Corporate template-set Achmea · PDF file³ 9th SAMR and Beeckestijn Business School survey (april 2016) ⁴ Source: Achmea brands Centraal Beheer,

Titel-slide

Achmea Investor Presentation “The leading Dutch insurance company with strong brands,

multi-channel distribution strategy, well-diversified product range and conservative investment profile”

11/12 October 2016

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Contents

Achmea overview

Introduction Key investment considerations Recent results Wrap-up Appendices

Tekst & Grafiek (25%/75%)

3

Achmea overview Strong brands, diversified products, focus on insurance

A strong and solid insurance group with mutual roots

Clear market leader in Dutch insurance: Property & Casualty #1, Income Protection #3, Health #1, Pension #5 and Life #3

Interpolis, Centraal Beheer and Zilveren Kruis are among the most recognised brands in the Netherlands

Distribution mainly through direct & banking channels, well positioned for future market developments

Advanced digital capabilities

Strong Solvency II position of 204%¹

‘A’ rating on the core insurance subsidiaries and conservative leverage position (25.6%)

Pension & LifeNon-lifeInternationalHealth

Turkey

Greece

Slovakia

Ireland

Other

31/12/2015 – Total: €19.9 billion

Gross written premiums by segment

10%

16%

6%

68%

29%

28%

28%

14%

1%

¹ Based on approved PIM (internal model for Non-Life risk).

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Ownership structure - Stability through two major cooperative shareholders

Achmea Association¹

65.3% Rabobank Netherlands¹

29.2% Other¹

5.5% Preference shareholders

100%

Achmea subholding²

5.5% Ordinary shares²

94.5%

The mission of Achmea Association is to support the continuity of Achmea and to look after the collective interests of customers

¹ Owners of Capital rights ² Owner of voting rights


5

Our insurance products are distributed through the banking channel under our Interpolis label

Preferential distribution of Interpolis products through Rabobank branches; approximately 98% of retail insurance products sold through Rabobank are Achmea insurance products

Currently, only 1 out of every 4 customers of Rabobank is insured through Interpolis; both Achmea and Rabobank aim to increase this

99% 99%

77%

1% 1% 23%

Retail Small enterprises* Wholesale

New insurance sales through Rabobank (% Interpolis)

* Definition of small enterprises: 5 employees or less

25%

75%

Retail

% Rabobank customers Strong commercial alliance with Rabobank

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Contents

Dominant player with strong brands and well developed digital capabilities

Our strategic agenda

Robust capital and solvency position

Conservative investment profile


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A solid customer base with leading positions in our core markets

Best in class distribution mainly via direct and bancassurance channel Strong brands with leading positions in customer satisfaction ratings

Leading position in mobile and online services

Achmea has four competitive advantages

70%

6%

3%

Direct Health

79%

14%

7%

Direct (total) Bancassurance Broker

Evelien – Online assistant Speech analytics Independer

Doctor- APP Inshared Agro Damage

Dutch market Market positon

Health # 1

Property & Casualty # 1

Individual Life # 3

Income protection # 3

Asset Management # 5

Achmea serves approximately 10 million customers

Tekst & Beeld (75%/25%)

8

6.8

6.8

6.8

7.2

7.2

7.4

7.7

8,3

Menzis

VGZ

Zilveren Kruis

CZ

Interpolis

OZF Achmea

Pro Life

De Friesland

6.0

6.3

6.4

6.7

ASR

Generali

Aegon

Centraal Beheer

7.3

7.5

7.6

7.6

7.7

7.7

7.9

7.9

NN Group

Aegon

ASR

Allianz

Generali

Centraal Beheer

FBTO

Interpolis

P&C Retail Ø 7.7

7.0

7.2

7.4

7.4

7.5

7.5

ASR

Aegon

Avéro

Interpolis

Generali

Centraal Beheer

P&C Wholesale Ø 7.3 Health Ø 7.0 Pensions Ø 6.3

Strong brands with leading positions in customer satisfaction ratings¹

Direct brand Centraal Beheer voted “Most customer orientated insurer”²

Direct brand FBTO voted “Most customer friendly insurance company” over 2015 and 2016³

¹ Source: the Dutch Association of Insurers customer satisfaction research. Health: Research by Zorgkiezer.nl 2015 ² 5-th Customer Centric DNA Award survey (april 2016) ³ 9th SAMR and Beeckestijn Business School survey (april 2016) ⁴ Source: www.specialitem.nl

Achmea brands Centraal Beheer, Interpolis and Avero score MoneyView 5 star productrating on several Non-Life products meaning a TOP-3 ‘best buy’ position in the market⁴

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NN Group

Vivat

Delta Lloyd

Aegon

Other

Achmea 15%

ASR

ASR

NN Group

Goudse

Delta Lloyd

Other

Achmea 19%

Aegon

A solid customer base with leading positions in our core markets

Individual Life³ #3 Income Protection¹ #3

VGZ

CZ Group

Menzis

Other

Achmea 31%

Health² #1

ASR

Delta Lloyd

NN Group

Allianz

Other

Achmea 21%

Property & Casualty¹ #1

Other

Delta Lloyd

Blackrock NL

PGGM

APG

Achmea 6%

MN

Asset Management⁴ #5

NN Group Vivat

¹ Publication of DNB (2015 figures), ² Based on own analyses, figures 2015, ³ Publication of DNB (2014 figures) ⁴ Dutchinvestor Total Institutional Managed Assets 2014.

Our ‘closed book’ pension holds a 5th position (11% market share)³ in the Dutch market.

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Implementation of integrated Retirement Services strategy

Focus our business portfolio Our transition to a true digital insurer

Staff and expense reduction

We have made significant progress in recent years

House in order

Integrated insurer

Digital Insurer

Pro

cess

inte

grat

ion

Process standardisation

We made tremendous progress in reshaping our process, products and IT-landscape:

1. IT-complexity reduction

2. Integration of back offices by migration of IT- applications

3. Transition to the digital insurer that uses big data and offers high quality digital customer service

Significant progress in reshaping our business portfolio:

1. Divesting operations in Cyprus, Belgium, France, Romania, Bulgaria and Russia, as well as occupational health services provider Achmea Vitale and Achmea Health Centers

2. Recently we announced the sale of the Staalbankiers private banking activities

1. Well known Centraal Beheer brand, with high customer satisfaction. Large customer base

2. Excellent asset gathering experience with long lasting roots in pension market with Achmea Investment management

3. Well positioned savings and mortgages propositions by Achmea Bank

4. Experienced Pension fund (administrative) services provider

5. We moved to a closed book Life in 2013. (Cost efficient operations and high customer satisfaction.)

6. We decided on a closed book pensions, after receipt permit to establish General Pension Fund (18 July 2016)

¹ Internal FTE development of total group activities

18,424

FTE¹

2015 2013 2008

21,332

15,412 2,879

Expenses

2015 2013 2008

3,664

2,633

Syntrus Pension Services

Centraal Beheer financial services

Achmea Investment Management

Achmea Bank

Closed book Pension & Life


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Background

▪ Acceleration in customer focus and cost savings

▪ Innovation of processes and online services

▪ These changes are in response to customers’ fast-changing wishes

Ambitions with Acceleration & Innovation

▪ Providing new solutions to our customers

▪ Maintaining high level of customer satisfaction

▪ Maintaining long-term financial health

Objectives

▪ €450 million cost reduction implying a FTE reduction of approximately 4,000 jobs.

Medewerkers

Competitive costs

Responsible returns

Employees

Customer-driven

Acceleration & Innovation since 2014: accelerated customer focus

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Our Acceleration & Innovation program delivered good results:

Achmea has become a more digital and customer focused organization

We strengthened our earnings model and we divested less profitable businesses

Our employees have become better equipped for digital work environment

In 2016 we continue our initiatives to remain a leading digital insurer, streamlining our organization and further reducing IT-operating costs

We invest in our strategic initiatives preparing ourselves to current and future market challenges:

Implement advanced Bancassurance with Rabobank

Grow international business

Offer clear added value in Health

Improve and innovate Non-life business

Introduce ‘Integrated retirement services’ together with establishment of General Pension Fund

Operating expenses reduced by €355 million as result of the Acceleration & Innovation program started in 2014

As initiatives get finalised in 2016, the goals of Acceleration and Innovation will be visible in our 2017 results

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We have a clear strategy:

Accelerate

Stay on Course

Complete

• Further strengthening of our core competencies in Non-life and Health • Combined with a strong position in pensions and internationally • Invest in further innovative solutions for our customers • Continuation of strong financial position, now and in the long-term

Stay on course:

• Achieving the cost and FTE reduction targets of Acceleration & Innovation • Migration to Digital Customer Services and Digital Business Case of IT.

Complete:

• Additional measures implemented to create financial scope for innovation

• New strategic initiatives to respond to continued changes in market conditions

Accelerate:

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Our strategy will lead to a solid financial profile

Debt leverage well below our maximum (35%)

S&P Capital Target

AA Level

Target capital Available capital

Achmea continuously pursues a fixed charge coverage of > 4x

Achmea has a stable capital position with a S&P capital

surplus at AA-level

Fixed Charge Coverage (in x)

2015

4.1

4x

Solvency II ratio (PIM) (in %)

1H 2016

204

Our solvency II position is strong

26

35%

1H 2016

Debt leverage¹ (in %)

¹Definition Debt leverage: (External Debt + Hybrid capital ) / (Equity - Goodwill + External Debt + Hybrid capital)

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Tiering of Capital In € million

High quality of capital and low leverage

EOF

9,801

SCR

4,589

EOF

9,151

SCR

4,816

204%¹ 199%

H1 2016 2015

73%

9%

14% 4%

Unrestricted Tier 1

Restricted Tier 1

Tier 2

Tier 3

Total EOF 9,801

H1 2016

366

911

Tier 3

349

Tier 2

1,341

676

RT1

884

Avialable headroom²

¹ Percentage based on an estimate with a range of -10% / +5% ² RT1 capacity: (UT1 / 80%) – UT1 – Outstanding RT1; Tier 2 capacity: (Consolidated SCR * 50%) - Outstanding Tier 2 – current Tier 3; Tier 3 capacity: (Consolidated SCR * 15%) – Current Tier 3

Solvency II ratio In € million

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Capital allocation: Commitment predominantly to underwriting risk in line with our risk appetite

2,494

455

2,657

605 702 4,8164,876

1,925

1,860

761

51

Other SCR

14

LAC DT & EP SCR non-insur. Operational BSCR Diversification Intangible Asset

38

CDR Market Underwriting

4,546

Health Underwriting

Non life Underwriting

Life Underwriting

60% 33% 6% 1% -35%

Solvency Capital Requirements (PIM) H1 2016 (in € million)

Beeld & Tekst (75%/25%)



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R 065 , G 127, B 162

R 134 , G 135, B 034

R 074 , G 121, B 076


Orange

Gold

R 229 , G 123, B 003

R 179 , G 143, B 075

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Interest rate sensitivity

Currently we do not hedge the UFR nor the risk margin, which exposes us to changes in the interest rates

Credit spread sensitivity

We make use of the volatility adjustment

Our fixed income portfolio differs from the EIOPA reference portfolio, as we have less exposure to corporates, French government bonds and peripheral sovereigns (e.g. Italy & Spain), but more exposure to core sovereigns (e.g. Germany and The Netherlands)

Equity sensitivity

We do not make use of equity derivatives to reduce the impact of developments in equity prices. The impact of the shock is therefore linear

UFR sensitivity

Limited due to the business mix

Resilient capital base under several scenarios, but strong impact credit spread increase due to conservative profile investment portfolio

Solvency II PIM sensitivities (FY2015, in € million)

Interest rate

Credit Spread

Equity

Property

UFR

Scenario Eligible own funds SCR SII PIM

(in %)

-50bps

+100bps

+100bps

-20%

-40%

-20%

3.7%

3.2%

BASE 9,151 4,589 199

9,929

8,118

9,327

8,735

8,319

8,916

8,909

8,656

4,719

4,486

4,494

4,514

4,441

4,549

4,617

4,646

210

181

208

193

187

196

193

186

Δ SII PIM (in %-pt)

---

+ 11

- 18

+ 8¹

- 6

- 12

-3

- 6

- 13

¹Credit spread sensitivity amended based on further internal analysis




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R 065 , G 127, B 162

R 134 , G 135, B 034

R 074 , G 121, B 076


Orange

Gold

R 229 , G 123, B 003

R 179 , G 143, B 075

Level vooruit

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Focus of approved partial internal model (PIM)

Approved

Non-life risk: PIM is calibrated on Achmea’s historical

experience reflecting the specifics of our Non-life

business geared towards retail

Health risk SLT: Dominant risks are incident and

recovery risk which are not adequately reflected in

the SF

10% of total BSCR (pre-diversification) is currently

under internal model. With the addition of market

risk, this increases to approximately 40%

Under development

Market Risk: pre-application 2016

Health risk NSLT: Used for internal purposes only. For

now we have no ambition to apply for approval, as we

need more historical data with respect to lump sums

and contract ceilings

Introduction to our approach on Solvency II

SCR

Adjustment (LAC DT & TP) BSCR Operational

Market Risk Default Risk Health Risk Intangible Risk Life Risk Non-life Risk

Equity

Interest rate

Property

Spread

Currency

Concentration

SLT

Mortality

Longevity

Lapse

Expense

Revision

Disability & morbidity

Cat Risk NSLT

Premium & Reserve

Lapse

Mortality

Longevity

Disability & Morbidity

Expense

Cat

Lapse

Revision

Cat

Premium & reserve

Lapse

Under Development

PIM (Since dec 2015) Standard Formula

Legend




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R 209 , G 147, B 002

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R 065 , G 127, B 162

R 134 , G 135, B 034

R 074 , G 121, B 076


Orange

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R 229 , G 123, B 003

R 179 , G 143, B 075

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SII capital adequacy framework is based on the approved PIM

The Solvency II zones at legal entity level are based on both the probability of default and the probability of reaching capital levels below SCR level

Our formal risk appetite is set at 100% of SCR for the legal entities which translates into a SII ratio of 130% at group level

Solvency II dividend policy threshold

Legal entity

Group

100%

Red zone “no dividend”

Yellow zone “caution”

Green zone “comfortable”

130%

Red zone “no dividend”

Yellow zone “caution”

Green zone “comfortable”


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Standard & Poor’s rating on solid level

Current rating for our insurance entities is ‘A’ / stable outlook. The group rating is ‘BBB+’ / stable outlook.

Standard & Poor’s confirms distinguishing features of Achmea:

Market leader in P/C and Health

Multi-brand and multi-distribution strategy

Diversified portfolio

Strong capital position on an AA-level

ERM enhances the rating

Strong financial risk profile, but pressured earnings

Rating outlook is ‘stable’

Achmea (A) Stable outlook

Explanatory remarks:

Anchor A-

Business Risk Profile

ICCRA

Competitive position

Strong

Intermediate overall

Strong

• Dutch health and life markets: intermediate risk • Non-life in the Netherlands carries a low risk

• Leading market shares in health and non-life offers competitive strengths

• Multi-brand, multi-distribution approach is supportive to profile

Financial Risk Profile

Capital and Earnings Risk Position Financial Flexibility

Strong

Very Strong

Intermediate

Less than Adequate

• AA-level capital • Pressured level of earnings in past 3 years, followed by

impact extreme weather conditions and increasing medical costs in 2016

• Investment leverage and diversification at conservative levels

• FCCR is constraining factor • Stable financial leverage at around 26%-27%

Modifiers +1

ERM & Management

ERM Mgt & Governance

+1

Strong

Satisfactory

• Positive risk culture, risk management and risk controls • Strategic positioning is clear, financial management is

conservative and organizational effectiveness is good

Liquidity Exceptional • No refinancing concerns

¹ Standard & Poor’s rating services August 15, 2016

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Quality of own risk investment portfolio remains high

Source: Interim reports H1 2016, Press Releases H1 2016 and Press Presentations H1 2016

Investments by type - 30/06/2016 (€, billion) Fixed Income investments by rating - 30/06/2016

82% 83%

45% 44%

71% 67%75%

70% 71% 70%

10% 9%

46% 47%

17%18%

20%22% 19% 20%

5% 5%6% 8%

5% 6% 7%7%7%5%6%

113

2% 0%

127

3% 1%

46

3%

50

2% 3%

36 40 53

1% 2%

56

1% 2%

44

3%

47

3%

Fixed Income¹ Mortgages Equities Real Estate Other

Achmea

H1 16 FY15

Aegon NL

H1 16 FY15

ASR

H1 16 FY15

Delta Lloyd

H1 16 FY15

NN Group

H1 16 FY15

42% 43%

26% 29%

46% 45%

30% 32% 34%

15% 15%

21% 17%

17% 16%

33% 27%29%

15% 15%

26%25%

18% 20%11%

13%

20%

12% 13%

25% 28%14% 15%

25%25%

11%16% 14%

5% 4% 6%4% 1% 2% 2%

A AAA AA BBB <IG & NR

Achmea

H1 16 FY15

Aegon NL²

H1 16 FY15

ASR

H1 16 FY15

Delta Lloyd

H1 16 FY15

NN Group

H1 16 FY15

No

t p

ub

lish

ed

Large exposure to fixed income securities with a high rating profile (84% or more invested in investment grade securities)

Mortgages portfolio increased further per HY 2016 to €4.8 billion and is expected to reach €6 billion by the end of the year

¹ Including net position derivatives ² Excludes rating of sovereign bonds

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Contents

Group results

Solvency II results


Segment results

26

H1 2016 H1 2015

-38

285

H1 2016 H1 2015

1,310 1,367

H1 2016 H1 2015

16,940 16,902

H1 2016 2015

204 199

Strong financial position of group: solvency ratio 204%

Operational result affected by:

Severe weather conditions caused total

damages of €267 million for our customers

Impact on result of €137 million after

reinsurance

Higher healthcare expenses

than estimated due to:

Higher expenditures new medicines

Changed portfolio composition

Gross written premiums increased at Property

& Casualty, Health and International

In 2016, operating expenses decreased further

by 4% due to the decline in the number of

employees and continued digitisation of

processes

Solid financial position with a solvency level of

204%¹

Operational result (in € million)

Gross written premiums (in € million)

Solvency ratio (SII) (in %)

Operating expenses (in € million)

¹ Percentage based on an estimate with a range of -10% / +5%

27

Results affected by one-offs

Segment results (in € million) H1 2016 H1 2015 Former

structure

Non-Life -121 75 109

- Severe weather conditions -130 -

Health 2 172 188

Pension and Life 187 110 125

Banking activities -18

Retirement services -13 -5 -

International activities 8 28 34

Other activities -101 -95 -153

Non-Life

Operational result affected by severe weather conditions

In 2015 realisations on investments due to change in portfolio mix

Health

Result basic health insurance negative due to:

Higher than expected healthcare expenditures for medicines

Changed portfolio composition

Pension and Life

Higher investment results and lower operating expenses

Retirement services

Result affected by investments in retirement services strategy

International activities

Underlying result has improved

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Group results

Solvency II results


Segment results

29

Solvency II ratio primarily influenced by declining interest rates

FY 2015 H1 2016

Available capital

Required capital

Available capital

Required capital

Solvency II (approved model) (in € million)

9,801

4,816

9,151

4,589

204%¹ 199%

Solvency

Solvency II ratio as of Q2 2016 increased to 204%

The solvency ratio is an estimate. Due to uncertainties (including LACDT) a

range of -10%/+5% around the estimate is applied.

Available capital

Increase of available capital as result of interest rate developments (including

UFR-effect)

Own funds impacted by severe weather conditions, lower health results and

capital flows (e.g. coupon payments and dividend)

Required capital

Higher increased capital mainly due to higher life and market risk as result of

interest rate developments

¹ Percentage based on an estimate with a range of -10% / +5%

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Group results

Solvency II results


Segment results

31

Non-Life: High impact of severe weather conditions, underlying result improved

Property & Casualty Due to reinsurance cover the impact on the operational result of the

severe weather conditions is €130 million (gross claims: €267 million)

Underlying result improved because of return improvement measures within the retail customer and commercial portfolio

Income Protection Sickness insurance

Higher duration of absence due to sickness

Trend towards own risk

Individual disability insurance (AOV)

Portfolio decline in line with the market

Effect of accelerated reintegration smaller

Group disability insurance (WIA)

Higher inflow combined with accelerated reintegration

3

11

H1 2016 H1 2015

Operational result Income Protection

(in € million)

-124

64

H1 2016 H1 2015

Operational result Property & Casualty

(in € million)

32

448 440

502 512

Non-Life: Portfolio growth within Property & Casualty

H1 2016 H1 2015 H1 2016 H1 2015

H1 2016 H1 2015 H1 2016 H1 2015

Combined ratio Income (in %)

Claims ratio Expense ratio



Combined ratio at Non-Life (in %)

Property & Casualty Income Protection

Claims ratio Expense ratio Severe weather conditions

2,007 1,982

109.4% 99.4% 100.5%

94.0%

1,505 1,470

69.7% 71.2% 75.5% 69.6%

29.3% 28.2%

10.4% 25.0%

24.4%

Property & Casualty

Gross written premiums increased due to higher inflow in the retail customer

portfolio and price effects in retail and commercial customer portfolio

Structurally lower claims ratio

Impact of severe weather conditions 10.4%-pt

Commission expenses increase in proxy channel

Income Protection

Portfolio decreases in line with the market for individual disability and sickness

insurance. Gross written premiums of group disability insurance portfolio

grows due to return improvement measures

Operating expenses decline due to realised cost efficiency measures

Combined ratio increases due to lower premiums

Claims ratio higher because of increased duration of absence due to

sickness and a rising number of customers disabled for work

Result from previous year lower for our individual disability portfolio due to

lower impact of initiatives of accelerated rehabilitation and reintegration

33

Health: Negative result basic health insurance mainly due to increased expenditures on new medicines

Operational result Health Basic + supplemental (in € million)

Incidental result basis health insurance

Previous underwriting years (in € million)

Structural result basic health insurance

Current underwriting year (in € million)

Operational result Health Supplemental (in € million)

20 25

H1 2016 H1 2015

65

158

H1 2016 H1 2015

-83

-11

H1 2016 H1 2015

172

H1 2016 H1 2015

2

Basic health Insurance

Structural result lower:

Higher healthcare expenses due to higher than expected expenditures on

new medicines

Equalisation system does not fully compensate for the change in our

portfolio

Allocation of €481 million to the results in 2015 is still insufficient

Less incidental result from previous years:

In 2016, lower than expected expenditures on geriatrics and care received

abroad

In 2015, increased outpatient care and different development in

fixed/variable healthcare expenses than expected

Declining operating expenses contribute to the result

Supplemental health insurance

Customers with supplemental health insurance take a more conscious decision

for choosing their coverage

Penetration level of supplemental health insurance on basic health

insurance remains stable

34

260 282

H1 2016 H1 2015 H1 2016 H1 2015

13,106 12,977

H1 2016 H1 2015

100.7% 98.2%

H1 2016 H1 2015

96.2% 95.4%

Health: Higher gross written premiums and lower operating expenses

Basic health Insurance

Higher gross written premiums due to higher contribution equalisation

fund

Administrative costs declined due to more efficient processes

Claims ratio up due to higher healthcare expenditures

Expense ratio down due to initiatives relating to Acceleration & Innovation

Supplemental insurance

Gross written premiums for supplemental insurance declined due to a

lower number of insured customers

Claims ratio has increased due to lower premium revenue and growth in

more selective choice of package for supplemental cover


Basic Supplemental



Combined ratio Basic (in %)


Combined ratio Supplemental (in %)

8.4% 9.4%

87.8% 86.0%

2.9% 3.2%

97.8% 95.0%

1,318 1,327

11,788 11,650

35

Pension & Life: higher investment results and lower operating expenses

Pension & Life

Operational result increased

Higher investment results due to recovery real estate market, higher commodity prices and widening of swap spread

Lower amortisation on value of business acquired (VOBA)

Lower operating expenses

Result of complexity reduction visible

Decrease in number of employees in line with premium lapses

Immediate annuities and term life insurance

Ongoing pension and life insurance activities increased by 51%

Pension & Life closed-book

Licence for Centraal Beheer General Pension Fund obtained on 18 July 2016. Sale of pension insurance products ceased with creation of General Pension Fund (APF)

Gross written premiums decreased by 9%, mainly due to regular premium lapses and a large single premium contract in 2015

Closed-book yields cost benefits



Gross written premiums Annuities and term life insurance

(in € million)

Gross written premiums Pension & Life closed book

(in € million)

148

98

H1 2016 H1 2015

844 924

H1 2016 H1 2015

130 139

H1 2016 H1 2015

187

110

H1 2016 H1 2015

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Retirement services: Achmea invests in the future

Retirement services

Underlying operational result €2 million

Investment of €15 million (total: €35 million) in implementing the Retirement Services strategy

Achmea Investment Management

Assets under Management increased due to higher prices on financial markets

Management fees increased due to higher Assets under Management

Achmea Bank

Higher interest margin due to lower financing expenses

Quality of mortgage portfolio remains solid with an addition to loan provisions of approximately 5bps

Core Tier 1 Ratio increased to 18.0% (H1 2015: 16.8%)

Syntrus Achmea Pension Management

Preparations well under way for General Pension Fund with investments in a new administrative platform

Administration fees decreased slightly to €44 million (H1 2015: €53 million)



Assets under Management AIM (in € mrd)

Interest margin Achmea Bank (in bps)

95

81

H1 2016 H1 2015

106 102

H1 2016 2015

140

124

H1 2016 H1 2015

-13

-5

H1 2016 H1 2015

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International: Underlying result improved due to premium growth

International activities

Total increase in premiums of 4%:

Strong growth in gross written premiums in Turkey (9%),

higher in local currency (24%)

Growing market share in Greece in a shrinking market.

No. 1 position achieved in Greece’s retail customer market

Growth in Ireland due to further improving economy

Successful online initiatives by Onlia (Slovakia) and Anytime (Greece)

Adjusted for one-offs the operational result increased by €2 million

Increase in operating expenses less strong than growth in premiums



603 579

H1 2016 H1 2015

8

28

H1 2016 H1 2015

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Other activities

Achmea Reinsurance

Positive contribution of €6 million (H1 2015: €26 million) to the group result from Achmea Reinsurance despite June severe weather conditions and restructuring of reinsurance contracts Life. The restructuring also caused a decrease in gross written premiums

Achmea Real Estate & Finance

Assets under Management of Syntrus Achmea Real Estate & Finance increased to €16.7 billion, driven by growth in mortgage portfolio and positive revaluation of real estate

Management fees stable at €33 million with lower fees on real estate due to growth in mortgage portfolio

Staalbankiers

Achmea sells private banking activities Staalbankiers to Van Lanschot in line with the strategy

39

Investment results affected by lower interest rates and lower realisations

Investment results

Investments results for own risk decreased with €98 million due to

lower interest rates (direct results) and lower realisations (indirect

results)

Increase in dividends and rental income more than offset by decline

in interest rate

Positive revaluation of housing portfolio ensures stable indirect

investment result

Running yield (annualized) at 2.3%

Realised and unrealised results in fixed income securities in Pension &

Life do not form part of the profit and loss account but run through

the FFA (Fund for Future Appropriation)

The amount of the FFA in H1 2016 is €9.5 billion (2015: €6.2 billion)

Analysis of Change investment results for own risk Achmea Group (in € million)

42

61

Result own risk H1 2016

665

628

Other results

4

Result own risk H1 2015 (corrected)

Indirect results

1

Direct results Impact portfolio change

Non-Life

726

Results own risk

-98

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Contents

Key highlights



41

Key highlights

Dominant player in major insurance market

Largest Dutch insurer: high market shares in all segments

Well positioned with strong brands

Strong brands, high customer satisfaction

Well diversified portfolio.

Distribution primarily through direct and bank distribution

Advanced digital capabilities


High quality of capital and low leverage

Robust solvency level (1H 2016: 204%¹)


Majority (74%) is invested in fixed-income

Low asset risk compared to peers

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Contents


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Ownership structure - Stability through two major cooperative shareholders

Achmea Association¹ 65.3%

Rabobank Netherlands¹ 29.2%

Other¹ 5.5%

Pref. shareholders 100%

Achmea subholding² 5.5%

Ordinary shares² 94.5%

Insurance & other entities

Achmea Bank N.V.

• Senior Unsecured • Covered Bond • Securitisation • Secured EMTN

• No issuance Issuing entities

• Senior unsecured • Subordinated

¹ Owners of Capital rights ² Owner of voting rights

Tekst & Tabel (25%/75%)

44

Housing prices index (% - LY same period) Production Dutch mortgages (#, x1000)

GDP development (% - LY same period)

Unemployment (%)

The economy in our home market is doing well Dutch economy performs above EU average, Macro- economic figures show signs of further growth

Dutch economy is growing. Dutch Central Statistical Office expects 1.7% growth in 2016 and 2017

Leading indicators show improvement:

Lowering unemployment

Rising housing values and higher mortgage production

2017E

1,7

2016E

1,7

Q2-2016

2,3

Q1-2016

1,5

Q4-2015

1,4

Q3-2015

2,0

Q2-2015

1,9

0,5

Source: Dutch Central Statistical Office (CBS). Figures 2016 . Mortgages: Dutch land register. Forecast: MinFin, Rabobank

Q1-2016 2016E

6,2

Q2-2016

6,2

2017E

6,2 6,8 6,6

Q4-2015

6,6

Q3-2015 Q2-2015

6,9 8,7

6.0

4.54.44.13.5

2.92.5

Q3-2015 Q2-2015 2017E 2016E Q2-2016 Q1-2016 Q4-2015

284.2259.1

222.7

170.0

2015 2016E¹ 2014 2013

Average EU per Q1 2016

Average EU per Q1 2016

¹ Based on a 4 quarter rolling average

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Operational Free Capital Generation at approximately €260 million

Investment margin

Description Free Capital Generation (in € m, approximate)

Key drivers

Excess return on investments 155

Unwind UFR

Unwind SCR excl. equity transitional

Unwind of SCR impact equity transtional

Unwind of risk margin

Amortisation of UFR benefit -55 Interest rate levels

Release of SII risk margin in technical provisions as value in-force runs off 85¹ Operational initiatives ALM initiatives

Release of SCR (excl. impact of equity transitional) as value in-force runs off 115 Operational initiatives ALM initiatives

-140 Impact of equity transitional on the unwind of SCR Equity portfolio changes

Holding cost and financing expenses -195 Cost initiatives Financing considerations

Credit spreads Risk premiums

Asset allocation Leverage

Operational results

On

ly P

ensi

on

& L

ife

Structural operational results of other legal entities (e.g. Non-Life, Health, Asset Management, Bank)

~400

Competition Cost initiatives

Holding expenses

Operational FCG Achmea Group (excluding impact equity transitional)

Operational FCG Achmea Group (including impact equity transitional) ~260

Net FCG Achmea Group ~65

160

Cost overrun Pensions & Life -60

¹ Includes Time Value of Options and Guarantees (TVOG) of approximately €5 million




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Fuchsia R 193 , G 086, B 131

Yellow

Purple

Blue

Light Green

RGB-KLEUREN

Dark Green

R 209 , G 147, B 002

R 082 , G 083, B 135

R 065 , G 127, B 162

R 134 , G 135, B 034

R 074 , G 121, B 076


Orange

Gold

R 229 , G 123, B 003

R 179 , G 143, B 075

Level vooruit

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Cure

Compulsory basic insurance with premium of €45.9 billion in 2016; the Dutch health insurance is the largest private insurance market with public safeguards in Europe

Deductible payments ZVW are €3.2 billion in 2016

Care

Annual costs are estimated at €27 billion

Home care & nursing was transferred from care to cure (approximately €3.3 billion of annual premium) as of the 1st of January 2015. The remaining part of the care market is currently still non-insurance

Health: Introduction to Dutch healthcare system (1)

Dutch healthcare system consists of 4 components

Description Size Premium Coverages

Compulsory basic insurance

Public constraints: compulsory, mandatory acceptance & risk

equalization

Hospital care Pharmaceuticals Specialists Home care & nursing General practitioners

€45.9 billion

Cu

re

Insu

ran

ce m

ark

et

Voluntary supplementary insurance

Option to risk selection

€4.0 billion

Dental care Supplementary cover Alternative medicine Vitality

Compulsory Long Term Care

(WLZ)

Long-term care Care for mentally and

physically disabled Mental care

€19.9 billion

Car

e

No

t a

n in

sura

nce

ma

rket

€4.8 billion

Social care and support Domestic help Support, focusing on

participation and guidance of people at home

50% income dependent

45% nominal

5% taxes

100% nominal

Social Support act

(WMO)

Juvenile (Munic)

100% income dependent

100% taxes

100% taxes €1.9

billion Care for persons <18 years

Private Public

Source: Vektis - Verzekerden in beweging 2015 and Ministerie VWS 2016.




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Light Green

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Dark Green

R 209 , G 147, B 002

R 082 , G 083, B 135

R 065 , G 127, B 162

R 134 , G 135, B 034

R 074 , G 121, B 076


Orange

Gold

R 229 , G 123, B 003

R 179 , G 143, B 075

Level vooruit

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Insurance companies receive 55% of their GWP through the Risk Equalisation (RE) fund (government)

Consumers pay annually about €1200-1300 (nominal) premium to their health insurer (45% of the total income of an insurer)

For children (18-) no premium has to be paid

In addition, consumers pay a contribution for some treatments and they have a legally required deductible of €385


Multiple cash flows for basic insurance

Income-related premium (50%)

Government contribution (5%)

55%

Inco

me

com

pen

sati

on

(Hea

lth

care

allo

wan

ce)

Risk equalisation

fund

Insurance company

Healthcare provider

Consumer insured

Employer/ Self-employed

Government




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Sub-bullet (18 pt.)


Fuchsia R 193 , G 086, B 131

Yellow

Purple

Blue

Light Green

RGB-KLEUREN

Dark Green

R 209 , G 147, B 002

R 082 , G 083, B 135

R 065 , G 127, B 162

R 134 , G 135, B 034

R 074 , G 121, B 076


Orange

Gold

R 229 , G 123, B 003

R 179 , G 143, B 075

Level vooruit

Level terug

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How it works

The (ex-ante) budget from the RE-fund

depends on the number of insured and

their risk profile (expected claims

level). Health status of the insured is

included in the profile

RE ex-post is necessary as long as RE

ex-ante still has to be fine tuned.

Application depending on budget

category (that insurers can influence)


Macrobudget ZVW = €42.8 billion

Fixed costs €0.17 bn

Variable costs €35.3 bn

Nursing and care €3.5 bn

GGZ¹ (18+) €3.6 bn

LGGZ² (18+) €0.23 bn

0.4%

Fixed amount per insured based on

historical cost

Distribution based on normative risk profiles:

Physiotherapy t-1 Nursing & care t-1 Geriatric rehabilitation t-1 Generic somatic morbidity Medical devices cost group

Age Gender Source of income Pharmaceutical cost group Diagnostic cost group

Social economic status ZIP code Multiple-year high costs Single person household (L) GGZ t-1 Ex

-an

te b

ud

get

Real costs per insured

Adjustment for number of insured ex-ante budget

Co

st

Reimbursement 100%

0%

Ex-p

ost

co

mp

ensa

tio

n

Ris

k

100% 25% in safety net

100% outside 25% in safety net

100% outside 0% in safety net

100% outside

Safety net (75% reimbursement outside of bandwith

+/- € 15.00)


+/- € 17.5)


+/- € 5.0)

Gro

ss r

esu

lt

Net

res

ult

82.5% 8.2% 8.4% 0.5%

¹ GGZ = mental health care, ² LGGZ = long-term mental health care

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Tiering of capital under Solvency II

Instrument Tiering onder SII Comments

Preference Shares € 311m @ 5,500% Tier 1 (grandfathering) Coupon reset in 2023

Perpetual €600m @ 6,000 % Tier 1 (grandfathering) Perpetual, callable in November each year

Perpetual €750m @ 4,250% Tier 2 Perpetual, callable from February 2025

Sub debt €500m @ 6,000% Tier 2 Maturity April 2043, callable from 2023. Fixed

interest percentage until April 2023

Senior Unsecured €750m @ 2,500% Debt Maturity November 2020

CHF Senior Unsecured €200m @ 1,500% Debt Maturity June 2019

Credit facility € 750m

(undrawn) Debt Maturity 2021


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Contact details

For further information, please contact Achmea Investor Relations

Steven Vink Manager Investor Relations +31 (0)6 20694939 [email protected]

Erwin Lusse Investor Relations Officer +31 (0)6 19298163 [email protected]

Email: [email protected] Internet: www.achmea.com

Documents

Corporate template-set Achmea · PDF file³ 9th SAMR and Beeckestijn Business School survey (april 2016) ⁴ Source: Achmea brands Centraal Beheer,