3M 2020 RESULTS Periodical Financial Information
Content Slides used during analyst call 2 Segment information 15 Equity / Solvency 50 Investment portfolio 62 Legal Settlement 67 General Information 70 Periodical financial information I 3M 20 results I 13 May 2020 2
Ageas Main messages Resilient operational performance in Covid-19 era First quarter Group net result strongly supported by exceptional non-cash one-off Results Overall solid underlying operational performance mitigating lower investment result due to Covid-19 pandemic Strong solvency and cash position Finalization of Fresh Tender offer Capital management Additional tranche acquired early April Dividend Intention to pay full announced dividend with adjusted distribution after guidance by Insurance regulator Impact on economy and financial markets likely to continue to affect Ageas’s Covid-19 performance and results. As a consequence, Ageas cannot confirm its profit guidance for 2020. Periodical financial information I 3M 20 results I 13 May 2020 3
Investment portfolio Limited investments in corporate bonds Not rated BB or lower 9% In EUR bn 1% AAA BBB- BBB exposure only 9% of t otal investment 12% 5% portfolio / o nly 1% BBB- AA Impact Solvency II ageas of all Corporate bonds 16% BBB 1 notch down <5pp 16% Sovereign BBB+ A bonds 16% 25% 47% Corporate bonds 24% Transportation 4% Limited exposure to Oil & Gas (86% rated A Oil & Gas Airlines 3% or higher), Airlines (all BBB) & Transportation 1% Real (77% rated A or higher) Estate Other Loans Cash 7% Equities financials 14% 3% 5% 12% Non Financials Banking 51% 14% Government related 15% * All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs ; consolidated @100% Periodical financial information I 3M 20 results I 13 May 2020 4
Ageas Group net result up on Fresh cap gain – Resilient Headlines underlying insurance performance Inflows*: Lower Life – continued Net result: Lower cap gains, weather & Life Technical liabilities* increasing in Fresh tender growth in Non-Life non-conso In EUR mio In EUR bn In EUR bn 163.0 159.6 452 12.8 24 12.0 82.2 87.5 1.7 89 1.9 251 11.1 10.0 35 339 3.9 3.4 73.6 72.1 223 (7) 3M 19 3M 20 FY 19 3M 20 3M 19 3M 20 conso shadow non-conso Life Non-Life GA Life Non-Life Combined ratio impacted by bad weather in Guaranteed Margin: lower investment Operating margin Unit-Linked: Up in both periods (8pp in ‘20 vs. 6pp in ‘19) Belgium & Portugal – Down in France result In % NEP In bps avg technical liabilities In bps avg technical liabilities 99.7 98.3 88 56 28 18 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 * incl. non-consolidated partnerships @ 100% Periodical financial information I 3M 20 results I 13 May 2020 5
Belgium Solid underlying performance offset by adverse Headlines financial markets & weather Net result: EUR 88 mio lower net capital Inflows: 3M 19 included UL cash-back Life Technical Liabilities lower due to gains campaign - Non-Life +4% decrease of UL unit prices In EUR mio In EUR mio In EUR bn 61.3 60.2 2,068 1,758 3.1 2.8 661 81 686 12 58.2 57.4 1,407 69 12 1,072 18 (6) 3M 19 3M 20 FY 19 3M 20 3M 19 3M 20 excl shadow shadow Life Non-Life Life Non-Life Operating margin Unit-Linked – 3M 19 incl. Non-Life combined ratio impacted by Operating margin Guaranteed suffered cost of cash back campaign ( ≈ 15 bps) weather (12 pp) - Solid Motor & Other lines from financial markets (-44 bps) In % NEP In bps avg technical liabilities In bps avg technical liabilities 78 104.2 100.3 47 26 1 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 Periodical financial information I 3M 20 results I 13 May 2020 6
UK Headlines Weather events heavily impacting net result Net result impacted by weather events Inflows* stable compared with 3M 2019 Non-Life combined ratio @ 98.7% (Ciara & Dennis storms) In EUR bn excluding February weather events In EUR mio In % of NEP 11 425 424 107.1 95.5 1 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 * incl. non-consolidated partnerships @ 100% Periodical financial information I 3M 20 results I 13 May 2020 7
CEU Strong operating performance Headlines Life result supported by reserve release Inflows down 17% on low i-rates – strong Net result strongly up on reserve release Life Technical liabilities 6% down due to in Life - Solid performance in Non-Life growth in Non-Life (+12% at cst. FX) UL following the drop in financial markets In EUR mio In EUR mio In EUR bn 15.3 16.2 934 773 0.8 46 0.5 372 32 399 20 15.4 14.7 19 562 26 374 12 3M 19 3M 20 3M 19 3M 20 FY 19 3M 20 Life Non-Life Life Non-Life excl shadow shadow Excellent Non-Life combined ratio Operating margin Guaranteed up on Operating margin Unit-Linked impacted by In % NEP reserve release in Portugal (251 bps) financial markets volatility In bps avg technical liabilities In bps avg technical liabilities 91.7 87.3 356 8 140 0 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 Periodical financial information I 3M 20 results I 13 May 2020 8
Asia Resilient operational performance mitigating Headlines negative impact from Covid-19 Resilient net result compared to an Inflows* -4% @ constant FX due to Life Technical liabilities up 7% from exceptionally high result LY Covid-19, cushioned by renewals renewals In EUR mio In EUR mio In EUR bn 87.5 82.2 9,382 9,007 147 292 5 424 74 9,090 142 8,583 5 69 FY 19 3M 20 3M 19 3M 20 3M 19 3M 20 Life Non-Life Life Non-Life Higher Non-Life combined ratio following Regular premium: remaining above 90% the acquisition in India (only partly of Life inflows integrated in Q1 2019) In EUR mio In % NEP Additional information on Ageas non-consolidated partnerships in Asia is available on the excel 9,090 8,584 spreadsheet published on Ageas’ 575 711 website under quarterly results 95.7% 94.2% (www.ageas.com/investors/quarterly-results) 8,515 7,873 3M 19 3M 20 3M 19 3M 20 regular single * incl. non-consolidated partnerships @ 100% Periodical financial information I 3M 20 results I 13 May 2020 9
Reinsurance Cession rate on internal QS & LPT reinsurance Headlines agreements up to 40% Net result: impacted by adverse Inflows: EUR 420 mio from QS Combined ratio: slightly higher claims weather agreements In % NEP In EUR mio In EUR mio 861 (12) 690 (21) 89.1% 79.5% 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 ageas SA/NV Implementation of an internal reinsurance programme within ageas SA/NV in order to enhance capital fungibility in the group reinsurance activities 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 amounted to 343% * of which 75% is underwritten by ageas SA/NV Periodical financial information I 3M 20 results I 13 May 2020 10
GA Result driven by capital gain on the tender of Headlines Fresh securities & RPN(i) revaluation Net result: capital gain on tender of the Positive evolution of RPN(i) Staff & Operating expenses: include Fresh & positive RPN(i) contribution non-recurring costs In EUR mio In EUR mio < In EUR mio 29 29 339 56 22 22 27 (7) 7 7 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 Staff & Intercompany Operating Upstream from Portugal, Reinsurance, Value legacies Total liquid assets down following tender Turkey & India of the Fresh securities In EUR mio In EUR mio In EUR bn 7 5 87 (303) (359) 1 9 11 2.2 1.6 Portugal 66 (472) Reinsurance Turkey (514) India FY 19 3M 20 FY 19 3M 20 3M 20 RPN(i) RPI Settlement Periodical financial information I 3M 20 results I 13 May 2020 11
Solvency Solvency II ageas Solvency still comfortably exceeding target level after Fresh transaction & market impact 8.6 8.0 7.7 7.7 7.3 6.4 6.3 5.8 5.5 Own Funds 1.3 1.5 4.0 3.7 3.7 1.0 1.1 0.9 3.2 3.3 SCR 2.8 2.7 0.8 0.9 0.8 0.9 2.7 0.7 0.7 2.4 0.1 0.6 0.6 0.5 0.5 0.6 0.5 0.4 0.2 (0.3) 0.1 0.2 0.4 (0.6) (0.6) 0.1 (1.5) (1.7)(1.8) FY FY 3M FY FY 3M FY FY 3M FY FY 3M FY FY 3M FY FY 3M FY FY 3M FY FY 3M 18 19 20 18 19 20 18 19 20 18 19 20 18 19 20 18 19 20 18 19 20 18 19 20 Non EU Belgium UK CEU Reinsurance GA Group eliminations Non-controlled participations* 235% 221% 205% 167% 179% 181% 178% 170% 160% 196% 173% 166% 215% 217% 196% 241% 243% 236% Solvency II ageas in % * Based on local solvency requirements Periodical financial information I 3M 20 results I 13 May 2020 12
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