3M 2020 RESULTS - ageas.com quarterly results... · Ageas Periodical financial information I 3M 20 results I 13 May 2020 3 ... Corporate bonds 24% Loans Equities 14% 5% Real Estate

3M 2020 RESULTSPeriodical Financial Information

2

Slides used during analyst call 2

Segment information 15

Equity / Solvency 50

Investment portfolio 62

Legal Settlement 67

General Information 70

Content

Periodical financial information I 3M 20 results I 13 May 2020

Main messagesResilient operational performance in Covid-19 era

Ageas

3Periodical financial information I 3M 20 results I 13 May 2020

First quarter Group net result strongly supported by exceptional non-cash one-off

Overall solid underlying operational performance mitigating lower investment result

due to Covid-19 pandemic

Strong solvency and cash position

Finalization of Fresh Tender offer

Additional tranche acquired early April

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

performance and results. As a consequence, Ageas cannot confirm its profit

guidance for 2020.

Capital management

Covid-19

Results

Dividend

Sovereign bonds47%

Corporate bonds24%

Loans14%Equities

5%

Real Estate

7%Cash3%

Investment portfolio


Limited investments in corporate bonds

* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs ; consolidated @100%

Limited exposure to Oil & Gas (86% rated A

or higher), Airlines (all BBB) & Transportation

(77% rated A or higher)

In EUR bn

BBB exposure only 9% of total investment

portfolio / only 1% BBB-

Impact Solvency IIageas of all Corporate bonds

1 notch down <5pp

Banking14%

Other financials

12%

Oil & Gas3%

Transportation4%

Airlines1%

Non Financials51%

Government related15%

AAA12%

AA

16%

A25%

BBB+16%

BBB16%

BBB-

5%

BB or lower1%

Not rated

9%

In EUR mio In EUR bnIn EUR bn

Ageas


Group net result up on Fresh cap gain – Resilientunderlying insurance performance

Headlines

In bps avg technical liabilitiesIn bps avg technical liabilities

* incl. non-consolidated partnerships @ 100%

In % NEP

Net result: Lower cap gains, weather & Fresh tender

Combined ratio impacted by bad weather in both periods (8pp in ‘20 vs. 6pp in ‘19)

Inflows*: Lower Life – continued growth in Non-Life

Life Technical liabilities* increasing in non-conso

Guaranteed Margin: lower investment result

Operating margin Unit-Linked: Up in Belgium & Portugal – Down in France

(7)

339

223

89

35

24

251

452

3M 19 3M 20

GA Life Non-Life

11.110.0

1.71.9

12.812.0

3M 19 3M 20

Life Non-Life

98.3 99.7

3M 19 3M 20

88

56

3M 19 3M 20

1828

3M 19 3M 20

73.6 72.1

3.9 3.4

82.2 87.5

159.6 163.0

FY 19 3M 20

conso shadow non-conso

In bps avg technical liabilities In bps avg technical liabilitiesIn % NEP

Belgium

6

Solid underlying performance offset by adverse financial markets & weather

Headlines

In EUR mio In EUR mio In EUR bn

69

(6)

12

18

81

12

3M 19 3M 20

Life Non-Life

1,4071,072

661

686

2,068

1,758

3M 19 3M 20

Life Non-Life

58.2 57.4

3.1 2.8

61.3 60.2

FY 19 3M 20

excl shadow shadow

104.2 100.3

3M 19 3M 20

78

1

3M 19 3M 20

26

47

3M 19 3M 20

Net result: EUR 88 mio lower net capital gains

Inflows: 3M 19 included UL cash-back campaign - Non-Life +4%

Life Technical Liabilities lower due to decrease of UL unit prices

Non-Life combined ratio impacted by weather (12 pp) - Solid Motor & Other lines

Operating margin Guaranteed suffered from financial markets (-44 bps)

Operating margin Unit-Linked – 3M 19 incl. cost of cash back campaign (≈15 bps)


In EUR mio

UK

7

Weather events heavily impacting net resultHeadlines

In % of NEP

In EUR mio


Net result impacted by weather events (Ciara & Dennis storms)

Inflows* stable compared with 3M 2019 Non-Life combined ratio @ 98.7% excluding February weather events

11

1

3M 19 3M 20

425 424

3M 19 3M 20

95.5107.1

3M 19 3M 20


CEU

8

Headlines


In bps avg technical liabilities In bps avg technical liabilities

In % NEP

12

26

19

2032

46

3M 19 3M 20

Life Non-Life

562374

372

399

934

773

3M 19 3M 20

Life Non-Life

15.4 14.7

0.80.5

16.2 15.3

FY 19 3M 20

excl shadow shadow

91.7 87.3

3M 19 3M 20

140

356

3M 19 3M 20

8

03M 19 3M 20

Strong operating performanceLife result supported by reserve release

Net result strongly up on reserve release in Life - Solid performance in Non-Life

Inflows down 17% on low i-rates – strong growth in Non-Life (+12% at cst. FX)

Life Technical liabilities 6% down due to UL following the drop in financial markets

Operating margin Guaranteed up on reserve release in Portugal (251 bps)

Operating margin Unit-Linked impacted by financial markets volatility


Excellent Non-Life combined ratio

8,515 7,873

575711

9,090 8,584

3M 19 3M 20

regular single

9,090 8,583

292424

9,382 9,007

3M 19 3M 20

Life Non-Life


Asia

9

Resilient operational performance mitigating negative impact from Covid-19

Headlines

In % NEP


Higher Non-Life combined ratio following the acquisition in India (only partly integrated in Q1 2019)

Inflows* -4% @ constant FX due to Covid-19, cushioned by renewals

Life Technical liabilities up 7% fromrenewals

In EUR mio

Regular premium: remaining above 90% of Life inflows

142

69

5

5

147

74

3M 19 3M 20

Life Non-Life

94.2% 95.7%

3M 19 3M 20

82.2 87.5

FY 19 3M 20

Resilient net result compared to an exceptionally high result LY


Additional information on Ageas

non-consolidated partnerships in

Asia is available on the excel

spreadsheet published on Ageas’

website under quarterly results

(www.ageas.com/investors/quarterly-results)

https://www.ageas.com/investors/quarterly-results

In EUR mio

Reinsurance

10

Cession rate on internal QS & LPT reinsurance agreements up to 40%

Headlines

In % NEP

In EUR mio

Net result: impacted by adverse weather

Inflows: EUR 420 mio from QSagreements

Combined ratio: slightly higher claims

Implementation of an internal reinsurance programme within ageas SA/NV in order to

enhance capital fungibility in the group

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%

ageas SA/NV

reinsurance activities

(12)

(21)

3M 19 3M 20

861

690

3M 19 3M 20

79.5%89.1%

3M 19 3M 20

Periodical financial information I 3M 20 results I 13 May 2020* of which 75% is underwritten by ageas SA/NV

Value legacies

GA


Result driven by capital gain on the tender of Fresh securities & RPN(i) revaluation

Headlines

Total liquid assets down following tender of the Fresh securities

Positive evolution of RPN(i) Staff & Operating expenses: include non-recurring costs

In EUR mio In EUR bn

In EUR mio

In EUR mio

Upstream from Portugal, Reinsurance, Turkey & India

(7)

339

3M 19 3M 20

(359) (303)

7 5

(514)

(472)

FY 19 3M 20

RPN(i) RPI Settlement

2.2

1.6

FY 19 3M 20

7 7

22 22

29 29

3M 19 3M 20

Staff & Intercompany Operating

27

56

3M 19 3M 20

Net result: capital gain on tender of the Fresh & positive RPN(i) contributionIn EUR mio <

In EUR mio

66

1191

87

3M 20

Portugal

Reinsurance

Turkey

India

Solvency


Solvency still comfortably exceeding target level after Fresh transaction & market impact

Solvency IIageas

Solvency IIageas

in %

Own Funds

SCR

Non EU

Non-controlled

participations*

Belgium UK CEU Reinsurance GA eliminations Group

2.7 2.8 2.7

0.5 0.5 0.5 0.6 0.6 0.6

0.1 0.40.4 0.1 0.2

0.2 (0.3)(0.6) (0.6)

3.7 4.0 3.7

2.43.2 3.3

6.4 6.3

5.5

0.8 0.9 0.8 1.0 1.1 0.9

0.10.7 0.7

1.3 1.50.9

(1.7)(1.8)

(1.5)

8.08.6

7.3

5.8

7.7 7.7

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

235% 221% 205% 167% 179% 181% 178% 170% 160% 196% 173% 166% 215% 217% 196% 241% 243% 236%

* Based on local solvency requirements

Free CapitalGeneration


Operational FCG affected by February storms

expected

dividend

Operational impact – includes EUR 10 mio dividend upstream Non-European NCP’s

Market: Covid-19 impact

Fresh tender: pre-compensated by EUR 750mio T1 in 2019

Capital transactions = SBB & injection in Asia

Based on 175% SCR

Solvency IIageas

Solvency IIageas

In EUR mio*

* FCG Non-European NCP’s over

FY 2019 at EUR 806 mio -

Operational FCG at EUR 369 mio

- outside of Solvency II scope

2,438

1,979

1,474

491

491

529

726 26

85

(459)

(517)

(72)

2,929

2,470

2,0041095

Tier 1instrument

FY 19 Fresh tender FY 19restated

Model changes Market impact Operationalimpact

Capitaltransactions

3M 20


Conclusions

1. Insurance activities have proven resilient

2. Both capital & cash positions remain strong

3. Confident in the solid fundamentals of the Group


Content





Legal Settlement 67


Net result


Resilient operating performance offset by Covid-19 and weather

Belgium UK CEU Asia Reins. GA ageas

339

(7)

339

69

(6)12 26

142

69

223

89

12

1819

20

5

5

35

24

81

12 11 1

32 46

147

74

(12) (21)(7)

251

452

3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20

Non-Life

Life

In EUR mio

General Account

Result suffering from market volatility & storms

Result reflecting challenging Motor market & storms

Strong Non-Life performance & reserve release

Financial markets volatility

Suffering from bad weather in Belgium & UK

Belgium

UK

CEU

Asia

Reinsurance

Ageas


Continued strong Non-Life growth – Inflows down in Life

In EUR mio

EUR mio 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20

Belgium 75% 1,407 1,072 (24%) 661 686 4% 2,068 1,758 (15%)

United Kingdom - 425 424 (0%) 425 424 (0%)

Consolidated entities 100% - 335 342 2% 335 342 2%

Non-consolidated JV's 50% 90 82 (8%) 90 82 (8%)

Continental Europe 562 374 (33%) 372 399 7% 934 773 (17%)

Consolidated entities 562 374 (33%) 199 216 9% 761 590 (22%)

Portugal 51% - 100% 465 251 (46%) 199 216 9% 664 467 (30%)

France 100% 97 123 27% 97 123 27%

Non-consolidated JV's 0 173 183 6% 173 183 6%

Turkey (Aksigorta) 36% 173 183 6% 173 183 6%

Asia Non-consolidated JV's 9,090 8,583 (6%) 292 424 45% 9,382 9,007 (4%)

Malaysia 31% 236 296 26% 162 199 22% 398 495 24%

Thailand 31% - 15% 604 496 (18%) 87 113 30% 691 610 (12%)

China 25% 8,140 7,680 (6%) 8,140 7,680 (6%)

Philippines 50% 7 10 46% 7 10 46%

Vietnam 32% 15 23 58% 15 23 58%

India 26% - 40% 89 78 (12%) 42 112 164% 131 189 45%

Insurance Ageas 11,059 10,030 (9%) 1,749 1,932 10% 12,809 11,962 (7%)

Reinsurance 861 691 861 691accepted from Consolidated entities 859 683 859 683accepted from Non-consolidated partnerships 2 7 2 7

Life Non-Life Total

Inflows @ 100%

Inflows


Inflows down in Life – Non-Life increasing across all regions

1,055 804 347 263

2,318 2,190

3,720 3,257

496 514

380 383 261 282

80 123

1,217

1,302

-15%

+1%

-10%

-4%

-8%

1,551 1,318

608 545

2,398 2,313

4,937

4,559

861 690

3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20 3M 19 3M 20

Belgium UK CEU Asia Insurance Reins.

Non-Life

Life

In EUR mio

Strong growth in Non-Life in a mature market – Life commercial campaigns in 2019

Volumes stabilising

Non-Life growth in Portugal & Turkey – Life suffering from low i-rate

Impact of Covid-19 mitigated by renewals

Inflows include one-offs related to ramp-up phase & QS agreements

Belgium

UK

CEU

Asia

Reinsurance

@ ageas part

* Inflows excluding Luxembourg, divested in 2018 & India Non-Life acquired in 2019

Net realisedcap gains*


Equity impairments due to Covid-19

In EUR mio

* Net capital gains include capital gains, impairments & related changes in profit sharing

(consolidated entitities), net of tax & @ ageas’s part – CEU JV’s not included

3M 19 3M 20

Life 33 (48) Quarterly impairments

Non-Life 3 (3) driven by Equities

Belgium 37 (51)

UK 3 4

Life 2 (3)

Non-Life 1 (0)

CEU 3 (3)

Life 49 16 Impairments on equities mainly in Thailand

Non-Life (0) (1) offset by capital gains in China

Asia 49 14

Reinsurance 0 0

Life 85 (36)

Non-Life 8 (0)

Insurance 93 (36)

General Account

& Eliminations

(4) 306

Total Ageas 89 270

Ageas


Affected by adverse weather in Belgium & UKCombined ratio

Net earned premium (In EUR mio)

In % Net earned premium

64.4 62.267.0

59.7 58.5 59.7 63.2 64.8

35.234.7

34.1

35.5 35.8 35.335.1 34.9

99.6 96.9101.1

95.2 94.3 95.098.3 99.7

(4.0) (5.9) (3.0)(5.6) (7.7) (8.4) (6.4)

(8.6)2014 2015 2016 2017 2018 2019 3M 19 3M 20

claims ratio expense ratio PY claims ratio

Quarter

COR in both years impacted by adverse weather events (8 pp in

3M 20 vs. 6pp in 3M 19)

Underlying improvement driven by CEU and Belgium Motor

Claims ratio

CY ratio slightly deteriorated under pressure of weather claims –

further improvement in CEU in all product lines

Strong PY claims results in Belgium

Expense ratio improved compared to LY thanks to higher volumes

3,843 4,038 4,112 4,148 3,890 3,894 945 980

Ageas


Combined ratio

Accident & Health: improvement driven by CEU & UK Motor: further improving in BE, up in UK

Household: February storms in BE & UK (30pp) Other lines: strong performance in BE

Affected by adverse weather in Belgium & UK


67.3 65.4 67.5 64.8 67.4 70.3 72.0 70.7

27.0 28.3 27.2 27.5 25.4 26.0 24.4 24.2

94.3 93.7 94.7 92.3 92.8 96.396.4

94.9

2014 2015 2016 2017 2018 2019 3M 19 3M 20

69.6 69.178.2

68.7 61.2 66.5 60.7 64.1

29.7 30.529.7

31.633.0

32.932.5

33.7

99.3 99.6107.9

100.394.2

99.493.2

97.8

2014 2015 2016 2017 2018 2019 3M 19 3M 20

51.5 50.4 50.5 43.851.8 46.1

65.0 72.0

44.6 41.6 42.745.1

44.844.6

42.943.1

96.1 92.0 93.2 88.996.6

90.7

107.9115.1

2014 2015 2016 2017 2018 2019 3M 19 3M 20

71.257.9 60.4

51.0 43.9 38.3 46.332.5

50.6

46.4 44.445.1

47.845.1

53.0

45.1

121.8

104.3 104.896.1 91.7

83.4

99.3

77.6

2014 2015 2016 2017 2018 2019 3M 19 3M 20

NEP 813 811 838 884 871 930 219 240 NEP 1,616 1,724 1,790 1,782 1,636 1,623 402 402

NEP 1,029 1,078 1,067 1,072 1,028 982 244 249 NEP 385 424 418 410 356 359 80 90

Ageas


Guaranteed: on target - UL closing the gap

In bps Avg techn. liabilities

Operating margins

Life Unit-Linked

Belgium above target level thanks to higher management

fees

Improving in Portual

Impacted by arbitrage costs in France

Life Guaranteed

Lower realised net capital gains (-37 bps vs. +33 bps)

Reserve release in Portugal

38 33 41 39 41 37 38 39

9080

88 96 89 98 95

25

(39)(23)

(36) (42) (42) (47) (45)

(8)

8990

93 93 88 88 88

56

2014 2015 2016 2017 2018 2019 3M 19 3M 20

1217

4 3 2 2 1 2

2

1

2

(4)

6

18

19 2423

26

17

30

20

36

2527

2528

18

28

2014 2015 2016 2017 2018 2019 3M 19 3M 20

Operating margin

Expense & other m.

Investment m.

Underwriting m.

Avg techn liabilities (In EUR bn)

12.6 13.0 12.1 15.1 15.7 16.0 16.1 15.7


56.9 57.9 57.3 55.9 55.9 56.6 56.2 57.1

In bps avg technical liabilities In bps avg technical liabilitiesIn % NEP

Belgium

23

Solid underlying performance offset by adverse financial markets & weather

Headlines


69

(6)

12

18

81

12

3M 19 3M 20

Life Non-Life

1,4071,072

661

686

2,068

1,758

3M 19 3M 20

Life Non-Life

58.2 57.4

3.1 2.8

61.3 60.2

FY 19 3M 20

excl shadow shadow

104.2 100.3

3M 19 3M 20

78

1

3M 19 3M 20

26

47

3M 19 3M 20

Net result: EUR 88 mio lower net capital gains

Inflows: 3M 19 included UL cash-back campaign - Non-Life +4%

Life Technical Liabilities lower due to decrease of UL unit prices

Non-Life combined ratio impacted by weather (12 pp) - Solid Motor & Other lines

Operating margin Guaranteed suffered from financial markets (-44 bps)

Operating margin Unit-Linked – 3M 19 incl. cost of cash back campaign (≈15 bps)


Life

Belgium

24

Net result & Life liabilitiesIn EUR mio

58.2 57.4

3.1 2.8

61.3 60.2

FY 19 3M 20

excl shadow shadow

Net result impacted by financial markets


69

(6)

12

18

81

12

3M 19 3M 20

Life Non-Life

In EUR bn

Net result decrease mostly explained by

• Lower Life result impacted by lower net cap gains (EUR -82 mio

yoy) partly compensated by a higher net underwriting result.

• Higher Non-Life result thanks to

• Strong performance in Motor and Other more than compensating

the impact of weather events (EUR 20 mio vs. EUR 18 mio last

year)

• Positive impact (EUR 13 mio) from the internal reinsurance

program (vs. EUR 10 mio in 3M 19)

Life technical liabilities (-2% incl. shadow accounting), mainly

explained by

• Decrease of UL (-9%) implied by evolution of the financial

markets after the hit of COVID-19 leading to decrease of unit

prices

• Stable Guaranteed business

201 211

185 190

205 212

7073

+4%

661 686

3M 19 3M 20

972 897

435

175

1,407

1,072

3M 19 3M 20

Life

Belgium

25

Decrease in UL & Guaranteed - Solid Non-life growth Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio


-24%Life

Unit-Linked: 3M 19 exceptionally strong thanks to cashback

campaign (not repeated in 3M 20)

Guaranteed lower than LY explained by:

• Retail Life (-9% vs LY) due to an exceptional inflow in Invest LY

• Group Life (-5% vs LY) mainly due to timing difference on single

premiums

Non-Life

• Strong growth in all product lines

• Increase in Household (+3%) mostly explained by tariff rise

following the evolution of the official construction index

• Increase in Motor (+3%) mainly driven by growth in Motor Own

Damage

Belgium


Combined ratio2019 & 2020 before QS


Net earned premium (in EUR mio)

Solid operating performance despite weather events in the first quarter

63.2 63.556.9 58.3

53.1 56.0 57.866.5 63.0

36.7 37.7

37.8 37.737.9

37.4 37.4

37.737.3

99.9 101.294.7 96.0

91.0 93.4 95.2

104.2100.3

(3.6) (3.4)(7.2) (8.2) (7.7) (8.3) -8.3 (7.8)

(12.7)

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20


The internal reinsurance agreement has an important impact on the

combined ratio. For ease of comparability, the combined ratio

commented in this section excludes all impacts from this internal

reinsurance agreement.

Quarter

COR impacted by adverse weather partly offset by strong

performance in Motor & other lines

Both years include weather events (12pp in 3M 20 vs. 10pp in

3M 19)

Claims ratio

CY ratio slightly deteriorated compared to LY mainly in A&H and

Household partly offset by Motor

PY ratio improved thanks to Other and A&H

Expense ratio improved compared to LY thanks to higher volumes

1,785 1,815 1,832 1,836 1,861 1,944 2,023 489 510

Belgium


Combined ratio2019 & 2020 before QS


Solid operating performance despite weather events in the first quarter

Accident & Health: Higher PY offset by lower CY results Motor: Better CY result thanks to lower frequency

Household: 36 pp weather impact (vs. 30 pp LY) Other lines : Excellent performance thanks to sale of 2 old reinsurance

portfolios in run-off

73.7 70.1 70.4 70.0 68.0 71.0 76.2 78.6 79.8

23.8 25.4 27.6 27.6 26.9 24.424.4 24.6 23.5

97.5 95.5 98.0 97.6 94.9 95.4100.6 103.2 103.4

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

NEP 507 504 484 472 481 522 562 131 140

64.7 62.6 56.2 59.7 58.0 55.3 60.3 55.6 50.3

36.3 37.236.4 36.4 36.8 37.3

37.337.7

37.8

101.0 99.892.6 96.1 94.8 92.6

97.6 93.388.1

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

51.4 51.743.9 47.8

38.649.3 46.3

72.7 78.8

45.6 45.745.2 44.8

45.6

46.6 46.6

46.746.5

97.0 97.489.1 92.6

84.2

95.9 92.9

119.4125.3

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

NEP 564 579 595 605 609 621 640 157 162

66.187.5

65.8 58.346.8 40.3 35.8

46.1

6.5

47.2

47.6

45.044.6

44.843.0 44.3

45.2

44.7

113.3

135.1

110.8102.9

91.683.3 80.1

91.2

51.3

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

NEP 162 170 185 190 193 206 207 52 52

NEP 552 562 568 570 578 596 614 149 155

Belgium


Operating marginsIn bps Avg techn. liabilities

Guaranteed: impacted by financial marketsUL: above the group target range


47.5 48.1 48.7 48.0 47.7 48.0 47.8 48.4

(38)(27) (34) (36) (37) (37) (40) (40)

30 25 29 27 31 25 26 28

9588

91 94 91 100 92

13

8786

86 85 85 8878

1

2014 2015 2016 2017 2018 2019 3M 19 3M 20

(2)1 1 1 1

32 31 3133

39 39

26

46

30 32 3134

40 40

26

47

2014 2015 2016 2017 2018 2019 3M 19 3M 20

Operating margin

Investment m.

Expense & other m.

Underwriting m.


5.7 5.9 6.1 7.6 8.1 9.0 8.6 9.4

Life Unit-Linked

Higher management fees

3M 19 included cost (≈15 bps) related to cashback campaign (not

repeated in 3M 20).

Life Guaranteed

Lower investment margin due to higher level of impairments and

lower level of capital gains.

The recurring financial revenues impacted by lower Real Estate

revenues related to the COVID-19 lock-down

FY 17 FY18 FY19 Q1’20

Guaranteed interest rate 2.32% 2.17% 1.95% 1.90%

Fixed income yield 3.34% 3.25% 3.06% 3.03%

Liabilities Guaranteed (EUR bn) 50.4 49.1 51.5 51.3

FY 17 FY 18 FY 19 Q1’20

Fixed income yield 1.88% 1.96% 1.63% 1.45%

Reinvested amount (EUR bn) 2.9 3.2 3.6 0.9

Newly invested money mostly in corporate bonds (non-financial sector), government

bonds & related loans and mortgage loans.

Belgium


Yield & guaranteed rate on back book down at the same pace

Evolution assets & liabilities

Back book

Life

New money

Life & Non-Life

Belgium


Average rate on back book decreasing in line with evolution yield fixed income

Evolution assets & liabilities

Back book

vs fixed

income

investments

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Liabilities guaranteed i-rate Existing bonds Existing guaranteed rates Book yield existing bonds

In EUR mio

UK

31

Weather events heavily impacting net resultHeadlines

In % of NEP

In EUR mio


Net result impacted by weather events (Ciara & Dennis storms)

Inflows* stable compared with 3M 2019 Non-Life combined ratio @ 98.7% excluding February weather events

11

1

3M 19 3M 20

425 424

3M 19 3M 20

95.5107.1

3M 19 3M 20


UK

32

Impact from weather events & one-offs – inflows stableNet result & Inflows

Other

Household

Accident & Health

Motor

Net result

Weather claims of EUR 15m compared to benign 3M 19

weather; combined with continued market wide Motor claims

inflation

3M 19 included EUR 12 million restructuring cost

In EUR mio

Inflows *

Motor down 8%: reflecting lower volumes from TU and focus

on maintaining pricing discipline

Household up 9% benefitting from new deals in the

Intermediated distribution channel

Other up 18% reflecting growth in Commercial lines business

sold through digital channels and from new deals


11

1

3M 19 3M 20

* incl. non-consolidated partnerships @ 100% & @ constant exchange rate

6 10

299 278

87 96

32 39

0%

425 424

3M 19 3M 20

UK

33

COR impacted by weather eventsCombined ratio2019 & 2020 before LPT & QS






Combined ratio

Impact from storms Ciara & Dennis in February (8pp in 3M

20) combined with continued Motor market wide claims

inflation

Combined ratio Tesco Underwriting 102.0% (vs. 97.4%)

reflecting weather events

Claims ratio

CY ratio: Mainly impacted by weather events across

Household, Commercial and Motor lines; continued market

wide Motor claims inflation, good underlying Household

performance

PY ratio: reflecting lower releases from Commercial lines of

business; robust Motor prior year releases

Expense ratio mainly reflecting lower underlying operating

expenses more than offset by cost of portfolio product mix

shift towards Motor Direct.



65.6 66.3 69.380.7

68.360.2 63.3 59.9

70.7

32.2 33.5 32.8

31.5

34.936.6 35.4

35.6

36.5

97.8 99.8 102.1

112.2103.2

96.8 98.7 95.5

107.1

(4.0) (4.6) (4.4)

4.5(1.4)

(9.2) (9.4) (6.9) (5.6)

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20


1,562 1,613 1,751 1,598 1,493 1,320 1,296 319 323

UK

34

Performance impacted by weather events across almost allbusiness lines

Combined ratio2019 & 2020 before LPT & QS

Motor: Continued market wide claims inflation & weather eventsAccident & Health: Excellent performance driven by an IBNR

review

Household: February weather events’ impact 29pp


76.266.0

55.8 58.4 56.1 57.8 60.251.4

25.4

34.338.7

43.3 40.9 46.7 51.4 54.3

48.0

55.5

110.5104.7

99.1 99.3 102.8109.2

114.5

99.4

80.9

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

71.9 74.6 75.891.0

75.063.7

72.1 65.8 72.0

25.0 25.1 27.2

25.5

27.629.7

29.430.3

31.5

96.9 99.7 103.0

116.5

102.693.4

101.596.1

103.5

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

51.4 51.062.2 57.6 51.7 56.9

42.8 48.5

71.6

42.4 43.337.3 40.6 47.8 45.1

44.142.7

40.7

93.8 94.399.5 98.2 99.5 102.0

86.9 91.2

112.3

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

59.8 56.0 55.373.7 67.0

46.3 54.0 50.5

75.0

44.4 54.3 48.6

44.947.0

56.7 47.9 49.1

50.1

104.2110.3

103.9

118.6 114.0103.0 101.9 99.6

125.1

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

Other: Up on commmercial line & weather events

NEP 79 71 72 39 30 30 34 7 11 NEP 907 958 1,062 1,014 947 844 831 203 202

NEP 374 399 413 361 341 309 289 71 76 NEP 202 185 204 185 175 137 142 37 35

CEU

35

Headlines


In bps avg technical liabilities In bps avg technical liabilities

In % NEP

12

26

19

2032

46

3M 19 3M 20

Life Non-Life

562374

372

399

934

773

3M 19 3M 20

Life Non-Life

15.4 14.7

0.80.5

16.2 15.3

FY 19 3M 20

excl shadow shadow

91.7 87.3

3M 19 3M 20

140

356

3M 19 3M 20

8

03M 19 3M 20

Strong operating performanceLife result supported by reserve release

Net result strongly up on reserve release in Life - Solid performance in Non-Life

Inflows down 17% on low i-rates – strong growth in Non-Life (+12% at cst. FX)

Life Technical liabilities 6% down due to UL following the drop in financial markets

Operating margin Guaranteed up on reserve release in Portugal (251 bps)

Operating margin Unit-Linked impacted by financial markets volatility


Excellent Non-Life combined ratio

CEU

36

Life net result strongly up on reserve release Solid Non-Life operating performance

Net result & Life liabilities

In EUR mio

15.4 14.7

0.80.5

16.2 15.3

FY 19 3M 20

excl shadow shadow


12

26

19

2032

46

3M 19 3M 20

Life Non-Life

Net result

• Life: result driven by a release of provision (EUR 20 million)

partly offset by the negative evolution of the financial

markets

• Non-life: up 6%, supported by the continued strong

operating performance in all business lines and in all

channels, both in Portugal and in the non-consolidated

partnership in Turkey. EUR 1 mio positive impact from

internal reinsurance program (vs. + EUR 3 mio in 3M 19)

In EUR bnLife technical liabilities

• 6% down due to the decrease in Unit-Linked following the drop

in financial markets at end of the quarter

CEU


UL strongly up, mitigating decrease in GuaranteedContinued Non-Life growth

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio

439

182

123

192

-33%

562

374

3M 19 3M 20

Life Unit-Linked

• Inflows strongly up (+56%) supported by good market performance

during the first months of the quarter and by new product launched

end of last year

Life Guaranteed

• Strongly down on last year due to lower sales appetite in a low

interest rates environment – transition phase ongoing in Portugal

with the launch of new product

Non-Life

• Strong sales in both Portugal and Turkey

• In Portugal, excellent commercial performance in all segments

• In Turkey, 17% growth at constant FX, driven by Motor and

Health, and partly offset by FX

130 143

131152

75

6936

34

+7%

372398

3M 19 3M 20

CEU





Combined ratio well below group target on lower claims frequency

63.7 61.355.9 58.6 59.2 62.7 60.5 64.0 59.5

30.0 30.8

29.530.1 31.2

29.7 30.7 27.727.8

93.7 92.185.4

88.7 90.4 92.4 91.2 91.787.3

(4.0) (4.3) (6.5) (6.5) (8.0)(2.9) -2.4

0.0 (1.4)

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20


403 415 454 664 768 594 657 157 174





Combined ratio of consolidated companies at 87.3%, reflecting a

continued excellent operating performance

Improved claims ratio partly driven by lower claims frequency and

supporting all lines of business

Combined ratio in Turkey at 97.2% vs. 102.3% last year

CEU

39


Continued excellent operating performance

Other: very small & volatile portfolio


59.7 61.9 58.8 64.9 61.4 62.5 63.0 65.5 61.8

26.6 26.725.2

25.1 26.8 24.8 26.0 22.2 22.9

86.3 88.684.0

90.0 88.2 87.3 89.0 87.7 84.8

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

79.360.1

71.5 65.5 70.4 68.0 67.2 66.1 66.1

29.2

31.6

32.332.5

35.0 35.3 36.6 34.0 34.3

108.5

91.7

103.898.0

105.4 103.3 103.8 100.1 100.4

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

53.5 54.036.1 42.3 46.5 48.5

40.355.4

41.5

38.8 40.3

35.938.0 34.7 34.2

33.2

32.7

31.5

92.3 94.3

72.080.3 81.2 82.7

73.5

88.1

73.0

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

59.672.3

31.712.1 3.9

72.6

28.3 48.7

21.2

43.7

45.1

40.8

41.339.2

41.5

42.4

37.5

34.6

103.3

117.4

72.5

53.443.1

114.0

70.7

86.2

55.8

2013 2014 2015 2016 2017 2018 2019 3M 19 3M 20

NEP 227 238 255 328 373 318 349 84 94 NEP 99 96 94 202 249 188 207 50 53

NEP 48 51 70 91 105 74 86 19 23 NEP 29 30 35 43 41 13 15 4 4

Accident & Health: Still excellent despite slightly higher costs Motor: Improved claims ratio due to lower accident frequency

Household: Claims ratio strongly down

CEU


Operating marginsIn bps Avg techn. liabilities

95 100 110 111 99 105 101 103

77 5976

10680 91 103 85

(102) (71) (65) (78) (71)(106)

(64)

168

70 88121

139108 90 140

356

2014 2015 2016 2017 2018 2019 3M 19 3M 20

1 2(1) (1) (2)

(10)

1 2 5 4 4 3 4

9 4 5

16

6 87 6

107 7

21

911

8

2014 2015 2016 2017 2018 2019 3M 19 3M 20

Operating margin

Expense & other m.

Underwriting m.

Investment m.


7.7 8.0 8.7 7.9 8.1 8.6 8.4 8.7


6.2 6.1 6.0 7.5 7.6 7.0 7.5 6.3

Guaranteed margin up on reserve release in PortugalUnit-Linked margin down on financial market volatility

Life Unit-Linked

• Life Unit-Linked margin down on higher arbitrage cost due

to financial market volatility

Life Guaranteed

• Expense margin strongly up on reserve release in Portugal

(251 bps)

• Underwriting margin higher than LY on improved Life risk

margin in Portugal.

• Investment margin down on lower investment income due to

low interest rates

8,515 7,873

575711

9,090 8,584

3M 19 3M 20

regular single

9,090 8,583

292424

9,382 9,007

3M 19 3M 20

Life Non-Life


Asia

41


Headlines

In % NEP


Higher Non-Life combined ratio following the acquisition in India (only partly integrated in Q1 2019)

Inflows* -4% @ constant FX due to Covid-19, cushioned by renewals

Life Technical liabilities up 7% fromrenewals

In EUR mio

Regular premium: remaining above 90% of Life inflows

142

69

5

5

147

74

3M 19 3M 20

Life Non-Life

94.2% 95.7%

3M 19 3M 20

82.2 87.5

FY 19 3M 20

Resilient net result compared to an exceptionally high result LY


Additional information on Ageas

non-consolidated partnerships in

Asia is available on the excel

spreadsheet published on Ageas’

website under quarterly results

(www.ageas.com/investors/quarterly-results)

https://www.ageas.com/investors/quarterly-results

Asia

42


Net result & Life liabilities

In EUR mio

142

69

5

5

147

74

3M 19 3M 20

Life Non-Life

82.2 87.5

FY 19 3M 20


Net result

• Negative impact of Covid-19 :

− Equity impairments, offset by positive capital gains

− Downward movement of yields in China leading to unfavourable

evolution of discount rate curve

− Lower sales impacting VANB

• Lower Life Result compared to an exceptionally high result LY:

− Lower net capital gains (EUR 16 mio vs EUR 49 mio)

− Lower inflows

− Negative impact of the discount rate curve in China

• Life Technical liabilities driven by high persistency levels

In EUR bn

Asia

43

Limited decrease in Life inflows thanks to renewals Continued solid growth in Non-Life inflows

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio

8,715 8,181

375402

9,0908,583

3M 19 3M 20

29 31

149206

43

5571

132

292

424

3M 19 3M 20

incl. non-consolidated partnerships @ 100%

All growth rates are at constant FX Periodical financial information I 3M 20 results I 13 May 2020

Life

• Only limited decrease in Life gross inflows (-5%)

during the pandemic, thanks to continued strong

persistency

• Renewals up 2%

• Profitable regular premium still above 90% of total life

inflow

Non-Life

• Up 43%, supported by the contribution from India,

integrated as from 22 February 2019

• Up 23% scope on scope, supported by both Thailand

and Malaysia.

• Continued growth in all business lines

Malaysia: +23% contributed by both

Life and Non-Life

Asia

44

Impact of Covid-19 on inflows mitigated by renewals Inflows per country

China: -5% with NB decrease mitigated

by excellent persistency levels

In EUR mio

8,1407,680

3M 19 3M 20

604496

87

113

691610

3M 19 3M 20

Life Non-Life

7

10

3M 19 3M 20

India: strong contribution from the Non-

Life, only partly integrated in Q1 2019

Philippines: continued upward trend Vietnam: continued rapid growth


All growth rates are at constant FX Periodical financial information I 3M 20 results I 13 May 2020

236296

162

199

398

495

3M 19 3M 20

Life Non-Life

89 78

42

112131

189

3M 19 3M 20

Life Non-Life

15

23

3M 19 3M 20

Thailand: lower Life partly offset by

continued growth in Non-Life

In EUR mio

Reinsurance

45

Cession rate on internal QS & LPT reinsurance agreements up to 40%

Headlines

In % NEP

In EUR mio

Net result: impacted by adverse weather

Inflows: EUR 420 mio from QSagreements

Combined ratio: slightly higher claims

Implementation of an internal reinsurance programme within ageas SA/NV in order to

enhance capital fungibility in the group

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%

ageas SA/NV

reinsurance activities

(12)

(21)

3M 19 3M 20

861

690

3M 19 3M 20

79.5%89.1%

3M 19 3M 20

Periodical financial information I 3M 20 results I 13 May 2020* of which 75% is underwritten by ageas SA/NV

22 33117

161

642

339

80

157

861

690

3M 19 3M 20

In EUR mio

Reinsurance

46

Significant impact from weather eventsNet result & Inflows

Portugal

UK

Protection

Belgium

• EUR 420 mio from the quota share agreements (vs. EUR

240 mio in 3M 19)

• EUR 191 mio from the Loss Portfolio Transfer (LPT)

• EUR 46 mio from prior year unearned premiums

• EUR 33 mio from traditional protection programme


• EUR 2 mio from traditional protection programme – flat year-

on-year

• EUR 17 mio loss from the QS treaty in Belgium due to

claims related to windstorms and floods

• EUR 5 mio loss from the UK mainly explained by the

increased claims from February storms

• EUR 1 mio loss from Portugal due to one-off impact of the

LPT contract (from 20% to 40%) not fully offset by the

positive contribution of the QS

(12)

(21)

3M 19 3M 20

Net result

Inflows

Value legacies

GA


Result driven by capital gain on the tender of Fresh securities & RPN(i) revaluation

Headlines

Total liquid assets down following tender of the Fresh securities

Positive evolution of RPN(i) Staff & Operating expenses: include non-recurring costs

In EUR mio In EUR bn

In EUR mio

In EUR mio

Upstream from Portugal, Reinsurance, Turkey & India

(7)

339

3M 19 3M 20

(359) (303)

7 5

(514)

(472)

FY 19 3M 20

RPN(i) RPI Settlement

2.2

1.6

FY 19 3M 20

7 7

22 22

29 29

3M 19 3M 20

Staff & Intercompany Operating

27

56

3M 19 3M 20

Net result: capital gain on tender of the Fresh & positive RPN(i) contributionIn EUR mio <

In EUR mio

66

1191

87

3M 20

Portugal

Reinsurance

Turkey

India

GA


Liquid assets down on capital management transaction (tender of Fresh securities)

Cash position

In EUR mio

Upstream received from Portugal, Reinsurance, Turkey & India

Additional EUR 24.9 mio cash-out for running SBB since Q1 2020 (up until 11th

of May)

EUR 0.4 bn ring-fenced for Fortis settlement

≈ 1000≈ 1100

settlement settlement

SBB SBB

FRESH

2,192

1,605

(513)

(54)(24)

(67)(10)

87

(6)

FY 19 Upstream Fresh Tender Settlement HQ & ROexpenses

Sharebuy-back

Other 3M 20

HQ

RO

GA


Two successful issuances of debt at holding level in 2019Outstandinghybrids

In EUR mio ageas SA/NV Ageasfinlux

Perp Fixed Rate

Reset Temporary

Write-Down

Tier 1

Fixed-to-Floating

Rate Callable

Tier 2

Fresh -65.50% tender in

Q1 2020

Tier 1

Fixed-to-Floating Rate Callable

Tier 2

Fixed Rate Reset Dated

Subordinated Notes

Tier 2

CASHES

% 3.875% 3.25%3m EUR + 135

bps5.25% 3.50% 3m EUR +200 bps

Amountoutstanding

750 500431

(out of 1,250)450 400 948

ISIN BE6317598850 BE0002644251 XS0147484074 BE6261254013 BE6277215545 BE0933899800

Call date

June 2030 first reset date Reset to 5-yr mid-swap rate +379.2 bps

July 2029Step up to 3M

Euribor +380 bps

Undated, strike 315.0

mandatory 472.5

June 2024

Step up to 3M

Euribor +413 bps

June 2027

Step up after 12

years of 100bps

Undated,

strike 239.4,

mandatory 359.1

Other Public issue Public issue

Subscribed by

Ageas & BNP

Paribas Fortis

Public issue

Coupon served by

FBB, trigger

ACSM linked to

Ageas dividend

Market Price (31/03/20)

80.05 97.46 63.75 116.72 100.63 69.5

Fortis Bank (now BNPPF)

AG Insurance (Belgium)


ContentSlides used during analyst call 2




Legal Settlement 67


Equity


Equity down on negative impact of financial markets

In EUR mio

7,290 7,611

3,9313,151

452

71 22

(780)(68) (156)

EUR 58.89 EUR 57.75

11,22110,762

FY 19 result changeUG/L

treasuryshares

FX IAS 19 other 3M 20

Shareholders’ equity

per segment Belgium 5,135 ► 4,672 Asia 4,008 ► 3,828

UK 998 ► 940 Reinsurance 108 ► (52)

Continental Europe 1,326 ► 1,261 General Account (354) ► 113

Shareholdersequity

Equity per share

Unrealised gains &

losses

Equity per segment

Equity


Debt leverage down after successful tender offer on the Fresh instrument – 65.5% repurchased

Tangible net equity

I page 52

* Leverage calculated as

(Subordinated liabilities + Senior

debt) / (Tangible net equity +

Subordinated liabilities + Senior

debt)

In EUR mio

FY 19 3M 20

IFRS Shareholders' Equity 11,221 10,762

Unrealised gains real estate 674 679

Goodwill (614) (605)

VOBA (Value of Business Acquired) (58) (54)

DAC (Deferred Acquisition Cost) (425) (441)

Other (531) (530)

Goodwill, DAC, VOBA related to N-C interests 381 378

Tax adjustment DAC, VOBA & Other 161 165

IFRS Tangible net equity 10,810 10,353

IFRS Tangible net equity/ IFRS Shareholder's Equity 96% 96%

Debt leverage on tangible net equity * 22.4% 18.2%

Solvency


Solvency still comfortably exceeding target level after Fresh transaction & market impact

Solvency IIageas

Solvency IIageas

in %

Own Funds

SCR

Non EU

Non-controlled

participations*

Belgium UK CEU Reinsurance GA eliminations Group

2.7 2.8 2.7

0.5 0.5 0.5 0.6 0.6 0.6

0.1 0.40.4 0.1 0.2

0.2 (0.3)(0.6) (0.6)

3.7 4.0 3.7

2.43.2 3.3

6.4 6.3

5.5

0.8 0.9 0.8 1.0 1.1 0.9

0.10.7 0.7

1.3 1.50.9

(1.7)(1.8)

(1.5)

8.08.6

7.3

5.8

7.7 7.7

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

235% 221% 205% 167% 179% 181% 178% 170% 160% 196% 173% 166% 215% 217% 196% 241% 243% 236%


Solvency II


Solvency down on Fresh & market – contribution from operations covering dividend accrual

Solvency IIageas

* Impact including secondary impact, diversification & non-transferable

Impact on Solvency IIageas* FY ’19 3M ’20

217% 196%

Debt initiatives -11 pp Tender of the Fresh

Model refinements + 1 pp

Market movements

& RPN(i)

- 11 pp

+1 pp

Swap, spread & equity

Operational +2 pp

SBB - 2 pp

Expected dividend - 1 pp



Operational FCG affected by February storms

expected

dividend

Operational impact – includes EUR 10 mio dividend upstream Non-European NCP’s

Market: Covid-19 impact

Fresh tender: pre-compensated by EUR 750mio T1 in 2019

Capital transactions = SBB & injection in Asia

Based on 175% SCR

Solvency IIageas

Solvency IIageas

In EUR mio*

2,438

1,979

1,474

491

491

529

726 26

85

(459)

(517)

(72)

2,929

2,470

2,0041095

Tier 1instrument



Capitaltransactions

3M 20

* FCG Non-European NCP’s over

FY 2019 at EUR 806 mio -

Operational FCG at EUR 369 mio

- outside of Solvency II scope



Evolution SCR & OF split between types of impact Solvency IIageas

Own Funds

SCR

In EUR mio

3,973 3,959

3,746

14(14) (17) (193)

(2)(0)

Tier 1instrument



Capitaltransactions

3M 20

8,6348,151

7,326

491

491

529

750

3

90

(483)

(808)

(72)

9,1258,642

7,855

Tier 1instrument



Capitaltransactions

3M 20



Operational FCG movement affected by weather & one-off related to step-up internal LPT on segment level

OF SCR FCG

Belgium 144 (6) 155 strong & steady OF generation

despite weather

UK 12 4 5 impacted by weather

CEU 23 (10) 40 SCR supported by step-up to 40%

Reinsurance (12) 26 (58) SCR increase following step-up to 40%

OF impacted by weather

General Account (26) (1) (25)

Group eliminations (51) (16) (22) SCR linked to step-up to 40%

Total Ageas 90 (2) 95 including dividend NCP's

Solvency II scope

Operational YTD

In EUR mio

Solvency IIageas

Solvency

58

High Solvency ratio providing resilience against market or other external evolutions

Solvency IIageas

sensitivities

As per 31/12/19

SCR OF Solvency

Base case Before stress 3,957 8,127 205%

Yield curve Down 50 bps 4,112 7,971 194%

Up 50 bps 3,890 8,424 217%

Equity Down 25% 3,823 7,753 203%

Property Down 10% 4,063 7,875 194%

Spread* Spreads on corporate & government bonds up 50 bps 4,022 7,935 197%

Corporate spread Up 50 bps 3,953 8,159 206%

Sovereign spread Up 50 bps 4,005 7,934 198%

UFR – base case 4.05% Down 15 bps 3,959 8,142 206%

Down 35 bps 3,963 8,114 205%

* Spread sensitivity doesn’t take into

account any credit rating movement


Solvency


Regulatory Solvency @ 200%PIM

Solvency II PIM

in %

Own Funds

SCR


** minority interest of not-fully owned

subsidiaries are equal to minority

interests exceeding contribution to group

SCR

In EUR bn

Belgium UK CEU Reinsurance GA eliminations** Group Non EU

Non-controlled

participations*

222% 185% 204% 169% 172% 172% 288% 274% 258% 191% 170% 162% 216% 203% 200% 241% 243% 236%

2.8 3.22.8

0.5 0.5 0.5 0.5 0.5 0.50.1 0.4 0.4

0.1 0.2 0.2(0.3)(0.6)(0.5)

3.74.3

3.8

2.43.2 3.3

6.35.9

5.6

0.9 0.9 0.81.4 1.4 1.3

0.10.7 0.7

1.3 1.50.9

(1.9) (1.7)(1.7)

8.18.7

7.6

5.8

7.7 7.7

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

FY18

FY19

3M20

Solvency

60

Ageas asset mix not in line with EIOPA reference portfolio

PIMsensitivities

As per 31/12/19

SCR OF Solvency

Base case Before stress 4,238 8,146 192%

Yield curve Down 50 bps 4,410 7,997 181%

Up 50 bps 4,115 8,411 204%

Equity Down 25% 4,072 7,730 190%

Property Down 10% 4,391 7,897 180%

Spread* Spreads on corporate & government bonds up 50 bps 4,589 7,604 166%

Corporate spread Up 50 bps 4,089 8,282 203%

Sovereign spread Up 50 bps 4,726 7,445 158%

UFR – base case 4.05% Down 15 bps 4,268 8,153 191%

Down 35 bps 4,289 8,142 190%

* Credit rating movement not taken

up in spread sensitivity


( 1.4 ) ( 1.5 ) ( 1.5 )

( 1.0 ) ( 1.0 ) ( 0.9 )

( 0.9 ) ( 0.8 ) ( 0.8 )

4.4 4.8 4.3

0.4 0.4

0.4

0.6 0.8

0.7

0.3

0.3

0.3

0.7

0.8

0.8

0.5

0.5

0.5

3.7 4.3

3.8

FY 18 FY 19 3M 20

Non Diversifiable

Non-life UW

Health UW

Life UW

Counterparty Default

Market

Loss-Absorption Deferred Taxes

Loss-Absorption Techn. Liab.

Diversification

Solvency


Composition of SCR & OFComposition of SCR & OF

Diversification

Loss-Absorption Deferred Taxes

Insurance SCRageas per risk type

Market risk main factor in SCR – decreased

following financial market evolution

Tiering of Group PIM own funds

Q4 Tier 2 included overflow from Tier 1 – down

on Fresh tender

5.6 5.5 5.3

1.4 1.4 1.2

1.0 1.7

1.0

0.1

0.1

0.1

8.1

8.7

7.6

FY 18 FY 19 3M 20

Tier 3

Tier 2

Tier 1 restricted

Tier 1

In EUR bn


Content





Legal Settlement 67




Investment portfolio down on lower UG/L

* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs

Gross UG/L on

Available for Sale

Gross UG/L on Real

Estate

Gross UG/L on Held

to Maturity

Sovereign bonds 38.4

Sovereign bonds 38.1

Corporate bonds 20.8

Corporate bonds 19.8

Structured0.1

Structured0.1

Loans11.1

Loans11.7

Equities 4.6 Equities 4.2

Real Estate5.6

Real Estate5.6

Cash 3.7Cash 2.7

84.382.2

FY 19 3M 20

Total portfolio: at EUR 7.3 bn (vs. EUR 8.7 bn)

Fixed income: at EUR 7.0 bn (vs. EUR 7.9 bn)

° Sovereigns at EUR 6.3 bn (vs. EUR 6.4 bn)

° Corporates at EUR 0.8 bn (vs. EUR 1.5 bn)

Equities: at EUR 0.2 bn (vs. EUR 0.8 bn)

at EUR 1.9 bn

• not reflected in shareholders’ equity

Up to EUR 2.5 bn (vs. EUR 2.4 bn)

• not reflected in shareholders’ equity

Ageas Group has joined the commitment to incorporate ESG issues into its investment analysis

and decisions and signed on behalf of all its consolidated entities the UN PRI

In EUR bn



Value fixed income assets down on lower UG/L


Belgium18.5

Belgium18.6

France 6.3 France 6.3

Austria 2.7 Austria 2.6

Portugal 2.8 Portugal 2.8

Spain 2.2 Spain 2.2Italy, 1.5 Italy, 1.5

Germany 1.2 Germany 1.1Ireland 0.5 Ireland 0.4

Other 2.6 Other 2.5

38.4 38.1

FY 19 3M 20

Gross UG/L at EUR 6.3 bn (vs. EUR

6.4 bn)

99.9% investment grade; 84% rated

A or higher

Belgium duration gap close to zero

– matched portfolio

Sovereign bond

portfolio*

In EUR bn

Loan portfolio

(customers & banks)*

Other: mostly government related loans

benefiting from an explicit guarantee by

the Belgian regions or the French State

Loans to banks 0.6Loans to banks 0.9

RE 0.2RE 0.2

Infrastructure1.1

Infrastructure 1.2Mortgages 1.2Mortgages 1.2

Other 8.0Other 8.2

11.111.7

FY 19 3M 20



Corporate bond portfolio* down on lower UG/L

* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs ; consolidated @100%

Corporate bond

portfolio – by sector

Banking 3.0 Banking 2.7

Other financials 2.4

Other financials 2.4

Non Financials

12.3

Non Financials

11.7

Government related 3.1

Government related 3.0

20.819.8

FY 19 3M 20

Gross UG/L at EUR 0.8 bn (vs. EUR 1.5 bn)

Limited exposure to Oil & Gas (≈3% of which

86% rated A or higher), Airlines (≈1%) &

Transportation (≈4% of which 77% rated A or

higher)

In EUR bn

Corporate bond

portfolio – by rating

Credit quality remains high with 90%

investment grade - 52% rated A or higher

BBB exposure only ≈9% of Total investment

portfolio of which EUR 3.2 bn BBB+

exposure

EUR 1.7 bn regarded as non rated corporate

investments

AAA 2.3

AA3.1

A5.0

BBB+ 3.2

BBB3.2

BBB-1.1

BB or lower0.3

Not Rated1.7



In EUR bn


Equity portfolio* Gross UG/L at EUR 0.2 bn (vs. EUR 0.8 bn)

Equities 2.4Equities 1.9

Equity funds0.5

Equity funds0.4

RE funds 0.9

RE funds 0.9

Mixed funds & others 0.8

Mixed funds & others 1.0

4.6

4.2

FY 19 3M 20

Real estate portfolio* Exposure mainly in Belgium

Gross UG/L at EUR 1.9 bn (not reflected

in shareholders’ equity but contributing to

available capital for solvency calculation)

Investment Offices 2.6

Investment Offices 2.6

Car Parks1.3

Car Parks1.3

Investment Retail 1.2

Investment Retail 1.2

RE Development0.3

RE Development0.3

Invest. Warehouses0.3

Invest. Warehouses0.3

5.6 5.6

FY 19 3M 20

Equity portfolio* down on lower UG/L


Content





Legal Settlement 67


Legal


Settlement in full execution mode

Ageas offers to pay EUR 1.2 bn compensation – additional effort of EUR 0.1 bn announced

16/10/2017

Cash impact of EUR 1.0 bn

No recognition of any wrongdoing by Ageas

Commitment by eligible shareholders to abandon any ongoing civil proceeding & not to start

any legal proceeding related to the events

Publication of binding declaration notice on 27/07/2018 launched execution of the settlement

Early filing & opt-out period ended on 31/12/2018

Limited number of opt-outs received for ≈1% of total settlement amount

Computershare Investor Services plc acting as independent claims administrator

Further information available on www.FORsettlement.com

≈290K claims received of which ≈221K have received early payment as at end of April 2020

End of Q1 2020 ≈EUR 725 mio compensation paid to eligible shareholders of which EUR 140

mio coming from D&O insurers – Additional ≈EUR 18 mio paid in April 2020

Due to higher than expected number of claims, dilution likely in certain cases

70% of estimated per share compensation guaranteed for claimants filing before 31/12/2018

Claims validation and payments to continue in 2020

Announcement

14/03/2016

Court’s decision to declare the settlement binding on 13/07/2018

Binding declaration and

claims filing period

Claims validation &

payments ongoing

Claims filing ended on 28/07/2019

http://www.forsettlement.com/

Legal


Proceedings related to the past that remain outstanding

Administrative proceedings

Criminal investigation

Civil proceedings

Other proceedings

None

Public prosecutor has announced discontinuation of proceeding

Public prosecutor has sent his proposal to Chambre du Conseil on referral

Written submissions are being exchanged

Hearing session before the Chambre du Conseil scheduled on 8 and 9 June 2020

Opt-out cases from settlement

Limited number of opt-outers for ≈1% of settlement amount

Patrinvest: first instance in favour of Ageas, appeal filed by plaintiff

Mr. Modrikamen: suspended awaiting outcome criminal procedure

MCS: Appeal Court ruled in favour of Ageas, appellants filed appeal before Supreme

Court






Legal Settlement 70


Content

Outstandingshares


Reclassification of 2.6 mio treasury shares following tender on the FRESH securities

* After deduction of shares for management plans

situation 31/12/2019 situation 31/03/2020 situation 11/05/2020

198,374,327 198,374,327 198,374,327

11,747,866 13,355,195 14,126,552

3,820,753 5,428,082 6,199,439

3,968,254 1,369,048 1,369,048

0 2,599,206 2,599,206

3,958,859 3,958,859 3,958,859

186,626,461 185,019,132 184,247,775

Total Issued Shares

Shares not entitled to dividend nor voting rights

1. TREASURY SHARES Share buy-back

FRESH

Other treasury shares

2. CASHES

Shares entitled to dividend & voting rights

*

Shareholdersstructure


Ageas5.1%

Ping An

BlackRock, Inc.

FosunIdentified retail

investors22%

Identified institutional investors

48%

Other investors

14%

Based upon press release 11 May 2020

Based upon the number of shares mentioned in the notification received 6 May 2013

Based upon the number of shares mentioned in the notification received 6 April 2020

Based upon the number of shares mentioned in the notification received 16 May 2019

Estimate by

Estimate by

Ageas

Ping An

BlackRock, Inc.

Fosun

Identified retail investors

Identified institutional investors

Ratings


S&P MOODY'S FITCH

Operating entities AG Insurance (Belgium) A / positive A2 / stable* A+ / stable

Last review 21/11/19 13/12/19 29/04/20

unsollicited

Ageas Insurance Limited A / positive A+ / stable

Last review 21/11/19 29/04/20

Muang Thai Life BBB+ / Stable A- / negative

Last review 15/04/20 08/05/20

Etiqa Insurance Berhad (Malaysia) A / stable

Last review 06/05/20

China Taiping Life A+ / stable

Last review 16/03/20

Holding ageas SA/NV A / positive A3 / stable* A+ / stable

Last review 21/11/19 13/12/19 29/04/20

unsollicited

* Ageas has requested in early 2009 that this rating should be withdrawn. Ageas no longer participates in Moody's credit rating process.

Ageas does not provide, for purposes of Moody's rating, access to the books, records and other relevant internal documents of these rated entities.


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 materially from those

expressed or implied in such statements. Future actual results,

performance or events may differ materially from those in such

statements due to, without limitation, (i) general economic conditions,

including in particular economic conditions in Ageas’s core markets,

(ii) performance of financial markets, (iii) the frequency and severity

of insured loss events, (iv) mortality and morbidity levels and trends,

(v) persistency levels, (vi) interest rate levels, (vii) currency exchange

rates, (viii) increasing levels of competition, (ix) changes in laws and

regulations, including monetary convergence and the Economic and

Monetary Union, (x) changes in the policies of central banks and/or

foreign governments and (xi) general competitive factors, in each

case on a global, regional and/or national basis. In addition, the

financial information contained in this presentation, including the pro

forma information contained herein, is unaudited and is provided for

illustrative purposes only. It does not purport to be indicative of what

the actual results of operations or financial condition of Ageas and its

subsidiaries would have been had these events occurred or

transactions been consummated on or as of the dates indicated, nor

does it purport to be indicative of the results of operations or financial

condition that may be achieved in the future.

Investor Relations

Tel:

E-mail:

Website:

+ 32 2 557 57 32

[email protected]

www.ageas.com

Documents

3M 2020 RESULTS - ageas.com quarterly results... · Ageas Periodical financial information I 3M 20 results I 13 May 2020 3 ... Corporate bonds 24% Loans Equities 14% 5% Real Estate