ASR Nederland N.V. · EURONEXT:ASRNL
ASR Nederland — Investor Presentation (September 2014)
40 slides from ASR Nederland's investor presentation, September 2014
Slide 1: a.s.r. investor presentation
a.s.r. investor presentation September 2014
Slide 2: a.s.r. highlights
a.s.r. highlights 1. Composite insurer, 4th in the Dutch market, leadership especially in profitable disability segment 2. Although owned by the Dutch state, a.s.r. never received any form of state aid 3. Solidly on track to return to the private market 4. Continued strong financial performance with
Slide 3: Table of contents
Table of contents Introduction to a.s.r. 4 Appendices 19 A1: Latest financial results A2: a.s.r. investment case – further information A3: Investment portfolio A4: Management & Supervisory Board 2
Slide 4: Introduction to a.s.r.
Section 1 Introduction to a.s.r.
Slide 5: a.s.r.'s profile – a diversified business model
a.s.r.'s profile – a diversified business model Description Key financials2 (€m) • a.s.r. is a generalist insurance company with a long history and has the number 4 position in the Dutch market. As a purely Dutch player, 2011 2012 2013 H1 2013 H1 2014 a.s.r. is represented in all major insurance seg
Slide 6: Management and company structure
Management and company structure Management Board J.P.M. (Jos) Baeten (1958) K.T.V. (Karin) Bergstein (1967) CEO Board member Responsibilities: Human resources, Marketing, Integrity, Audit, Responsibilities: Individual Life, P&C, Europeesche, Funeral Legal, Communication and Business Support (Ardant
Slide 7: a.s.r. story
a.s.r. story • 1720: creation of ‘Maatschappij van Assurantie, Discontering en Beleening der Stad • Foundation of Fortis • Merger ASR Group Rotterdam Anno by a.o. Amev and and Fortis AMEV 1720’ • Rebranding VSB Bank into into a.s.r. Fortis ASR 1720 1962 1990 2000 2008 2009 Becoming the new a.s.r. 20
Slide 8: a.s.r. is a composite insurer with a strong position in the Dutch market
a.s.r. is a composite insurer with a strong position in the Dutch market Market shares 2012 a.s.r. has well diversified insurance business 22% 17% other a.s.r. 3% Disability 6% Aegon Nat.Ned. 6% 19% Achmea 8% #8 19% Health #4 21% 13% Individual life 34% Achmea 27% other Delta L. 11% P&C Disability #
Slide 9: Clear group strategy supporting financial stability
Clear group strategy supporting financial stability a.s.r.’s strategy focuses on customer value creation, cost control and a solid financial framework, creating a compelling investment case • Focus on retail customers, self-employed and SME • Simple and transparent products with efficient processes,
Slide 10: Diversified, multichannel approach to distribution, underpinned by well-known brand names
Diversified, multichannel approach to distribution, underpinned by well-known brand names Overall distribution strategy and brands • a.s.r. has a strong position in the Dutch market and an extensive distribution platform based on its broker channel • In the SME segment distribution mainly takes plac
Slide 11: Sophisticated underwriter with better-than-market underwriting results
Sophisticated underwriter with better-than- market underwriting results … Non-life gross claims ratios2: a.s.r. is better than market average in most segments Total Disability Motor Better than sector Better than sector Better than sector 100 100 100 83 84 79 80 79 79 78 73 74 74 74 74 76 75 75 80 8
Slide 12: … as further evidenced by H1 2014 figures
… as further evidenced by H1 2014 figures Non-life Life Combined ratio’s below 100% for all New production improved while efficiency further improves businesses Combined ratio main businesses (%) New production (€m APE) Cost ratio (% APE) 28 9.3 8.6 114.3% 100.7% 6 94.0% 98.2% 98.8% 19 90.0% Single
Slide 13: Leading to continued strong financial performance …
Leading to continued strong financial performance … Cost reduction – operating Profitability – net results (€ mln) Solvency (%) expenses (€ mln) 800 350 300 700 300 250 600 250 200 500 200 400 150 2931 284 317 268 672 150 281 300 621 587 255 221 230 548 100 100 212 200 161 267 50 50 100 0 0 0 FY 201
Slide 14: ... also when compared to Dutch peers
... also when compared to Dutch peers 300 284.0% 272.0% Solvency I 217.0% 211.0% 207.0% % 200 163.0% (30 June 2014) 100 a.s.r. Achmea Aegon Delta Lloyd NN Group SNS 105% 104% 105 Combined Ratio 99% 97% 99% 94% % (H1 2014) 80 a.s.r. Achmea Aegon Delta Lloyd NN Group SNS 400 392 300 161 Net profit 150
Slide 15: Robust balance sheet – also in broader European perspective
Robust balance sheet – also in broader European perspective IGD/Solvency 1 ratio benchmarking (%) - group level1 400 374 284 272 300 254 217 211 208 207 185 170 200 163 162 100 0 CNP a.s.r. NN Axa Achmea AEGON Ageas Delta Lloyd Allianz Aviva SNS Generali Leverage benchmarking (%) - group level2 60%
Slide 16: Diversified investment portfolio
Diversified investment portfolio Optimizing risk profile within investment framework Assets (€ billion, fair value) * June 2014 Dec. 2013 Composition investment portfolio June 2014 Fixed income 20.9 18.8 0% 17% Equities 2.0 2.1 Fixed income Equities Real estate 2.8 2.7 9% Real estate Mortgages / oth
Slide 17: Strong and Stable Credit Ratings
Strong and Stable Credit Ratings Entity Grade Outlook ASR Levensverzekering N.V. A Stable ASR Schadeverzekering N.V. A Stable ASR Nederland N.V. (holdco) BBB+ Stable Business Risk Profile: Strong Financial Risk Profile: Strong Other Factors “• Strong competitive position owing to “• Very strong capi
Slide 18: Capital considerations
Capital considerations 1. Will a.s.r. increasingly realize capital gains in run up to privatization? • Earnings profile shifting from investment returns to underwriting result, in line with strategy. Increase H1 2014 vs H1 2013 already majority driven by further increased underwriting profits • Pote
Slide 19: Summary of key investment highlights
Summary of key investment highlights 1 2 Sophisticated Diversified business underwriter with focus mix in an Aaa / AAA/ on cost control across AA+ rated country business lines 8 3 Highly experienced Diversified multi- and diverse channel approach to management team distribution 7 4 Strong and stable
Slide 20: Appendices
Appendices de nederlandse verzekerings maatschappij voor alle verzekeringen
Slide 21: A1: Latest financial results
A1: Latest financial results
Slide 22: Key messages from H1 2014 results announcement
Key messages from H1 2014 results announcement • Net result at € 161 million from € 110 million at 30 June 2013 o Excluding additional WGA-ER expense of €39 million in H1 2013, net result was up 8% from €149 million to €161 million • DNB solvency remains robust at 284% (31 December 2013: 268%) • Gro
Slide 23: Key financials
Key financials Net result (€m) Gross written premiums (€m) Operating expenses (€m) 161 2,345 2,250 276 267 110 H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 DNB-solvency ratio (%) RoE (%) Internal work force (FTE) 284 12.3 3,789 268 3,630 8.8 Dec. 2013 June 2014 H1 2013 H1 2014 Dec. 2013 June 2014
Slide 24: Net result improved to € 161 million
Net result improved to € 161 million Contribution mainly from underwriting performance improvement (€ million) 45 161 39 -1 110 -32 164 Life 165 6 90 Non-life Other -61 -93 H1 2013 No additional Non-life Life Other H1 2014 WGA-ER expense in 2014 (Non-life) • Segment Non-life: net result strongly up
Slide 25: Solvency remains strong
Solvency remains strong DNB solvency ratio • Improvement in DNB solvency ratio to Sensitivities 284% thanks mainly to a fall in interest 284 rates 268 • Sensitivities of DNB solvency remained -65%-p stable Total (diversified) • a.s.r. robustly capitalized based on -64%-p other solvency requirements
Slide 26: A2: a.s.r. investment case – further information
A2: a.s.r. investment case – further information
Slide 27: Mature Dutch insurance market is focused on cost control and innovation
Mature Dutch insurance market is focused on cost control and innovation Premium volume Dutch insurance market (€ mln) Comments 45.000 Annual growth premium volume 2002-2011 • Disability : + 1.3% 40.000 • P&C : + 1.9% 35.000 11% • Group life : + 1.3% • Individual life : - 2.7% 30.000 Overall growth p
Slide 28: Well known brands and a diversified distribution network
Well known brands and a diversified distribution network Key brands Distribution channel • a.s.r. is the label for private individuals operating in Life and non- life insurance policies, mortgages and savings and investment • a.s.r. uses a hybrid distribution model, which has been products are prima
Slide 29: Strong solvency position
Strong solvency position Regulatory solvency ratio Required capital 1,512 1,542 1,520 1,574 1,563 1,634 Available 3,515 3,412 3,503 4,620 4,182 4,638 capital 2931 284 300 268 232 221 230 250 200 150 % 100 50 0 2009 2010 2011 2012 2013 H1 2014 Solvency Managing risk and capital • a.s.r. has adopted a
Slide 30: Composite insurer with strong market positions in an AA+ country
Composite insurer with strong market positions in an AA+ country Diversified product mix―GWP split1 100 80 43 50 62 70 77 60 82 Life/pensions (%) 40 P&C 44 30 32 16 Disability 20 20 13 13 20 14 0 6 4 6 Achmea Delta Lloyd Aegon ING SNS Reaal a.s.r. Most diversified Life vs. Non-life2 offering in Dutc
Slide 31: Composite insurer with strong market positions in an AA+ country
Composite insurer with strong market positions in an AA+ country Strong position in most attractive segments Topline a.s.r. Market share and Market growth Key strengths €m (2013) position a.s.r.1 (2006-2012) (2012) Benchmark for Dutch market: market leader, Disability 770 21.7% / #1 0.8% integrated
Slide 32: Strong and proven cost control across business lines with scope for further efficiencies
Strong and proven cost control across business lines with scope for further efficiencies Operating expenses (€m) Comments • a.s.r. is a flexible, agile organisation and has a disciplined way of implementing strategy while adapting to the fast changing environment 800 621 587 * • It simplifies produc
Slide 33: Demonstrated risk management skills and robust investment policy
Demonstrated risk management skills and robust investment policy Provisioning policy Non-life • Over the last years, provisioning has been sufficient, both under IFRS • The prudency level that a.s.r. applies when calculating the non-life LAT and DNB TRT reserves is above the average of the Dutch mar
Slide 34: A3: Investment portfolio
A3: Investment portfolio de nederlandse verzekerings maatschappij voor alle verzekeringen
Slide 35: Higher value fixed income portfolio as a result of lower interest rate environment
Higher value fixed income portfolio as a result of lower interest rate environment Key highlights Fixed income (€m) June 2014 Dec. 2013 Delta • Government portfolio made up mainly of Dutch and German Government 10,391 9,638 8% government bonds • Financials portfolio is well diversified across countr
Slide 36: Controlled growth of the mortgage portfolio and small reduction of equity exposure
Controlled growth of the mortgage portfolio and small reduction of equity exposure Key highlights Mortgages June 2014 Dec. 2013 Delta (€m, book value) * Mortgages LtFV < 75 % 909 862 5% • Increase in mortgages in accordance with investment policy LtFV < 100 % 562 601 -6% • Sales of new mortgages mai
Slide 37: Diversified real estate portfolio remains of high quality
Diversified real estate portfolio remains of high quality Key highlights Real estate (€m) June 2014 Dec. 2013 Delta Offices 168 153 10% • Quality of real estate portfolio stable in difficult market circumstances • Sales achieved mainly in the residential portfolio Residential 689 721 -4% • Increase
Slide 38: A4: Management & Supervisory Board
A4: Management & Supervisory Board
Slide 39: Management and Supervisory Boards
Management and Supervisory Boards Management Board Supervisory Board J.P.M. (Jos) Baeten (1958) Dr. C. (Kick) van der Pol (1949) CEO Chairman Responsibilities: Human resources, Marketing, Integrity, Audit, Chairman of the a.s.r. Nederland Supervisory Board and member Legal, Communication and Busines
Slide 40: Disclaimer
Disclaimer This presentation has been prepared and issued by ASR Nederland N.V. (the Company). For the purposes of this notice, the presentation that follows (the Presentation) shall mean and include the slides that follow, the oral presentation of the slides by the Company, the question‐and‐answer
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