ASR Nederland N.V. · EURONEXT:ASRNL
ASR Nederland — H1 2015 Earnings Presentation
24 slides from ASR Nederland's earnings presentation, Aug 27, 2015
Slide 1: a.s.r. interim results 2015
a.s.r. interim results 2015 Strong results create solid foundation for an independent future Chris Figee CFO Jack Julicher CIO Financial Markets 27 August 2015
Slide 2: Disclaimer
Disclaimer Cautionary note regarding forward-looking statements This presentation contains certain forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters
Slide 3: Key messages
Key messages Results • Net result increased to € 397 million (H1 2014: € 171 million), demonstrating a.s.r.’s financial resilience and readiness for independent private position in the Dutch insurance market • Operating result (before tax) to € 280 million (H1 2014: € 221 million), thanks to better
Slide 4: Accounting and presentation changes in H1 2015
Accounting and presentation changes in H1 2015 Accounting changes with retrospective effect as from 1 January 2014 • ‘Investment property’ and ‘property for own use’ are valued at fair value instead of amortized cost • Deferred acquisition costs (DAC) are directly charged to the income statement gen
Slide 5: Strong increase in Operating result
Strong increase in Operating result Operating result: profit before tax adjusted for (i) investment income of an incidental nature (including realized capital gains, impairment losses and realized and unrealized changes in value) and (ii) incidental items not relating to ordinary activities as a res
Slide 6: Key figures
Key figures Net result (€m) Operating result (€m) DNB Solvency I ratio 397 280 297% 221 285% 171 * H1 2014 H1 2015 H1 2014 H1 2015 Dec. 2014 June 2015 ROE Operating ROE Solvency II ratio 23.7% (standard model) circa 185% 15.8% 13.0% circa 175% 10.2% * H1 2014 H1 2015 H1 2014 H1 2015 Dec. 2014 June 2
Slide 7: Continued containment of underlying cost base
Continued containment of underlying cost base Operating expenses (€m)* Number of internal employees (FTEs) (exclusive of provision for restructuring expenses) CAGR: -3.0% CAGR: -4.6% 308 279 264 273 271 4,264 7 4,088 3,789 266 3,513 3,532 138 H1 3,394 2011 2012 2013 2014 2015 Dec. 2011 Dec. 2012 Dec
Slide 8: Non-life segment: increasing operating result due to improving claims handling
Non-life segment: increasing operating result due to improving claims handling process and lower operating expenses Combined ratio below 100% for all non-life product lines Operating result (€m) Gross written premiums (€m) • Operating result increased due to improved underwriting result and lower co
Slide 9: Life segment: operating result and GWP improved
Life segment: operating result and GWP improved Operating result (€m) New production (€m APE) • Operating result increased € 57 million to € 222 million due to lower additions to technical provisions 28 • Decrease in new production (APE) in 222 Single line with market developments and due, 6 in part
Slide 10: Strategy is supported by recent M&A transactions
Strategy is supported by recent M&A transactions De Eendragt adds a.s.r. acquires De Eendragt volume / scale to a.s.r.'s Pensions a.s.r. acquired 100% of the shares in De Eendragt. a.s.r. has the ambition to further shore up its position in the pension market. One way pensions business from Almost c
Slide 11: Non-Insurance activities
Non-Insurance activities With the effect of 1 January 2015, a.s.r. changed its segment Other into four separate non-insurance segments Banking and asset management • Net result remained stable at € 4 million in the first half of 2015 compared to the first half of 2014 • Operating result before tax d
Slide 12: Solvency remains strong under DNB Solvency I and Solvency II
Solvency remains strong under DNB Solvency I and Solvency II (standard model) Development of Total equity Key developments 397 117 4,053 3,709 • a.s.r. is well capitalized under both Hybrid capital -35 -135 701 17% 701 19% Net result 423 11% 397 10% solvency regimes: DNB solvency I, Solvency II (sta
Slide 13: Development of solvency
Development of solvency DNB solvency I ratio versus Economic Capital ratio Optimal target range 300% H1 • Emerging SCR 15 FY FY c.185% * ‘management’ range: 12 H1 c.135% 14 12 H1 H1 14 c.175% o 120%: risk appetite c.135% c.145% 13 c.160% (minimum level) DNB Solvency I ratio FY 13 o 140%: dividend pa
Slide 14: a.s.r. remains well capitalised and strong under Solvency I & II
a.s.r. remains well capitalised and strong under Solvency I & II Total IFRS equity (€ m) DNB Solvency I capital (€ m) Solvency II capital (€ bn) Available capital Required capital SCR, Standard model c. 185% 4,053 3,709 @160% Hybrid 701 5,107 701 @140% Net result 397 SI required Adjustments 1,054 42
Slide 15: a.s.r.'s financial risk indicators remain at a strong level
a.s.r.’s financial risk indicators remain at a strong level Financial leverage ICR • Hybrid capacity headroom more than € 1 billion 23.9% * 24.5x 22.0% 10.1x * 2014 H1 2015 H1 2014 H1 2015 Double leverage S&P holding rating 121% * 118% BBB+ BBB+ 2014 H1 2015 2014 H1 2015 * Restated due to accounting
Slide 16: Strong and well-diversified investment portfolio
Strong and well-diversified investment portfolio Assets (€ billion, fair value) * June 2015 Dec. 2014 Composition investment portfolio June 2015 Fixed income 22.8 24.1 Fixed income 1% Equities 2.0 2.0 17% Equities Real estate Real estate 2.8 3.0 Mortgages / Loans 8% Other Mortgages / other loans 5.8
Slide 17: Stable and high-quality fixed-income portfolio
Stable and high-quality fixed-income portfolio in changing interest rate environment Key highlights Mortgages June 2015 Dec. 2014 Delta (€m, book value) * • Value fixed income portfolio decreased due to higher interest rates and LtFV < 75% 974 965 1% widened spreads LtFV < 100% 561 565 -1% • Reducti
Slide 18: Reduction in equity portfolio and stable performance real estate portfolio
Reduction in equity portfolio and stable performance real estate portfolio Key highlights Equities (€m) * June 2015 Dec. 2014 Delta Equities 1,643 1,745 -6% • Equities Sale of equities to reduce market risk, as portfolio increased in value beyond risk tolerance levels. Equity portfolio remained at €
Slide 19: Key messages
Key messages Results • Net result increased to € 397 million (H1 2014: € 171 million), demonstrating a.s.r.’s financial resilience and readiness for independent private position in the Dutch insurance market • Operating result (before tax) to € 280 million (H1 2014: € 221 million), thanks to better
Slide 20: Contact details
Contact details Investor Relations [email protected] Barth Scholten T +31 (0)30 257 8661 20
Slide 21: Appendix
Appendix • Financial ratio’s • Operating result per segment • Calculation of the combined ratio 21
Slide 22: a.s.r. financial ratio's
a.s.r. financial ratio’s Net result (€m) Operating result ROE Operating ROE €397m €280m 23.7% 15.8% €221m 13.0% €171m * 10.2% * H1 2014 H1 2015 H1 2014 H1 2015 H1 2014 H1 2015 H1 2014 H1 2015 DNB solvency I Solvency II (standard) Total equity Financial leverage 297% c.175% c.185% €4,053m 285% €3,709
Slide 23: Operating result per segment
Operating result per segment Operating result: profit before tax adjusted for (i) investment income of an incidental nature (including realized capital gains, impairment losses and realized and unrealized changes in value) and (ii) incidental items not relating to ordinary activities as a result of
Slide 24: Calculation of the combined ratio
Calculation of the combined ratio (€ million) H1 2015 H1 2014 Source interim report 2015 Net insurance premiums Non-life 1,115 1,152 page 24-25 Net insurance claims and benefits -808 -855 page 24-25 Compensation capital gains (Disability) 11 18 additional disclosure Interest accrual on provisions (D