555758,184
9,090
3M 18 3M 19
regular single
Net result: higher net capital gains
Periodic financial information I 3M 19 results I 15 May 2019
In EUR mio
Reinsurance
10
Implementation of new internal reinsurance agreements
Headlines
In % NEPIn EUR mio
Net result: initial negative impact of the new reinsurance programme
Inflows: significant one-off impact of Loss Portfolio Transfer
Combined ratio impacted by initial losses & Belgian weather
Implementation of an internal reinsurance programme within ageas SA/NV in order to
enhance capital fungibility in the group
Non-Life Quota Share (QS) Treaties: 30% with AG Insurance in Belgium*, 30% with Ageas
Insurance Limited in the UK, and 20% with all Portuguese Non-Life Entities
Loss Portfolio Transfers (LPT): 30% with Ageas Insurance Limited in the UK, and 20%
with the Portuguese Non-Life Entities
The reinsurance protection programme formerly carried out by Intreas is now managed by
ageas SA/NV
The Pillar I Solvency II for ageas SA/NV amounted to 327%
ageas SA/NV
reinsurance activities
2
(12)
3M 18 3M 19
15
861
3M 18 3M 19
81.8 81.8
3M 18 3M 19
Periodic financial information I 3M 19 results I 15 May 2019* of which 75% is underwritten by Ageas SA/NV
Value legacies – Settlement liability down on payments
GA
11Periodic financial information I 3M 19 results I 15 May 2019
Result driven by revaluation RPN(i) and higher costs
Headlines
Total liquid assets down on Indian acquisition – EUR 0.7 bn ring-fenced
P&L impact RPN(i) Staff & Operating expenses up mainly on execution Fortis Settlement
In EUR mioIn EUR bn
In EUR mio
In EUR mio
Upstream from Portugal & Turkey
(52)
(7)
3M 18 3M 19
(359) (332)
7 5
(812)(764)
FY 18 3M 19
RPN(i) RPI Settlement
1.7 1.5
FY 18 3M 19
6 7
8
2214
29
3M 18 3M 19
Staff & Intercompany Operating
(38)
27
3M 18 3M 19
Net result: positive RPN(i) contribution partly offset by higher costsIn EUR mio
In EUR mio
710
75
3M 18 3M 19
Turkey Portugal
Solvency
12Periodic financial information I 3M 19 results I 15 May 2019
Solvency down on call debt instrument & acquisition India
Solvency IIageas
Solvency IIageas
in %
Own Funds
SCR
Non EU
Non-controlled
participations*
Belgium UK CEU Reinsurance GA eliminations Group
2.7 2.8
0.5 0.5 0.6 0.6
0.1 0.3 0.1 0.1 (0.3) (0.5)
3.7 3.9
2.4 2.8
6.46.0
0.8 0.9 1.0 1.0
0.10.6
1.3
0.5(1.7) (1.6)
8.07.5
5.8
6.6
FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19
235% 215% 167% 175% 178% 170% 196% 200% 215% 194% 241% 237%
Free CapitalGeneration
13Periodic financial information I 3M 19 results I 15 May 2019
Operational FCG driven by the strong result
2,143
1,465
414
526
56 138(92)
(95)
(397)
(185)
2,557
1,992
10
FY 18 Model changes Market impact Operationalimpact
Exceptionalitems
Capitaltransactions
M&A 3M 19
expected
dividend
Operational impact – FY guidance of EUR 500 – 540 mio for Solvency scope
includes EUR 10 mio dividend upstream Non-European NCP’s (Turkey)
driven by time value & business performance
Market: driven by sharp drop in interest rates
Exceptional items: impact of implementation new internal reinsurance agreements
Capital transactions = call debt instrument + SBB + injection in Asia
M&A: Acquisition in India
* FCG Non-European NCP’s of
EUR 18 mio over 2018 of which
EUR 322 mio operational, is not
included
Based on 175% SCR
Solvency IIageas
Solvency IIageas
In EUR mio
*
Conclusions
1. Good sales momentum driven by Belgium,
Portugal & Asia
2. Another strong net result
3. In full working order to execute Connect21
Periodic financial information I 3M 19 results I 15 May 2019 14
Content
Periodic financial information I 3M 19 results I 15 May 2019 15
Slides used during analyst call 2
Segment information 15
Equity / Solvency 50
Investment portfolio 62
Legal Settlement 67
General Information 70
Ageas
16Periodic financial information I 3M 19 results I 15 May 2019
At the same strong level as last year
Belgium UK CEU Asia Reins. GA ageas
(7)
(52)(7)
119
69
13 12
120 142
252 223
18
12
14 19
3
5
48
35
136
81
11 11 27 32
124
147
2
(12)
(52)
248
251
3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19
Non-Life
Life
In EUR mio
General Account
Lower support of net cap gains & impact from bad weather
Stable result despite restructuring costs
Luxembourg out of scope / Strong performance both in Life & Non-life
Higher contribution of cap gains / remaining at the same strong level as last year
Suffering from the bad weather in Belgium through QS agreement
Positive contribution of RPN(i)
Belgium
UK
CEU
Asia
Reinsurance
General Account
Net result
Ageas
17Periodic financial information I 3M 19 results I 15 May 2019
Strong growth in Belgium, China & Portugal –up 7% constant FX
In EUR mio
EUR mio 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19
Belgium 75% 914 1,407 54% 629 661 5% 1,543 2,068 34%
United Kingdom - 445 425 (5%) 445 425 (5%)
Consolidated entities 100% - 352 335 (5%) 352 335 (5%)
Non-consolidated JV's 50% 93 90 (4%) 93 90 (4%)0 0
Continental Europe 1,051 562 (47%) 383 372 (3%) 1,434 934 (35%)
Consolidated entities 439 562 28% 184 199 8% 623 761 22%
Portugal 51% - 100% 350 465 33% 184 199 8% 534 664 24%
France 100% 89 97 9% 89 97 9%
Non-consolidated JV's 613 0 199 173 (13%) 811 173 (79%)
Turkey (Aksigorta) 36% 199 173 (13%) 199 173 (13%)
Luxembourg (Cardif Lux Vie) 33% 613 0 613 0
Asia Non-consolidated JV's 8,185 9,090 11% 246 292 19% 8,431 9,382 11%
Malaysia 31% 219 236 8% 164 162 (1%) 383 398 4%
Thailand 31% - 15% 669 604 (10%) 82 87 7% 750 691 (8%)
China 25% 7,206 8,140 13% 0 0 7,206 8,140 13%
Philippines 50% 4 7 73% 0 0 4 7 73%
Vietnam 32% 5 15 190% 0 0 5 15 190%
India 26% - 40% 82 89 8% 0 42 82 131 59%
Insurance Ageas 10,150 11,059 9% 1,703 1,749 3% 11,853 12,809 8%#DIV/0! ###### ######
Reinsurance 15 861 15 861 accepted from Consolidated entities 15 859 15 859
accepted from Non-consolidated partnerships 0 2 0 2
Life Non-Life Total
Inflows @ 100%
Ageas
18Periodic financial information I 3M 19 results I 15 May 2019
Strong growth in Belgium offset by UK –up 10% @ constant FX
685 1,055
484 347
2,094 2,318
3,263 3,720
472
496
399 380
256 261
63 80
1,189
1,217
+34%
-5%
-18%
+11%
+11%
1,157
1,551
740 608
2,157 2,398
4,452
4,937
15
861
3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19
Belgium UK CEU Asia Insurance Reins.
Non-Life
Life
In EUR mio
Huge increase in Life of more than 50%
Volumes lower on strategic choices
Luxembourg out of scope / Scope-on-scope up 14%
Maintaining strong sales momentum
Inflows include one-offs related to ramp up phase QS agreements
Belgium
UK
CEU
Asia
Reinsurance
Inflows @ ageas stake
Ageas
19Periodic financial information I 3M 19 results I 15 May 2019
Lower support of realised capital gains in Europe -Asia benefiting from strong equity markets
In EUR mio
3M 18 3M 19
Life 66 33 Seasonality in realisation
Non-Life 7 3
Total Belgium 73 37
Non-Life 2 3
Total UK 2 3
Life 2 2
Non-Life 1 1
Total CEU 3 3
Life 25 49 IFRS cap gains on equities
Non-Life 0 (0) in China
Total Asia 25 49
Life 93 85
Non-Life 10 8
General Account
& Eliminations
3 (4)
Total Ageas 106 89
* Net capital gains include capital gains, impairments & related changes in profit sharing (consolidated entitities),
net of tax & @ ageas’s part – CEU JV’s not included
Net realisedcapital gains*
64.3 64.4 62.267.0
59.7 58.563.5 63.2
34.0 35.234.7
34.1
35.5 35.835.3 35.1
98.3 99.6 96.9101.1
95.2 94.398.8 98.3
(3.8) (4.0)(5.9)
(3.0) (5.6) (7.7) (7.4) (6.4)
2013 2014 2015 2016 2017 2018 3M 18 3M 19
claims ratio expense ratio PY claims ratio
Ageas
20Periodic financial information I 3M 19 results I 15 May 2019
Continuously improving operating performance
Combined ratio
Net earned premium (In EUR mio)
In % Net earned premium
Combined ratio
Impacted by weather events spread over segments
Belgium & Reinsurance for same level as 3M 2019 (6 pp)
Underlying performance improving in Household
Claims ratio
CY ratio slightly improving compared to last year across
all segments
PY ratio: lower in BE & UK
Expense ratio slightly down
3,749 3,843 4,038 4,112 4,148 3,890 974 945
Ageas
21Periodic financial information I 3M 19 results I 15 May 2019
Combined ratio
70.0 67.3 65.4 67.5 64.8 67.4 71.6 72.0
25.6 27.0 28.3 27.2 27.5 25.425.0 24.4
95.6 94.3 93.7 94.7 92.3 92.8 96.6 96.4
2013 2014 2015 2016 2017 2018 3M 18 3M 19
69.8 69.6 69.178.2
68.7 61.2 59.1 60.7
29.3 29.7 30.529.7
31.633.0 32.9 32.5
99.1 99.3 99.6107.9
100.394.2 92.0 93.2
2013 2014 2015 2016 2017 2018 3M 18 3M 19
51.5 51.5 50.4 50.5 43.8 51.868.6 65.0
44.0 44.6 41.6 42.745.1
44.8
44.5 42.9
95.5 96.1 92.0 93.2 88.996.6
113.1107.9
2013 2014 2015 2016 2017 2018 3M 18 3M 19
62.471.2
57.9 60.451.0 43.9 50.7 46.3
45.550.6
46.4 44.445.1
47.843.7
53.0
107.9
121.8
104.3 104.896.1 91.7 94.4
99.3
2013 2014 2015 2016 2017 2018 3M 18 3M 19
NEP 1,557 1,616 1,724 1,790 1,782 1,636 410 402
NEP 986 1,029 1,078 1,067 1,072 1,028 257 244 NEP 394 385 424 418 410 356 96 80
NEP 813 813 811 838 884 871 211 219
Accident & Health: improvement driven by volumes in CEU Motor: excellent CY performance
Household: 20 pp impact weather events, same as last year Other lines: deterioration across all segments / small portfolio
Continuously improving operating performance
Ageas
22Periodic financial information I 3M 19 results I 15 May 2019
Operating margins down compared toexceptionally strong 3M 2018
In bps Avg techn. liabilities
43 38 33 41 39 41 37 38
83 9080
88 96 89
140
95
(31) (39)(23)
(36) (42) (42) (40) (45)
96 8990
93 93 88
137
88
2013 2014 2015 2016 2017 2018 3M 18 3M 19
13 1217
4 3 2 2 1
18
6
18
1924
23
31
17
28
20
36
2527
25
32
18
2013 2014 2015 2016 2017 2018 Q1 18 Q1 19
Operating margin
Investment m.
Expense & other m.
Underwriting m.
Operating margins
Life Unit-Linked
Significant decrease mainly explained by the impact of the
commercial costs related to the successful sales campaign
in Belgium. Operating margin in Continental Europe suffered
from lower volumes.
Life Guaranteed
Operating margin in line with target level despite lower
contribution of realised capital gains. The difference with 3M
2018 operating margin is mainly related to timing difference
in investment income.
Avg techn liabilities (In EUR bn)
12.3 12.6 13.0 12.1 15.1 15.7 15.7 16.1
Avg techn liabilities (In EUR bn)
55.5 56.9 57.9 57.3 55.9 55.9 55.7 56.2
In bps avg technical liabilities In bps avg technical liabilitiesIn % NEP
Belgium
23
Solid first quarter despite lower capital gains & weather eventsHeadlines
In EUR mio In EUR mio In EUR bn
119
69
18
12
136
81
3M 18 3M 19
Life Non-Life
914
1,407
629
6611,543
2,068
3M 18 3M 19
Life Non-Life
55.9 56.9
1.4 2.3
57.3 59.2
FY 18 3M 19
excl shadow shadow
100.3 104.2
3M 18 3M 19
141
78
3M 18 3M 19
51
26
3M 18 3M 19
Net result: decrease mainly due to lower investment income
Inflows: considerable growth in both Life (+54%) & Non-Life (+5%)
Life Technical Liabilities increased mostly as a result of strong Unit-Linked inflows
Non-Life combined ratio impacted by weather – flat thanks to internal reinsurance
Operating margin Guaranteed suffered from lower investment income
Operating margin Unit-Linked – mostly impacted by the sales campaign
Periodic financial information I 3M 19 results I 15 May 2019
Life
Belgium
24
Net result & Life liabilities
Net result decrease mostly explained by
• Lower investment results in both Life and Non-Life coming from the
decrease of net capital gains (EUR 37 mio lower) & Real Estate
exceptional investment income last year (EUR 23 mio)
• Thanks to the positive impact from the new internal reinsurance
program, the net impact of weather events was similar to last year
In EUR mio
Life technical liabilities (+3%), mainly explained by growing
• Unit-Linked liabilities due to strong inflows and the increase in
market value of the underlying assets
• Group Life liabilities
• Shadow accounting coming from market recovery
56 57
1 2
57 59
FY 18 3M 19
excl shadow shadow
Net result marked by lower investment result -Growth of Life technical liabilities
Periodic financial information I 3M 19 results I 15 May 2019
119
69 69
18
122
136
8171
3M 18 3M 19 pro forma
Life Non-Life
In EUR bn
186 201
178 185
198205
6770
+5%
629661
3M 18 3M 19
746972
168
435
+54%
914
1,407
3M 18 3M 19
Life
Belgium
25
Considerable increase in UL & Guaranteed -Non-Life growth in all business lines
Inflows
Unit-Linked
Guaranteed
Other
Household
Accident & Health
Motor
Life Unit-Linked
• Inflows up 267 mio thanks to a successful sales campaign in the
first quarter
Life Guaranteed
• Inflows up in all channels but especially in Bank Channel (+55%)
and in Group Life (+18%)
In EUR mio
Non-Life
• Record gross inflows with significant increase in Accident &
Health (+8%) and in Motor (+4%) thanks to new contracts
• Increase in Household (+4%) mostly explained by tariff rise
following the evolution of the official construction index
Periodic financial information I 3M 19 results I 15 May 2019
Belgium
26Periodic financial information I 3M 19 results I 15 May 2019
Combined ratio
Net earned premium (In EUR mio)
In % Net earned premium
63.2 63.556.9 58.3
53.1 56.062.7 63.3 66.5
36.7 37.7
37.8 37.737.9
37.4
37.6 37.037.7
99.9 101.2
94.7 96.091.0 93.4
100.3 100.3104.2
(3.6) (3.4)(7.2) (8.2) (7.7) (8.3)
(8.1) (10.4)
(7.8)
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
claims ratio expense ratio PY claims ratio
Strong operating performance excluding weather events
The new internal reinsurance agreement has an important impact on
the combined ratio. For sake of comparability of the performance the
pro forma combined ratio commented in this section excludes all
impacts from this internal reinsurance agreement.
Combined ratio
up compared to LY due to higher claims in all business lines
March weather events heavily impacting combined ratio (10pp)
Continued excellent combined ratio in Motor & Other lines
Claims ratio
CY ratio deteriorated compared to last year due to higher claims
in all business lines
PY ratio: stable year-on-year
Expense ratio relatively stable year-on-year
1,785 1,815 1,832 1,836 1,861 1,944 478 367 489
Belgium
27Periodic financial information I 3M 19 results I 15 May 2019
Combined ratio
73.7 70.1 70.4 70.0 68.0 71.0 75.6 74.0 78.6
23.8 25.4 27.6 27.6 26.9 24.424.9 24.2
24.6
97.5 95.5 98.0 97.6 94.9 95.4100.5 98.2
103.2
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
64.7 62.6 56.2 59.7 58.0 55.3 53.1 53.0 55.6
36.3 37.236.4 36.4 36.8 37.3 37.9 37.9 37.7
101.0 99.892.6 96.1 94.8 92.6 91.0 90.9 93.3
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
51.4 51.7 43.9 47.8 38.649.3
69.3 69.0 72.7
45.6 45.745.2 44.8
45.646.6
46.6 47.1 46.7
97.0 97.489.1 92.6
84.295.9
115.9 116.1 119.4
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
66.187.5
65.8 58.346.8 40.3 39.2 40.5 46.1
47.2
47.6
45.044.6
44.843.0 40.6 46.0
45.2
113.3
135.1
110.8102.9
91.6 83.3 79.886.5 91.2
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
In % Net earned premium
Good underlying performance impacted by march weather events (10pp)
Accident & Health: up mainly due to deterioration of the net
claims ratio related to higher claims in Medical Care CollectiveMotor: excellent underlying performance despite slight
increase in frequency
Household: 29.9pp impact of weather events Other lines : up due to deterioration in Third Party Liability
NEP 507 504 484 472 481 522 127 116 131 NEP 552 562 568 570 578 596 145 106 149
NEP 564 579 595 605 609 621 153 110 157NEP 162 170 185 190 193 206 53 35 52
Belgium
28Periodic financial information I 3M 19 results I 15 May 2019
Operating marginsIn bps Avg techn. liabilities
32 30 25 29 27 31 31 26
88 9588
91 94 91
147
92
(31) (38)(27) (34) (36) (37) (37) (40)
89 8786
86 85 85
141
78
2013 2014 2015 2016 2017 2018 3M 18 3M 19
4(2)
1 0 1 1
38
32 31 3133
39
51
26
41
30 32 3134
40
51
26
2013 2014 2015 2016 2017 2018 3M 18 3M 19
Operating margin
Investment m.
Expense & other m.
Underwriting m.
Avg techn liabilities (In EUR bn)
5.4 5.7 5.9 6.1 7.6 8.1 8.0 8.6
Avg techn liabilities (In EUR bn)
46.4 47.5 48.1 48.7 48.0 47.7 47.8 47.8
Impacted by lower investment result (guaranteed) and cost of sales campaign (UL)
Life Unit-Linked
Significant decrease mostly explained by the impact of the
commercial costs related to the successful sales campaign
that were taken up front
Life Guaranteed
The margin suffered from a lower level of net capital gains
whereas last year’s margin also benefitted from an
exceptional investment income in Real Estate
FY 16 FY 17 FY18 3M 19
Guaranteed interest rate 2.49% 2.32% 2.17% 2.10%
Fixed income yield 3.45% 3.34% 3.25% 3.16%
Liabilities Guaranteed (EUR bn) 52.9 50.4 49.1 50.2
FY 16 FY 17 FY 18 3M 19
Fixed income yield 1.71% 1.88% 1.96% 1.82%
Reinvested amount (EUR bn) 4.5 2.9 3.2 1.3
Newly invested money mostly in corporate bonds (non-financial sector), government
bonds & related loans, and mortgage loans.
Belgium
29Periodic financial information I 3M 19 results I 15 May 2019
Yield & guaranteed rate on back book down at the same pace
Evolution assets & liabilities
Back book
Life
New money
Life & Non-Life
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Q32014
Q32014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Q12019
of the margin
Guaranteed interest rate Total fixed income yield
3.16%
2.10%
Belgium
30Periodic financial information I 3M 19 results I 15 May 2019
Margin on back book stable since 2012 Evolution assets & liabilities
In EUR mio
UK
31
Continued strong operating performanceHeadlines
In % of NEPIn EUR bn
* incl. non-consolidated partnerships @ 100%
Net result impacted by internal reinsurance & restructuring costs
Inflows* down 6% @ constant FX Non-Life combined ratio @ 111.2%* afterinternal reinsurance transactions
11 11
3M 18 3M 19
445 425
3M 18 3M 19
100.7 95.5
3M 18 3M 19
Periodic financial information I 3M 19 results I 15 May 2019Periodic financial information I 3M 19 results I 15 May 2019
UK
32
Strong Motor CY claims experience & benign weather / continued pricing discipline impacting Inflows
Net result & Inflows
Other
Household
Accident & Health
Motor
Net profit
Total net profit up EUR 3m to EUR 14m pre internal reinsurance
transactions
Improved Motor performance from continued pricing actions &
benign 3M 19 weather partly offset by lower Motor PY release
benefit
Restructuring costs of EUR 12m
7 6
306 299
94 87
3832
-5%
445425
3M 18 3M 19
In EUR mio
Inflows *
Motor down 4%: continued pricing discipline in a competitive
Motor market & lower intermediated volumes - continued growth
in Direct sales through aggregator platforms
Household down 8% resulting from strategic exits of
underperforming business in the intermediated channel & lower
Direct renewal inflows
Other down 16% reflecting planned run off in Special Risks and
discontinued MGA relationship in Commercial
Accident & Health down 13% - marginal impact on total
Periodic financial information I 3M 19 results I 15 May 2019
11 11
14
3M 18 3M 19 pro forma
* incl. non-consolidated partnerships @ 100% & @ constant exchange rate Periodic financial information I 3M 19 results I 15 May 2019
UK
33
Strong COR performance underpined by CY claims experience and benign weather
Combined ratio
In % Net earned premium
The new internal reinsurance agreement has an important impact on
the combined ratio. For sake of comparability of the performance the
pro forma combined ratio commented in this section excludes all
impacts from this internal reinsurance agreement.
Combined ratio
Strong CY claims ratio performance including benign weather vs.
3M 2018, partly balanced by lower benefit from PY releases
Combined ratio Tesco Underwriting 96.5% (vs. 98.3%) reflecting
benign weather partially offset by lower PY claims benefit
Claims ratio
CY ratio: Improved Motor performance from continued pricing
actions & benign weather supporting Household & Other lines
PY ratio: lower releases reflecting lower benefits from Motor partly
balanced by favourable Household & Commercial development
Expense ratio in line with 3M 18; improved underlying operating
expense base at lower NEP & increased Non-Risk income from
sales in Direct distribution channel
65.6 66.3 69.380.7
68.360.2
65.159.9
32.2 33.532.8
31.5
34.9
36.635.6
35.6
97.8 99.8 102.1
112.2
103.2
96.8100.7
111.2
95.5
(4.0) (4.6) (4.4)
4.5
(1.4)
(9.2) (8.7) (6.9)
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
claims ratio expense ratio PY claims ratio
Net earned premium (In EUR mio)
1,562 1,613 1,751 1,598 1,493 1,321 344 (111) 319
Periodic financial information I 3M 19 results I 15 May 2019
UK
34
Strong CY performance in Motor lines of business - benign weather supporting Household & Other
Combined ratio
Motor: Strong CY performance offset by lower PY benefitAccident & Health: Small portfolio, marginal impact on total
Other: Benign weather & favourable Commercial PY performanceHousehold: Benign weather & PY benefit
76.266.0
55.8 58.4 56.1 57.8 61.051.4
34.338.7
43.3 40.9 46.7 51.4 50.148.0
110.5104.7
99.1 99.3 102.8109.2 111.1 107.3
99.4
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
71.9 74.6 75.891.0
75.063.7 62.1 65.8
25.0 25.1 27.2
25.5
27.6
29.7 29.6 30.3
96.9 99.7 103.0
116.5
102.693.4 91.7
115.3
96.1
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
NEP 79 71 72 39 30 30 7 4 7 NEP 907 958 1,062 1,014 947 844 218 (124) 203
51.4 51.062.2 57.6 51.7 56.9
72.0
48.5
42.4 43.3
37.340.6
47.845.1
44.2
42.7
93.8 94.399.5 98.2 99.5 102.0
116.2
102.791.2
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
59.8 56.0 55.373.7 67.0
46.3
68.550.5
44.4 54.3 48.6
44.947.0
56.7
48.8
49.1
104.2110.3
103.9
118.6 114.0103.0
117.3
73.6
99.6
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
NEP 374 399 413 361 341 309 80 29 71 NEP 202 185 204 185 175 138 39 (21) 37
Periodic financial information I 3M 19 results I 15 May 2019
CEU
35
Headlines
In EUR mio
In EUR bn In EUR bn
In bps avg technical liabilities In bps avg technical liabilitiesIn % NEP
13 12
1419
27
32
3M 18 3M 19
Life Non-Life
1,051
562
383
372
1,434
934
3M 18 3M 19
Life Non-Life
15.7 16.2
0.40.6
16.1 16.8
FY 18 3M 19
excl shadow shadow
90.2 91.7
3M 18 3M 19
110
140
3M 18 3M 19
12
8
3M 18 3M 19
Net result supported by strong Non-Life profit
Net result up 27% scope-on-scope Inflows up 14% scope-on-scope thanks to Life segment
Life Technical liabilities up on higher sales in Guaranteed business
Operating margin Guaranteed up on improved risk margin
Operating margin Unit-Linked mainly down on lower sales
Periodic financial information I 3M 19 results I 15 May 2019
Non-Life combined ratio @ 77.8% after new internal reinsurance agreement
CEU
36
Significant contribution from Non-Life businessNet result & Life liabilities
Net result
• Life: excluding Luxembourg, net result increased primarily related to
Portugal having strong Guaranteed business with lower claims in
Risk
• Non-life: up 38% vs. LY thanks to improved claims ratio and internal
reinsurance program in Portugal
Life technical liabilities
• Up on higher sales in Guaranteed business while Unit-Linked sales
down compared to LY
In EUR mio
15.7 16.2
0.40.6
16.1 16.8
FY 18 3M 19
excl shadow shadow
Periodic financial information I 3M 19 results I 15 May 2019
13 12 12
1419
16
27
3229
3M 18 3M 19 pro forma
Life Non-Life
CEU
37
Considerable increase in Guaranteed Business -Non-Life growth in all business lines
Inflows
Unit-Linked
Guaranteed
Other
Household
Accident & Health
Motor
In EUR mio
Life Unit-Linked
• Inflows: down 22% due to poor underwriting in as well France as
Portugal related to the financial market volatility
Life Guaranteed
• Up 56% mainly related to higher sales in Savings in Portugal
Non-Life
• Impacted by FX rate in Turkey, at constant FX growth would have
been 11%
• Strong sales in Portugal with main contributors being Household,
Motor (pushed by new business in Agency channel) and Workers’
Compensation (new and inforce business)
281
439
158
123
+28%
439
562
3M 18 3M 19
122 130
147 131
70 75
44 44
-3%
383 372
3M 18 3M 19
*
* Excluding Luxembourg Periodic financial information I 3M 19 results I 15 May 2019
CEU
38Periodic financial information I 3M 19 results I 15 May 2019
Combined ratio
Net earned premium (In EUR mio)
In % Net earned premium
63.7 61.355.9 58.6 59.2 62.7 62.1 64.0
30.030.8
29.530.1 31.2
29.7 28.1 27.6
93.7 92.185.4
88.7 90.4 92.4 90.2
77.8
91.7
(4.0) (4.3)(6.5) (6.5) (8.0)
(2.9) (2.3)
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
claims ratio expense ratio PY claims ratio
Combined ratio well below group target
The new internal reinsurance agreement has an important impact on
the combined ratio. For sake of comparability of the performance the
pro forma combined ratio commented in this section excludes all
impacts from this internal reinsurance agreement.
Combined ratio
CoR of consolidated companies ended at 91.7%, reflecting a
continued excellent operating performance
Combined ratio in Turkey (@102.3% vs. 95.8%) compensated by
higher financial income
Claims ratio
CY ratio slightly improved compared to LY
PY ratio: no PY releases
Expense ratio improved compared to LY
403 415 454 664 768 594 144 77 157
CEU
39
Combined ratio
59.7 61.9 58.8 64.9 61.4 62.5 65.9 65.5
26.6 26.7 25.225.1 26.8 24.8 22.9 22.2
86.3 88.684.0
90.0 88.2 87.3 88.882.9
87.7
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
79.360.1 71.5 65.5
70.4 68.062.2
66.1
29.2
31.6
32.332.5
35.0 35.334.1 34.0
108.5
91.7
103.898.0
105.4 103.396.3
82.4
100.1
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
53.5 54.036.1 42.3 46.5 48.5 51.2 55.4
38.8 40.3
35.938.0
34.7 34.2 34.032.7
92.3 94.3
72.080.3 81.2 82.7 85.2
68.7
88.1
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
59.672.3
31.712.1 3.9
72.6
28.4
48.7
43.7
45.1
40.8
41.339.2
41.5
34.6
37.5
103.3
117.4
72.5
53.443.1
114.1
63.0
130.3
86.2
2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma
Continued excellent operating performance
Accident & Health: CoR improved versus LY due to higher NEP Motor: higher than LY due to large claim
Household: increase due to higher claims ratio Other: very small and volatile portfolio
NEP 227 238 255 328 373 318 77 59 84 NEP 99 96 94 202 249 188 46 13 50
NEP 48 51 70 91 105 74 18 10 19 NEP 29 30 35 43 41 13 3 (5) 4
Periodic financial information I 3M 19 results I 15 May 2019
CEU
40Periodic financial information I 3M 19 results I 15 May 2019
Operating marginsIn bps Avg techn. liabilities
106 95 100 110 111 9975
101
68 77 5976
106
8096
103
(83)(102)
(71) (65) (78) (71) (61) (64)
91 7088
121
139
108 110
140
2013 2014 2015 2016 2017 2018 3M 18 3M 19
1 1
2
54 4 3
51
94
5
16
610
71 2
(1)(2)
47
107 7
21
912
8
2013 2014 2015 2016 2017 2018 3M 18 3M 19
Operating margin
Investment m.
Expense & other m.
Underwriting m.
Avg techn liabilities (In EUR bn)
7.6 7.7 8.0 8.7 7.9 8.1 8.0 8.4
Avg techn liabilities (In EUR bn)
6.3 6.2 6.1 6.0 7.5 7.6 7.8 7.5
Guaranteed margin up on lower claims and strong sales ; UL margin down on lower sales
Life Unit-Linked
• decrease driven by lower inflows (-22%) in all countries,
attractiveness down due to financial markets volatility
• In line with FY 2018 margin
Life Guaranteed
• Strongly up in both France & Portugal
• Underwriting margin: good performance in claims ratio
• Investment margin: slightly higher thanks to some more
capital gains
• Expenses & other margin: in line with LY
In EUR bn
In EUR mioIn EUR bn In EUR bn
Asia
41
Solid operational performance and favourable equity markets
Headlines
In % NEP
* incl. non-consolidated partnerships @ 100%
Higher Non-Life combined ratio following the acquisition in India
Inflows* up 9% @ constant FX: driven by Life new business & renewals
Life Technical liabilities up 15% fromNB growth & strong renewals
In EUR bn
Regular premium: strong growth -remaining above 90% of Life inflows
120142
3
5124
147
3M 18 3M 19
Life Non-Life
8,1859,090
246292
8,4319,382
3M 18 3M 19
Life Non-Life
91.9% 94.2%
3M 18 3M 19
65.6
75.3
FY 18 3M 19
7,7298,515
4555758,184
9,090
3M 18 3M 19
regular single
Net result: higher net capital gains
Periodic financial information I 3M 19 results I 15 May 2019
Asia
42
Exceptionally high result supported by high capital gains
Net result & Life liabilitiesIn EUR mio
120142
3
5124
147
3M 18 3M 19
Life Non-Life
65.6
75.3
FY 18 3M 19
• Net Result up 19% compared to an already
excellent first quarter 2018
• Result driven by the favourable evolution of equity
markets and continued good underlying results from
all operating companies
• Life – high capital gains (EUR 49 mio), strong
investment income and solid operating performance
• Non-Life – better claims experience and positive
contribution from the newly acquired business in
India
• Life Technical liabilities driven by top line growth
and high persistency levels
Net result
Life Technical liabilities
Periodic financial information I 3M 19 results I 15 May 2019
Asia
43
Growth in Life driven by NB and renewals –Non-Life inflows supported by the new Indian JV
Inflows
Unit-Linked
Guaranteed
Other
Household
Accident & Health
Motor
Life
• Life gross inflows up 8%, driven by strong persistency,
successful sales campaigns and continued channel
developments
• New business premiums and renewals up respectively
15% and 6%
• Regular premium up 13%
Non-Life
• Up 14%, with positive contribution from the newly
acquired business in India
• Down 3% scope on scope due to the decline of the
highly reinsured MAT business in Malaysia.
• Continued growth in all key business lines, especially
Motor (45%) and Household (7%)
In EUR mio
7,9018,715
284
3758,185
9,090
3M 18 3M 19
26 29
97
149
38
4385
71246
292
3M 18 3M 19
incl. non-consolidated partnerships @ 100%
All growth rates are at constant FX Periodic financial information I 3M 19 results I 15 May 2019
Thailand: down 15% - lower Life
renewals, NB returned to growth
Malaysia in line with last year, with higher
Life NB and renewals
Asia
44
Solid growth across the regionInflows per country
China: up 11% with strong renewals and
NB focused on regular premiums
In EUR mio
7,2068,140
3M 18 3M 19
669 604
8287
750691
3M 18 3M 19
Life Non-Life
219 236
164 162
383 398
3M 18 3M 19
Life Non-Life
82 89
4282
131
3M 18 3M 19
Life Non-Life
4 7
3M 18 3M 19
5
15
3M 18 3M 19
India: up 9% in Life – newly acquired
business in Non-Life
Philippines: continued upward trend Vietnam: continued rapid growth
* incl. non-consolidated partnerships @ 100%
All growth rates are at constant FX Periodic financial information I 3M 19 results I 15 May 2019
In EUR mio
Reinsurance
45
Implementation of new internal reinsurance agreements
Headlines
In % NEPIn EUR mio
Net result: initial negative impact of the new reinsurance programme
Inflows: significant one-off impact of Loss Portfolio Transfer
Combined ratio impacted by initial losses & Belgian weather
Implementation of an internal reinsurance programme within ageas SA/NV in order to
enhance capital fungibility in the group
Non-Life Quota Share (QS) Treaties: 30% with AG Insurance in Belgium*, 30% with Ageas
Insurance Limited in the UK, and 20% with all Portuguese Non-Life Entities
Loss Portfolio Transfers (LPT): 30% with Ageas Insurance Limited in the UK, and 20%
with the Portuguese Non-Life Entities
The reinsurance protection programme formerly carried out by Intreas is now managed by
ageas SA/NV
The Pillar I Solvency II for ageas SA/NV amounted to 327%
ageas SA/NV
reinsurance activities
2
(12)
3M 18 3M 19
15
861
3M 18 3M 19
81.8 81.8
3M 18 3M 19
Periodic financial information I 3M 19 results I 15 May 2019* of which 75% is underwritten by ageas SA/NV
22
117
642
80
15
861
3M 2018 3M 2019
In EUR mio
Reinsurance
46
Significant one-off LPT impactNet result & Inflows
Portugal
UK
Former Intreas
Belgium
Inflows
• EUR 240 mio from the new quota share
agreements
• EUR 464 mio from of the LPT
• EUR 135 mio from prior year unearned premiums
• EUR 22 mio from protection programme formerly
managed by Intreas - strong growth thanks to a
new participation in Motor & Third Party Liability in
the UK
Periodic financial information I 3M 19 results I 15 May 2019
2
(12)
3M 18 3M 19
Net result
Gross inflows
• EUR 2 mio from former Intreas – flat year-on-year
• EUR 15 mio loss from the QS treaty in Belgium due
to bad weather, prudent initial reserving for CY and
absence of PY claims reserve releases
• EUR 4 mio gain from the UK thanks to solid
underlying business performance
• EUR 4 mio loss from Portugal as initial impact from
LPT
Value legacies – Settlement liability down on payments
GA
47Periodic financial information I 3M 19 results I 15 May 2019
Result driven by revaluation RPN(i) and higher costs
Headlines
Total liquid assets down on Indian acquisition – EUR 0.7 bn ring-fenced
P&L impact RPN(i) Staff & Operating expenses up mainly on execution Fortis Settlement
In EUR mioIn EUR bn
In EUR mio
In EUR mio
Upstream from Portugal & Turkey
(52)
(7)
3M 18 3M 19
(359) (332)
7 5
(812)(764)
FY 18 3M 19
RPN(i) RPI Settlement
1.7 1.5
FY 18 3M 19
6 7
8
2214
29
3M 18 3M 19
Staff & Intercompany Operating
(38)
27
3M 18 3M 19
Net result: positive RPN(i) contribution partly offset by higher costsIn EUR mio
In EUR mio
710
75
3M 18 3M 19
Turkey Portugal
GA
48Periodic financial information I 3M 19 results I 15 May 2019
Cash upstream covering paid dividend, holdco costs & part of SBB
Cash position
In EUR mioUpstream received from Turkey & Portugal
M&A relates to India & capital injections in The Philippines
Additional EUR 17 mio cash-out for running SBB in Q2 2019
EUR 0.7 bn ring-fenced for Fortis settlement
≈ 600 ≈ 700
settlement settlement
SBB SBBM&A
(190)
(27) (31)(11)
85(6)
FY 18 Upstream M&A HQ & ROexpenses
Sharebuy-back
Other 3M 19
HQ
RO
GA
49Periodic financial information I 3M 19 results I 15 May 2019
Succesful issuance of debt at holding level in April 2019
Outstandinghybrids
In EUR mio ageas SA/NV Ageasfinlux
Fixed-to-Floating
Rate Callable
Tier 2
Fresh
Tier 1
Fixed-to-Floating Rate
Callable
Tier 2
Fixed Rate Reset Perpetual
Subordinated LoansTier 1
Fixed Rate Reset Dated
Subordinated NotesTier 2
CASHES
% 3.25%3m EUR + 135
bps5.25% 6.75% 3.5% 3m EUR +200 bps
Amount outstanding 500 1,250 450 550 USD 400 948
ISIN BE0002644251 XS0147484074 BE6261254013 BE6251340780 BE6277215545 BE0933899800
Call dateJuly 2029
Step up to 3M Euribor +380 bps
Undated, strike 315.0 mandatory
472.5
June 2024
Step up to 3M
Euribor +413 bps
Mar 2019
Step up to 6yr USD
swap + 533 bps
June 2027
Step up after 12
years of 100bps
Undated,
strike 239.4,
mandatory 359.1
Other Public issue
Subscribed by
Ageas & BNP
Paribas Fortis
Public issue Public issue
Coupon served by
FBB, trigger
ACSM linked to
Ageas dividend
Market Price (31/03/19)Issued on 10 April
201953.49 114.31 103.57 74.65
Fortis Bank (now BNP PF)
AG Insurance (Belgium)
Content
Periodic financial information I 3M 19 results I 15 May 2019 50
Slides used during analyst call 2
Segment information 15
Equity / Solvency 50
Investment portfolio 62
Legal Settlement 67
General Information 70
Equity
51Periodic financial information I 3M 19 results I 15 May 2019
Equity up on net result & positive impact of financial markets
In EUR mio
6,799 7,126
2,6133,109
251 497 149
(32) (40) (2)
EUR 48.42 EUR 52.05
9,411
10,235
FY 18 result changeUG/L
dividend treasuryshares
FX IAS 19 other 3M 19
Shareholders’ equity
per segment Belgium 4,843 ► 5,138 Asia 2,354 ► 3,014
UK 896 ► 957 Reinsurance 116 ► 112
Continental Europe 1,220 ► 1,193 General Account (17) ► (179)
Shareholdersequity
Equity per share
Unrealised gains &
losses
Equity per segment
Equity
52Periodic financial information I 3M 19 results I 15 May 2019
Debt leverage down on call debt instrumentTangible net equity
10/03/2010 I page 52
FY 18 3M 19
IFRS Shareholders' Equity 9,411 10,235
Unrealised gains real estate 649 498
Goodwill (602) (612)
VOBA (Value of Business Acquired) (73) (69)
DAC (Deferred Acquisition Cost) (408) (434)
Other (423) (422)
Goodwill, DAC, VOBA related to N-C interests 331 328
25% tax adjustment DAC, VOBA & Other 146 152
IFRS Tangible net equity 9,031 9,676
IFRS Tangible net equity/ IFRS Shareholder's Equity 96% 95%
Debt leverage on tangible net equity * 20.2% 15.7%
* Leverage calculated as
(Subordinated liabilities + Senior
debt) / (Tangible net equity +
Subordinated liabilities + Senior
debt)
In EUR mio
Estimated increase debt leverage ratio related to new debt instrument of ≈ 3.5 pp in Q2
(based on 3M ’19 tangible equity)
Solvency
53Periodic financial information I 3M 19 results I 15 May 2019
Solvency down on call debt instrument & acquisition India
Solvency IIageas
Solvency IIageas
in %
Own Funds
SCR
Non EU
Non-controlled
participations*
Belgium UK CEU Reinsurance GA eliminations Group
2.7 2.8
0.5 0.5 0.6 0.6
0.1 0.3 0.1 0.1 (0.3) (0.5)
3.7 3.9
2.4 2.8
6.46.0
0.8 0.9 1.0 1.0
0.10.6
1.3
0.5(1.7) (1.6)
8.07.5
5.8
6.6
FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19
235% 215% 167% 175% 178% 170% 196% 200% 215% 194% 241% 237%
Solvency II
54Periodic financial information I 3M 19 results I 15 May 2019
Expected dividend over the period & SBB covered by operational impact
Solvency IIageas
Impact on Solvency IIageas*
FY ’18 3M ’19
215 194%
Call debt instrument -10 pp New deb issuance in Q2 (+13 pp)
Model refinements +2 pp
Market movements (incl. RPN(i))
-5 pp(+1 pp)
Sharp drop in yield curve
Initial impact new internal reinsurance -3 pp LACDT
Operational +4 pp
Acquisition India -5 pp Outside Solvency II scope
SBB -1 pp
Expected dividend -3 pp
* Impact including secondary impact, diversification & non-transferable
Free CapitalGeneration
55Periodic financial information I 3M 19 results I 15 May 2019
Operational FCG driven by the strong result
2,143
1,465
414
526
56 138(92)
(95)
(397)
(185)
2,557
1,992
10
FY 18 Model changes Market impact Operationalimpact
Exceptionalitems
Capitaltransactions
M&A 3M 19
expected
dividend
Operational impact – FY guidance of EUR 500 – 540 mio for Solvency scope
includes EUR 10 mio dividend upstream Non-European NCP’s (Turkey)
driven by time value & business performance
Market: driven by sharp drop in interest rates
Exceptional items: impact of implementation new internal reinsurance agreements
Capital transactions = call debt instrument + SBB + injection in Asia
M&A: Acquisition in India
* FCG Non-European NCP’s of
EUR 18 mio over 2018 of which
EUR 322 mio operational, is not
included
Based on 175% SCR
Solvency IIageas
Solvency IIageas
In EUR mio
*
Free CapitalGeneration
56Periodic financial information I 3M 19 results I 15 May 2019
Evolution SCR & OF split between types of impact Solvency IIageas
Own Funds
SCR
7,9997,500
4145267
12697 (0)
(397) (185)
8,4128,026
FY 18 Model changes Market impact Operationalimpact
Exceptionalitems
Capitaltransactions
QS / LPT 3M 19
3,7283,864
140
54
(28)
(30)
FY 18 Model changes Market impact Operationalimpact
Exceptionalitems
Capitaltransactions
QS / LPT 3M 19
In EUR mio
Free CapitalGeneration
57Periodic financial information I 3M 19 results I 15 May 2019
Operational FCG driven by Belgium – Initial negative impact from start internal reinsurance
Exceptional
OF SCR FCG start new internal
reinsurance
Belgium 100 (18) 132 7
UK 24 11 5 44
CEU 31 1 29 38
Reinsurance 8 (7) 20 (483)
General Account (34) 3 (39) (15)
Group eliminations (32) (20) 1 314
Total Ageas 97 (30) 148 (95)
Solvency II scope
Operational
In EUR mio
Solvency IIageas
Solvency
58
High Solvency ratio providing resilience against market or other external evolutions
Solvency IIageas
sensitivities
As per 31/12/18
SCR OF Solvency
Base case Before stress 3,728 7,998 215%
Yield curve Down 50 bps 3,837 7,883 205%
Up 50 bps 3,619 8,060 223%
Equity Down 25% 3,682 7,704 209%
Property Down 10% 3,788 7,728 204%
Spread* Spreads on corporate & government bonds up 50 bps 3,724 7,693 207%
Corporate spread Up 50 bps 3,698 7,895 213%
Sovereign spread Up 50 bps 3,758 7,796 207%
UFR – base case 4.05% Down 15 bps 3,730 7,989 214%
Down 45 bps 3,750 7,944 212%
* Spread sensitivity doesn’t take into
account any credit rating movement Periodic financial information I 3M 19 results I 15 May 2019
Solvency
59Periodic financial information I 3M 19 results I 15 May 2019
Solvency down on call debt instrument & acquisition India
PIM
* Based on local solvency
requirements
2.8 3.0
0.5 0.5 0.5 0.5
0.1 0.3 0.1 0.1 (0.3)(0.5)
3.7 4.0
2.4 2.8
6.35.8
0.9 0.91.4 1.4
0.10.6
1.3
0.5
(1.9)(1.7)
8.1 7.5
5.8
6.6
FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19
In EUR bn
Belgium UK CEU Reinsurance GA eliminations Group Non EU
Non-controlled
participations*
222% 195% 169% 168% 288% 283% 191% 197% 216% 190% 241% 237%Solvency PIM
in %
Own Funds
SCR
Solvency
60
Ageas asset mix not in line with EIOPA reference portfolio
PIMsensitivities
As per 31/12/18
SCR OF Solvency
Base case Before stress 3,728 8,059 216%
Yield curve Down 50 bps 3,801 7,985 210%
Up 50 bps 3,648 8,092 222%
Equity Down 25% 3,671 7,762 211%
Property Down 10% 3,759 7,801 208%
Spread* Spreads on corporate & government bonds up 50 bps 3,928 7,446 190%
Corporate spread Up 50 bps 3,618 8,048 222%
Sovereign spread Up 50 bps 4,101 7,440 181%
UFR – base case 4.05% Down 15 bps 3,730 8,049 216%
Down 45 bps 3,740 8,004 214%
* Credit rating movement not taken
up in spread sensitivity Periodic financial information I 3M 19 results I 15 May 2019
( 1.5 ) ( 1.6 )
( 1.1 ) ( 1.1 )
( 0.8 ) ( 0.8 )
4.3 4.5
0.3 0.3 0.8 0.8 0.5 0.5 0.7 0.8 0.5
0.5 3.7
3.8
FY 18 3M 19
Non Diversifiable
Non-life UW
Health UW
Life UW
Counterparty Default
Market
Loss-Absorption Deferred Taxes
Loss-Absorption Techn. Liab.
Diversification
Solvency
61Periodic financial information I 3M 19 results I 15 May 2019
Composition of SCR & OFComposition of SCR & OF
Diversification
Loss-Absorption Deferred Taxes
Insurance SCRageas per risk type
Market risk main factor in SCR
Tiering of Group PIM own funds
High quality of own funds
5.6 5.6
1.4 1.3
1.0 0.6
0.1
0.1
8.1
7.5
FY 18 3M 19
Tier 3
Tier 2
Tier 1 restricted
Tier 1
In EUR bn
Content
Periodic financial information I 3M 19 results I 15 May 2019 62
Slides used during analyst call 2
Segment information 15
Equity / Solvency 50
Investment portfolio 62
Legal Settlement 67
General Information 70
Investment portfolio
63Periodic financial information I 3M 19 results I 15 May 2019
Investment portfolio up on higher UG/L
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Gross UG/L on
Available for Sale
Gross UG/L on Real
Estate
Gross UG/L on Held
to Maturity
Sovereign bonds 36.9
Sovereign bonds 37.5
Corporate bonds 19.9
Corporate bonds 20.6
Structured0.1
Structured0.1
Loans9.7
Loans9.9
Equities 4.5Equities 4.7
Real Estate5.6
Real Estate5.7
Cash 2.9Cash 2.8
79.681.2
FY 18 3M 19
Total portfolio: up to EUR 7.5 bn (vs. EUR 5.9 bn)
Fixed income: up to EUR 6.9 bn (vs. EUR 5.6 bn)
° Sovereigns at EUR 5.6 bn (vs. EUR 4.6 bn)
° Corporates at EUR 1.3 bn (vs. EUR 1.0 bn)
Equities: up to EUR 0.6 bn (vs. EUR 0.4 bn)
Stable at EUR 1.8 bn
• not reflected in shareholders’ equity
Up to EUR 2.2 bn (vs. EUR 1.9 bn)
• not reflected in shareholders’ equity
Ageas Group has joined the commitment to incorporate ESG issues into its investment analysis
and decisions and signed on behalf of all its consolidated entities the UN PRI
In EUR bn
Investment portfolio
64Periodic financial information I 3M 19 results I 15 May 2019
Value fixed income assets up on higher UG/L
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Corporate bond
portfolio*
Belgium18.0
Belgium17.9
France 6.3 France 6.5
Austria 2.6 Austria 2.7
Portugal 2.4 Portugal 2.6Spain 1.8 Spain 2.0Italy, 1.2 Italy, 1.3Germany 1.2 Germany 1.2Ireland 0.5
Ireland 0.6Other 2.9 Other 2.9
36.9 37.5
FY 18 3M 19
Banking 3.1 Banking 3.1
Other financials 1.8
Other financials 1.9
Non Financials
11.5
Non Financials
12.2
Government related 3.4
Government related 3.3
19.9 20.6
FY 18 3M 19
Gross UG/L up to EUR 5.6 bn (vs. EUR 4.6 bn)
Over 99% investment grade; 90% rated A or
higher
Belgium duration gap close to zero – matched
portfolio
Gross UG/L up to EUR 1.3 bn (vs. EUR 1.0 bn)
Credit quality remains high with 91%
investment grade - 54% rated A or higher
Sovereign bond
portfolio*
In EUR bn
Investment portfolio
65Periodic financial information I 3M 19 results I 15 May 2019
More infrastructure loans
In EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Equity portfolio*
Loan portfolio
(customers & banks)*
Higher exposure in infrastructure loans
Other: mostly government related loans
benefiting from an explicit guarantee by
the Belgian regions, the French State or
the Dutch State
Gross UG/L up to EUR 0.6 bn (vs. EUR 0.4 bn)
Equities 2.2 Equities 2.3
Equity funds0.3
Equity funds0.4
RE funds 0.9 RE funds 0.9
Mixed funds & others 1.1
Mixed funds & others 1.2
4.54.7
FY 18 3M 19
Loans to banks1.0 Loans to
banks 0.7
RE 0.1 RE 0.2
Infrastructure0.9
Infrastructure0.9
Mortgages 1.2 Mortgages 1.2
Other 6.6 Other 6.9
9.8 9.9
FY 18 3M 19
Investment portfolio
66Periodic financial information I 3M 19 results I 15 May 2019
Real Estate exposure mainly in Belgium
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
Real estate portfolio* Gross UG/L at EUR 1.8 bn (not reflected
in shareholders’ equity but contributing to
available capital for solvency calculation)
In EUR bn
Investment Offices 2.4
Investment Offices 2.4
Car Parks1.2
Car Parks1.3
Investment Retail 1.3
Investment Retail 1.3
0.3 0.30.4 0.4
5.6 5.7
FY 18 3M 19
Investment
Warehouses
RE Development
Investment
Warehouses
RE Development
Content
Periodic financial information I 3M 19 results I 15 May 2019 67
Slides used during analyst call 2
Segment information 15
Equity / Solvency 50
Investment portfolio 62
Legal Settlement 67
General Information 70
Legal
68Periodic financial information I 3M 19 results I 15 May 2019
Settlement in full execution mode
Ageas offered to pay EUR 1.2 bn compensation – additional effort of EUR 0.1 bn
announced 16/10/2017
Cash impact of EUR 1.0 bn
No recognition of any wrongdoing by Ageas
Commitment by eligible shareholders to abandon any ongoing civil proceeding & not to
start any legal proceeding related to the events
Publication of binding declaration notice launches execution of the settlement
Claims filing period will end on 28/07/19
Early filing & opt-out period ended on 31/12/18
Computershare Investor Services plc acting as independent claims administrator
All forms & further information available on www.FORsettlement.com
≈266K claims received of which ≈115K have received early payment, another ≈43K will
receive payment by the end of May
250 opt-outs received for ≈1% of total settlement amount*
≈EUR 455 mio compensation paid to eligible shareholders of which EUR 140 mio coming
from D&O insurers – more payments scheduled
Announcement
14/03/2016
Court’s decision to declare the settlement binding on 13/07/2018
Publication binding
declaration notice
27/07/2018
Execution ongoing
* Based on indicative per share
compensation & per 07/05/2019
Ageas’s decision to waive its termination right on 21/12/2018
Legal
69Periodic financial information I 3M 19 results I 15 May 2019
Proceedings related to the past that remain outstanding
Administrative proceedings
Criminal investigation
Civil proceedings
Other proceedings
None
Public prosecutor has announced discontinuation of proceeding
Public prosecutor has to present its proposal to Chambre du Conseil on referral
Opt-out cases from settlement
< 250 opt-outers for ≈1% of settlement amount
Patrinvest: first instance in favour of ageas, appeal filed by claimant
Several individual cases
Mr. Modrikamen: suspended awaiting outcome criminal procedure
MCS: appeal Court ruled in favour of ageas, appeal before Supreme Court possible until
15/10
Periodic financial information I 3M 19 results I 15 May 2019 70
Slides used during analyst call 2
Segment information 15
Equity / Solvency 50
Investment portfolio 62
Legal Settlement 67
General Information 70
Content
Outstandingshares
71Periodic financial information I 3M 19 results I 15 May 2019
Another 4 mio shares proposed to be canceled at Shareholders’ meeting in May 2019
* After deduction of shares for management plans
*
Total Issued Shares
Shares not entitled to dividend nor voting rights
1. TREASURY SHARES Share buy-back
FRESH
Other treasury shares
2. CASHES
Shares entitled to dividend & voting rights
situation 31/12/2018 situation 31/03/2019 situation 10/05/2019
203,022,199 203,022,199 203,022,199
12,574,985 13,326,719 13,691,719
4,647,872 5,399,606 5,764,606
3,968,254 3,968,254 3,968,254
0 0 0
3,958,859 3,958,859 3,958,859
190,447,214 189,695,480 189,330,480
Shareholdersstructure
72Periodic financial information I 3M 19 results I 15 May 2019
Ageas4.8%
Ping An
BlackRock, Inc.
Schroders
Fosun Identified retail investors
22%
Identified institutional investors
44%
Other investors
14%
Based upon press release 13 May 2019
Based upon the number of shares mentioned in the notification received 6 May 2013
Based upon the number of shares mentioned in the notification received 6 May 2019
Based upon the number of shares mentioned in the notification received 8 June 2018
Based upon the number of shares mentioned in the notification received 5 October 2017
Estimate by
Estimate by
Ageas
Ping An
BlackRock, Inc.
Schroders
Fosun
Identified retail investors
Identified institutional investors
Financial calendar
73Periodic financial information I 3M 19 results I 15 May 2019
20 February
FY 2018 results
15 May
3M 2019 results
15 May
Ordinary shareholders’ meeting
Brussels
27 May
Ex-dividend date
5 April
Annual report 2018 29 May
Payment 2018 dividend
7 August
6M 2019 results
6 November
9M 2019 results
14 November
9M 2018 results
Ratings
74Periodic financial information I 3M 19 results I 15 May 2019
S&P MOODY'S FITCH
Operating entities AG Insurance (Belgium) A / stable A2 / stable* A+ / stable
Last change 22/11/18 26/03/19 07/12/18
unsollicited
Ageas Insurance Limited A / stable A+ / stable
Last change 06/11/15 23/11/16
Muang Thai Life BBB+ / stable A- / stable
Last change 27/11/17 01/04/19
Etiqa Insurance Berhad (Malaysia) A / stable
Last change 11/04/19
China Taiping Life A+ / stable
Last change 22/03/19
Intreas A / stable
Last change 11/11/16
Holding ageas SA/NV A / stable A3 / stable* A+ / stable
Last change 10/12/18 25/03/19 07/12/18
unsollicited
* Ageas has requested in early 2009 that this rating should be withdrawn. Ageas no longer participates in Moody's credit rating process.
Ageas does not provide, for purposes of Moody's rating, access to the books, records and other relevant internal documents of these rated entities.
Certain of the statements contained herein are statements of
future expectations and other forward-looking statements that are
based on management's current views and assumptions and involve
known and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those
expressed or implied in such statements. Future actual results,
performance or events may differ materially from those in such
statements due to, without limitation, (i) general economic conditions,
including in particular economic conditions in Ageas’s core markets,
(ii) performance of financial markets, (iii) the frequency and severity
of insured loss events, (iv) mortality and morbidity levels and trends,
(v) persistency levels, (vi) interest rate levels, (vii) currency exchange
rates, (viii) increasing levels of competition, (ix) changes in laws and
regulations, including monetary convergence and the Economic and
Monetary Union, (x) changes in the policies of central banks and/or
foreign governments and (xi) general competitive factors, in each
case on a global, regional and/or national basis. In addition, the
financial information contained in this presentation, including the pro
forma information contained herein, is unaudited and is provided for
illustrative purposes only. It does not purport to be indicative of what
the actual results of operations or financial condition of Ageas and its
subsidiaries would have been had these events occurred or
transactions been consummated on or as of the dates indicated, nor
does it purport to be indicative of the results of operations or financial
condition that may be achieved in the future.
Investor Relations
Tel:
E-mail:
Website:
+ 32 2 557 57 32
www.ageas.com
Periodic financial information I 3M 19 results I 15 May 2019 75