ageas reports 6m 2017 result

Periodical Financial Information

6M 2017RESULTS

Table of contents Slides used during analyst call 2

Segment information 20

Equity / Solvency/ FCG 51

Investment portfolio 62

Legal Settlement 67

General Information 70

Main messagesAgeas reports strong first half year

3Periodic financial Information I 6M 17 results I 9 August 2017

*Consolidated entities only

Insurance

performance

Group result

Balance sheet

Share buy back

Insurance net profit of EUR 445 mio (+12% scope-on-scope for HK)

Inflow @ 100% of EUR 20.5 bn (+12%)

Life Guaranteed margin at 114 bps* (vs.108 bps)

Unit-Linked margin at 25 bps* (vs. 28 bps)

Group combined ratio at 95.9%* (vs.99.0%)

Life Technical Liabilities at EUR 74.2 bn* (stable vs. YE 2016)

Group net profit of EUR 284 mio

General Account net loss of EUR 161 mio (vs. EUR 675 mio negative

including provision for Fortis settlement)

Shareholders’ equity at EUR 9.0 bn or EUR 44.53 per share

UG/L at EUR 2.4 bn or EUR 12.11 per share

Insurance Solvency IIageas at 193%, Group ratio at 198%

Operating FCG of Solvency II scope of EUR 625 mio

Total Liquid Assets General Account at EUR 1.7 bn (vs.EUR 1.9 bn)

EUR 0.5 bn dividend upstream from operating companies

New program launched for EUR 200 mio

Running from 21/08/17 until 03/08/18

Independent broker

Open market purchases on NYSE Euronext Brussels

Shares to be held as treasury shares until decision Shareholders’ Meeting

No impact on solvency position of Insurance activities

Ageas announces 7th consecutive share buy-back Bringing amount returned through SBB to EUR 1.65 bn

06/08/12Ageas announces EUR 200 mio SBB



4

09/08/17

Ageas announces

EUR 200 mio SBB

Over 5 programmes

57,521,435 shares bought back

of which

52,938,132 shares cancelled

> 20% of outstanding shares end 2011

04/08/17

Ageas completes 2016

EUR 250 mio SBB

- 7,002,631 shares 02/08/13Ageas announces EUR 200 mio SBB

Periodic financial Information I 6M 16 results I 10 August 2016



Strategic developmentAgeas sells its share in Cargeas (Italian Non-Life activities)


*Consolidated entities only

Ageas reached an agreement with BNP Paribas Cardif to sell

its 50% +1 share in Cargeas Assicurazioni

Estimated capital gain: approximately EUR 75 mio

Subject to regulatory approval - Expected to close before end 2017

Net cash impact EUR 175 mio

No impact on Insurance Solvency IIageas

Impact on Group Solvency IIageas : ≈4% positive

Focus investment on countries where the Group holds stronger positions

Opportunity to crystallize the value created in the past years

2016 Gross inflows : EUR 227 mio

Average contribution to Ageas net result of EUR 10 to 15 mio over the

last years

Transaction details

Details on Cargeas

Rationale

199

305 312

104 133

608

445

6M 16 6M 17

Life Non-Life cap gain AICA

In EUR mio

In EUR bn

In EUR bn

Total Insurance: HeadlinesInflows ahead of EUR 20 bn - Strong first half year net result

6Periodic financial Information I FY 16 results I 15 February 2017

In bps avg technical liabilities In bps avg technical liabilities

* incl. non-consolidated partnerships @ 100%

In % NEP

361

144

46

78

407

222

Q2 16 Q2 17

15.017.2

3.33.3

18.320.5

6M 16 6M 17

Life Non-Life

5.6 6.3

1.6 1.57.2 7.8

Q2 16 Q2 17

99.0 95.9

6M 16 6M 17

100.093.6

Q2 16 Q2 17

108 114

6M 16 6M 17

110 103

Q2 16 Q2 17

28 25

6M 16 6M 17

2818

Q2 16 Q2 17

74.5 74.2 74.2

69.574.1 74.3

144.0 148.2 148.5

FY 16 3M 17 6M 17

conso non-conso

Net result: Solid beginning of the year confirmed in Q2

Non-Life combined ratio: excellent operating performance in BE & CEU

Inflows*: Continued Life inflow growth in Asia driven by regular premiums

Life Technical liabilities up in non-conso

Operating margin Guaranteed: higher investment result & cap gains

Operating margin Unit-Linked: down on sale HK, up in both BE & CEU

2.31.9

1.0

1.0

3.3

2.9

6M 16 6M 17

Life Non-Life

88 74

18 44

106117

Q2 16 Q2 17

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


In EUR mio In EUR bn

In EUR bn

170 180

36

79206

259

6M 16 6M 17

Life Non-Life

1.0 1.0

0.4 0.4

1.4 1.5

Q2 16 Q2 17

59.0 58.6 58.4

FY 16 3M 17 6M 17

104 110

6M 16 6M 17

100.990.3

6M 16 6M 17

102.0

88.0

Q2 16 Q2 17

23 20

Q2 16 Q2 17

23 30

6M 16 6M 17

11196

Q2 16 Q2 17

Belgium : HeadlinesContinued excellent Life & Non-Life operating performance

Life Technical Liabilities stableNon-Life standing out Inflows: anticipated lower Guaranteed sales - strong inflow growth in UL

Non-Life combined ratio - excellent operating performance confirmed

Operating margin Guaranteed: improved investment result & cap gains

Operating margin Unit-Linked: driven by higher underwriting margin

100.1105.7

6M 16 6M 17

In EUR mio


In % of NEP

In EUR bn


35

11

6M 16 6M 17

10 11

Q2 16 Q2 17

101.3 101.3

Q2 16 Q2 17

1,1841,068

6M 16 6M 17

607 545

Q2 16 Q2 17

United Kingdom: HeadlinesOgden rate review continues to influence results

EUR 31 mio on 6M net result – EUR 10 mio in Q2

5.3pp on COR - impacting mainly Motor (4.8pp) & Other lines (17.9pp)

Additional impact of EUR 10 - 15 mio expected in H2, in line with earlier announcements

Risk mitigation product portfolio through stop loss reinsurance cover

Q1 derisking of investment portfolio

EUR 77 mio capital injection executed in Q2

Solvency IIageas restored to 131% at 6M ‘17

Ogden impact

on results

Ogden rate change

impact mitigated

by various actions

Net result impacted by Ogden (EUR 31 mio)

Inflows* flat at constant FX Non-Life combined ratio impacted byOgden (5.3pp)

Continental Europe: Headlines Excellent operating performance



16

30

19

2836

58

6M 16 6M 17

Life Non-Life

916

12

1421

30

Q2 16 Q2 17

2.2 2.3

0.6 0.7

2.83.0

6M 16 6M 17

Life Non-Life

1.2 1.3

0.3 0.3

1.5 1.6

Q2 16 Q2 17

15.5 15.6 15.9

20.0 20.8 21.2

35.5 36.4 37.1

FY 16 3M 17 6M 17

conso non-conso

90.5 90.5

6M 16 6M 17

92.6 92.9

Q2 16 Q2 17

103

133

6M 16 6M 17

96

146

Q2 16 Q2 17

8

20

6M 16 6M 17

17 16

Q2 16 Q2 17

Strong net profit growth in both Life & Non-Life

Continued excellent Non-Life combined ratio in all countries

Steady inflow growth partly on inclusion Ageas Seguros

Operating margin Guaranteed up on higher investment margin

Life Technical liabilities up 5%

Operating margin Unit-Linked significantly up on net underwriting margin


In EUR bn


In EUR mio In EUR bnIn EUR bn


In % NEP


199

119 102

1111

329

113

6M 16 6M 17

Life Non-Life cap gain HK

10.513.0

0.5

0.511.0

13.5

6M 16 6M 17

Life Non-Life

3.5 4.0

0.20.2

3.74.2

Q2 16 Q2 17

65 554 7

269

62

Q2 16 Q2 17

49.5 53.4 53.1

FY 16 3M 17 6M 17

non-conso

91.685.7

Q2 16 Q2 17

89.3 87.0

6M 16 6M 17

Asia: Headlines Solid performance in all major countries

Solid result supported by good business mix

Non-Life combined ratio remains excellent

Inflows* up 22% - continued strong new business & renewals


199

In EUR mio


In % NEPIn EUR mio

Intreas: HeadlinesInternal Non-Life reinsurance company established in July 2015

Net result Inflows Combined ratio

0

2

3

6M 16 6M 17

1

3

Q2 16 Q2 17

2124

6M 16 6M 17

11 14

Q2 16 Q2 17

77.8 77.7

6M 16 6M 17

77.3

63.9

Q2 16 Q2 17

Result negatively impacted by RPN(i) vs. Fortis settlement in Q1 ‘16In EUR mio

Accounting value of remaining legacies

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


Total liquid assets down on SBB & organic investments

In EUR mioImpact on P&L from RPN(i) Staff & Operating expenses down vs.

one-offs in 2016 (Fortis settlement)


In EUR mio

Accounting value on AG Insurance put option: up driven by higher multiples

(675)

(161)

6M 16 6M 17

159

(49)

Q2 16 Q2 17

1.8 1.7 1.6

0.2 0.1 0.1

1.91.8 1.7

FY 16 3M 17 6M 17

net cash liquid assets

(275) (371) (397)

42 44 26

(1,024)(1,024) (1,024)

FY 16 3M 17 6M 17

RPN(i) RPI Settlement

(1,266) (1,340) (1,363)

FY 16 3M 17 6M 17

12 11

4024

53

35

6M 16 6M 17

Staff & Intercompany Operating

8 5

19

12

28

17

Q2 16 Q2 17

67

(122)

6M 16 6M 17

(6)

(26)

Q2 16 Q2 17

In EUR mio

2.8 2.8

0.7 0.6 0.9 0.9

0.0 0.1

(0.3) (0.3)

4.2 4.1

0.1 0.1

4.3 4.2

1.6 1.8

6.9 7.1

0.7 0.71.2

1.4

0.1 0.1(1.5)(1.5)

7.5 7.9

0.70.4

8.1 8.2

4.34.6

FY 16 6M 17 FY 16 6M 17 FY 16 6M 17 FY 16 6M 17 FY 16 6M 17 FY 16 6M 17 FY 16 6M 17 FY 16 6M 17 FY 16 6M 17


Solvency IIageas Insurance up on a strong operational half yearGeneral Account down on put option, SBB & capital injection UK

Solvency IIageas

in %

In EUR bn

Own Funds

SCR

Non EU

Non-controlled

participations*

13

Belgium UK CEU Reins. Diversification Insurance GA Group

Non-transferable

* Based on local solvency requirements

244% 255% 100% 131% 127% 155% 278% 210% 179% 193% 191% 198% 264% 259%

BE: good operational performance & positive spread evolution UK: capital plan executed CEU: good operational performance & positive spread evolution


Group Free Capital Generation roll forwardOperational FCG of EUR 526 mio during H1 ’17, excl. Non-European NCP’s

In EUR mio

14

1,111 1,151

16 122

342

(55) (149)

(419)

122

62

526

FY 16 Modelchanges

M&A(divestments)

Marketimpact

Operationalimpact

Exceptionalitems

Capitaltransactions

M&A(acquisitions)

PaidDividend

6M 17

Calculation based on 175% of SCRageas

EUR 526 mio includes

EUR 122 mio related to stop loss cover in UK

EUR 62 mio dividend upstream from Non-European NCP’s *

More details per segment see next slide

Free Capital

Generation

* Operational FCG generated by Non-European NCP’s of EUR 56 mio over Q1 ’17 is not included in EUR 526 mio

EUR mio

OF SCR FCG

= OF - 175%*SCR

of which UK

stop

loss cover Driven by

Belgium 339 (40) 410

UK 20 (129) 246 219

CEU 137 10 119

Reinsurance 7 15 (18) (24)

General Account 445 3 439

Geographical 99 99 (75) (72) diversification

Group eliminations (596) (596)

Total Ageas

Solvency II scope452 (42) 526 122

Operational impact

10/03/2010 I page 15

Split of operational impact per segmentOperational impact driven by Belgium & CEU


* Expected return on RE investments reduced to 5% (vs. 6% in IR-day data)

SCR reduction due to geographical diversification is

deducted as non-transferable OF

OF up on strong operational results

Impact from consolidation of intra-company elements

Driven by upstream from operating companies


*


Evolution SCR & OF split between types of impact

In EUR mio

16

Own Funds adjusted for

accrued expected

dividend

SCR

4,2574,169

12(11)(42)

(46)

FY 16 Modelchanges

M&A(divestments)

Marketimpact

Operationalimpact

Exceptionalitems

Capitaltransactions

M&A(acquisitions)

PaidDividend

6M 17

8,5608,447

143

452

(3)

(136)

(149)

(419)

FY 16 Modelchanges

M&A(divestments)

Marketimpact

Operationalimpact

Exceptionalitems

Capitaltransactions

M&A(acquisitions)

PaidDividend

6M 17

1,943

Fortis settlement

(417)

(147) (15) (77) (51) (6)

501

18 -

SBB

1,749

FY 16 Upstream Dividend Sharebuy-back

RPI Asia UK Regional& HQ

expenses

Other 6M 17


Total liquid assets General AccountEvolution total liquid assets related to share buy-back & investments in insurance

In EUR mio

Most upstream from opco’s received

2016 SBB completed dd. 04/08/17

Cash-out in Asia related to the Philippines

Cash-out in UK related to capital increase following Ogden impact

Cash inflow of divestment Italy expected before year-end

Belgium268

Belgium168

Belgium294

Belgium333

Belgium391

UK 82

UK 64

UK 50

UK 47 CEU 36

CEU150

CEU 53 CEU 19

CEU 48 Asia 52

Asia106 Asia 43

Asia 89

Asia62

42

438

488

440

487 501

2012 2013 2014 2015 2016 6M 17

18

Disciplined cash upstream from operating companiesTotal upstreamed amount in H1 ’17 at EUR 0.5 bn

Belgium main contributor of cash

Upstream covering dividend & holding costs on FY basis

In EUR mio

Biggest part

of upstream

done in H1

Portugal25

Italy 15

9

Thailand17

China45

Upstream duringbased on net result of the year before

Periodic financial Information I FY 16 results I 15 February 2017

* internal loan granted

*

*

Luxembourg

1. A solid first half with the exception of the UK

2. Further inflow growth especially in Asia with focus on qualitative

regular premium business

3. A strong start of the year





Legal Settlement 67


Periodic financial Information I 6M 17 results I 9 August 2017 21

Key financials

In EUR mio 6M 16 6M 17 Q2 16 Q2 17

Gross inflows 18,342 20,466 12% 7,231 7,793 8%

Net result Insurance 608 445 (27%) 407 222 (45%)

By segment: - Belgium 206 259 26% 106 117 10%

- UK 35 11 (68%) 10 11 6%

- Continental Europe 36 58 64% 21 30 44%

- Asia 329 113 (66%) 268 62 (77%)

- Reinsurance 2 3 1 3By type: - Life 504 312 (38%) 361 144 (60%)

- Non-Life 104 133 28% 46 78 70%

Net result General Account (675) (161) 159 (49)

Net result Ageas (67) 284 566 173Earnings per share (in EUR) (0.32) 1.40

Life Operating Margin Guaranteed (in bps) 108 114 110 103

Life Operating Margin Unit-Linked (in bps) 28 25 28 18

Combined ratio (in %) 99.0 95.9 100.0 93.6

FY 16 6M 17

Shareholders' equity 9,561 8,974 (6%)

Net equity per share (in EUR) 46.56 44.53

Insurance ROE excl.UG/L 10.6% 13.9%

Insurance Solvency IIageas ratio 179% 193%

For a definition see Lexicon in annex to the press release

199

305

312

104

133

608

445

6M 16 6M 17

cap gain AICA Life Non-Life

In EUR mio

In EUR bn

In EUR bn

Total Insurance: HeadlinesInflows ahead of EUR 20 bn - Strong first half year net result


In bps avg technical liabilities In bps avg technical liabilities


In % NEP

361

144

46

78

407

222

Q2 16 Q2 17

15.017.2

3.33.3

18.320.5

6M 16 6M 17

Life Non-Life

5.6 6.3

1.6 1.57.2 7.8

Q2 16 Q2 17

99.0 95.9

6M 16 6M 17

100.093.6

Q2 16 Q2 17

108 114

6M 16 6M 17

110 103

Q2 16 Q2 17

28 25

6M 16 6M 17

2818

Q2 16 Q2 17

74.5 74.2 74.2

69.574.1 74.3

144.0 148.2 148.5

FY 16 3M 17 6M 17

conso non-conso

Net result: Solid beginning of the year confirmed in Q2

Non-Life combined ratio: excellent operating performance in BE & CEU

Inflows*: Continued Life inflow growth in Asia driven by regular premiums

Life Technical liabilities up in non-conso

Operating margin Guaranteed: higher investment result & cap gains

Operating margin Unit-Linked: down on sale HK, up in both BE & CEU

Inflows @ 100% Growth driven by Asian Life & inclusion Ageas Seguros – 2% negative FX


EUR mio 6M 16 6M 17 6M 16 6M 17 6M 16 6M 17

Belgium 75% 2,274 1,891 (17%) 1,015 1,033 2% 3,289 2,924 (11%)

United Kingdom - 1,184 1,068 (10%) 1,184 1,068 (10%)

Consolidated entities 100% - 928 831 (10%) 928 831 (10%)

Non-consolidated JV's 256 237 (7%) 256 237 (7%)0 0

Continental Europe 2,207 2,302 4% 632 715 13% 2,839 3,016 6%

Consolidated entities 930 1,003 8% 334 431 29% 1,264 1,434 13%

Portugal 51% - 100% 669 765 14% 225 319 42% 894 1,084 21%

France 100% 261 238 (9%) 261 238 (9%)

Italy 50% 109 112 2% 109 112 2%

Non-consolidated JV's 1,277 1,299 2% 298 284 (5%) 1,575 1,583 0%

Turkey 36% 298 284 (5%) 298 284 (5%)

Luxembourg 33% 1,277 1,299 2% 1,277 1,299 2%

Asia 10,542 13,007 23% 488 451 (8%) 11,030 13,458 22%

Consolidated entities 100% 183 183

Non-consolidated JV's 10,358 13,007 26% 488 451 (8%) 10,846 13,458 24%

Malaysia 31% 289 338 17% 329 287 (13%) 618 626 1%

Thailand 31%-15% 1,309 1,540 18% 159 163 3% 1,468 1,704 16%

China 25% 8,669 11,000 27% 8,669 11,000 27%

Philippines 50% 1 5 1 5 Vietnam 32% 0 1 0 1 India 26% 91 122 34% 91 122 34%

Insurance Ageas 15,023 17,200 14% 3,319 3,266 (2%) 18,342 20,466 12%#DIV/0! ###### ######

Consolidated entities 3,388 2,894 (15%) 2,277 2,294 1% 5,665 5,188 (8%)

Non-consolidated JV's 11,635 14,306 23% 1,042 972 (7%) 12,678 15,277 21%

Reinsurance 21 24 21 24

Life Non-Life Total

Inflows @ Ageas’s partStrong growth in Asian JV’s & Continental Europe

In EUR mio


1,706 1,418 1,015 1,083

2,859 3,354

5,580 5,856

0

761 774

1,057 950

326 477

126

113

2,269 2,314

(11%)

(10%)

16%

16%

4%

14%

2,467 2,193

1,341 1,560

2,985

3,467

7,849 8,170

21 24

6M 16 6M 17 6M 16 6M 17 6M 16 6M 17 6M 16 6M 17 6M 16 6M 17 6M 16 6M 17

Up 5% @ constant FX

Belgium: down on short-term savings – shift to more UL

UK flat @ constant FX - Asia: up 23% @ constant FX

CEU: Ageas Seguros contributing

EUR 45 mio in Life / EUR 143 mio in Non-Life

Non-Life

Life

Belgium UK CEU Asia Insurance Reins.

Insurance net resultVery strong operating performance across all segments except UK


BE: Solid Life & Non-Life result – good operating & investment result vs. EUR 47 mioterrorism & weather in 6M ‘16

UK: EUR 31 mio Ogden vs. EUR 13 mio weather in 6M ‘16

CEU: Good operating performance - transformation plan Ageas Seguros on track

Asia: Net result up when excluding 2016 non-recurring items: contribution Hong Kong (EUR 212 mio) & exceptional one-off adjustment

Non-Life

Life

Belgium UK CEU Asia Reins. Insurance

In EUR mio

170 180

16 30

318

102

504

312 36

79

1928

11

11

104

133

206

259

35 11

36 58

329

113

2 3

608

445

6M 16 6M 17 6M 16 6M 17 6M 16 6M 17 6M 16 6M 17 6M 16 6M 17 6M 16 6M 17

10/03/2010 I page 26

Overview of net realised capital gains* on investmentsSupport of cap gains somewhat higher in Belgium & UK


* Net capital gains include capital gains, impairment & related changes in profit sharing, net of tax & @ ageas’s part –

CEU JV’s not included

EUR mio 6M 16 6M 17 Q2 16 Q2 17

Life 77 90 35 14 Higher cap gains on equities &

Non-Life 12 11 4 3 RE transactions, mainly Q1

Total Belgium 89 101 39 16

Non-Life 9 20 1 2 Derisking part of

Total UK 9 20 1 2 investment portfolio in Q1

Life (6) (3) (5) 0

Non-Life 0 (0) 0 (0)

Total CEU (6) (3) (5) 0

Life 2 4 (6) 3

Non-Life 2 1 0 1

Total Asia 4 5 (6) 3

Life 72 91 23 17

Non-Life 23 32 5 5

Total Ageas 95 123 29 22


Insurance Combined ratio Solid start of the year confirmed in Q2

Combined ratio

UK Ogden rate change impact of 2.0 pp - mainly in

Other lines & Motor

Only marginal impact from Portuguese fires

6M ’16 included 5.5 pp terrorism & weather impact

Outstanding combined ratio in Belgium (90.3%) &

Continental Europe (90.5%)

Strong performance in all product lines

benign weather conditions

Motor improvement in BE

Claims ratio

CY claims ratio at 66.9% (vs. 73.0%)

PY claims ratio lower on reserves strengthening UK

Expense ratio up in UK

Net earned premium (In EUR mio)

In % Net earned premium

73.2 69.0 68.1 64.3 64.4 62.267.0 64.6 61.0

65.958.2

32.831.1 31.0 34.0 35.2

34.734.1 34.4

34.934.1

35.4

106.0100.1 99.1 98.3 99.6

96.9101.1 99.0

95.9100.0

93.6

(3.7) (3.5) (3.1) (3.8) (4.0) (5.9)(3.0)

(8.4)(5.9) (7.0) (5.1)

2010 2011 2012 2013 2014 2015 2016 6M 16 6M 17 Q2 16 Q2 17

claims ratio expense ratio PY claims ratio

2,858 3,507 4,178 3,749 3,843 4,112 2,045 2,069 1,058 1,045

Insurance Combined ratio per product lineExceptional items impacting COR comparison


Motor: excellent in BE – 2.6 pp OgdenAccident & Health: 4.3 pp terrorism in 6M ’16 – improving

on Portugal

Other: 7.9 pp Ogden vs. 7.3 pp terrorism – good claims ratio

in CEU

Household: very strong COR in BE & CEU – 7.4 pp BE &

UK weather impact in 6M ‘16

71.9 70.5 70.0 67.3 65.4 67.5 73.2 68.2

25.0 25.5 25.6 27.0 28.3 27.228.2

27.4

96.9 96.0 95.6 94.3 93.7 94.7101.4

95.6

2011 2012 2013 2014 2015 2016 6M 16 6M 17

72.0 73.6 69.8 69.6 69.178.2

67.1 68.1

25.3 25.4 29.3 29.7 30.529.7

29.9 30.2

97.3 99.0 99.1 99.3 99.6107.9

97.0 98.3

2011 2012 2013 2014 2015 2016 6M 16 6M 17

61.9 55.6 51.5 51.5 50.4 50.5 56.245.5

41.541.6 44.0 44.6 41.6 42.7

43.144.4

103.497.2 95.5 96.1 92.0 93.2

99.389.9

2011 2012 2013 2014 2015 2016 6M 16 6M 17

67.2 66.5 62.471.2

57.9 60.4 58.2 55.9

44.8 44.9 45.550.6

46.4 44.4 43.5 46.3

112.0 111.4 107.9

121.8

104.3 104.8 101.7 102.2

2011 2012 2013 2014 2015 2016 6M 16 6M 17

NEP 736 763 813 813 811 838 411 437 NEP 1,571 2,058 1,557 1,616 1,724 1,790 893 890

NEP 892 1,007 986 1,029 1,078 1,067 534 534 NEP 308 349 394 385 424 418 208 208

In bps Avg techn. liabilities

Insurance Life operating margin per product lineMargins in Guaranteed driven by investment result

Guaranteed: up in both BE & CEU Unit-linked: increase in both BE & CEU

Operating margin coming down because of divestment of

Hong Kong

Investment margin : good investment result in BE & CEU

Underwriting margin stable

Expense & other margin slightly down in BE


11 13 1217

4 63 2

1

(2)

2

1

2 3 12

37

18

6

18

1919

21 28 14

48

28

20

36

2528

2528

18

2012 2013 2014 2015 2016 6M 16 6M 17 Q2 16 Q2 17

Operating margin

Expense & other m.

Investment m.

Underwriting m.

Avg techn liabilities (In EUR bn)

11.8 12.3 12.6 13.0 12.1 11.9 14.8 11.9 14.8


54.0 55.5 56.9 57.9 57.3 57.1 56.0 57.1 56.0

44 43 38 3341 41 38 43 38

87 83 90

80

88101

116 105104

(33) (31)(39)

(23)(36) (34)

(40) (38) (39)

99 9689

90

93

108

114110

103

2012 2013 2014 2015 2016 6M 16 6M 17 Q2 16 Q2 17

2.31.9

1.0

1.0

3.3

2.9

6M 16 6M 17

Life Non-Life

88 74

18 44

106117

Q2 16 Q2 17




In EUR bn

170 180

36

79206

259

6M 16 6M 17

Life Non-Life

1.0 1.0

0.4 0.4

1.4 1.5

Q2 16 Q2 17

59.0 58.6 58.4

FY 16 3M 17 6M 17

104 110

6M 16 6M 17

100.990.3

6M 16 6M 17

102.0

88.0

Q2 16 Q2 17

23 20

Q2 16 Q2 17

23 30

6M 16 6M 17

11196

Q2 16 Q2 17

Belgium : HeadlinesContinued excellent Life & Non-Life operating performance

Life Technical Liabilities stableNon-Life standing out Inflows: anticipated lower Guaranteed sales - strong inflow growth in UL

Non-Life combined ratio - excellent operating performance confirmed

Operating margin Guaranteed: improved investment result & cap gains

Operating margin Unit-Linked: driven by higher underwriting margin

267 271

309 314

335 339

105 108

+2%

1,015 1,033

6M 16 6M 17

2,052

1,449

223

442

-17%2,274

1,891

6M 16 6M 17

Life In EUR mio

Non-Life In EUR mio


Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

Belgium: Inflows@ 100%Lower inflows in short-term investment products as expected - Slight increase in Non-Life

Guaranteed

Last year’s inflows benefited from the consecutive lowering of the

guaranteed rate over the course of 2016

Currently guaranteed rate stands at 0.25% - As anticipated sales of

short term investment product came down substantially

Unit-linked

Inflows doubling under impulse of focused commercial campaigns in

bank channel during Q2

Group Life

Slight decrease to EUR 520 mio (-3%)

Non-Life

Slight increase in inflows across all product lines


Belgium: Combined ratio Solid operating performance with excellent combined ratio at 90.3%

Net earned premium (in EUR mio)

68.7 64.3 62.7 63.2 63.556.9 58.3 62.7

52.0

63.9

49.8

36.436.8 36.8 36.7 37.7

37.8 37.738.2

38.3

38.1

38.2

105.1101.1 99.5 99.9 101.2

94.7 96.0100.9

90.3

102.0

88.0

(6.6) (7.3) (4.5) (3.6) (3.4)(7.2) (8.2)

(12.7) (11.3) (9.2) (7.6)

2010 2011 2012 2013 2014 2015 2016 6M 16 6M 17 Q2 16 Q2 17


1,541 1,601 1,698 1,785 1,815 1,832 1,836 910 921 458 465

Combined ratio

Excellent ratio driven by solid performance of all

product lines – excellent start of the year has been

confirmed in Q2

6M ’16 combined ratio heavily impacted by

terrorism events of 22 March 2016 (4.2 pp)

adverse weather events (6.2 pp)

Claims ratio

CY ratio (63.2% vs. 75.4%) - operating improvement

vs. 6M ’16 corrected for terrorism & weather

PY ratio: slightly lower releases across most product

lines

Expense ratio stable

73.8 73.0 73.7 70.1 70.4 70.078.9 72.0

23.8 24.0 23.8 25.4 27.6 27.628.1

27.7

97.6 97.0 97.5 95.5 98.0 97.6107.0

99.7

2011 2012 2013 2014 2015 2016 6M 16 6M 17

58.2 65.9 66.187.5

65.8 58.3 57.1 53.6

49.548.1 47.2

47.6

45.044.6 45.6 44.8

107.7114.0 113.3

135.1

110.8102.9 102.7 98.4

2011 2012 2013 2014 2015 2016 6M 16 6M 17

63.050.5 51.4 51.7 43.9 47.8 55.9

40.5

46.9

46.2 45.6 45.745.2 44.8

45.2

45.8

109.9

96.7 97.0 97.489.1 92.6

101.1

86.3

2011 2012 2013 2014 2015 2016 6M 16 6M 17

58.9 64.7 64.7 62.6 56.2 59.7 58.246.8

35.335.8 36.3 37.2

36.4 36.4 36.8

37.2

94.2100.5 101.0

99.8

92.6 96.1 95.0

84.0

2011 2012 2013 2014 2015 2016 6M 16 6M 17

Belgium: Combined ratio per product lineSolid combined ratio in all product lines


NEP 451 480 507 504 484 472 235 239 NEP 525 540 552 562 568 570 283 285

NEP 484 530 564 579 595 605 299 300 NEP 142 149 162 170 185 190 92 96

Accident & Health: Significant improvement - 7.5 pp

terrorism in 6M ‘16

Motor: Excellent combined ratio, driven by Motor Third

Party Liability

Household: Very strong ratio, benefitting from benign

weather - terrorism (1.5 pp) & weather (17.7 pp) in 6M ’16Other: 6M ’16 heavily impacted by terrorism (16.3 pp)

Insurance Life operating margin per product lineStrong margins in Guaranteed & Unit-Linked

Guaranteed: strong thanks to higher capital gains Unit-linked: improved underwriting margin



4 4 (2) 1

(7)

1

(15)

4438

32 31 31 30 2938

20

47

41

30 3231 23 30

23

20

2012 2013 2014 2015 2016 6M 16 6M 17 Q2 16 Q2 17

Operating margin

Investment m.

Expense & other m.

Underwriting m.


44.9 46.4 47.5 48.1 48.7 48.5 48.1 48.5 48.1


5.2 5.4 5.7 5.9 6.1 6.0 7.4 6.0 7.4

32 32 30 25 29 3127

3426

93 88 9588

91

108 119114

105

(29) (31) (38)(27) (34) (35) (36) (37) (34)

9689

87

8686

104110 111

96

2012 2013 2014 2015 2016 6M 16 6M 17 Q2 16 Q2 17

Operating result at EUR 265 mio, up from EUR 253 mio

Investment margin up on improved investment result & cap

gains on RE transactions & equities mainly in Q1

Underwriting margin stable

Expense margin slightly lower

Operating result up from EUR 6.9 mio to EUR 11.2 mio

Driven by improved net underwriting result

FY 14 FY 15 FY 16 6M 17

Guaranteed interest rate 2.71% 2.63% 2.49% 2.40%

Fixed income yield 3.84% 3.71% 3.45% 3.35%

Liabilities Guaranteed(EUR bn) 51.8 50.3 52.9 50.7

FY 15 FY 16 6M 17

Fixed income yield 2.89% 2.11% 1.97%

Reinvested amount (EUR bn) 4.6 4.2 1.2

Newly invested money mostly government related loans & infrastructure loans

>95% investment grade corporates

Guaranteed retail Life:

Yield lowered from 1% to 0.75% as from 1 April 2016

Yield lowered to 0.5% as from 1 August 2016

Yield further lowered to 0.25% as from 1 November 2016

Margin evolution Assets & Liabilities BelgiumYield & guaranteed rate on back book down at the same pace

Life

Back book

New money

Life & Non-Life


1.50%

2.50%

3.50%

4.50%

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q32014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Guaranteed interest rate Total fixed income yield

3,35%

2,40%

Margin evolution Assets & Liabilities BelgiumEvolution of the margin on the back book since 2011


100.1105.7

6M 16 6M 17

In EUR mio


In % of NEP

In EUR bn


35

11

6M 16 6M 17

10 11

Q2 16 Q2 17

101.3 101.3

Q2 16 Q2 17

1,1841,068

6M 16 6M 17

607 545

Q2 16 Q2 17

United Kingdom: HeadlinesOgden rate review continues to influence results

EUR 31 mio on 6M net result – EUR 10 mio in Q2

5.3pp on COR - impacting mainly Motor (4.8pp) & Other lines (17.9pp)

Additional impact of EUR 10 - 15 mio expected in H2, in line with earlier announcements

Risk mitigation product portfolio through stop loss reinsurance cover

Q1 derisking of investment portfolio

EUR 77 mio capital injection executed in Q2

Solvency IIageas restored to 131% at 6M ‘17

Ogden impact

on results

Ogden rate change

impact mitigated

by various actions

Net result impacted by Ogden (EUR 31 mio)

Inflows* flat at constant FX Non-Life combined ratio impacted byOgden (5.3pp)



Non-LifeIn EUR mio

Other

Household

Accident & Health

Motor

United Kingdom: Inflows@ 100%Inflows down 10%, impacted by adverse FX – flat at constant FX

23 18

809746

232210

120

94

-10%1,184

1,068

6M 16 6M 17

Non-Life

Flat @ constant FX - marginal growth in Motor offset by

Accident & Health and Other lines

Motor up 2% @ constant FX driven by premiums from

Commercial & Tesco Underwriting

Household in line with prior year @ constant FX

Other lines down 14% @ constant FX reflecting the planned

run off in Special Risks

Accident & Health down 15% @ constant FX, marginal

impact on total


Restatement for deconsolidation of Tesco Underwriting since 2013. 2015 figures restated for consolidation Non-Life & Other

In % Net earned premium

United Kingdom: Combined ratio COR impacted by Ogden rate change


81.574.6 73.3

65.6 66.3 69.3

80.7

68.2 71.8 69.7 66.7

28.0

25.3 26.532.2 33.5

32.8

31.5

31.933.9

31.6 34.6

109.5

99.9 99.8 97.8 99.8 102.1

112.2

100.1105.7

101.3 101.3

(1.1)0.1

(2.1) (4.0) (4.6) (4.4)

4.5

(5.0)

0.9

(5.8)(1.3)

2010 2011 2012 2013 2014 2015 2016 6M 16 6M 17 Q2 16 Q2 17


948 1,524 2,083 1,562 1,613 1,751 1,598 829 763 416 382

Combined ratio 6M 17

Adverse impact from Ogden (5.3pp) on Other lines &

Motor

Lower PY releases – down 5.9pp due to slowing down

of claims settlements in Motor

Combined ratio Tesco Underwriting 93.8% (vs. 98.5%)

Claims ratio

CY ratio (70.9% vs. 73.2%) – underlying improvement in

Motor & benign weather in Household

Lower PY releases (5.9pp) as claims settle slower in

Motor & reserve strengthening in Other lines

Expense ratio

Expense ratio reflecting improvement in underlying cost

performance offset by lower ancillary income &

commission mix


Restatement for deconsolidation of Tesco Underwriting since 2013. 2015 figures restated for consolidation Non-Life & Other

United Kingdom: Combined ratio per product line

Accident & Health: Driven by higher PY releases Motor: Ogden impact of 4.8 pp, lower PY releases

Other: 17.9 pp Ogden impact – mainly Commercial linesHousehold: Benign weather vs Floods June 2016

97.987.7

78.1 76.266.0

55.8 60.6 56.9

24.023.2

28.2 34.338.7

43.345.7 47.7

121.9110.9 106.3 110.5

104.799.1

106.3 104.6

2010 2011 2012 2013 2014 2015 6M 16 6M 17

82.9 79.2 77.2 71.9 74.6 75.8 72.0 79.6

23.3 19.5 21.325.0 25.1 27.2 25.9

26.5

106.298.7 98.5 96.9 99.7 103.0

97.9106.1

2010 2011 2012 2013 2014 2015 6M 16 6M 17

77.461.4 62.3

51.4 51.062.2 60.2 53.4

38.2

35.3 36.742.4 43.3

37.3 41.546.3

115.6

96.7 99.093.8 94.3

99.5 101.7 99.7

2010 2011 2012 2013 2014 2015 6M 16 6M 17

75.1 71.6 67.7 59.8 56.0 55.3 64.6 68.8

30.4 39.3 42.144.4 54.3 48.6

43.1 46.0

105.5 110.9 109.8104.2

110.3103.9 107.7

114.8

2010 2011 2012 2013 2014 2015 6M 16 6M 17

NEP 532 949 1,420 907 958 1,062 526 480

NEP 248 366 434 374 399 413 186 176 NEP 110 143 173 202 185 204 96 92

Continental Europe: Headlines Excellent operating performance



16

30

19

2836

58

6M 16 6M 17

Life Non-Life

916

12

1421

30

Q2 16 Q2 17

2.2 2.3

0.6 0.7

2.83.0

6M 16 6M 17

Life Non-Life

1.2 1.3

0.3 0.3

1.5 1.6

Q2 16 Q2 17

15.5 15.6 15.9

20.0 20.8 21.2

35.5 36.4 37.1

FY 16 3M 17 6M 17

conso non-conso

90.5 90.5

6M 16 6M 17

92.6 92.9

Q2 16 Q2 17

103

133

6M 16 6M 17

96

146

Q2 16 Q2 17

8

20

6M 16 6M 17

17 16

Q2 16 Q2 17

Strong net profit growth in both Life & Non-Life

Continued excellent Non-Life combined ratio in all countries

Steady inflow growth partly on inclusion Ageas Seguros

Operating margin Guaranteed up on higher investment margin


Operating margin Unit-Linked significantly up on net underwriting margin


In EUR bn


Life In EUR mio

Non-Life In EUR mio

Continental Europe: Inflows @ 100%Focus on Unit-Linked sales in Life & strong overall growth in Non-Life

42

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

208 242

210233

142157

73

82

+13%

632

715

6M 16 6M 17

1,145905

1,0621,397

+4%

2,2072,302

6M 16 6M 17


Life

Inflows including non-controlling interests @ 100%, reached EUR 2.3

billion (+ 4%) - Increase mainly realised in Portugal & Luxembourg

Consolidated inflows up 8%

Portugal: up 14%, outperforming the Portuguese market (+ 3% @

end May) - higher Unit-Linked sales & retirement offer in Ocidental –

Ageas Seguros contributing EUR 45 mio

France: down 9% reflecting market downward trend – growing

importance of Unit-Linked in business mix – high level of single

premium in Q1 ‘16

Luxembourg: up 2% - strong Unit-Linked sales in High Net Worth

segment

Technical liabilities

Consolidated at EUR 15.9 bn, slightly up thanks to Portugal

Including non-consolidated JVs @ 100%: at EUR 37.1 bn, up 5%

Non-Life

Inflows consolidated entities up 29% driven by a strong performance in

all companies & scope change - Ageas Seguros contributing EUR 143

mio

Turkey up 15% @ constant FX – strong growth in all main product lines,

especially Household

43

Continental Europe: Combined ratio Excellent combined ratio well below Group target

* Scope: only consolidated companies

In % Net earned premium*



71.0 66.4 63.6 63.7 61.355.9 58.6 61.0 61.7 62.4 62.2

30.330.3

29.8 30.0 30.8

29.530.1 29.5 28.8 30.2 30.7

101.396.7

93.4 93.7 92.1

85.488.7 90.5 90.5 92.6 92.9

1.9(2.0) (2.5) (4.0) (4.3) (6.5) (6.5) (4.7) (6.6) (4.5) (6.8)

2010 2011 2012 2013 2014 2015 2016 6M 16 6M 17 Q2 16 Q2 17


369 382 397 403 415 454 664 297 375 179 191

Combined ratio

Reflecting continued strong operating performance

with gradual improvement since 2010

Stable vs. 6M 2016 despite inclusion of Ageas

Seguros with impact on product mix & still in the

midst of its transformation plan

Limited impact of Pedrogão fires in Portugal

Strong improvement in Turkey with solid combined

ratio @ 94.2% (vs. 98.8%)

Claims ratio

CY ratio at 68.3% (vs 65.7%) increasing due to more

large claims in Motor (Italy) & Health (both Italy &

Portugal)

PY ratio driven by positive run-off in all companies

Expense ratio

Expense ratio decreased partially due to timing

difference

Continental Europe: Combined ratio per product lineContinued good claims experience

Motor: large claims in Italy & inclusion Ageas SegurosAccident & Health: improving on higher PY run-off in

Portugal

Household: overall lower expense ratio & good claims

experience at Ocidental despite recent fires

Other: good current claims ratio & higher run-offs

44

64.2 63.5 63.3 59.7 61.9 58.8 64.9 66.5 64.2

31.6 27.8 28.2 26.6 26.7 25.225.1 25.8 25.2

95.891.3 91.5

86.3 88.684.0

90.0 92.3 89.4

2010 2011 2012 2013 2014 2015 2016 6M 16 6M 17

NEP 205 220 226 227 238 255 328 154 183

90.571.8 69.8

79.360.1

71.5 65.5 66.2 73.3

27.0

29.2 28.129.2

31.6

32.332.5 31.9

29.0

117.5

101.0 97.9108.5

91.7

103.898.0 98.1 102.3

2010 2011 2012 2013 2014 2015 2016 6M 16 6M 17

73.394.5

62.8 59.672.3

31.712.1

32.6 8.3

39.0

50.0

43.3 43.745.1

40.8

41.3

35.855.5

112.3

144.5

106.1 103.3117.4

72.5

53.4

68.4 63.8

2010 2011 2012 2013 2014 2015 2016 6M 16 6M 17

53.5 53.7 51.8 53.5 54.036.1 42.3 44.3 46.1

27.7 34.2 33.5 38.8 40.3

35.938.0 35.2 30.6

81.287.9 85.3

92.3 94.3

72.080.3 79.5 76.7

2010 2011 2012 2013 2014 2015 2016 6M 16 6M 17

NEP 21 23 28 29 30 35 43 20 20NEP 39 42 44 48 51 70 91 42 51

NEP 104 97 99 99 96 94 202 82 121


Continental Europe Life operating margin per product lineUp in both Guaranteed & Unit-Linked

Guaranteed: increase thanks to higher investment margin Unit-linked: significantly up on expense & other margin

45

Expense & other margin improved mainly thanks to higher

fees & commissions

Underwriting margin up on higher surrender margin

Investment margin up thanks to Ocidental

Underwriting margin up thanks to higher risk margin

Expenses & other margin slightly increasing due to Portugal



118 106 95 100 110 97 106 98 112

6968 77 59

7671

96

60

103

(85) (83)(102)

(71) (65) (65) (69) (62) (69)

10291 70

88

121103

133

96

146

2012 2013 2014 2015 2016 6M 16 6M 17 Q2 16 Q2 17


7.8 7.6 7.7 8.0 8.7 8.6 7.9 8.6 7.9


6.1 6.3 6.2 6.1 6.0 5.9 7.4 5.9 7.4

1 (5)0 1 2 1 2 4

2 1 1 2 2

6

3

4

41

51

9 4 5 5

12

158

44

47

107 7 8

2017

16

2012 2013 2014 2015 2016 6M 16 6M 17 Q2 16 Q2 17

Operating margin

Expense & other m.

Underwriting m.

Investment m.

In EUR mio In EUR bnIn EUR bn


In % NEP


199

119

102

11

11

329

113

6M 16 6M 17

cap gain HK Life Non-Life

10.513.0

0.5

0.511.0

13.5

6M 16 6M 17

Life Non-Life

3.5 4.0

0.20.2

3.74.2

Q2 16 Q2 17

65 554 7

269

62

Q2 16 Q2 17

49.5 53.4 53.1

FY 16 3M 17 6M 17

non-conso

91.685.7

Q2 16 Q2 17

89.3 87.0

6M 16 6M 17

Asia: Headlines Solid performance in all major countries

Solid result supported by good business mix

Non-Life combined ratio remains excellent

Inflows* up 22% - continued strong new business & renewals


199

Life

Non-Life


10,443

12,520

99

487

+23%

10,542

13,007

6M 16 6M 17

206 201

58 61

54 54

170 135

-8%488

451

6M 16 6M 17

Unit-Linked

Guaranteed

Other

HouseholdAccident & Health

Motor

In EUR mio

In EUR mio

Asia: Inflow @ 100%Strong Life growth across all markets – Non-Life growth in profitable product lines

Life

New business premiums up 11% with EUR 3.5 bn regular premium

(+30%) & EUR 2.9 bn single premium (-6%)

Renewal premiums increased to EUR 6.6 bn (+38%) benefiting from

continued good persistency

China +29% @ constant FX - New business premiums up 14% mainly

driven by regular business following successful sales campaigns &

increased number of agents

Thailand +12% @ constant FX – strong growth in renewal (+16%)

thanks to continued customer loyalty

Malaysia +22% @ constant FX - Renewals up 25% @ constant FX

India +27% @ constant FX - growth in both new business (+44%) &

renewal premiums (+12%)

Philippines Inflows @ EUR 5 mio mainly from credit life products

Vietnam started sales as of March 2017 with YTD inflows @ EUR1m

Non-Life

Malaysia -9% @ constant FX - lower MAT & Motor partly compensated

by higher Personal Accident & Fire

Thailand -2% @ constant FX - growth in Fire offset by lower inflows in

Motor & other Non-Motor

Result negatively impacted by RPN(i) vs. Fortis settlement in Q1 ‘16In EUR mio

Accounting value of remaining legacies

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


Total liquid assets down on SBB & organic investments

In EUR mioImpact on P&L from RPN(i) Staff & Operating expenses down vs.

one-offs in 2016 (Fortis settlement)


In EUR mio

Accounting value on AG Insurance put option: up driven by higher multiples

(675)

(161)

6M 16 6M 17

159

(49)

Q2 16 Q2 17

1.8 1.7 1.6

0.2 0.1 0.1

1.91.8 1.7

FY 16 3M 17 6M 17

net cash liquid assets

(275) (371) (397)

42 44 26

(1,024)(1,024) (1,024)

FY 16 3M 17 6M 17

RPN(i) RPI Settlement

(1,266) (1,340) (1,363)

FY 16 3M 17 6M 17

12 11

4024

53

35

6M 16 6M 17

Staff & Intercompany Operating

8 5

19

12

28

17

Q2 16 Q2 17

67

(122)

6M 16 6M 17

(6)

(26)

Q2 16 Q2 17

In EUR mio

1,943

Fortis settlement

(417)

(147) (15) (77) (51) (6)

501

18 -

SBB

1,749

FY 16 Upstream Dividend Sharebuy-back

RPI Asia UK Regional& HQ

expenses

Other 6M 17


Total liquid assets General AccountEvolution total liquid assets related to share buy-back & investments in insurance

In EUR mio

Most upstream from opco’s received

2016 SBB completed dd. 04/08/17

Cash-out in Asia related to the Philippines

Cash-out in UK related to capital increase following Ogden impact

Cash inflow of divestment Italy expected before year-end


Main characteristics Hybrids

In EUR mio Ageas

AgeasfinluxFresh

Fixed-to-FloatingRate Callable

Fixed Rate Reset Perpetual

Subordinated Loans

Fixed Rate Reset Dated Subordinated

NotesCASHES

% 3m EUR + 135 bps 5.25% 6.75% 3.5% 3m EUR +200 bps

Amountoutstanding

1,250 450 550 USD 400 948

ISIN XS0147484074 BE6261254013 BE6251340780 BE6277215545 BE0933899800

Call dateUndated,

strike 315.0 mandatory 472.5

Jun 24Step up to 3M

Euribor +413 bps

Mar 19 Step up to 6yr USD

swap + 533 bps

June 2027Step up after 12 years of 100bps

Undated, strike 239.4, mandatory

359.1

OtherSubscribed byAgeas & BNP Paribas Fortis

Public issue Public issueCoupon served by FBB, trigger ACSM linked to

Ageas dividend

Market Price (30/06/17)

59.88 120.38 105.10 105.25 78.28

Fortis Bank (now BNP PF)

AG Insurance (Belgium)





Legal Settlement 67



Shareholders’ equity at EUR 9.0 bn - UG/L of EUR 12.11/shareDown on return to shareholders, put option & FX, partly compensated by net result on H1

In EUR mio

6,459 6,375

2,4982,444

604

155

445

16 (161) (30) (419) (149) (146) (140) (2)

EUR 46.56 EUR 44.53

9,5618,974

FY 16 ResultInsurance

ResultGen Acc

ChangeUG/L

Dividend TreasuryShares

Reval AGput option

Forex IAS 19 Other 6M 17

InsuranceUCG/L

InsuranceUCG/L

Shareholders’

equity per

segment

Shareholders’

equity per share

Belgium 4,683 ► 4,560 Asia 2,004 ► 1,915

UK 815 ► 852 Reinsurance 104 ► 107

Continental Europe 1,350 ► 1,384 Insurance 8,957 ► 8,819

General Account 604 ► 155

53

Tangible net equityHigh quality capital structure

10/03/2010 I page 53

EUR bn FY 16 6M 17

IFRS Shareholders' Equity 9.6 9.0

Unrealised gains real estate 0.5 0.5

Goodwill (0.7) (0.7)

VOBA (Value of Business Acquired) (0.1) (0.1)

DAC (Deferred Acquisition Cost) (0.5) (0.5)

Other (0.4) (0.4)

Goodwill, DAC, VOBA related to N-C interests 0.4 0.4

25% tax adjustment DAC, VOBA & Other 0.2 0.2

IFRS Tangible net equity 8.9 8.3

IFRS Tangible net equity/ IFRS Shareholder's Equity 93% 93%


2.8 2.8

0.7 0.6 0.9 0.9

0.0 0.1

(0.3) (0.3)

4.2 4.1

0.1 0.1

4.3 4.2

1.6 1.8

6.9 7.1

0.7 0.71.2

1.4

0.1 0.1(1.5)(1.5)

7.5 7.9

0.70.4

8.1 8.2

4.34.6



Solvency IIageas Insurance up on a strong operational half yearGeneral Account down on put option, SBB & capital injection UK

Solvency IIageas

in %

In EUR bn

Own Funds

SCR

Non EU

Non-controlled

participations*

54


Non-transferable


244% 255% 100% 131% 127% 155% 278% 210% 179% 193% 191% 198% 264% 259%

BE: good operational performance & positive spread evolution UK: capital plan executed CEU: good operational performance & positive spread evolution

55

Ageas Insurance Solvency sensitivitiesProviding updated sensitivities to allow more accurate assessment


As per 31/12/’16Based on Solvency IIageas

SCR OF Solvency

Base caseBefore stress

4,182 7,478 179%

Yield curve downDown 50 bps

4,456 7,407 166%

Yield curve upUp 50 bps

3,942 7,452 189%

UFRDown to 3.65% (from 4.2%)

4,235 7,396 175%

EquityDown 30%

3,958 6,954 176%

PropertyDown 20%

4,079 7,189 176%

SpreadSpreads on corporate & government bonds up 50 bps

4,401 6,888 157%

Corporate spreadSpreads on corporate bonds up 50 bps

4,054 7,501 185%

Sovereign spreadSpread on government bonds up 50 bps

4,546 6,849 151%


Insurance SCRageas per risk typeMarket risk main factor in SCR

Market risk slightly up on changes in

asset mix

56

In EUR bn

( 1.5 ) ( 1.4 )

( 0.5 ) ( 0.6 )

( 1.0 ) ( 1.1 )

4.3 4.4

0.3 0.3 0.6 0.6 0.4 0.4 0.8 0.8

0.7 0.7

4.2 4.1

FY 16 6M 17

Non Diversifiable

Non-life UW

Health UW

Life UW

Counterparty Default

Market

Loss-Absorption Deferred Taxes

Loss-Absorption Techn. Liab.

Diversification

Diversification

Loss-Absorption Deferred Taxes

LACDT


Solvency PIM – as reported to the regulator under Pillar IInsurance ratio up on a strong operational performance

Solvency II PIM

in %

In EUR bn

Own Funds

SCR

Non EU

Non-controlled

participations*

57

3.4 3.2

0.7 0.6 0.8 0.7

0.0 0.1 (0.3) (0.2)

4.6 4.3

0.1 0.1

4.7 4.4

1.6 1.8

6.8 6.9

0.7 0.7

1.7 1.9

0.1 0.1(1.6) (1.7)

7.6 7.9

0.50.2

8.1 8.1

4.34.6




Non-transferable

201% 215% 96% 127% 211% 259% 259% 200% 166% 183% 174% 184% 264% 259%


Tiering of Group PIM own funds High quality of own funds

58

In EUR bn

5.7 5.7

1.4 1.4

0.9 0.9

0.1 0.1

8.1 8.1

FY 16 6M 17

Tier 3

Tier 2

Tier 1 restricted

Tier 1


Group Free Capital Generation roll forwardOperational FCG of EUR 526 mio during H1 ’17, excl. Non-European NCP’s

In EUR mio

59

1,111 1,151

16 122

342

(55) (149)

(419)

122

526

62

FY 16 Modelchanges

M&A(divestments)

Marketimpact

Operationalimpact

Exceptionalitems

Capitaltransactions

M&A(acquisitions)

PaidDividend

6M 17

Calculation based on 175% of SCRageas

EUR 526 mio includes

EUR 122 mio related to stop loss cover in UK

EUR 62 mio dividend upstream from Non-European NCP’s *

More details per segment see next slide

Free Capital

Generation

* Operational FCG generated by Non-European NCP’s of EUR 56 mio over Q1 ’17 is not included in EUR 526 mio

EUR mio

OF SCR FCG

= OF - 175%*SCR

of which UK

stop

loss cover Driven by

Belgium 339 (40) 410

UK 20 (129) 246 219

CEU 137 10 119

Reinsurance 7 15 (18) (24)

General Account 445 3 439

Geographical 99 99 (75) (72) diversification

Group eliminations (596) (596)

Total Ageas

Solvency II scope452 (42) 526 122

Operational impact

10/03/2010 I page 60

Split of operational impact per segmentOperational impact driven by Belgium & CEU


* Expected return on RE investments reduced to 5% (vs. 6% in IR-day data)

SCR reduction due to geographical diversification is

deducted as non-transferable OF


Impact from consolidation of intra-company elements

Driven by upstream from operating companies


*


Evolution SCR & OF split between types of impact

In EUR mio

61

Own Funds adjusted for

accrued expected

dividend

SCR

4,2574,169

12(11)(42)

(46)

FY 16 Modelchanges

M&A(divestments)

Marketimpact

Operationalimpact

Exceptionalitems

Capitaltransactions

M&A(acquisitions)

PaidDividend

6M 17

8,5608,447

143

452

(3)

(136)

(149)

(419)

FY 16 Modelchanges

M&A(divestments)

Marketimpact

Operationalimpact

Exceptionalitems

Capitaltransactions

M&A(acquisitions)

PaidDividend

6M 17





Legal Settlement 67



In EUR bn

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

Asset mix

Asset allocation relatively stable

Loans & equities increased at the expense of corporate bonds

Gross unrealized gains/losses on Available for Sale

Total portfolio: down to EUR 7.5 bn (vs. EUR 8.3 bn); down in

fixed income & corporate bonds

Fixed income: at EUR 6.7 bn (vs. EUR 7.7 bn FY 16)

Sovereigns at EUR 5.2 bn (vs. EUR 5.8 bn)

Corporates at EUR 1.6 bn (vs. EUR 1.8 bn)

Equities: slightly up to EUR 0.7 bn (vs. EUR 0.6 bn)

Gross UG/L on Real Estate: slightly up to EUR 1.6 bn (vs.

EUR 1.5 bn) - not reflected in shareholders’ equity

EUR 2.2 bn unrealized gains/losses on Held to Maturity (vs.

EUR 2.4 bn) - not reflected in shareholders’ equity

Investment portfolio Investment portfolio down on unrealized capital gains on fixed income

Sovereign bonds 37.9

Sovereign bonds 37.6

Corporate bonds 24.1

Corporate bonds 22.0

Structured0.1 Structured

0.1

Loans8.7 Loans

9.1

Equities 4.4Equities 4.8

Real Estate5.3

Real Estate5.3

Cash 2.2Cash 2.2

82.781.1

FY 16 6M 17

Decrease driven by lower UG/L

Gross UG/L at EUR 5.2 bn (vs. EUR 5.8 bn)

93% investment grade; 86% rated A or higher

Belgium Duration gap close to zero – matched portfolio

Belgium19.0

Belgium18.6

France 6.3 France 6.3

Austria 2.9 Austria 2.8

Portugal 2.4 Portugal 2.5

Italy 1.5 Italy 1.4

Spain, 1.5 Spain, 1.4Germany 1.2 Germany 1.2

Ireland 0.7 Ireland 0.7Other 2.4 Other 2.7

37.9 37.6

FY 16 6M 17

In EUR bn

Sovereign bond portfolio*

Sovereign & Corporate bond portfolioValue fixed income portfolio driven by a decrease in unrealized capital gains


Proceeds of maturities not fully reinvested

Gross UG/L at EUR 1.6 bn (vs. EUR 1.8 bn)

Credit quality remains high with 94% investment grade

- 57% rated A or higher

Corporate bond portfolio*

Banking 3.8 Banking 3.4

Other financials 1.9

Other financials 1.5

Non Financials

13.5

Non Financials

13.0

Government related 4.9 Government

related 4.1

24.122.0

FY 16 6M 17


Loan portfolio (customers + banks)*

Loan & Equity portfolioMore loans with guarantee

Loans to banks 1.3

Loans to banks 1.4

RE 0.2 RE 0.2

Infrastructure0.5

Infrastructure0.6

Mortgages 1.3 Mortgages 1.2

Other 5.4Other 5.7

8.79.1

FY 16 6M 17

Increase in other: loans benefiting from an explicit

guarantee by the Belgian regions or the Dutch State

Higher exposure in loans to customers


Equity portfolio*

Gross UG/L slightly up to EUR 0.7 bn (vs. EUR 0.6 bn)

Equities 2.5 Equities 2.7

Equity funds0.3

Equity funds0.3

RE funds 0.8RE funds 0.8

Mixed funds & others 0.9

Mixed funds & others 1.0

4.44.8

FY 16 6M 17


In EUR bn


Real estate portfolio

10/03/2010

Gross UG/L slightly up to EUR 1.6 bn (not reflected

in shareholders’ equity but contributing to available

capital for solvency calculation*)

Real Estate exposure mainly in BelgiumInvestment Offices 2.2

Investment Offices 2.3

Car Parks1.1

Car Parks1.2

Investment Retail 1.4

Investment Retail 1.2

0.2 0.2

0.4 0.4

5.3 5.3

FY 16 6M 17

Investment Warehouses

RE Development

Investment

Warehouses

RE Development

In EUR bn






Legal Settlement 67



Settlement between Ageas & claimants organisationsJudgment on 16 June 2017

Ageas pays EUR 1,204 mio compensation - Cash impact of EUR 1,021 mio

P&L impact of EUR 889 mio in 3M 2016

Commitment by eligible shareholders to abandon any ongoing civil proceeding &

not to start any legal proceeding related to the events

Settlement not declared binding in current format

Court offers opportunity for amendments

No objective justification for distinction between active & non-active claimants

High compensation for claimant organizations

All parties involved are willing to restart negotiations

Amsterdam Court decision has no impact on P&L or Solvency

Financial flexibility of Ageas has not changed

More details on compensation per share & calculation aid available on

www.Forsettlement

Announcement

14/03/2016

Court’s interim

decision

Court’s main

objections

Other

considerations

http://www.forsettlement/

69

Fortis SettlementRevised indicative timeline after Court’s interim decision

6. Court’s interim decision16/06/2017

7. Deadline filing amended settlement

17/10/2017

8. Reply opponents

28/11/2017

9. Second public hearing

estimated first half 2018

11. Implementationof

amendedsettlement(if any) if approved by Court

1.Announcement Original Settlement14/03/2016

2. Filing

23/05/2016

3. Pre-hearing

25/08/2016

4. Notification &

Announcement

5. Hearing

24/03/2017

10. Court’s decision

est.

mid 2018

by

end 2019...






Legal Settlement 67


situation 31/12/2016 situation 30/06/2017 situation 05/08/2017

216,570,471 209,399,949 209,399,949

15,143,439 11,805,303 12,380,839

7,170,522 3,878,190 4,453,726

3,968,254 3,968,254 3,968,254

45,804 0 0

3,958,859 3,958,859 3,958,859

201,427,032 197,594,646 197,019,110


Total number of outstanding shares7.2 mio bought back shares canceled

SBB &

cancellation

cancellation

SBB

Total Issued Shares

Shares not entitled to dividend nore voting rights

1. TREASURY SHARES Share buy-back

FRESH

Other treasury shares

2. CASHES

Shares entitled to dividend & voting rights

* After deduction of shares for management plans

*


Shareholders structureAgeas above 5% threshold following SBB

Based on number of shares as at 5 August 2017

Ageas4.0%

Ping An

BlackRock, Inc.

Schroders

Norges

Franklin Mutual Advisers

Identified retail investors

20%

Identified institutional investors

39%Other investors

14%

Based upon press release 7 August 2017

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 17 March 2014

Based upon the number of shares mentioned in the notification received 14 December 2015

Based upon the number of shares mentioned in the notification received 5 June 2017

Based upon the number of shares mentioned in the notification received 14 July 2015

Estimate by

Estimate by

Ageas

Ping An

BlackRock, Inc.

Schroders

Norges

Franklin Mutual Advisers

Identified retail investors

Identified institutional investors


Financial calendar 2016 - 2017

15 February

FY 2016 results

10 May

3M 2017 results

17 May

Ordinary & Extraordinary

shareholders’ meeting Brussels

29 May

Ex-dividend date

7 April

Annual report 2016

31 May

Payment 2016 dividend

9 August

6M 2017 results

8 November

9M 2017 results

10 August

6M 2016 results

16 November

9M 2016 results

26 September

Investor Dinner

6 June

Investor Day


RatingImproved rating for operating entities

S&P MOODY'S FITCH

Operating AG Insurance (Belgium) A / stable A2 / stable* A+ / stable

entities Last change 06/11/15 17/03/16 09/12/16

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 29/12/10 27/07/16

Etiqa Insurance Berhad (Malaysia) BBB+ / stable

Last change 27/07/16

China Taiping Life A+ / stable


Intreas A / stable


Holding ageas SA/NV BBB / stable Baa3 / positive* A / stable

Last change 15/03/16 30/11/16 09/12/16

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 34

[email protected]

www.ageas.com