9M 2017 RESULTS Periodical Financial Information Analyst call 3 - PowerPoint PPT Presentation

9M 2017 RESULTS Periodical Financial Information

Analyst call 3 Table of contents Segment information 17 Equity / Solvency/ FCG 48 Investment portfolio 59 Legal Settlement 64 General Information 67

Main messages Ageas reports strong nine months  Insurance net profit of EUR 686 mio (+16% scope-on-scope for HK)  Inflow @ 100% of EUR 27.1 bn (+10%) Insurance  Life Guaranteed margin at 106 bps* (vs.97 bps) performance  Unit-Linked margin at 26 bps* (vs. 21 bps)  Group combined ratio at 94.9%* (vs.97.0%)  Life Technical Liabilities at EUR 74.2 bn * ( stable vs. YE 2016)  Group net profit of EUR 360 mio Group result  General Account net loss of EUR 326 mio (vs. EUR 686 mio negative) including additional provision for Fortis settlement  Shareholders’ equity at EUR 9.2 bn or EUR 46.02 per share  UG/L at EUR 2.4 bn or EUR 13.38 per share Balance sheet  Insurance Solvency II ageas at 194%, Group ratio at 193%  Operating FCG of Solvency II scope of EUR 636 mio  Total Liquid Assets General Account at EUR 1.7 bn (vs.EUR 1.9 bn), of which EUR 0.9 bn ring-fenced *Consolidated entities only Periodic financial Information I 9M 17 results I 8 November 2017 3

Settlement between Ageas & claimants organisations Press release 16 October 2017 – Extension granted up to 12/12/2017  Ageas pays EUR 1,204 mio compensation - Cash impact of EUR 1,021 mio Announcement 14/03/2016  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 Court’s interim  Settlement not declared binding in current format - opportunity for amendments decision 16/06/17  No objective justification for distinction between active & non-active claimants  High compensation for claimant organizations  No agreement has been reached yet & extension of filing period requested PR 16/10/17  Ageas makes final additional effort of EUR 100 million – Solvency impact 2pp  Financial flexibility of Ageas has not changed  Extension granted by the Court up to 12 December 2017 Periodic financial Information I 9M 17 results I 8 November 2017 4

Group Free Capital Generation roll forward Operational FCG of EUR 636 mio during 9M ’17, excl. Non - European NCP’s In EUR mio  Calculation based on 175% of SCR ageas  EUR 636 mio includes  EUR 122 mio related to stop loss cover in UK  EUR 70 mio dividend upstream from Non-European NCP’s *  More details per segment see next slide 636 70 (217) 122 (200) 444 (2) (419) 39 127 Free Capital Generation 1,111 1,071 FY 16 Model M&A Market Operational Exceptional Capital M&A Paid 9M 17 changes (divestments) impact impact items transactions (acquisitions) Dividend * Operational FCG generated by Non-European NCP’s of EUR 249 mio over H1 ’17 is not included in EUR 636 mio Periodic financial Information I 9M 17 results I 8 November 2017 5

Split of operational impact per segment Operational impact driven by Belgium & CEU * Operational impact of which UK OF SCR FCG stop = OF - 175%*SCR loss cover Driven by EUR mio OF up on strong operational results Belgium 464 (35) 526 UK 23 (130) 250 219 OF up on strong operational results CEU 163 175 7 Reinsurance (14) (24) 12 15 Driven by upstream from operating companies General Account 423 423 0 Geographical 106 106 (79) (72) SCR reduction due to geographical diversification is diversification deducted as non-transferable OF Impact from consolidation of intra-company elements Group eliminations (632) (632) Total Ageas 636 122 571 (37) Solvency II scope * Expected return on RE investments reduced to 5% (vs. 6% in IR-day data) Periodic financial Information I 9M 17 results I 8 November 2017 6 10/03/2010 I page 6

Evolution SCR & OF split between types of impact In EUR mio (300) 571 (200) (2) 259 (419) Own Funds adjusted for (58) accrued expected dividend 8,560 8,411 FY 16 Model M&A Market Operational Exceptional Capital M&A Paid 9M 17 changes (divestments) impact impact items transactions (acquisitions) Dividend (37) SCR 75 (55) (47) 4,257 4,194 FY 16 Model M&A Market Operational Exceptional Capital M&A Paid 9M 17 changes (divestments) impact impact items transactions (acquisitions) Dividend Periodic financial Information I 9M 17 results I 8 November 2017 7

Total Insurance: Headlines Strong net result in both Life & Non-Life Net result: Solid result further Inflows*: Continued Life inflow growth Life Technical liabilities up in non-conso underpinned by strong Q3 in Asia driven by regular premiums In EUR bn In EUR mio In EUR bn 150.0 148.4 144.0 27.1 803 24.7 4.7 686 199 4.8 74.3 75.8 69.5 212 181 241 196 6.6 6.3 80 22.4 19.9 1.4 77 1.5 473 74.5 74.2 74.2 424 161 5.2 4.8 118 FY 16 6M 17 9M 17 Q3 16 Q3 17 9M 16 9M 17 Q3 16 Q3 17 9M 16 9M 17 conso non-conso Life Non-Life Life Non-Life cap gain AICA Non-Life combined ratio: excellent Operating margin Guaranteed: higher Operating margin Unit-Linked: up in operating performance in BE & CEU investment result & cap gains both BE & CEU In % NEP In bps avg technical liabilities In bps avg technical liabilities 106 97.0 94.9 93.2 92.7 97 90 77 28 26 21 8 9M 16 9M 17 Q3 16 Q3 17 9M 16 9M 17 Q3 16 Q3 17 9M 16 9M 17 Q3 16 Q3 17 * incl. non-consolidated partnerships @ 100% Periodic financial Information I 9M 17 results I 8 November 2017 8

Belgium : Headlines Continued excellent operating performance, especially in Non-Life Non-Life: very strong performance - Inflows: anticipated lower Guaranteed Life Technical Liabilities slightly down terror & weather events in 2016 - continued strong inflow growth in UL In EUR bn In EUR bn In EUR mio 366 4.6 4.2 309 122 1.5 76 1.5 59.0 58.4 58.1 107 103 1.3 1.2 42 0.4 40 245 3.1 0.5 233 2.7 0.9 63 65 0.8 9M 16 9M 17 Q3 16 Q3 17 Q3 16 Q3 17 9M 16 9M 17 FY 16 6M 17 9M 17 Life Non-Life Life Non-Life Operating margin Guaranteed: Operating margin Unit-Linked: high Non-Life combined ratio - excellent improved investment result underwriting margin performance confirmed in Q3 In bps avg technical liabilities In bps avg technical liabilities In % NEP 97.1 100 89.6 91 89.6 88.2 78 65 35 32 20 14 9M 16 9M 17 Q3 16 Q3 17 Q3 16 Q3 17 9M 16 9M 17 Q3 16 Q3 17 9M 16 9M 17 Periodic financial Information I 9M 17 results I 8 November 2017 9

United Kingdom: Headlines Ogden rate review continues to influence results Net result impacted by Ogden Non-Life combined ratio impacted by Inflows* slightly down at constant FX (EUR 40 mio) Ogden (4.4pp) In EUR bn In EUR mio In % of NEP 103.7 1.7 99.7 99.5 98.7 54 1.6 19 0.5 25 0.5 14 Q3 16 Q3 17 9M 16 9M 17 Q3 16 Q3 17 9M 16 9M 17 9M 16 9M 17 Q3 16 Q3 17  EUR 40 mio on 9M net result – EUR 9 mio in Q3 Ogden impact  4.4pp on COR - impacting mainly Motor (4.4pp) & Other lines (12.7pp) on results  Impact of around EUR 5 mio expected in Q4, in line with earlier communication  Risk mitigation product portfolio through stop loss reinsurance cover Ogden rate change  Q1 derisking of investment portfolio impact mitigated  EUR 77 mio capital injection executed in Q2 by various actions  Solvency II ageas 9M ‘17 @134 % * incl. non-consolidated partnerships @ 100% Periodic financial Information I 9M 17 results I 8 November 2017 10

Continental Europe: Headlines Excellent operating performance continued Net profit up 55% with equal Inflows driven by strong Life sales Life Technical liabilities up 6% contribution from Life & Non-Life In EUR bn In EUR bn In EUR mio 37.7 37.1 35.5 93 4.5 4.1 1.0 21.2 21.6 0.9 20.0 60 46 34 1.5 24 27 1.2 18 0.3 3.5 8 0.3 3.1 47 15.5 15.9 16.1 1.2 33 0.9 17 16 9M 16 9M 17 9M 16 9M 17 Q3 16 Q3 17 Q3 16 Q3 17 FY 16 6M 17 9M 17 Life Non-Life Life Non-Life conso non-conso Non-Life combined ratio @ excellent Operating margin Guaranteed up on Operating margin Unit-Linked significantly level & still improving higher investment margin up on higher fees & commissions In % NEP In bps avg technical liabilities In bps avg technical liabilities 165 144 22 142 21 116 91.0 90.2 90.7 90.4 6 0 9M 16 9M 17 9M 16 9M 17 Q3 16 Q3 17 Q3 16 Q3 17 9M 16 9M 17 Q3 16 Q3 17 * incl. non-consolidated partnerships @ 100% Periodic financial Information I 9M 17 results I 8 November 2017 11

Asia: Headlines Excellent operating performance thanks to product mix & financial performance Net result up almost 20% vs. LY excl. Inflows* up 22% scope-on-scope & @ Life Technical liabilities up 9% constant FX - new business & renewals EUR 212 mio contribution from HK In EUR bn In EUR mio In EUR bn 378 16.8 14.3 0.6 199 0.7 3.3 197 3.3 84 0.2 54.2 53.1 0.2 3 49.5 14 21 16.2 49 13.6 10 182 80 3.2 3.1 158 39 9M 16 9M 17 Q3 16 Q3 17 9M 16 9M 17 Q3 16 Q3 17 FY 16 6M 17 9M 17 Life Non-Life non-conso Life Non-Life cap gain HK Non-Life combined ratio very strong - adverse claims experience in Q3 In % NEP 89.2 93.9 84.6 75.0 9M 16 9M 17 Q3 16 Q3 17 * incl. non-consolidated partnerships @ 100% Periodic financial Information I 9M 17 results I 8 November 2017 12