6m 2020 results · covid-19 impact on life results & q1 weather periodical financial...

6M 2020 RESULTSPeriodical Financial Information

2

Slides used during analyst call 2

Segment information 16

Equity / Solvency 52

Investment portfolio 64

Legal Settlement 69

General Information 72

Content

Periodical financial information I 6M 20 results I 7 August 2020

Main messagesDividend proposal confirmed – Group result resilient

Ageas

3Periodical financial information I 6M 20 results I 7 August 2020

General meeting of shareholders on 22 October

Proposal of intermediary dividend of EUR 2.38 per share

Launch SBB will take into account recommendation regulator

Increase of participation in India Life to 49%

Opportunity to play more active role in fast growing market

Solid 6 months result supported by strong second quarter

Contrasting Covid-19 impact on Life and Non-Life results

Solvency and cash position solid

Fair value investment portfolio recovering in Q2

FY net profit expected to be close to original guidance

Results

Strategy

Dividend & SBB

Belgium268

Belgium168

Belgium294

Belgium333

Belgium391

Belgium415

Belgium415

Belgium

UK 82

UK 64

UK 50

UK 47

UK 44 UK 23

CEU 36

CEU150

CEU53

CEU 19

CEU48

CEU86

CEU86

CEU75

Asia52

Asia106

Asia43

Asia89

Asia77

Asia92

Asia87

Asia108

8

11

paid dividend

HQ & RO expenses

438

488

440

487 516

601 632

>650

proposed dividend

Asia

2013 2014 2015 2016 2017 2018 2019 2020 2020

Ageas


Shareholders’ meeting planned to approveproposal of EUR 2.38 intermediary dividend

Dividend upstream

Upstream duringbased on net result of the year

before

In EUR mioEUR 216 mio cash received from opco’s in H1

EUR 15 mio from Malaysia in Q3

Belgium to follow Group decision

Upstream more than covering dividend & holding costs on FY basis

485

310

116

181

5300606

791

6M 19 6M 20

Life Non-Life GA

In EUR mio In EUR bnIn EUR bn

Ageas

Headlines

5

In bps avg technical liabilities In bps avg technical liabilities

* incl. non-consolidated partnerships @ 100%

In % NEP

262 221

81 157

12

(39)

355 339

Q2 19 Q2 20

17.7 16.6

3.4 3.5

21.0 20.0

6M 19 6M 20

Life Non-Life

6.6 6.5

1.6 1.5

8.2 8.1

Q2 19 Q2 20

95.7 91.7

6M 19 6M 20

93.183.6

Q2 19 Q2 20

79 75

6M 19 6M 20

71

94

Q2 19 Q2 20

2228

6M 19 6M 20

27 30

Q2 19 Q2 20

Net result Q2 solid despite negative RPN(i) & impact of Covid-19 outbreak

Non-Life combined ratio: claims frequency compensating for Q1 weather events

Stable inflows despite lockdown measures across all regions

Life Technical liabilities up in non-conso(10%) & slightly down in conso

Margin Guaranteed: Q2 driven by strong underlying performance

Operating margin Unit-Linked: close to target range

Lower Non-Life claims frequency partially compensatingCovid-19 impact on Life results & Q1 weather


73.6 72.1 72.4

3.9 3.4 4.0

82.2 87.5 90.6

159.6 163.0 167.1

FY 19 3M 20 6M 20

excl shadow shadow non-conso

2,4371,897

1,126

1,148

3,562

3,045

6M 19 6M 20

Life Non-Life

77 79

38 48

114127

Q2 19 Q2 20

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

Belgium


Headlines

In EUR mio In EUR mio In EUR bn

145

73

50

66

195

139

6M 19 6M 20

Life Non-Life

1,029825

465462

1,4941,287

Q2 19 Q2 20

58.2 57.4 57.6

3.1 2.8 3.3

61.3 60.2 60.9

FY 19 3M 20 6M 20

excl shadow shadow

82

46

6M 19 6M 20

97.691.2

6M 19 6M 20

91.182.0

Q2 19 Q2 20

4336

Q2 19 Q2 20

34 40

6M 19 6M 20

85 91

Q2 19 Q2 20

Solid underlying performance in Life & Non-Life offset by lower investment result

Net result: lower cap gains & recurring financial income – Strong Q2 CY non-life

Non-Life COR: Solid performance in Motor & Other compensating weather

Operating margin Unit-Linked: 6M ‘19 incl. cost of cashback campaign (6bps)

Operating margin Guaranteed impacted by lower investment result

Life Technical Liabilities: partial recovery of UL unit prices in Q2

Inflows: 6M ‘19 included UL cash-back campaign - Non-Life +2%

Real Estate* Portfolio


In EUR bn

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

** AG Insurance stake in IPK at 51%

Gross UG/L at EUR 2 bn (not reflected in

shareholders’ equity but contributing to available

capital for solvency calculation)

Overall positive re-valuation exercise in Q2 –

lower fair value of car parks compensated by

increased fair value of offices and senior housing

Real economic exposure to Car parks limited to

EUR 0.5 bn **Investment Offices 2.6

Investment Offices 2.6

Car Parks1.3

Car Parks1.3

Investment Retail 1.2


RE Development0.3

RE Development0.3

Invest. Warehouses0.3


5.6 5.8

FY 19 6M 20

Positive revaluation of Real Estate in Q2

Investment Offices51%

Car Parks14%

Investment Retail26%

RE Development6%

Invest. Warehouses

3%

Recurring income Real Estate impacted by Covid-19

Car Parks occupancy rate temporarily down

Retail rent relief

Offices leased to solid clients

Warehouse income secured in current environment

Economic view**

Accounting view

96.9 97.8

6M 19 6M 20

UK


Headlines


52

26

6M 19 6M 20

41

25

Q2 19 Q2 20

98.387.9

Q2 19 Q2 20

881 857

6M 19 6M 20

456 433

Q2 19 Q2 20

In EUR mio In % of NEP

In EUR mio

Lower claims frequency supporting profitability partly offset by February weather events

Net result Q2 low claims frequency – 6M ’19 incl. EUR 30 mio Ogden

Inflows* marginally behind prior year Non-Life combined ratio in Q2 supportedby low frequency

CEU


Headlines


1637

40

4957

86

6M 19 6M 20

Life Non-Life

411

21

2925

40

Q2 19 Q2 20

1,047

561

710

715

1,757

1,276

6M 19 6M 20

Life Non-Life

485186

338

316

823

503

Q2 19 Q2 20

90.282.9

6M 19 6M 20

88.8

78.5

Q2 19 Q2 20

66

233

6M 19 6M 20

(6)

109

Q2 19 Q2 20

810

6M 19 6M 20

7

21

Q2 19 Q2 20



15.4 14.7 14.8

0.8 0.5 0.7

16.2 15.3 15.5

FY 19 3M 20 6M 20

excl shadow shadow

Strong net result driven by Non-LifeInflows impacted by lockdown

Net result Q2 underlying strongly up in Non-Life

Q2 inflows impacted by lockdown & change in Life product in Portugal

Life Technical liabilities partial recovery in Q2 after Q1 decrease of UL prices

Non-Life COR supported by lower claims frequency during lockdown

Operating margin Unit-Linked up onimproved expense margin

Operating margin Guaranteed : Q1 ‘20 Reserve release & Q2 ’19 strengthening

(107)

(124)

14,168 14,107

652 747

14,819 14,854

6M 19 6M 20

Life Non-Life


Asia


Headlines

In % NEP

*Incl. non-consolidated partnerships @ 100%

All growth rates are at constant FX

324

199

8

18

331

216

6M 19 6M 20

Life Non-Life

82.2 87.5 90.6

FY 19 3M 20 6M 20

103.2

88.9

Q2 19 Q2 20

99.392.6

6M 19 6M 20

5,077 5,524

360 323

5,437 5,847

Q2 19 Q2 20

182

129

3

12

185

142

Q2 19 Q2 20

13.212.9

1.0 1.2

14.2 14.1

6M 19 6M 20

regular single

In EUR bn

4.7 5.0

0.4 0.55.1 5.5

Q2 19 Q2 20

Additional information on Ageas

non-consolidated partnerships in

Asia is available on the excel

spreadsheet published on Ageas’

website under quarterly results

(www.ageas.com/investors/quarterly-results)

Solid performance in Q2 supported by capital gainsGradual recovery from the pandemic

Solid net result – One-off tax benefit in Q2 2019

Inflows* up 9% in Q2, driven by a full recovery in China

Life Technical liabilities up 10% year-to-date

Regular premium: exceeding 90% of Life inflows

Non-Life COR supported by low claims during lockdown

https://www.ageas.com/investors/quarterly-results

In EUR mio

Reinsurance

Headlines

11

In % NEP

In EUR mio

ageas SA/NV

reinsurance activities


1

(34)

22

24

6M 19 6M 20

Life Non-Life

1

(22)

43

44

Q2 19 Q2 20

8

1,137 1,020

1,1371,028

6M 19 6M 20

Life Non-Life

8

275330

275338

Q2 19 Q2 20

105.1 98.4

6M 19 6M 20

112.188.1

Q2 19 Q2 20

Net result: Solid CY claims ratio in Q2 more than compensating weather impact

Inflows: EUR 722 mio from Quota share of which EUR 303 mio in Q2

COR: strong CY claims ratio in Q2

* Of which 75% is underwritten by ageas SA/NV

Strong CY underwriting results in Q2 more than offsetting the Q1 impact from weather events

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: 40% with AG Insurance in Belgium*, 40% with Ageas

Insurance Limited in the UK, and 40% with all Portuguese Non-Life Entities

Loss Portfolio Transfers (LPT): 40% with Ageas Insurance Limited in the UK, and 40%

with the Portuguese Non-Life Entities

The Pillar I Solvency II for ageas SA/NV stood at 330%

Net result Q2 driven by RPN(i) revaluation and incl. EUR 22 mio cap gain on FreshIn EUR mio

Value legacies – Settlement liability down on compensation payments

Result driven by Fresh transactions & RPN(i) revaluation

GA


Headlines

Stable total liquid assets

In EUR mio

Impact on P&L from RPN(i) Expenses under control

In EUR bn

In EUR mio*

5

300

6M 19 6M 20

14 10

3532

4942

6M 19 6M 20

Staff & Intercompany Operating

73

1315

2018

Q2 19 Q2 20

61

16

6M 19 6M 20

34

(40)

Q2 19 Q2 20

In EUR mioIn EUR mio

Belgium intends upstreaming in H2

629

218

Belgium

6M 19 6M 20

2.2

1.6 1.5

FY 19 3M 20 6M 20

12

(39)

Q2 19 Q2 20

(359) (303) (344)

7 5 6

(514)(472) (461)

FY 19 3M 20 6M 20

RPI RPN(i) Settlement

*net of ForSettlement provisioned expenses

Solvency


Solvency down on Fresh & market impactSolvency IIageas

Solvency IIageas

in %

Own Funds

SCR

Non EU

Non-controlled

participations*

Belgium UK CEU Reinsurance GA eliminations Group

* Based on local solvency requirements

2.8 2.7 2.8

0.5 0.5 0.4 0.6 0.6 0.60.4 0.4

0.40.2 0.2 0.2 (0.6) (0.6) (0.6)

4.0 3.7 3.93.2 3.3 3.3

6.3

5.5 5.7

0.9 0.8 0.81.1 0.9 0.9 0.7 0.7 0.8

1.50.9 0.9

(1.8) (1.5)(1.5)

8.6

7.3 7.6 7.7 7.7 7.6

FY 193M 206M 20 FY 193M 206M 20 FY 193M 206M 20 FY 193M 206M 20 FY 193M 206M 20 FY 193M 206M 20 FY 193M 206M 20 FY 193M 206M 20

221% 205% 199% 179% 181% 185% 170% 160% 153% 173% 166% 191% 217% 196% 192% 243% 236% 227%

Free CapitalGeneration


Operational FCG of EUR 437 mio*

expected

dividend

Operational impact – includes EUR 116 mio dividend upstream Non-European NCP’s

Market: Covid-19 impact

Capital transactions = SBB, injection in Asia & additional Fresh

Fresh tender pre-compensated by EUR 750 mio T1 in 2019

Based on 175% SCR

Solvency IIageas

Solvency IIageas

In EUR mio*

* FCG Non-European NCP’s over

3M 2020 at EUR (238) mio -

Operational FCG at EUR 121 mio

– not included

2,438

1,980

1,418

491

491

656

65

321

(458)

(669) (178)

(50)

2,929

2,470

2,075116

437

FY 19 Fresh tender FY 19restated

Model changes Market impact Operationalimpact

Capitaltransactions

Paid dividend 6M 20


Conclusions

1. Solid 6M results with contrasting Covid-19 impact on

Life & Non-Life

2. FY net profit and OFCG expected to be close to initial

guidance

3. Solid Solvency & Liquidity position in challenging

environment

4. Payment of intermediary dividend proposed to

Shareholders’ meeting 22 October


Content





Legal Settlement 69


485

310

116

181

5300606

791

6M 19 6M 20

Life Non-Life GA

In EUR mio In EUR bnIn EUR bn

Ageas

Headlines

17

In bps avg technical liabilities In bps avg technical liabilities


In % NEP

262 221

81 157

12

(39)

355 339

Q2 19 Q2 20

17.7 16.6

3.4 3.5

21.0 20.0

6M 19 6M 20

Life Non-Life

6.6 6.5

1.6 1.5

8.2 8.1

Q2 19 Q2 20

95.7 91.7

6M 19 6M 20

93.183.6

Q2 19 Q2 20

79 75

6M 19 6M 20

71

94

Q2 19 Q2 20

2228

6M 19 6M 20

27 30

Q2 19 Q2 20

Net result Q2 solid despite negative RPN(i) & impact of Covid-19 outbreak

Non-Life combined ratio: claims frequency compensating for Q1 weather events

Stable inflows despite lockdown measures across all regions

Life Technical liabilities up in non-conso(10%) & slightly down in conso

Margin Guaranteed: Q2 driven by strong underlying performance

Operating margin Unit-Linked: close to target range



73.6 72.1 72.4

3.9 3.4 4.0

82.2 87.5 90.6

159.6 163.0 167.1

FY 19 3M 20 6M 20

excl shadow shadow non-conso

Inflows


Covid-19 mainly impacting Life in inflows across Europe Asia recovering during Q2

In EUR mio

@ 100%

EUR mio 6M 19 6M 20 6M 19 6M 20 6M 19 6M 20

Belgium 75% 2,437 1,897 (22%) 1,126 1,148 2% 3,562 3,045 (15%)

United Kingdom - 881 857 (3%) 881 857 (3%)

Consolidated entities 100% - 698 690 (1%) 698 690 (1%)

Non-consolidated JV's 50% 183 166 (9%) 183 166 (9%)

Continental Europe 1,047 561 (46%) 710 715 1% 1,757 1,276 (27%)

Consolidated entities 1,047 561 (46%) 373 398 7% 1,419 959 (32%)

Portugal 51% - 100% 833 368 (56%) 373 398 7% 1,206 766 (37%)

France 100% 213 193 (9%) 213 193 (9%)

Non-consolidated JV's 337 317 (6%) 337 317 (6%)

Turkey (Aksigorta) 36% 337 317 (6%) 337 317 (6%)

Asia Non-consolidated JV's 14,168 14,107 (0%) 652 747 15% 14,819 14,854 0%

Malaysia 31% 472 537 14% 343 354 3% 816 890 9%

Thailand 31% - 15% 1,196 1,032 (14%) 175 212 21% 1,370 1,245 (9%)

China 25% 12,322 12,362 0% 12,322 12,362 0%

Philippines 50% 15 17 19% 15 17 19%

Vietnam 32% 36 54 48% 36 54 48%

India 26% - 40% 127 105 (18%) 133 181 35% 261 286 10%

Insurance Ageas 17,651 16,565 (6%) 3,368 3,466 3% 21,018 20,031 (5%)

Reinsurance 8 1,137 1,020 (10%) 1,137 1,028 (10%)

accepted from Consolidated entities 8 1,129 1,003 (11%) 1,129 1,011 (10%)

accepted from Non-consolidated partnerships 8 18 132% 8 18 132%

Life Non-Life Total

Inflows


Covid-19 mainly impacting Life in inflows across Europe Asia recovering during Q2

1,827 1,423

666 402

3,635 3,616

6,129 5,442

844 861

789 774 494

512

186 213

2,314

2,360

-15%

-2%

-21%

+0%

-8%

2,672 2,284

1,160 915

3,821 3,829

8,442

7,801

1,137 1,028

6M 19 6M 20 6M 19 6M 20 6M 19 6M 20 6M 19 6M 20 6M 19 6M 20 6M 19 6M 20

Belgium UK CEU Asia Insurance Reins.

Non-Life

Life

In EUR mio

Life inflows down during lockdown – Continued growth in Non-Life in a mature market

Volumes down in Motor

Life inflows down during lockdown – Non-Life outperforming market

Recovery after weak Q1

Including EUR 722 from QS agreements

Belgium

UK

CEU

Asia

Reinsurance

@ ageas part

Net result


Belgium UK CEU Asia Reins. GA ageas

300

5

300

145 73

16 37

324

199

1

485

310

50

66

4049

8

18

22

116

181

195

139

52 26

57 86

331

216

(34)

24 5

606

791

6M 19 6M 20 6M 19 6M 20 6M 19 6M 20 6M 19 6M 20 6M 19 6M 20 6M 19 6M 20 6M 19 6M 20

Non-Life

Life

In EUR mio

General Account

Strong Non-Life result; Covid-19 impact on investment mainly impacting Life result

Strong Q2 compensating for February storms – LY including positive Ogden one-off

Strong Non-Life performance – Life including positive one-off in Q1

Strong result despite impact low interest rates – LY including positive tax change in China

Low claims frequency accross all ceding entities

Including EUR 332 mio cap gain relating to Fresh transactions

Belgium

UK

CEU

Asia

Reinsurance

General Account


Net realisedcap gains*


Substantially lower contribution of net capital gains

In EUR mio

* 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

6M 19 6M 20 Q2 19 Q2 20

Life 50 (17) 17 32 Equity impairments in Q1

Non-Life 3 (5) (0) (2) Q2 cap gains thanks to partial recovery equity markets

Belgium 53 (22) 16 30

UK 4 4 1 (0)

Life 5 (3) 3 0

Non-Life 1 (0) (0) (0)

CEU 6 (3) 3 (0)

Life 70 51 21 36 Equity impairments in Q1

Non-Life (1) (1) (1) 1 partially compensated by cap gains

Asia 69 51 19 36

Reinsurance 4 0 4 0

Life 125 31 40 67

Non-Life 11 (2) 3 (1)

Insurance 136 29 44 66

General Account

& Eliminations(4) 328 0 22

Total Ageas 133 358 44 88

Ageas


Excellent in Household offset by Motor & A&HCombined ratio

Net earned premium (In EUR mio)

In % Net earned premium

Quarter

Strong CY claims experience across all segments & most

product lines

Temporary low claims frequency mainly in Motor and

Accident & Health

PY releases LY included Ogden benefit

Year-to-date

Strong Q2 more than compensating for Q1 weather impact

in BE & UK

When correcting for Q1 weather impact improving accross

all product lines

PY ratio returning to historic levels

64.4 62.267.0

59.7 58.5 59.7 59.7 55.3 56.345.5

35.2 34.734.1

35.5 35.8 35.3 36.036.4 36.8

38.1

99.696.9

101.195.2 94.3 95.0 95.7

91.7 93.1

83.6

(4.0) (5.9)(3.0)

(5.6) (7.7) (8.4) (9.2) (7.4)(12.1)

(6.1)

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

claims ratio expense ratio PY claims ratio

3,843 4,038 4,112 4,148 3,890 3,894 1,912 1,937 967 957

Ageas


Combined ratio

67.3 65.4 67.5 64.8 67.4 70.3 71.5 68.3 71.0 65.9

27.0 28.3 27.2 27.5 25.4 26.0 25.4 25.9 26.527.7

94.3 93.7 94.7 92.3 92.8 96.3 96.9 94.2 97.5 93.6

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

69.6 69.178.2

68.7 61.2 66.5 63.651.2

66.5

38.0

29.7 30.529.7

31.633.0

32.9 33.0

34.7

33.4

35.7

99.3 99.6107.9

100.394.2

99.4 96.685.9

99.9

73.7

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

51.5 50.4 50.5 43.851.8 46.1 48.4 52.6

32.1 33.4

44.6 41.6 42.745.1

44.844.6 45.0

45.9

47.0 48.7

96.1 92.0 93.288.9

96.690.7 93.4

98.5

79.1 82.1

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

71.257.9 60.4

51.0 43.9 38.3 41.5 46.936.9

62.4

50.6

46.4 44.445.1

47.845.1 53.2

45.253.3

45.2

121.8

104.3 104.896.1 91.7

83.494.7 92.1 90.2

107.6

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

Accident & Health: low claims frequency in Q2 Motor: low claims frequency in Q2

Household: Q1 adverse weather in BE & UK Other lines: prudent reserving in UK

Strong performance accross all product lines


NEP 813 811 838 884 871 930 450 467 231 227 NEP 1,616 1,724 1,790 1,782 1,636 1,623 808 794 406 393

NEP 1,029 1,078 1,067 1,072 1,028 982 493 502 249 253 NEP 385 424 418 410 356 359 161 173 81 84

Ageas


Guaranteed: on target - UL closing the gap

In bps Avg techn. liabilities

Operating margins

Life Unit-Linked

Quarter

Reaching lower end of target level

Improvement in CE

Year-to-date

Closing the gap with target

Life Guaranteed

Quarter

Strong underwriting result in both Belgium & Portugal

Higher support from net capital gains offset by lower

recurring investment income

Year-to-date

Impact of equity impairments in Q1 only partially

compensated by strong Q2 underwriting result

1217

4 3 2 2 2 2 2 2

2

1

2

(2)

6

18

19 2423

2620

28

2428

20

36

2527

2528

22

2827

30

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

Operating margin

Expense & other m.

Investment m.

Underwriting m.

38 33 41 39 41 37 34 4131

42

9080

88 96 89 98 98

59102

93

(39)(23)

(36) (42) (42) (47) (53)

(25)

(61)(41)

8990

93 93 88 88 79

75

71 94

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

Avg techn liabilities (In EUR bn)

56.9 57.9 57.3 55.9 55.9 56.6 56.4 56.9 56.4 56.9


12.6 13.0 12.1 15.1 15.7 16.0 16.3 16.1 16.3 15.4

2,4371,897

1,126

1,148

3,562

3,045

6M 19 6M 20

Life Non-Life

77 79

38 48

114127

Q2 19 Q2 20


Belgium


Headlines


145

73

50

66

195

139

6M 19 6M 20

Life Non-Life

1,029825

465462

1,4941,287

Q2 19 Q2 20

58.2 57.4 57.6

3.1 2.8 3.3

61.3 60.2 60.9

FY 19 3M 20 6M 20

excl shadow shadow

82

46

6M 19 6M 20

97.691.2

6M 19 6M 20

91.182.0

Q2 19 Q2 20

4336

Q2 19 Q2 20

34 40

6M 19 6M 20

85 91

Q2 19 Q2 20

Solid underlying performance in Life & Non-Life offset by lower investment result

Net result: lower cap gains & recurring financial income – Strong Q2 CY non-life

Non-Life COR: Solid performance in Motor & Other compensating weather

Operating margin Unit-Linked: 6M ‘19 incl. cost of cashback campaign (6bps)

Operating margin Guaranteed impacted by lower investment result

Life Technical Liabilities: partial recovery of UL unit prices in Q2

Inflows: 6M ‘19 included UL cash-back campaign - Non-Life +2%

Life

Belgium

26

Net result & Life liabilitiesIn EUR mio


In EUR bn

58.2 57.4 57.6

3.1 2.8 3.3

61.3 60.2 60.9

FY 19 3M 20 6M 20

excl shadow shadow

Net result

Life technical liabilities

145

73

50

66

195

139

6M 19 6M 20

Life Non-Life

77 79

38 48

114127

Q2 19 Q2 20

Net result impacted by lower net cap gains & financial income, partial recovery in second quarter

Quarter

• Non Life: strong underlying performance in Motor & Household

partly offset by Other (lower PY releases)

• Life: strong underwriting results partly offset by decrease of

financial revenues

Year-to-date

• Solid underlying performance in both Life and Non-Life offset by

lower financial income mainly in Real Estate & car parks

• Small positive (EUR 1 mio) from the internal reinsurance program

(vs. EUR 10 mio in 6M 19)

Year-to-date

Life technical liabilities slightly decreased mainly explained by :

• Slight decrease in UL due to lower market prices in Q1 followed by

a partial recovery in Q2.

• Slight decrease in Guaranteed in Q2 following lower sales

Life

Belgium

27

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio


Non-Life

Life

1,8631,612

573

285

2,437

1,897

6M 19 6M 20

891716

138

110

Q2 19 Q2 20

314 318

336 344

360 370

116 116

+2%

1,126 1,148

6M 19 6M 20

114 107

151 153

154 158

46 43

465462

Q2 19 Q2 20

-22%

-20%

Life decrease in UL & GuaranteedNon-Life steady growth in mature market

Quarter

• Unit-linked – lower than LY mainly in Bank channel

• Guaranteed – lower than LY due to lower production in Savings

Year-to-date

• Unit-linked – 6M 19 exceptionally strong thanks to cashback

campaign (not repeated in 6M 20)

• Guaranteed – lower than LY due to strong inflow in Savings last

year

Quarter

• Stable inflow compared to Q2 19. Increase in all lines excluding

Accident & Health and Other due to adjustments of premiums in

P&C Commercial1 (Covid-19)

Year-to-date

• Solid growh in all lines

1 Part of the premiums in Commercial products are linked to the business activity

of the clients (turnover, number of employees) and settled at the end of year.

Following the lower economic activity these expected premiums are adjusted

downwards.

-1%

Belgium



Net earned premium (in EUR mio)

63.556.9 58.3

53.1 56.0 57.8 59.953.2 53.5

43.2

37.7

37.8 37.737.9

37.4 37.4 37.7

38.0 37.6

38.8

101.294.7 96.0

91.0 93.4 95.2 97.691.2 91.1

82.0

(3.4)(7.2) (8.2) (7.7) (8.3) (8.3) (9.0) (10.2)

(10.1)(7.6)

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20


Combined ratio2019 & 2020 before QS

Solid operating performance despite weather events in the first quarter

The internal reinsurance agreement has an important impact on the

combined ratio. For ease of comparability, the pro forma combined

ratio commented in this section excludes all impacts from this

internal reinsurance agreement.

Quarter

Strong CY performance in Motor & in Household partly offset by

aggravations in a few PY claims in Other

Year-to-date

Strong performance in Motor & Other (reserve release following

sales of old inwards reinsurance portfolio)

Both years include impact from weather events (≈6pp)

1,815 1,832 1,836 1,861 1,944 2,023 994 1,010 505 500

Belgium


70.1 70.4 70.0 68.0 71.0 76.2 77.3 78.2 76.2 76.4

25.4 27.6 27.6 26.9 24.424.4 24.9 24.9 25.1 26.5

95.5 98.0 97.6 94.9 95.4100.6 102.2 103.1 101.3 102.9

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

62.6 56.2 59.7 58.0 55.3 60.3 58.142.1

60.5

34.0

37.236.4 36.4 36.8 37.3

37.3 37.8

38.0

38.0

38.2

99.892.6 96.1 94.8 92.6

97.6 95.9

80.1

98.5

72.2

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

51.7 43.9 47.838.6

49.3 46.3 53.3 52.234.1 26.1

45.745.2 44.8

45.6

46.6 46.646.6 46.6

46.646.7

97.489.1 92.6

84.295.9 92.9

99.9 98.8

80.772.8

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

87.565.8 58.3

46.8 40.3 35.8 39.623.8 31.2

42.2

47.6

45.044.6

44.843.0 44.3 43.9

45.643.3

46.5

135.1

110.8102.9

91.683.3 80.1 83.5

69.4 74.5

88.7

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20


Strong operating performance in Motor & HouseholdCombined ratio2019 & 2020 before QS

NEP 504 484 472 481 522 562 273 270 141 130 NEP 562 568 570 578 596 614 299 312 150 156

NEP 579 595 605 609 621 640 315 327 159 165 NEP 170 185 190 193 206 207 107 102 54 49

Accident & Health: Increase mainly explained by 2 large claims in Q2

more than offsetting overall lower frequency

Motor: Strong CY & PY performance

Household: Strong underlying performance offsetting the Q1 weather

impact

Other lines : reserve release in Q1 partly offset by a few major

aggravations

Belgium


Operating marginsIn bps Avg techn. liabilities

(2)

1 1 1 1 1 1 1 2

32 31 3133

39 3934

39 4234

30 32 3134

40 4034

4043

36

2014 2015 2016 2017 2018 2019 6M 196M 20 Q2 19 Q2 20

Operating margin

Investment m.

Expense & other m.

Underwriting m.

30 25 29 27 3125 23 28 19 28

9588

91 94 91 100 99

56

10598

(38)(27) (34) (36) (37) (37) (40) (38) (39) (35)

8786

86 85 85 88 82

46

85 91

2014 2015 2016 2017 2018 2019 6M 196M 20 Q2 19 Q2 20


47.5 48.1 48.7 48.0 47.7 48.0 47.8 48.2 47.8 48.2


5.7 5.9 6.1 7.6 8.1 9.0 8.8 9.7 8.8 9.3

Guaranteed: Covid-impact on Financial incomeUL: cost of cashback in 6M ‘19

Life Unit-Linked

Quarter

Slightly lower compared to LY due to lower expense & other

result

Year-to-date

At higher end of target range

6M ‘19 incl. cost of cashback campaign (6bps)

Life Guaranteed

Quarter

Strong net underwriting results while LY was impacted by lower

mortality result

Lower investment margin: higher level of capital gains & lower

guaranteed rate offset by lower recurring revenues on Real Estate

and car parks

Year-to-date

Higher net underwriting margin thanks to a better risk margin (low

mortality result last year)

Lower investment margin due to lower level of net capital gains &

financial revenues partly compensated by client return.

FY 17 FY18 FY19 Q2’20

Guaranteed interest rate 2.32% 2.17% 1.95% 1.85%

Fixed income yield 3.34% 3.25% 3.06% 2.97%

Liabilities Guaranteed (EUR bn) 50.4 49.1 51.5 51.3

FY 17 FY 18 FY 19 Q2’20

Fixed income yield 1.88% 1.96% 1.63% 1.47%

Reinvested amount (EUR bn) 2.9 3.2 3.6 2.6

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

and government bonds & related loans.

Since April 2020, guaranteed rate was lowered from 50 to 25 bps.

Belgium

31

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

Evolution assets & liabilities

Back book

Life

New money

Life & Non-Life


Belgium

32

Average rate on back book decreasing in line with evolution yield fixed income

Evolution assets & liabilities


Back book

vs fixed

income

investments

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Liabilities guaranteed i-rate Existing bonds Existing guaranteed rates Book yield existing bonds

96.9 97.8

6M 19 6M 20

UK


Headlines


52

26

6M 19 6M 20

41

25

Q2 19 Q2 20

98.387.9

Q2 19 Q2 20

881 857

6M 19 6M 20

456 433

Q2 19 Q2 20

In EUR mio In % of NEP

In EUR mio

Lower claims frequency supporting profitability partly offset by February weather events

Net result Q2 low claims frequency – 6M ’19 incl. EUR 30 mio Ogden

Inflows* marginally behind prior year Non-Life combined ratio in Q2 supportedby low frequency

52

26

6M 19 6M 20

UK

34

Net result & Inflows

Other

Household

Accident & Health

Motor

17 16

618560

176198

7082

-3%881

857

6M 19 6M 20

In EUR mio

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

11 6

319282

88102

3744

456433

Q2 19 Q2 20


-5%

Q2 strong performance compensating for Q1 weather Inflow decrease in Motor largely offset by Non-Motor

Net result

Quarter:

Strong result mainly from lower Motor claims frequencies

Q2 2019 one-off benefits from the Ogden rate change & the internal

reinsurance agreement ramp up

Year-to-date:

February weather event impact more than offset by strong CY

claims performance in Motor

2019 performance driven by above one offs

Negative impact from internal reinsurance programme of EUR 13

mio (vs. positive EUR 20 mio)

Quarter:

Motor impacted by lockdown

Year-to-date:

Motor down 9% - reflecting focus on maintaining pricing discipline

& lower volumes from TU

Household up 13% - benefiting from new deals

Other up 18%: reflecting growth in Commercial lines from new

deals

41

25

Q2 19 Q2 20

UK

35


66.3 69.380.7

68.360.2 63.3 59.3 58.0 58.8

44.6

33.532.8

31.5

34.9

36.635.4

37.5 39.8 39.5

43.3

99.8 102.1

112.2

103.296.8 98.7 96.9 97.8 98.3

87.9

(4.6) (4.4)

4.5(1.4)

(9.2) (9.4) (8.0) (6.6) (9.2) (7.6)

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20




Combined ratio2019 & 2020 before LPT & QS

1,613 1,751 1,598 1,493 1,320 1,296 641 628 323 305

Lower Motor claims frequency driving overall improvement

The internal reinsurance agreement has an important impact on the

combined ratio. For ease of comparability, the pro forma combined

ratio commented in this section excludes all impacts from this internal

reinsurance agreement

Quarter

Lower claims frequency in Motor during lockdown driving overall

strong performance; partly offset by prudent provisioning related to

potential COVID-19 impact on other lines and a limited number

property losses

Solid Motor prior year releases from large losses

Combined ratio Tesco Underwriting 73.8% (vs. 90.5%) mainly

reflecting COVID-19 driven Motor claims frequency benefit.

Lower operating expenses more than offset by increased

commission cost related to strong Motor performance

Year-to-date

H1 COR includes an offset from February 2020 weather events.

56.0 55.373.7 67.0

46.3 54.0 46.9

85.2

43.1

95.5

54.3 48.6

44.947.0

56.747.9

50.0

49.0

51.0

47.9

110.3103.9

118.6 114.0103.0 101.9 96.9

134.2

94.1

143.4

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

74.6 75.891.0

75.063.7 72.1 68.1

55.470.3

37.6

25.1 27.2

25.5

27.6

29.729.4 30.7

34.0

31.2

36.6

99.7 103.0

116.5

102.693.4

101.5 98.889.4

101.5

74.2

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

UK

36

66.055.8 58.4 56.1 57.8 60.2 55.7

33.6

59.746.2

38.743.3 40.9 46.7 51.4 54.3

51.0

55.9

53.9

56.4

104.799.1 99.3 102.8

109.2114.5

106.7

89.5

113.6102.6

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

51.062.2 57.6 51.7 56.9

42.8 40.955.4

33.4 39.0

43.337.3

40.647.8

45.1

44.1 49.4

48.6

56.156.7

94.399.5 98.2 99.5 102.0

86.9 90.3

104.1

89.595.7

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20



NEP 907 958 1,062 1,014 947 844 831 411 391 207 189NEP 79 71 72 39 30 30 34 15 18 8 7

NEP 374 399 413 361 341 309 289 143 151 72 75 NEP 202 185 204 185 175 137 142 73 68 36 34

Lower claims frequency in Motor offsetting February ‘20 weather event impact

Accident & Health: H1 benefit from IBNR review Motor: Strong performance supported by lower claims frequency

Household: February weather events’ impact 13pp Other: Prudent reserving for COVID-19 impact & Q1 weather

CEU


Headlines


1637

40

4957

86

6M 19 6M 20

Life Non-Life

411

21

2925

40

Q2 19 Q2 20

1,047

561

710

715

1,757

1,276

6M 19 6M 20

Life Non-Life

485186

338

316

823

503

Q2 19 Q2 20

90.282.9

6M 19 6M 20

88.8

78.5

Q2 19 Q2 20

66

233

6M 19 6M 20

(6)

109

Q2 19 Q2 20

810

6M 19 6M 20

7

21

Q2 19 Q2 20



15.4 14.7 14.8

0.8 0.5 0.7

16.2 15.3 15.5

FY 19 3M 20 6M 20

excl shadow shadow

Strong net result driven by Non-LifeInflows impacted by lockdown

Net result Q2 underlying strongly up in Non-Life

Q2 inflows impacted by lockdown & change in Life product in Portugal

Life Technical liabilities partial recovery in Q2 after Q1 decrease of UL prices

Non-Life COR supported by lower claims frequency during lockdown

Operating margin Unit-Linked up on improved expense margin

Operating margin Guaranteed : Q1 ‘20 Reserve release & Q2 ’19 strengthening

(107)

(124)

CEU

38



15.4 14.7 14.8

0.8 0.5 0.7

16.2 15.3 15.5

FY 19 3M 20 6M 20

excl shadow shadow

1637

40

4957

86

6M 19 6M 20

Life Non-Life

411

21

2925

40

Q2 19 Q2 20

Strong Q2 net result driven by Non-Life performance

Net result

Quarter

Life: solid result despite lower capital gains - Reserve strengthening in

Q2 ‘19 in Portugal (EUR 9 mio)

Non-Life: Very strong net result supported by low claims frequency during

lockdown both in Motor and in Accident & Health

Year to date

Life: Reserve release in Q1 ‘20 (20 mio) vs reserve strengthening in Q2

‘19 (EUR 9 mio) – Improved underwriting margin due to risk margin

Non-Life: Improved combined ratio in Motor and Accident & Health

Internal reinsurance: negative contribution of EUR 6 mio (vs. positive EUR

2 mio)

Life technical liabilities

• Slightly down year-to-date due to the decrease in Unit-Linked prices in

Q1 following the drop in financial markets – partial recovery during Q2

CEU

39

Inflows impacted by COVID-19 & low interest ratesInflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio

800

296

247

265

-46%

1,047

561

6M 19 6M 20

228 246

277285

139 128

66 56

+1%

710 715

6M 19 6M 20


98 103

146 133

64 59

2922

338317

Q2 19 Q2 20

361

114

124

72

485

187

Q2 19 Q2 20

-62%

-6%

Life

Quarter

• Unit-linked – Down due to lockdown & financial market volatility

• Guaranteed – Lower sales appetite for guaranteed business due to

low interest rates

Year-to-date

• Unit-linked – Up 7% thanks to a strong Q1

• Guaranteed - Inflows down due to the continued low interest rate environment – transition phase in product mix still on-going in Portugal

Non-Life

Quarter

• Impact of lockdown on New business

Year-to-date

• Up 8% at constant FX with strong contribution from both Portugal,

still outperforming the market, and Turkey

61.355.9 58.6 59.2 62.7 60.5 61.2

54.5 58.549.5

30.829.5

30.1 31.229.7 30.7 29.0

28.430.3

29.0

92.185.4

88.7 90.4 92.4 91.2 90.2

82.988.8

78.5

(4.3) (6.5) (6.5) (8.0)(2.9) (2.4) (3.7)

(0.3)

(7.2)

0.8

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20


CEU




Excellent combined ratio supported by low claims frequency during lockdown


415 454 664 768 594 657 319 350 162 175

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.

Quarter

Combined ratio in Portugal reflecting low claims ratio during

lockdown, mostly in Motor and Accident & Health

Combined ratio in Turkey at 77.9% vs. 99.4% due to lower claims

frequency in Motor during lockdown

Year-to-date

Excellent combined ratio in Portugal thanks to lower claims &

benign weather conditions

Improved combined ratio in Turkey at 88.3% vs. 100.8%

61.9 58.8 64.9 61.4 62.5 63.0 65.4 58.8 65.455.9

26.7 25.225.1 26.8 24.8 26.0 24.3

23.826.0

24.6

88.684.0

90.0 88.2 87.3 89.0 89.782.6

91.4

80.5

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

CEU

41

60.171.5 65.5 70.4 68.0 67.2 64.9

55.163.7

44.4

31.6

32.332.5

35.0 35.3 36.6 34.3 33.9 34.6

33.5

91.7

103.898.0

105.4 103.3 103.899.2

88.998.3

77.9

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

54.0

36.1 42.3 46.5 48.540.3 40.7 40.9

27.740.3

40.3

35.938.0

34.7 34.2

33.2 33.6

32.7

34.3

34.0

94.3

72.080.3 81.2 82.7

73.5 74.3 73.7

62.0

74.3

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

72.3

31.712.1 3.9

72.6

28.3 26.5 21.1 1.3 21.0

45.1

40.8

41.339.2

41.5

42.4 38.5 38.1

42.6

41.6

117.4

72.5

53.443.1

114.0

70.7 65.0 59.243.9

62.6

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

Low claims ratio in Motor and Accident & Health Household supported by benign weather



NEP 238 255 328 373 318 349 170 188 86 94 NEP 96 94 202 249 188 207 102 108 52 55

NEP 51 70 91 105 74 86 41 46 22 23 NEP 30 35 43 41 13 15 7 8 3 4

Other: very small & volatile portfolio

Accident & Health: supported by lower claims & expenses Motor: Improved claims ratio thanks to lower frequency

Household: Very good claims ratio thanks to benign weather

CEU


Operating marginsIn bps Avg techn. liabilities

Guaranteed and Unit-Linked margins up

In EUR bn

1 20 (1) (1) 0

(5)

13

12 0 5 4 4 3 3

42

9 4 5

16

68

5

12

3

1910

7 7

21

911

8

10

7

21

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20

Operating margin

Expense & other m.

Underwriting m.

Investment m.

95 100 110 111 99 105 103 108 105 114

77 5976

10680 91 92 77 83 68

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

(106) (129)

48

(193)

(74)

70 88121

139

10890 66

233

(6) 109

2014 2015 2016 2017 2018 2019 6M 19 6M 20 Q2 19 Q2 20


7.7 8.0 8.7 7.9 8.1 8.6 8.5 8.7 8.5 8.6


6.2 6.1 6.0 7.5 7.6 7.0 7.6 6.4 7.6 6.1

Life Unit-Linked

Quarter

• Up on higher expense ratio following a change in product mix

Year-to-date

Improvement in Q2 compensated for the impact in Q1 of

higher arbitrage cost due to financial market volatility

Life Guaranteed

Quarter

• Q2 margin strongly up supported by a solid underwriting margin

Q2 ‘19 impacted by reserve strengthening (116 bps)

Year-to-date

• Very high margin driven by a strong underwriting margin & further

supported by a reserve release in Q1 (126 bps impact in H1 vs.

strengthening 58 bps in H1 ‘19)

14,168 14,107

652 747

14,819 14,854

6M 19 6M 20

Life Non-Life


Asia


Headlines

In % NEP

*Incl. non-consolidated partnerships @ 100%


324

199

8

18

331

216

6M 19 6M 20

Life Non-Life

82.2 87.5 90.6

FY 19 3M 20 6M 20

103.2

88.9

Q2 19 Q2 20

99.392.6

6M 19 6M 20

5,077 5,524

360 323

5,437 5,847

Q2 19 Q2 20

182

129

3

12

185

142

Q2 19 Q2 20

13.212.9

1.0 1.2

14.2 14.1

6M 19 6M 20

regular single

In EUR bn

4.7 5.0

0.4 0.55.1 5.5

Q2 19 Q2 20

Additional information on Ageas

non-consolidated partnerships in

Asia is available on the excel

spreadsheet published on Ageas’

website under quarterly results

(www.ageas.com/investors/quarterly-results)

Solid performance in Q2 supported by capital gainsGradual recovery from the pandemic

Solid net result – One-off tax benefit in Q2 2019

Inflows* up 9% in Q2, driven by a full recovery in China

Life Technical liabilities up 10% year-to-date

Regular premium: exceeding 90% of Life inflows

Non-Life COR supported by low claims during lockdown

https://www.ageas.com/investors/quarterly-results

Asia



324

199

8

18

331

216

6M 19 6M 20

Life Non-Life

182

129

3

12

185

142

Q2 19 Q2 20

82.2 87.5 90.6

FY 19 3M 20 6M 20

Net result

Life Technical Liabilities

Solid Q2 underlying result

Quarter

Solid Life Result :

− Higher level of capital gains (EUR 36 mio vs EUR 21 mio)

− Mitigated by unfavourable evolution of discount rate curve

− One-off tax benefit in Q2 ‘19 in China

Non-Life result supported by low claims frequency during

lockdown

Year-to-date

Resilient Life result in the context of COVID-19 pandemic

Decrease vs 6M 19 fully explained by:

− Lower level of capital gains (EUR 51 mio vs very high

EUR 70 mio)

− Evolution of discount rate curve in China

− One-off tax regime change in China

High Non-Life result thanks to favourable claims experience

Life Technical liabilities driven by new business & high

persistency levels

Asia

45

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio

13,538 13,372

630 735

14,168 14,107

6M 19 6M 20

63 56

334

365

8496

171

230

652

747

6M 19 6M 20

incl. non-consolidated partnerships @ 100%



34 25

185 15

9

4141

10098

360

323

Q2 19 Q2 20

4,822 5,191

255333

5,0775,524

Q2 19 Q2 20

Strong recovery in Life in Q2, driven by China Non-Life inflows impacted by the lockdown

Life

Life gross inflows up 11% in Q2, driven by new business

growth & strong persistency

New business premiums grew 15% in Q2

Regular premium up 10% in Q2

Non-Life

Non-Life inflows -8% in Q2, due to the lack of commercial

activities, as impacted by the Covid-19 pandemic

Asia

46

Inflows per country In EUR mio


All growth rates are at constant FX Periodical financial information I 6M 20 results I 7 August 2020

39 27

91

69

130

96

Q2 19 Q2 20

1517

6M 19 6M 20

8 7

Q2 19 Q2 20

1,1961,032

175

212

1,370

1,245

6M 19 6M 20

Life Non-Life

592 536

8899

679635

Q2 19 Q2 20

472 537

343354

816890

6M 19 6M 20

Life Non-Life

236 240

181 155

417395

Q2 19 Q2 20

127105

133 181

261

286

6M 19 6M 20

Life Non-Life

36

54

6M 19 6M 20

22

31

Q2 19 Q2 20

12,322 12,362

6M 19 6M 20

4,181 4,683

Q2 19 Q2 20

Resilient performance in the context of Covid-19 pandemic

China: up 14% in Q2 driven by newbusiness & renewals

Thailand: Non-Life growth mitigatingthe Covid-19 impact on Life

Malaysia: down marginally (-3%) in Q2,due to COVID-19

India: -19% in Q2 due to lockdown Vietnam: continued rapid growthPhilippines: only marginal decline

In EUR mio

Reinsurance

Headlines

47

In % NEP

In EUR mio

ageas SA/NV

reinsurance activities


1

(34)

22

24

6M 19 6M 20

Life Non-Life

1

(22)

43

44

Q2 19 Q2 20

8

1,137 1,020

1,1371,028

6M 19 6M 20

Life Non-Life

8

275330

275338

Q2 19 Q2 20

105.1 98.4

6M 19 6M 20

112.188.1

Q2 19 Q2 20

Net result: Solid CY claims ratio in Q2 more than compensating weather impact

Inflows: EUR 722 mio from Quota share of which EUR 303 mio in Q2

COR: strong CY claims ratio in Q2

* Of which 75% is underwritten by ageas SA/NV

Strong CY underwriting results in Q2 more than offsetting the Q1 impact from weather events

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: 40% with AG Insurance in Belgium*, 40% with Ageas

Insurance Limited in the UK, and 40% with all Portuguese Non-Life Entities

Loss Portfolio Transfers (LPT): 40% with Ageas Insurance Limited in the UK, and 40%

with the Portuguese Non-Life Entities

The Pillar I Solvency II for ageas SA/NV stood at 330%

847 61

202271

743463

144

225

1,137

1,028

6M 19 6M 20

Reinsurance

48

Strong CY claims experience in Q2Net result & Inflows

Portugal

UK

Protection Non –lIfe

Protection Life

Belgium

Quarter

• EUR 303 mio from quota share agreements (vs. EUR 220 mio in Q2

19)

• EUR 27 mio from non-life protection programme

• EUR 8 mio from life protection programme in Portugal

Year-to-date

• EUR 722 mio from quota share agreements (vs. EUR 459 mio in 6M

19)

• EUR 191 mio from the Loss Portfolio Transfer (LPT)

• EUR 46 mio from prior year unearned premiums in UK

• EUR 61 mio from non-life protection programme – strong growth

thanks to a new participation in India Non-Life and in Motor & TPL in

UK

• EUR 8 mio from life protection programme in PortugalPeriodical financial information I 6M 20 results I 7 August 2020

Gross inflows

Quarter

• Strong result thanks to the positive CY claims performance in BE,

UK & Portugal

Year-to-date

• Flat contribution from protection programme

• Positive CY claims in Q2 fully compensating negative contribution

from Q1 weather claims in Belgium

• EUR 17 mio positive contribution from the UK thanks to favorable

claims ratio in Q2 more than offsetting the weather claims in Q1

• EUR 8 mio positive contribution from Portugal

824 27

84110

102

124

65

68275

338

Q2 19 Q2 20

In EUR mio

Net result

1

(34)

22

24

6M 19 6M 20

Life Non-Life

1

(22)

43

44

Q2 19 Q2 20

Net result Q2 driven by RPN(i) revaluation and incl. EUR 22 mio cap gain on FreshIn EUR mio

Value legacies – Settlement liability down on compensation payments

Result driven by Fresh transactions & RPN(i) revaluation

GA


Headlines

Stable total liquid assets

In EUR mio

Impact on P&L from RPN(i) Expenses under control

In EUR bn

In EUR mio*

5

300

6M 19 6M 20

14 10

3532

4942

6M 19 6M 20

Staff & Intercompany Operating

73

1315

2018

Q2 19 Q2 20

61

16

6M 19 6M 20

34

(40)

Q2 19 Q2 20

In EUR mioIn EUR mio

Belgium intends upstreaming in H2

629

218

Belgium

6M 19 6M 20

2.2

1.6 1.5

FY 19 3M 20 6M 20

12

(39)

Q2 19 Q2 20

(359) (303) (344)

7 5 6

(514)(472) (461)

FY 19 3M 20 6M 20

RPI RPN(i) Settlement

*net of ForSettlement provisioned expenses

GA


Available cash up on upstream from operating companies - Main upstream & interim dividend intended in H2

Cash position

In EUR mio

Upstream from Belgium expected in H2 – total amount of upstream will exceed

the EUR 650 million

Successful tenders of Fresh securities

Capital injections in The Philippines & Singapore

Additional EUR 5 mio cash-out for running SBB in Q3 2020 – SBB ended on

05/08/2020

EUR 0.4 bn ring-fenced for Fortis settlement

≈ 1000≈ 1100

settlement settlement

SBBSBB

FRESH

2,192

1,538

(50)

(538)

(18) (50)(52)

(126) (23)

218

(16)

FY 19 Upstream Dividend Fresh Tender Cap. InjectionAsia

Settlement HQ & ROexpenses

Sharebuy-back

Other 6M 20

HQ

RO

GA


Successful tender on the Fresh securitiesOutstandinghybrids

In EUR mio ageas SA/NV Ageasfinlux

Perp Fixed Rate

Reset Temporary

Write-Down

Tier 1

Fixed-to-Floating

Rate Callable

Tier 2

Fresh

Tier 1

Fixed-to-Floating Rate Callable

Tier 2

Fixed Rate Reset Dated

Subordinated Notes

Tier 2

CASHES

% 3.875% 3.25%3m EUR + 135

bps5.25% 3.50% 3m EUR +200 bps

Amountoutstanding

750 500 384 450 400 948

ISIN BE6317598850 BE0002644251 XS0147484074 BE6261254013 BE6277215545 BE0933899800

Call date

June 2030 first reset date Reset to 5-yr mid-swap rate +379.2 bps

July 2029Step up to 3M

Euribor +380 bps

Undated, strike 315.0

mandatory 472.5

June 2024

Step up to 3M

Euribor +413 bps

June 2027

Step up after 12

years of 100bps

Undated,

strike 239.4,

mandatory 359.1

Other Public issue Public issue

Subscribed by

Ageas & BNP

Paribas Fortis

Public issue

Coupon served by

FBB, trigger

ACSM linked to

Ageas dividend

Market Price (30/06/2020)

94.80 103.71 62.81 110.31 106.92 71.08

Fortis Bank (now BNPPF)

AG Insurance (Belgium)


ContentSlides used during analyst call 2




Legal Settlement 69


Equity


Equity up on net result & FY 19 dividend postponement

In EUR mio

7,290 7,702

3,931 3,729

791 9

(202) (50) (126) (207) (5)

EUR 58.89 EUR 61.09

11,221 11,431

FY 19 result changeUG/L

dividend treasuryshares

FX IAS 19 other 6M 20

Shareholders’ equity

per segment Belgium 5,135 ► 5,084 Asia 4,008 ► 3,937

UK 998 ► 947 Reinsurance 108 ► 33

Continental Europe 1,326 ► 1,328 General Account (354) ► 101

Shareholdersequity

Equity per share

Unrealised gains &

losses

Equity per segment

Equity


Debt leverage down after succesful transactions on the Fresh instrument

Tangible net equity

I page 54

* Leverage calculated as

(Subordinated liabilities + Senior

debt) / (Tangible net equity +

Subordinated liabilities + Senior

debt)

In EUR mio

FY 19 6M 20

IFRS Shareholders' Equity 11,221 11,431

Unrealised gains real estate 674 699

Goodwill (614) (598)

VOBA (Value of Business Acquired) (58) (51)

DAC (Deferred Acquisition Cost) (425) (430)

Other (531) (537)

Goodwill, DAC, VOBA related to N-C interests 381 375

Tax adjustment DAC, VOBA & Other 161 164

IFRS Tangible net equity 10,810 11,052

IFRS Tangible net equity/ IFRS Shareholder's Equity 96% 97%

Debt leverage on tangible net equity * 22.4% 16.9%

Solvency


Solvency down on Fresh & market impactSolvency IIageas

Solvency IIageas

in %

Own Funds

SCR

Non EU

Non-controlled

participations*

Belgium UK CEU Reinsurance GA eliminations Group


2.8 2.7 2.8

0.5 0.5 0.4 0.6 0.6 0.60.4 0.4

0.40.2 0.2 0.2 (0.6) (0.6) (0.6)

4.0 3.7 3.93.2 3.3 3.3

6.3

5.5 5.7

0.9 0.8 0.81.1 0.9 0.9 0.7 0.7 0.8

1.50.9 0.9

(1.8) (1.5)(1.5)

8.6

7.3 7.6 7.7 7.7 7.6


221% 205% 199% 179% 181% 185% 170% 160% 153% 173% 166% 191% 217% 196% 192% 243% 236% 227%

Solvency II


Solvency down on Fresh & market – contribution from operations exceeding dividend accrual

Solvency IIageas

* Impact including secondary impact, diversification & non-transferable

Impact on Solvency IIageas* FY ’19 6M ’20

217% 192%

3M ’20 6M ’20

196% 192%

Debt initiatives -12 ppTender of the Fresh – pre-compensated by

EUR 750 mio T1 in 2019

Model refinements + 2 pp + 1 pp

Market movements

& RPN(i)

- 17 ppQuarterly impact mainly from interest rate

- 5 pp

-1 pp

Operational +11 pp Strong across all operating entities +9 pp

Capital transactions - 4 pp SBB, injection in Asia & additional Fresh - 3 pp

Expected dividend -6 pp -4 pp



Operational FCG of EUR 437 mio*

expected

dividend

Operational impact – includes EUR 116 mio dividend upstream Non-European NCP’s

Market: Covid-19 impact

Capital transactions = SBB, injection in Asia & additional Fresh

Fresh tender pre-compensated by EUR 750 mio T1 in 2019

Based on 175% SCR

Solvency IIageas

Solvency IIageas

In EUR mio*

* FCG Non-European NCP’s over

3M 2020 at EUR (273) mio -

Operational FCG at EUR 121 mio

– not included

2,438

1,980

1,418

491

491

656

65

321

(458)

(669) (178)

(50)

2,929

2,470

2,075116

437



Capitaltransactions

Paid dividend 6M 20



Evolution SCR & OF split between types of impact Solvency IIageas

Own Funds

SCR

In EUR mio

3,973 3,959 3,939

25(14) (33) (12)



Capitaltransactions

Paid dividend 6M 20

8,6348,151

7,567

491

491

656

15

470

(483)

(676)(178) (50)

9,125

8,6428,223



Capitaltransactions

Paid dividend 6M 20



Operational FCG driven by a strong Q2

In EUR mio

Solvency IIageas

EUR mio OF SCR FCG

Quarterly

impact

Belgium 314 14 290 135Strong Non-Life Q2 compensating for weather in Q1

SCR up on asset management actions

UK 44 (2) 47 42 Strong Non-Life Q2 compensating for weather in Q1

CEU 79 (7) 91 51 Strong Non-Life Q2

Reinsurance 34 20 (1) 57 SCR increase following step-up to 40%

General Account 100 27 52 77 including EUR 116 mio dividends from NCP's

Group eliminations (100) (11) (70) (20)

Total Ageas Solvency II

scope470 25 437 342 including EUR 116 mio dividends from NCP's

Solvency

60

High Solvency ratio providing resilience against market or other external evolutions

Solvency IIageas

sensitivities

As per 31/12/19

SCR OF Solvency

Base case Before stress 3,957 8,127 205%

Yield curve Down 50 bps 4,112 7,971 194%

Up 50 bps 3,890 8,424 217%

Equity Down 25% 3,823 7,753 203%

Property Down 10% 4,063 7,875 194%

Spread* Spreads on corporate & government bonds up 50 bps 4,022 7,935 197%

Corporate spread Up 50 bps 3,953 8,159 206%

Sovereign spread Up 50 bps 4,005 7,934 198%

UFR – base case 4.05% Down 15 bps 3,959 8,142 206%

Down 35 bps 3,963 8,114 205%

* Spread sensitivity doesn’t take into

account any credit rating movement


Solvency


Solvency down driven by EIOPA VAPIM

Solvency II PIM

in %

Own Funds

SCR


** minority interest not-fully owned

subsidiaries equals minority interests

exceeding contribution to group SCR

after deduction capital charge related

to participation in AII

In EUR bn

Belgium UK CEU Reinsurance GA eliminations** Group Non EU

Non-controlled

participations*

185% 204% 170% 172% 172% 178% 274% 258% 233% 170% 162% 186% 203% 200% 178% 243% 236% 227%

3.22.8 3.1

0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.4 0.40.2 0.2 0.2 (0.6) (0.5) (0.6)

4.33.8 4.2

3.2 3.3 3.3

5.95.6

5.3

0.9 0.8 0.81.4 1.3 1.2

0.7 0.7 0.8

1.50.9 0.9

(1.7) (1.7)(1.6)

8.77.6

7.47.7 7.7 7.6


Solvency

62

Ageas asset mix not in line with EIOPA reference portfolio

PIMsensitivities

As per 31/12/19

SCR OF Solvency

Base case Before stress 4,238 8,146 192%

Yield curve Down 50 bps 4,410 7,997 181%

Up 50 bps 4,115 8,411 204%

Equity Down 25% 4,072 7,730 190%

Property Down 10% 4,391 7,897 180%

Spread* Spreads on corporate & government bonds up 50 bps 4,589 7,604 166%

Corporate spread Up 50 bps 4,089 8,282 203%

Sovereign spread Up 50 bps 4,726 7,445 158%

UFR – base case 4.05% Down 15 bps 4,268 8,153 191%

Down 35 bps 4,289 8,142 190%

* Credit rating movement not taken

up in spread sensitivity


( 1.5 ) ( 1.5 ) ( 1.5 )

( 1.0 ) ( 0.9 ) ( 0.9 )

( 0.8 ) ( 0.8 ) ( 0.8 )

4.8 4.3 4.6

0.4 0.4

0.3

0.8

0.7 0.8

0.3

0.3 0.3

0.8

0.8 0.8

0.5

0.5 0.5

4.3 3.8

4.2

FY 19 3M 20 6M 20

Non Diversifiable

Non-life UW

Health UW

Life UW

Counterparty Default

Market

Loss-Absorption Deferred Taxes

Loss-Absorption Techn. Liab.

Diversification

Solvency


Composition of SCR & OFComposition of SCR & OF

Diversification

Loss-Absorption Deferred Taxes

Insurance SCRageas per risk type

Market risk movement driven by equity risk

Tiering of Group PIM own funds

Fresh transactions driving Tier 1 & 2

UT1 down on EIOPA VA

5.5 5.3 5.0

1.4 1.2

1.2

1.7

1.0 1.0

0.1

0.1 0.1

8.7

7.6

7.3

FY 19 3M 20 6M 20

Tier 3

Tier 2

Tier 1 restricted

Tier 1

In EUR bn


Content





Legal Settlement 69


Investment portfolio


Investment portfolio stable after drop in Q1


Gross UG/L on

Available for Sale

Gross UG/L on Real

Estate

Gross UG/L on Held

to Maturity

Sovereign bonds 38.4

Sovereign bonds 38.8

Corporate bonds 20.8

Corporate bonds 20.4

Structured0.1

Structured0.1

Loans11.1

Loans12.8

Equities 4.6Equities 4.1

Real Estate5.6

Real Estate5.8

Cash 3.7 Cash 2.1

84.3 84.1

FY 19 6M 20

Total portfolio: at EUR 8.6 bn (vs. EUR 8.7 bn)

Fixed income: up to EUR 8.1 bn (vs. EUR 7.9 bn)

° Sovereigns at EUR 6.8 bn (vs. EUR 6.4 bn)

° Corporates at EUR 1.3 bn (vs. EUR 1.5 bn)

Equities: at EUR 0.5 bn (vs. EUR 0.8 bn)

at EUR 2 bn

• not reflected in shareholders’ equity

Up to EUR 2.6 bn (vs. EUR 2.4 bn)

• not reflected in shareholders’ equity

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

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

In EUR bn



Value fixed income assets up on higher Sovereign bond UG/L


Belgium18.5

Belgium19.1

France 6.3 France 6.3

Austria 2.7 Austria 2.7

Portugal 2.8 Portugal 2.8Spain 2.2 Spain 2.3Italy, 1.5 Italy, 1.5Germany 1.2 Germany 1.3Ireland 0.5

Ireland 0.4Other 2.6 Other 2.4

38.4 38.8

FY 19 6M 20

Gross UG/L up to EUR 6.8 bn (vs. EUR 6.4 bn)

99.9% investment grade; 84% rated A or higher

Belgium duration gap close to zero – matched

portfolio

Sovereign bond

portfolio*

In EUR bn

Loan portfolio

(customers & banks)*

Loans to banks 0.6 Loans to banks 1.1RE 0.2

RE 0.2Infrastructure1.1

Infrastructure 1.2Mortgages 1.2Mortgages 1.2

Other 8.0

Other 9.1

11.1

12.8

FY 19 6M 20

Other: mostly government related loans

benefiting from an explicit guarantee by

the Belgian regions or the French State



Corporate bond portfolio* slightly down on lower UG/L, partial recovery in Q2

* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs ; consolidated @100%

Corporate bond

portfolio – by sector

In EUR bn

Corporate bond

portfolio – by rating

Banking 3.0 Banking 2.7

Other financials 2.4

Other financials 2.4

Non Financials

12.3

Non Financials

12.5

Government related 3.1

Government related 2.9

20.8 20.4

FY 19 6M 20

Credit quality remains high with 90%

investment grade - 51% rated A or higher

BBB exposure only 10% of total investment

portfolio / only 1% BBB-

EUR 1.7 bn regarded as non-rated corporate

investments

Gross UG/L at EUR 1.3 bn (vs. EUR 1.5 bn)

Limited exposure to Oil & Gas, Airlines &

Transportation

Impact Solvency IIageas of all Corporate

bonds 1 notch down <5pp

AAA 10%

AA 15%

A 25%BBB+

17%

BBB17%

BBB-6%

BB or lower 1% Not Rated

9%



In EUR bn


Equity portfolio* Gross UG/L at EUR 0.5 bn (vs. EUR 0.8 bn)

Equities 2.4Equities 2.0

Equity funds0.5 Equity funds

0.6

RE funds 0.9

RE funds 0.9

Mixed funds & others 0.8 Mixed funds &

others 0.5

4.6

4.1

FY 19 6M 20

Real estate portfolio* Gross UG/L at EUR 2 bn (not reflected in

shareholders’ equity but contributing to

available capital for solvency calculation)

Overall positive re-valuation exercise in

Q2 – lower fair value of car parks

compensated by increased fair value of

offices and senior housing Investment Offices 2.6

Investment Offices 2.6

Car Parks1.3

Car Parks1.3



RE Development0.3

RE Development0.3



5.6 5.8

FY 19 6M 20

Equity portfolio* ytd down on lower UG/L, partial recovery in Q2 / Positive revaluation of Real Estate in Q2


Content





Legal Settlement 69


Legal


Settlement in full execution mode

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

16/10/2017

Cash impact of EUR 1.0 bn

No recognition of any wrongdoing by Ageas

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

any legal proceeding related to the events

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

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

Limited number of opt-outs received for ≈1% of total settlement amount

Computershare Investor Services plc acting as independent claims administrator

Further information available on www.FORsettlement.com

≈290K claims received of which ≈228K have received early payment as at end of June 2020

So far more than EUR 780 mio compensation paid to eligible shareholders

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

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

Claims validation and payments to continue in 2020

Announcement

14/03/2016

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

claims filing period

Claims validation &

payments ongoingClaims filing ended on 28/07/2019

http://www.forsettlement.com/

Legal


Recent developments & Proceedings related to the past that remain outstanding

Criminal investigation

Civil proceedings

Other proceedings

Public prosecutor has announced discontinuation of proceeding

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

Written submissions exchanged

Hearing session before the Chambre du Conseil took place on 8 and 9 June 2020

Opt-out cases from settlement

Limited number of opt-outers for ≈1% of settlement amount

Mr. Modrikamen: out-of-court settlement reached on 8 June 2020

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

Cebulon: initiated legal proceedings on 14 July 2020, introductory hearing before

the Utrecht court of first instance on 9 September 2020

MCS: Supreme Court ruled in favour of Ageas on 30 May 2020 ending the proceedings






Legal Settlement 69


Outstandingshares


Another 4 mio shares canceled at Shareholders’ meeting in May 2020

* After deduction of shares for management plans

*

situation 31/12/2019 situation 30/06/2020 situation 06/08/2020

Total Issued Shares 198,374,327 194,553,574 194,553,574

Shares not entitled to dividend nor voting rights 11,747,866 11,356,447 11,519,429

1. TREASURY SHARES Share buy-back 3,820,753 3,429,334 3,592,316

FRESH 3,968,254 1,219,048 1,219,048

Other treasury shares 0 2,749,206 2,749,206

2. CASHES 3,958,859 3,958,859 3,958,859

Shares entitled to dividend & voting rights 186,626,461 183,197,127 183,034,145

Shareholdersstructure


Ageas3.9%

Ping An

BlackRock, Inc.

Fosun

Identified retail investors

22%

Identified institutional investors

43%

Other investors

15%

Based upon press release 6 August 2020

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 30 July 2020

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

Estimate by

Estimate by

Ageas

Ping An

BlackRock, Inc.

Fosun

Identified retail investors

Identified institutional investors

Ratings


S&P MOODY'S FITCH

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

Last review 21/11/19 13/12/19 29/04/20

unsollicited

Ageas Insurance Limited A / positive A+ / stable

Last review 21/11/19 29/04/20

Muang Thai Life BBB+ / Stable A- / negative

Last review 15/04/20 08/05/20

Etiqa Insurance Berhad (Malaysia) A / stable

Last review 06/05/20

China Taiping Life A+ / stable

Last review 14/05/20

Holding ageas SA/NV A / positive

A3 /

stable A+ / stable

Last review 21/11/19 13/12/19 29/04/20

unsollicited


Certain of the statements contained herein are statements of

future expectations and other forward-looking statements that are

based on management's current views and assumptions and involve

known and unknown risks and uncertainties that could cause actual

results, performance or events to differ materially from those

expressed or implied in such statements. Future actual results,

performance or events may differ materially from those in such

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

including in particular economic conditions in Ageas’s core markets,

(ii) performance of financial markets, (iii) the frequency and severity

of insured loss events, (iv) mortality and morbidity levels and trends,

(v) persistency levels, (vi) interest rate levels, (vii) currency exchange

rates, (viii) increasing levels of competition, (ix) changes in laws and

regulations, including monetary convergence and the Economic and

Monetary Union, (x) changes in the policies of central banks and/or

foreign governments and (xi) general competitive factors, in each

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

financial information contained in this presentation, including the pro

forma information contained herein, is unaudited and is provided for

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

the actual results of operations or financial condition of Ageas and its

subsidiaries would have been had these events occurred or

transactions been consummated on or as of the dates indicated, nor

does it purport to be indicative of the results of operations or financial

condition that may be achieved in the future.

Investor Relations

Tel:

E-mail:

Website:

+ 32 2 557 57 32

[email protected]

www.ageas.com

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