Ageas Sa/nv · EURONEXT:AGS
Ageas Sa/nv — Debt Investor Presentation (February 2019)
34 slides from Ageas Sa/nv's debt investor presentation, February 2019
Slide 1: Debt Investor Presentation FY 2018
Debt Investor Presentation FY 2018
Slide 2: Executive summary
Executive summary Ageas group International insurance group with focus on Europe & Asia Diversified product portfolio with focus on individuals & SME Solid & diversified investment portfolio Robust solvency & capital generation providing strong mitigation against market or other external evo
Slide 3: 1. ageas group 2. ageas SA/NV 3. appendix
1. ageas group 2. ageas SA/NV 3. appendix
Slide 4: International insurance group with focus on Europe & Asia
International insurance group with focus on Europe & Asia Leading market positions in most countries ASIA AGEAS SA/NV BELGIUM GROSS INFLOWS @ageas share Life & Non-Life 2018 TOTAL: EUR 14.5 bn Internal Reinsurance with Life & Non-Life 6 partnerships in 9 markets Life & Non-Life license #1 Life #5 Li
Slide 5: Diversified product portfolio
Diversified product portfolio Focus on individuals & SME LIFE 2018 GROSS INFLOWS LIFE GROSS INFLOWS @ageas share mostly guaranteed business (consolidated entities) 2018 TOTAL: EUR 14.5 bn 24% 29% GUARANTEED UNIT-LINKED 71% 76% Guaranteed Unit-Linked Life Non Life NON-LIFE 2018 GROSS INFLOWS NON-LIFE
Slide 6: Ageas group: Key financials & operational elements
Ageas group Key financials & operational elements Ageas net result Insurance Net result Inflows @ageas share In EUR mio In EUR mio In EUR bn 960 77 797 721 15 14.1 14.4 14.5 260 199 289 4.4 4.2 4.4 18 809 623 623 505 493 9.7 10.0 10.3 27 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 Life Non
Slide 7: Solid & diversified investment portfolio
Solid & diversified investment portfolio Stable asset mix & high quality investments Total investment portfolio Sovereign bond portfolio: over 99% Corporate bond portfolio: over 91% investment grade – EUR 4.6 bn UG/L investment grade – EUR 1.0 bn UG/L 7% 4% 2% 7% 3% 16% 17% 6% 5% 3% 9% 12% 7% EUR 79
Slide 8: Solvency II ageas Group up to 215%
Solvency IIageas Group up to 215% Proposed dividend already deducted In EUR bn 8.1 7.9 8.0 7.5 7.7 7.4 6.9 6.9 6.4 Own Funds 4.2 4.3 4.0 SCR 2.8 2.9 2.7 1.2 1.4 1.0 3.9 3.7 3.7 0.7 0.8 0.8 0.7 0.6 0.7 0.5 0.5 0.9 0.7 0.6 0.1 0.1 0.1 0.2 (0.3) (0.2) (0.2) 0.1 0.1 0.1 0.0 0.0 0.1 (1.0) (1.5)(1.4) FY 1
Slide 9: Group Free Capital Generation
Group Free Capital Generation Operational FCG in line with FY guidance - more than covering dividend accrual & SBB In EUR mio 629 99 45 (216) 530 (407) 2,557 213 (112) (23) expected 414 Free Capital 489 dividend 1,940 Generation expected Based on 175% of 407 dividend SCRageas 2,143 1,532 FY 17 Put o
Slide 10: Insurance Solvency II sensitivities
Insurance Solvency II sensitivities High Solvency ratio providing resilience against market or other external evolutions As per 31/12/17 Based on Solvency IIageas SCR OF Solvency Base case 3,934 7,713 196% Before stress Yield curve down 4,088 7,623 186% Down 50 bps Yield curve up 3,812 7,764 204% Up
Slide 11: Risk Appetite & Capital management
Risk Appetite & Capital management Target level linked to Risk appetite Free Target Capital Capital 175% SCRageas Free Funds • Limited to 40% Group Own Funds Remember: Risk Expected dividend already appetite • Measured under 1/30 loss event deducted from Solvency IIageas • Local risk profile & local
Slide 12: Solvency II guidance
Solvency II guidance Coupon servicing continues even if below 140% Solvency IIageas Available for strategic investments Dividend policy applied 175% SBB if no sizeable M&A Dividend policy still applied Ongoing SBB maintained - no new SBB 157% Risk reducing and/or capital strengthening me
Slide 13: Main characteristics Hybrids
Main characteristics Hybrids Currently debt issued both at holding & at AG Insurance level In EUR mio Ageas AG Insurance (Belgium) Ageasfinlux Fixed-to-Floating Fixed Rate Reset Fixed Rate Reset Fresh* Rate Callable Perpetual Dated Subordinated Subordinated Loans Notes Tier 1 Tier 2 Tier 1 Tier 2 %
Slide 14: Strong capitalization of the group
Strong capitalization of the group Financial leverage @ 20.2% - Debt servicing capacity solid Capital quality – SCR PIM coverage 3% 26% • Tier 1 capacity fully used 38% • Tier 2 additional regulatory headroom of EUR 0.8 bn 216% • after call by AG Insurance of 550 USD – 6.75%, 151% headroom increased
Slide 15: Connect 21: A reflection of Group's Strategy, Values and KPI's
Connect 21 A reflection of Group’s Strategy, Values and KPI’s Debt Investor Presentation I FY 2018 15
Slide 16: 1. ageas group 2. ageas SA/NV 3. appendix
1. ageas group 2. ageas SA/NV 3. appendix
Slide 17: ageas SA/NV not a traditional holding company
ageas SA/NV not a traditional holding company Reinsurance sets path for increased capital fungibility 02/07/2018 Ageas SA/NV obtains Life & Non-Life reinsurance license from the NBB With quota shares accepted from controlled Non-Life entities ageas SA/NVgains direct access to operational cash-fl
Slide 18: Diversified sources of income
Diversified sources of income Reinsurance operations to generate increasing cash flows Belgium CEU Dividend upstream UK Asia Reinsurance operations External dividend Interests & Investments Holding costs Share buy-back Debt Investor Presentation I FY 2018 I 18 I
Slide 19: ageas sa/nv Solvency II PIM @402%
ageas sa/nv Solvency II PIM @402% Reinsurance operations expected to have marginal impact Own Funds 8.1 5.5 • ageas SA/NV Solvency II mainly driven by value entities within Solvency II scope ownded by Ageas Insurance International SCR 3.7 • Reinsurance operations starting in 2019 expected to have li
Slide 20: Settlement around Fortis past final & in full execution
Settlement around Fortis past final & in full execution Vast majority of civil proceedings terminated 14/03/2016 Ageas offers to pay EUR 1.2 bn compensation – additional effort of EUR 0.1 bn announced 16/10/2017 No recognition of any wrongdoing by Ageas Commitment by eligible shareholders to a
Slide 21: A/stable-Rating for ageas SA/NV
A/stable-Rating for ageas SA/NV 3 notches upgrade from S&P & Fitch S&P Fitch Operating / ageas SA/NV* A /stable A+ / stable Holding Entity Last change 10/12/2018 07/12/2018 Operating AG Insurance (Belgium) A /stable A+ / stable entity Last change 22/11/2018 07/12/2018 Ageas SA/NV is broadening its
Slide 22: 1. ageas group 2. ageas SA/NV 3. appendix
1. ageas group 2. ageas SA/NV 3. appendix
Slide 23: Belgium: Headlines
Belgium : Headlines Net result Inflows @ageas share Life Technical Liabilities In EUR mio In EUR bn In EUR bn 438 415 4.5 4.6 391 4.3 146 128 1.5 102 1.4 1.4 59.0 58.3 57.3 288 292 287 3.1 2.8 3.1 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 Life Non-Life Life Non-Life Non-Life combined rat
Slide 24: Margin evolution Assets & Liabilities Belgium
Margin evolution Assets & Liabilities Belgium Yield & guaranteed rate on back book down at the same pace FY 15 FY 16 FY 17 FY18 Life Guaranteed interest rate 2.63% 2.49% 2.32% 2.17% Back book Fixed income yield 3.71% 3.45% 3.34% 3.25% Liabilities Guaranteed (EUR bn) 50.3 52.9 50.4 49.1 FY 15 FY 16 F
Slide 25: United Kingdom: Headlines
United Kingdom: Headlines Net result Inflows @ageas share Non-Life combined ratio In EUR mio In EUR mio In % of NEP 87 29 1,962 112.2 1,768 103.2 (156) 1,582 96.8 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 Debt Investor Presentation I FY 2018 25
Slide 26: Continental Europe: Headlines
Continental Europe: Headlines Net result Inflows @ageas share Life Technical liabilities In EUR mio In EUR bn In EUR bn 193 38.4 35.5 77 3.1 118 2.8 2.8 22.1 15 1.0 20 90 0.8 0.9 53 16.1 49 41 2.0 2.1 1.9 62 15.5 16.3 16.1 49 54 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 Life Non-Life con
Slide 27: Asia: Headlines
Asia: Headlines Net result: Inflows @ageas share Life Technical liabilities In EUR mio In EUR bn In EUR bn 394 5.2 5.4 293 4.8 0.2 0.2 0.2 199 24 170 65.6 55.9 27 5.0 5.2 49.5 269 17 4.6 168 152 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18 Life Non-Life divestments Life Non-Life Non-conso N
Slide 28: Reinsurance: Headlines
Reinsurance: Headlines Shift from internal reinsuance through Intreas towards ageas SA/NVl Net result: reflecting prudent claims Inflows: incl. EUR 2 mio from ageas Combined ratio reserving SA/NV In EUR mio In EUR mio In % NEP 8 8 61 52 82.6 75.7 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 ageas SA/NV On
Slide 29: Evolution SCR & OF split between types of impact
Evolution SCR & OF split between types of impact In EUR mio 8,281 41 8,412 15 (216) 407 259 213 (361) 587 (407) 414 Own Funds 7,874 7,998 FY 17 Put option & Capital Model Market Operational Ogden Capital Paid FY 18 Luxembourg fungibility refinements impact adjustment transactions dividend (133) 76 (
Slide 30: Solvency PIM – reported under Pillar I – proposed dividend deducted
Solvency PIM – reported under Pillar I – proposed dividend deducted Group @ 216% supported by divestment Luxembourg, expiring put option & higher fungibility In EUR bn 8.1 8.1 7.6 7.7 7.5 7.7 6.8 6.6 6.3 Own Funds 4.6 4.7 1.7 1.7 1.4 4.0 3.6 4.1 3.7 3.4 3.0 2.8 0.7 0.8 0.9 0.5 0.6 SCR 0.8 0.6 0.5 0.
Slide 31: Composition of SCR & OF
Composition of SCR & OF In EUR bn Insurance SCRageas per risk type Tiering of Group PIM own funds Market risk main factor in SCR High quality of own funds 8.1 3.9 7.7 3.7 0.1 0.7 0.1 0.5 0.7 1.0 0.7 1.0 0.5 0.7 0.5 0.3 0.8 1.4 0.3 1.3 4.8 Non Diversifiable 4.3 Non-life UW Health UW Life UW 5.6 5.3 C
Slide 32: Disciplined cash upstream from operating companies
Disciplined cash upstream from operating companies Upstream more than covering dividend and holding costs Belgium UK CEU Asia Reinsurance Malaysia 622 16 8 92 516 China 62 488 488 77 85 438 440 106 89 407 Thailand 52 43 48 14 19 36 53 47 82 50 150 Lux 9 437 64 391 333 Portugal 294 69 268 168 Turkey
Slide 33: Disclaimer
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 ma
Slide 34: Investor Relations
Tel: + 32 2 557 57 32 E-mail: [email protected] Website: www.ageas.com Investor Relations Debt Investor Presentation I FY 2018 34