3M 2019 RESULTS - Ageas · Investment portfolio 62 Legal Settlement 67 General Information 70. Ageas Periodic financial information I 3M 19 results I 15 May 2019 16 At the same strong

3M 2019 RESULTSPeriodical Financial Information

Slides used during analyst call 2

Segment information 15

Equity / Solvency 50

Investment portfolio 62

Legal Settlement 67

General Information 70

Content

Periodic financial information I 3M 19 results I 15 May 2019 2

Ageas

3

Main developments

India: acquisition 40% stake RSGI finalised with EUR 185 mio cash impact

Reinsurance quota share agreements up & running with Belgium, UK &

Portugal

Dedicated function in executive committee to develop the company in line

with Connect21 ambitions

Call of USD 550 mio bond by AG Insurance in Q1

Issuance of EUR 500 mio bond by ageas SA/NV in Q2

Group net result in line with strong result delivered last year despite lower

contribution of net capital gains

Solid sales momentum with inflows up 8%, particularly high in Belgium

≈ EUR 455 mio compensation paid to eligible shareholders since start

execution settlement, of which EUR 140 mio coming from D&O insurers

Next payment scheduled end of May

Strategy

Results

Legal

Capital management

Periodic financial information I 3M 19 results I 15 May 2019Periodic financial information I 3M 19 results I 15 May 2019

In EUR mio In EUR bnIn EUR bn

Ageas

4Periodic financial information I 3M 19 results I 15 May 2019

Net result at same strong level as last yearHeadlines

In bps avg technical liabilitiesIn bps avg technical liabilities

* incl. non-consolidated partnerships @ 100%

In % NEP

Net result: Lower cap gains contribution, UK restructuring & RPN(i) support

Non-Life combined ratio impacted by bad weather in both periods

Inflows*: Strong sales momentum in BE, Portugal & China

Life Technical liabilities* increasing both in conso & non-conso

Operating margin Guaranteed: lower investment result – still in target range

Operating margin Unit-Linked: impacted by costs sales campaign in Be

(52)

(7)

252223

48

35

248

251

3M 18 3M 19

GA Life Non-Life

10.1 11.1

1.71.7

11.912.8

3M 18 3M 19

Life Non-Life

98.8 98.3

3M 18 3M 19

137

88

3M 18 3M 19

3218

3M 18 3M 19

71.5 73.1

1.8 2.9

65.675.3

139.0151.2

FY 18 3M 19

conso shadow non-conso

Belgium268

Belgium168

Belgium294

Belgium333

Belgium391

Belgium437

Belgium415

UK 82

UK 64

UK 50

UK 47

UK ≈ 45

CEU 36

CEU150

CEU53

CEU 19

CEU48

CEU85

CEU≈ 85

Asia 52

Asia106 Asia 43

Asia89

Asia77

Asia92

Asia≈95

438

488

440

487 516

622 > 630

414

2013 2014 2015 2016 2017 2018 expected2019

dividend tobe paid in

2019

Ageas


Expected upstream during 2019 above EUR 630 mioDividend upstream

Upstream duringbased on net result of the year

before

In EUR mio

Belgium main contributor of cash – UK dividend upstream confirmed

Upstream more than covering dividend & holding costs on FY basis

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

Belgium

6

Solid first quarter despite lower capital gains & weather eventsHeadlines

In EUR mio In EUR mio In EUR bn

119

69

18

12

136

81

3M 18 3M 19

Life Non-Life

914

1,407

629

6611,543

2,068

3M 18 3M 19

Life Non-Life

55.9 56.9

1.4 2.3

57.3 59.2

FY 18 3M 19

excl shadow shadow

100.3 104.2

3M 18 3M 19

141

78

3M 18 3M 19

51

26

3M 18 3M 19

Net result: decrease mainly due to lower investment income

Inflows: considerable growth in both Life (+54%) & Non-Life (+5%)

Life Technical Liabilities increased mostly as a result of strong Unit-Linked inflows

Non-Life combined ratio impacted by weather – flat thanks to internal reinsurance

Operating margin Guaranteed suffered from lower investment income

Operating margin Unit-Linked – mostly impacted by the sales campaign

Periodic financial information I 3M 19 results I 15 May 2019

In EUR mio

UK

7

Continued strong operating performanceHeadlines

In % of NEPIn EUR bn


Net result impacted by internal reinsurance & restructuring costs

Inflows* down 6% @ constant FX Non-Life combined ratio @ 111.2%* afterinternal reinsurance transactions

11 11

3M 18 3M 19

445 425

3M 18 3M 19

100.7 95.5

3M 18 3M 19


CEU

8

Headlines

In EUR mio

In EUR bn In EUR bn


13 12

1419

27

32

3M 18 3M 19

Life Non-Life

1,051

562

383

372

1,434

934

3M 18 3M 19

Life Non-Life

15.7 16.2

0.40.6

16.1 16.8

FY 18 3M 19

excl shadow shadow

90.2 91.7

3M 18 3M 19

110

140

3M 18 3M 19

12

8

3M 18 3M 19

Net result supported by strong Non-Life profit

Net result up 27% scope-on-scope Inflows up 14% scope-on-scope thanks to Life segment

Life Technical liabilities up on higher sales in Guaranteed business

Operating margin Guaranteed up on improved risk margin

Operating margin Unit-Linked mainly down on lower sales


Non-Life combined ratio @ 77.8% after new internal reinsurance agreement

In EUR mioIn EUR bn In EUR bn

Asia

9

Solid operational performance and favourable equity markets

Headlines

In % NEP


Higher Non-Life combined ratio following the acquisition in India

Inflows* up 9% @ constant FX: driven by Life new business & renewals

Life Technical liabilities up 15% fromNB growth & strong renewals

In EUR bn

Regular premium: strong growth -remaining above 90% of Life inflows

120142

3

5124

147

3M 18 3M 19

Life Non-Life

8,1859,090

246292

8,4319,382

3M 18 3M 19

Life Non-Life

91.9% 94.2%

3M 18 3M 19

65.6

75.3

FY 18 3M 19

7,7298,515

4555758,184

9,090

3M 18 3M 19

regular single

Net result: higher net capital gains


In EUR mio

Reinsurance

10

Implementation of new internal reinsurance agreements

Headlines

In % NEPIn EUR mio

Net result: initial negative impact of the new reinsurance programme

Inflows: significant one-off impact of Loss Portfolio Transfer

Combined ratio impacted by initial losses & Belgian weather

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: 30% with AG Insurance in Belgium*, 30% with Ageas

Insurance Limited in the UK, and 20% with all Portuguese Non-Life Entities

Loss Portfolio Transfers (LPT): 30% with Ageas Insurance Limited in the UK, and 20%

with the Portuguese Non-Life Entities

The reinsurance protection programme formerly carried out by Intreas is now managed by

ageas SA/NV

The Pillar I Solvency II for ageas SA/NV amounted to 327%

ageas SA/NV

reinsurance activities

2

(12)

3M 18 3M 19

15

861

3M 18 3M 19

81.8 81.8

3M 18 3M 19

Periodic financial information I 3M 19 results I 15 May 2019* of which 75% is underwritten by Ageas SA/NV

Value legacies – Settlement liability down on payments

GA


Result driven by revaluation RPN(i) and higher costs

Headlines

Total liquid assets down on Indian acquisition – EUR 0.7 bn ring-fenced

P&L impact RPN(i) Staff & Operating expenses up mainly on execution Fortis Settlement

In EUR mioIn EUR bn

In EUR mio

In EUR mio

Upstream from Portugal & Turkey

(52)

(7)

3M 18 3M 19

(359) (332)

7 5

(812)(764)

FY 18 3M 19

RPN(i) RPI Settlement

1.7 1.5

FY 18 3M 19

6 7

8

2214

29

3M 18 3M 19

Staff & Intercompany Operating

(38)

27

3M 18 3M 19

Net result: positive RPN(i) contribution partly offset by higher costsIn EUR mio

In EUR mio

710

75

3M 18 3M 19

Turkey Portugal

Solvency


Solvency down on call debt instrument & acquisition India

Solvency IIageas

Solvency IIageas

in %

Own Funds

SCR

Non EU

Non-controlled

participations*

Belgium UK CEU Reinsurance GA eliminations Group

2.7 2.8

0.5 0.5 0.6 0.6

0.1 0.3 0.1 0.1 (0.3) (0.5)

3.7 3.9

2.4 2.8

6.46.0

0.8 0.9 1.0 1.0

0.10.6

1.3

0.5(1.7) (1.6)

8.07.5

5.8

6.6

FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19

235% 215% 167% 175% 178% 170% 196% 200% 215% 194% 241% 237%

Free CapitalGeneration


Operational FCG driven by the strong result

2,143

1,465

414

526

56 138(92)

(95)

(397)

(185)

2,557

1,992

10

FY 18 Model changes Market impact Operationalimpact

Exceptionalitems

Capitaltransactions

M&A 3M 19

expected

dividend

Operational impact – FY guidance of EUR 500 – 540 mio for Solvency scope

includes EUR 10 mio dividend upstream Non-European NCP’s (Turkey)

driven by time value & business performance

Market: driven by sharp drop in interest rates

Exceptional items: impact of implementation new internal reinsurance agreements

Capital transactions = call debt instrument + SBB + injection in Asia

M&A: Acquisition in India

* FCG Non-European NCP’s of

EUR 18 mio over 2018 of which

EUR 322 mio operational, is not

included

Based on 175% SCR

Solvency IIageas

Solvency IIageas

In EUR mio

*

Conclusions

1. Good sales momentum driven by Belgium,

Portugal & Asia

2. Another strong net result

3. In full working order to execute Connect21


Content






Legal Settlement 67


Ageas


At the same strong level as last year

Belgium UK CEU Asia Reins. GA ageas

(7)

(52)(7)

119

69

13 12

120 142

252 223

18

12

14 19

3

5

48

35

136

81

11 11 27 32

124

147

2

(12)

(52)

248

251

3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19

Non-Life

Life

In EUR mio

General Account

Lower support of net cap gains & impact from bad weather

Stable result despite restructuring costs

Luxembourg out of scope / Strong performance both in Life & Non-life

Higher contribution of cap gains / remaining at the same strong level as last year

Suffering from the bad weather in Belgium through QS agreement

Positive contribution of RPN(i)

Belgium

UK

CEU

Asia

Reinsurance

General Account

Net result

Ageas


Strong growth in Belgium, China & Portugal –up 7% constant FX

In EUR mio

EUR mio 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19

Belgium 75% 914 1,407 54% 629 661 5% 1,543 2,068 34%

United Kingdom - 445 425 (5%) 445 425 (5%)

Consolidated entities 100% - 352 335 (5%) 352 335 (5%)

Non-consolidated JV's 50% 93 90 (4%) 93 90 (4%)0 0

Continental Europe 1,051 562 (47%) 383 372 (3%) 1,434 934 (35%)

Consolidated entities 439 562 28% 184 199 8% 623 761 22%

Portugal 51% - 100% 350 465 33% 184 199 8% 534 664 24%

France 100% 89 97 9% 89 97 9%

Non-consolidated JV's 613 0 199 173 (13%) 811 173 (79%)

Turkey (Aksigorta) 36% 199 173 (13%) 199 173 (13%)

Luxembourg (Cardif Lux Vie) 33% 613 0 613 0

Asia Non-consolidated JV's 8,185 9,090 11% 246 292 19% 8,431 9,382 11%

Malaysia 31% 219 236 8% 164 162 (1%) 383 398 4%

Thailand 31% - 15% 669 604 (10%) 82 87 7% 750 691 (8%)

China 25% 7,206 8,140 13% 0 0 7,206 8,140 13%

Philippines 50% 4 7 73% 0 0 4 7 73%

Vietnam 32% 5 15 190% 0 0 5 15 190%

India 26% - 40% 82 89 8% 0 42 82 131 59%

Insurance Ageas 10,150 11,059 9% 1,703 1,749 3% 11,853 12,809 8%#DIV/0! ###### ######

Reinsurance 15 861 15 861 accepted from Consolidated entities 15 859 15 859

accepted from Non-consolidated partnerships 0 2 0 2

Life Non-Life Total

Inflows @ 100%

Ageas


Strong growth in Belgium offset by UK –up 10% @ constant FX

685 1,055

484 347

2,094 2,318

3,263 3,720

472

496

399 380

256 261

63 80

1,189

1,217

+34%

-5%

-18%

+11%

+11%

1,157

1,551

740 608

2,157 2,398

4,452

4,937

15

861

3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19 3M 18 3M 19

Belgium UK CEU Asia Insurance Reins.

Non-Life

Life

In EUR mio

Huge increase in Life of more than 50%

Volumes lower on strategic choices

Luxembourg out of scope / Scope-on-scope up 14%

Maintaining strong sales momentum

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

Belgium

UK

CEU

Asia

Reinsurance

Inflows @ ageas stake

Ageas


Lower support of realised capital gains in Europe -Asia benefiting from strong equity markets

In EUR mio

3M 18 3M 19

Life 66 33 Seasonality in realisation

Non-Life 7 3

Total Belgium 73 37

Non-Life 2 3

Total UK 2 3

Life 2 2

Non-Life 1 1

Total CEU 3 3

Life 25 49 IFRS cap gains on equities

Non-Life 0 (0) in China

Total Asia 25 49

Life 93 85

Non-Life 10 8

General Account

& Eliminations

3 (4)

Total Ageas 106 89

* 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

Net realisedcapital gains*

64.3 64.4 62.267.0

59.7 58.563.5 63.2

34.0 35.234.7

34.1

35.5 35.835.3 35.1

98.3 99.6 96.9101.1

95.2 94.398.8 98.3

(3.8) (4.0)(5.9)

(3.0) (5.6) (7.7) (7.4) (6.4)

2013 2014 2015 2016 2017 2018 3M 18 3M 19

claims ratio expense ratio PY claims ratio

Ageas


Continuously improving operating performance

Combined ratio

Net earned premium (In EUR mio)

In % Net earned premium

Combined ratio

Impacted by weather events spread over segments

Belgium & Reinsurance for same level as 3M 2019 (6 pp)

Underlying performance improving in Household

Claims ratio

CY ratio slightly improving compared to last year across

all segments

PY ratio: lower in BE & UK

Expense ratio slightly down

3,749 3,843 4,038 4,112 4,148 3,890 974 945

Ageas


Combined ratio

70.0 67.3 65.4 67.5 64.8 67.4 71.6 72.0

25.6 27.0 28.3 27.2 27.5 25.425.0 24.4

95.6 94.3 93.7 94.7 92.3 92.8 96.6 96.4

2013 2014 2015 2016 2017 2018 3M 18 3M 19

69.8 69.6 69.178.2

68.7 61.2 59.1 60.7

29.3 29.7 30.529.7

31.633.0 32.9 32.5

99.1 99.3 99.6107.9

100.394.2 92.0 93.2

2013 2014 2015 2016 2017 2018 3M 18 3M 19

51.5 51.5 50.4 50.5 43.8 51.868.6 65.0

44.0 44.6 41.6 42.745.1

44.8

44.5 42.9

95.5 96.1 92.0 93.2 88.996.6

113.1107.9

2013 2014 2015 2016 2017 2018 3M 18 3M 19

62.471.2

57.9 60.451.0 43.9 50.7 46.3

45.550.6

46.4 44.445.1

47.843.7

53.0

107.9

121.8

104.3 104.896.1 91.7 94.4

99.3

2013 2014 2015 2016 2017 2018 3M 18 3M 19

NEP 1,557 1,616 1,724 1,790 1,782 1,636 410 402

NEP 986 1,029 1,078 1,067 1,072 1,028 257 244 NEP 394 385 424 418 410 356 96 80

NEP 813 813 811 838 884 871 211 219

Accident & Health: improvement driven by volumes in CEU Motor: excellent CY performance

Household: 20 pp impact weather events, same as last year Other lines: deterioration across all segments / small portfolio

Continuously improving operating performance

Ageas


Operating margins down compared toexceptionally strong 3M 2018

In bps Avg techn. liabilities

43 38 33 41 39 41 37 38

83 9080

88 96 89

140

95

(31) (39)(23)

(36) (42) (42) (40) (45)

96 8990

93 93 88

137

88

2013 2014 2015 2016 2017 2018 3M 18 3M 19

13 1217

4 3 2 2 1

18

6

18

1924

23

31

17

28

20

36

2527

25

32

18

2013 2014 2015 2016 2017 2018 Q1 18 Q1 19

Operating margin

Investment m.

Expense & other m.

Underwriting m.

Operating margins

Life Unit-Linked

Significant decrease mainly explained by the impact of the

commercial costs related to the successful sales campaign

in Belgium. Operating margin in Continental Europe suffered

from lower volumes.

Life Guaranteed

Operating margin in line with target level despite lower

contribution of realised capital gains. The difference with 3M

2018 operating margin is mainly related to timing difference

in investment income.

Avg techn liabilities (In EUR bn)

12.3 12.6 13.0 12.1 15.1 15.7 15.7 16.1


55.5 56.9 57.9 57.3 55.9 55.9 55.7 56.2


Belgium

23

Solid first quarter despite lower capital gains & weather eventsHeadlines

In EUR mio In EUR mio In EUR bn

119

69

18

12

136

81

3M 18 3M 19

Life Non-Life

914

1,407

629

6611,543

2,068

3M 18 3M 19

Life Non-Life

55.9 56.9

1.4 2.3

57.3 59.2

FY 18 3M 19

excl shadow shadow

100.3 104.2

3M 18 3M 19

141

78

3M 18 3M 19

51

26

3M 18 3M 19

Net result: decrease mainly due to lower investment income

Inflows: considerable growth in both Life (+54%) & Non-Life (+5%)

Life Technical Liabilities increased mostly as a result of strong Unit-Linked inflows

Non-Life combined ratio impacted by weather – flat thanks to internal reinsurance

Operating margin Guaranteed suffered from lower investment income

Operating margin Unit-Linked – mostly impacted by the sales campaign


Life

Belgium

24

Net result & Life liabilities

Net result decrease mostly explained by

• Lower investment results in both Life and Non-Life coming from the

decrease of net capital gains (EUR 37 mio lower) & Real Estate

exceptional investment income last year (EUR 23 mio)

• Thanks to the positive impact from the new internal reinsurance

program, the net impact of weather events was similar to last year

In EUR mio

Life technical liabilities (+3%), mainly explained by growing

• Unit-Linked liabilities due to strong inflows and the increase in

market value of the underlying assets

• Group Life liabilities

• Shadow accounting coming from market recovery

56 57

1 2

57 59

FY 18 3M 19

excl shadow shadow

Net result marked by lower investment result -Growth of Life technical liabilities


119

69 69

18

122

136

8171

3M 18 3M 19 pro forma

Life Non-Life

In EUR bn

186 201

178 185

198205

6770

+5%

629661

3M 18 3M 19

746972

168

435

+54%

914

1,407

3M 18 3M 19

Life

Belgium

25

Considerable increase in UL & Guaranteed -Non-Life growth in all business lines

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

Life Unit-Linked

• Inflows up 267 mio thanks to a successful sales campaign in the

first quarter

Life Guaranteed

• Inflows up in all channels but especially in Bank Channel (+55%)

and in Group Life (+18%)

In EUR mio

Non-Life

• Record gross inflows with significant increase in Accident &

Health (+8%) and in Motor (+4%) thanks to new contracts

• Increase in Household (+4%) mostly explained by tariff rise

following the evolution of the official construction index


Belgium


Combined ratio



63.2 63.556.9 58.3

53.1 56.062.7 63.3 66.5

36.7 37.7

37.8 37.737.9

37.4

37.6 37.037.7

99.9 101.2

94.7 96.091.0 93.4

100.3 100.3104.2

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

(8.1) (10.4)

(7.8)

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma


Strong operating performance excluding weather events

The new internal reinsurance agreement has an important impact on

the combined ratio. For sake of comparability of the performance the

pro forma combined ratio commented in this section excludes all

impacts from this internal reinsurance agreement.

Combined ratio

up compared to LY due to higher claims in all business lines

March weather events heavily impacting combined ratio (10pp)

Continued excellent combined ratio in Motor & Other lines

Claims ratio

CY ratio deteriorated compared to last year due to higher claims

in all business lines

PY ratio: stable year-on-year

Expense ratio relatively stable year-on-year

1,785 1,815 1,832 1,836 1,861 1,944 478 367 489

Belgium


Combined ratio

73.7 70.1 70.4 70.0 68.0 71.0 75.6 74.0 78.6

23.8 25.4 27.6 27.6 26.9 24.424.9 24.2

24.6

97.5 95.5 98.0 97.6 94.9 95.4100.5 98.2

103.2

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma

64.7 62.6 56.2 59.7 58.0 55.3 53.1 53.0 55.6

36.3 37.236.4 36.4 36.8 37.3 37.9 37.9 37.7

101.0 99.892.6 96.1 94.8 92.6 91.0 90.9 93.3

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma

51.4 51.7 43.9 47.8 38.649.3

69.3 69.0 72.7

45.6 45.745.2 44.8

45.646.6

46.6 47.1 46.7

97.0 97.489.1 92.6

84.295.9

115.9 116.1 119.4

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma

66.187.5

65.8 58.346.8 40.3 39.2 40.5 46.1

47.2

47.6

45.044.6

44.843.0 40.6 46.0

45.2

113.3

135.1

110.8102.9

91.6 83.3 79.886.5 91.2

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma


Good underlying performance impacted by march weather events (10pp)

Accident & Health: up mainly due to deterioration of the net

claims ratio related to higher claims in Medical Care CollectiveMotor: excellent underlying performance despite slight

increase in frequency

Household: 29.9pp impact of weather events Other lines : up due to deterioration in Third Party Liability

NEP 507 504 484 472 481 522 127 116 131 NEP 552 562 568 570 578 596 145 106 149

NEP 564 579 595 605 609 621 153 110 157NEP 162 170 185 190 193 206 53 35 52

Belgium


Operating marginsIn bps Avg techn. liabilities

32 30 25 29 27 31 31 26

88 9588

91 94 91

147

92

(31) (38)(27) (34) (36) (37) (37) (40)

89 8786

86 85 85

141

78

2013 2014 2015 2016 2017 2018 3M 18 3M 19

4(2)

1 0 1 1

38

32 31 3133

39

51

26

41

30 32 3134

40

51

26

2013 2014 2015 2016 2017 2018 3M 18 3M 19

Operating margin

Investment m.

Expense & other m.

Underwriting m.


5.4 5.7 5.9 6.1 7.6 8.1 8.0 8.6


46.4 47.5 48.1 48.7 48.0 47.7 47.8 47.8

Impacted by lower investment result (guaranteed) and cost of sales campaign (UL)

Life Unit-Linked

Significant decrease mostly explained by the impact of the

commercial costs related to the successful sales campaign

that were taken up front

Life Guaranteed

The margin suffered from a lower level of net capital gains

whereas last year’s margin also benefitted from an

exceptional investment income in Real Estate

FY 16 FY 17 FY18 3M 19

Guaranteed interest rate 2.49% 2.32% 2.17% 2.10%

Fixed income yield 3.45% 3.34% 3.25% 3.16%

Liabilities Guaranteed (EUR bn) 52.9 50.4 49.1 50.2

FY 16 FY 17 FY 18 3M 19

Fixed income yield 1.71% 1.88% 1.96% 1.82%

Reinvested amount (EUR bn) 4.5 2.9 3.2 1.3

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

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q32014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Q12019

of the margin

Guaranteed interest rate Total fixed income yield

3.16%

2.10%

Belgium


Margin on back book stable since 2012 Evolution assets & liabilities

In EUR mio

UK

31

Continued strong operating performanceHeadlines

In % of NEPIn EUR bn


Net result impacted by internal reinsurance & restructuring costs

Inflows* down 6% @ constant FX Non-Life combined ratio @ 111.2%* afterinternal reinsurance transactions

11 11

3M 18 3M 19

445 425

3M 18 3M 19

100.7 95.5

3M 18 3M 19


UK

32

Strong Motor CY claims experience & benign weather / continued pricing discipline impacting Inflows

Net result & Inflows

Other

Household

Accident & Health

Motor

Net profit

Total net profit up EUR 3m to EUR 14m pre internal reinsurance

transactions

Improved Motor performance from continued pricing actions &

benign 3M 19 weather partly offset by lower Motor PY release

benefit

Restructuring costs of EUR 12m

7 6

306 299

94 87

3832

-5%

445425

3M 18 3M 19

In EUR mio

Inflows *

Motor down 4%: continued pricing discipline in a competitive

Motor market & lower intermediated volumes - continued growth

in Direct sales through aggregator platforms

Household down 8% resulting from strategic exits of

underperforming business in the intermediated channel & lower

Direct renewal inflows

Other down 16% reflecting planned run off in Special Risks and

discontinued MGA relationship in Commercial

Accident & Health down 13% - marginal impact on total


11 11

14


* incl. non-consolidated partnerships @ 100% & @ constant exchange rate Periodic financial information I 3M 19 results I 15 May 2019

UK

33

Strong COR performance underpined by CY claims experience and benign weather

Combined ratio






Combined ratio

Strong CY claims ratio performance including benign weather vs.

3M 2018, partly balanced by lower benefit from PY releases

Combined ratio Tesco Underwriting 96.5% (vs. 98.3%) reflecting

benign weather partially offset by lower PY claims benefit

Claims ratio

CY ratio: Improved Motor performance from continued pricing

actions & benign weather supporting Household & Other lines

PY ratio: lower releases reflecting lower benefits from Motor partly

balanced by favourable Household & Commercial development

Expense ratio in line with 3M 18; improved underlying operating

expense base at lower NEP & increased Non-Risk income from

sales in Direct distribution channel

65.6 66.3 69.380.7

68.360.2

65.159.9

32.2 33.532.8

31.5

34.9

36.635.6

35.6

97.8 99.8 102.1

112.2

103.2

96.8100.7

111.2

95.5

(4.0) (4.6) (4.4)

4.5

(1.4)

(9.2) (8.7) (6.9)

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma



1,562 1,613 1,751 1,598 1,493 1,321 344 (111) 319


UK

34

Strong CY performance in Motor lines of business - benign weather supporting Household & Other

Combined ratio

Motor: Strong CY performance offset by lower PY benefitAccident & Health: Small portfolio, marginal impact on total

Other: Benign weather & favourable Commercial PY performanceHousehold: Benign weather & PY benefit

76.266.0

55.8 58.4 56.1 57.8 61.051.4

34.338.7

43.3 40.9 46.7 51.4 50.148.0

110.5104.7

99.1 99.3 102.8109.2 111.1 107.3

99.4

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma

71.9 74.6 75.891.0

75.063.7 62.1 65.8

25.0 25.1 27.2

25.5

27.6

29.7 29.6 30.3

96.9 99.7 103.0

116.5

102.693.4 91.7

115.3

96.1

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma

NEP 79 71 72 39 30 30 7 4 7 NEP 907 958 1,062 1,014 947 844 218 (124) 203

51.4 51.062.2 57.6 51.7 56.9

72.0

48.5

42.4 43.3

37.340.6

47.845.1

44.2

42.7

93.8 94.399.5 98.2 99.5 102.0

116.2

102.791.2

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma

59.8 56.0 55.373.7 67.0

46.3

68.550.5

44.4 54.3 48.6

44.947.0

56.7

48.8

49.1

104.2110.3

103.9

118.6 114.0103.0

117.3

73.6

99.6

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma

NEP 374 399 413 361 341 309 80 29 71 NEP 202 185 204 185 175 138 39 (21) 37


CEU

35

Headlines

In EUR mio

In EUR bn In EUR bn


13 12

1419

27

32

3M 18 3M 19

Life Non-Life

1,051

562

383

372

1,434

934

3M 18 3M 19

Life Non-Life

15.7 16.2

0.40.6

16.1 16.8

FY 18 3M 19

excl shadow shadow

90.2 91.7

3M 18 3M 19

110

140

3M 18 3M 19

12

8

3M 18 3M 19

Net result supported by strong Non-Life profit

Net result up 27% scope-on-scope Inflows up 14% scope-on-scope thanks to Life segment

Life Technical liabilities up on higher sales in Guaranteed business

Operating margin Guaranteed up on improved risk margin

Operating margin Unit-Linked mainly down on lower sales


Non-Life combined ratio @ 77.8% after new internal reinsurance agreement

CEU

36

Significant contribution from Non-Life businessNet result & Life liabilities

Net result

• Life: excluding Luxembourg, net result increased primarily related to

Portugal having strong Guaranteed business with lower claims in

Risk

• Non-life: up 38% vs. LY thanks to improved claims ratio and internal

reinsurance program in Portugal

Life technical liabilities

• Up on higher sales in Guaranteed business while Unit-Linked sales

down compared to LY

In EUR mio

15.7 16.2

0.40.6

16.1 16.8

FY 18 3M 19

excl shadow shadow


13 12 12

1419

16

27

3229


Life Non-Life

CEU

37

Considerable increase in Guaranteed Business -Non-Life growth in all business lines

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio

Life Unit-Linked

• Inflows: down 22% due to poor underwriting in as well France as

Portugal related to the financial market volatility

Life Guaranteed

• Up 56% mainly related to higher sales in Savings in Portugal

Non-Life

• Impacted by FX rate in Turkey, at constant FX growth would have

been 11%

• Strong sales in Portugal with main contributors being Household,

Motor (pushed by new business in Agency channel) and Workers’

Compensation (new and inforce business)

281

439

158

123

+28%

439

562

3M 18 3M 19

122 130

147 131

70 75

44 44

-3%

383 372

3M 18 3M 19

*

* Excluding Luxembourg Periodic financial information I 3M 19 results I 15 May 2019

CEU


Combined ratio



63.7 61.355.9 58.6 59.2 62.7 62.1 64.0

30.030.8

29.530.1 31.2

29.7 28.1 27.6

93.7 92.185.4

88.7 90.4 92.4 90.2

77.8

91.7

(4.0) (4.3)(6.5) (6.5) (8.0)

(2.9) (2.3)

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma


Combined ratio well below group target





Combined ratio

CoR of consolidated companies ended at 91.7%, reflecting a

continued excellent operating performance

Combined ratio in Turkey (@102.3% vs. 95.8%) compensated by

higher financial income

Claims ratio

CY ratio slightly improved compared to LY

PY ratio: no PY releases

Expense ratio improved compared to LY

403 415 454 664 768 594 144 77 157

CEU

39

Combined ratio

59.7 61.9 58.8 64.9 61.4 62.5 65.9 65.5

26.6 26.7 25.225.1 26.8 24.8 22.9 22.2

86.3 88.684.0

90.0 88.2 87.3 88.882.9

87.7

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma

79.360.1 71.5 65.5

70.4 68.062.2

66.1

29.2

31.6

32.332.5

35.0 35.334.1 34.0

108.5

91.7

103.898.0

105.4 103.396.3

82.4

100.1

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma

53.5 54.036.1 42.3 46.5 48.5 51.2 55.4

38.8 40.3

35.938.0

34.7 34.2 34.032.7

92.3 94.3

72.080.3 81.2 82.7 85.2

68.7

88.1

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma

59.672.3

31.712.1 3.9

72.6

28.4

48.7

43.7

45.1

40.8

41.339.2

41.5

34.6

37.5

103.3

117.4

72.5

53.443.1

114.1

63.0

130.3

86.2

2013 2014 2015 2016 2017 2018 3M 18 3M 19 proforma

Continued excellent operating performance

Accident & Health: CoR improved versus LY due to higher NEP Motor: higher than LY due to large claim

Household: increase due to higher claims ratio Other: very small and volatile portfolio

NEP 227 238 255 328 373 318 77 59 84 NEP 99 96 94 202 249 188 46 13 50

NEP 48 51 70 91 105 74 18 10 19 NEP 29 30 35 43 41 13 3 (5) 4


CEU


Operating marginsIn bps Avg techn. liabilities

106 95 100 110 111 9975

101

68 77 5976

106

8096

103

(83)(102)

(71) (65) (78) (71) (61) (64)

91 7088

121

139

108 110

140

2013 2014 2015 2016 2017 2018 3M 18 3M 19

1 1

2

54 4 3

51

94

5

16

610

71 2

(1)(2)

47

107 7

21

912

8

2013 2014 2015 2016 2017 2018 3M 18 3M 19

Operating margin

Investment m.

Expense & other m.

Underwriting m.


7.6 7.7 8.0 8.7 7.9 8.1 8.0 8.4


6.3 6.2 6.1 6.0 7.5 7.6 7.8 7.5

Guaranteed margin up on lower claims and strong sales ; UL margin down on lower sales

Life Unit-Linked

• decrease driven by lower inflows (-22%) in all countries,

attractiveness down due to financial markets volatility

• In line with FY 2018 margin

Life Guaranteed

• Strongly up in both France & Portugal

• Underwriting margin: good performance in claims ratio

• Investment margin: slightly higher thanks to some more

capital gains

• Expenses & other margin: in line with LY

In EUR bn

In EUR mioIn EUR bn In EUR bn

Asia

41

Solid operational performance and favourable equity markets

Headlines

In % NEP


Higher Non-Life combined ratio following the acquisition in India

Inflows* up 9% @ constant FX: driven by Life new business & renewals

Life Technical liabilities up 15% fromNB growth & strong renewals

In EUR bn

Regular premium: strong growth -remaining above 90% of Life inflows

120142

3

5124

147

3M 18 3M 19

Life Non-Life

8,1859,090

246292

8,4319,382

3M 18 3M 19

Life Non-Life

91.9% 94.2%

3M 18 3M 19

65.6

75.3

FY 18 3M 19

7,7298,515

4555758,184

9,090

3M 18 3M 19

regular single

Net result: higher net capital gains


Asia

42

Exceptionally high result supported by high capital gains

Net result & Life liabilitiesIn EUR mio

120142

3

5124

147

3M 18 3M 19

Life Non-Life

65.6

75.3

FY 18 3M 19

• Net Result up 19% compared to an already

excellent first quarter 2018

• Result driven by the favourable evolution of equity

markets and continued good underlying results from

all operating companies

• Life – high capital gains (EUR 49 mio), strong

investment income and solid operating performance

• Non-Life – better claims experience and positive

contribution from the newly acquired business in

India

• Life Technical liabilities driven by top line growth

and high persistency levels

Net result

Life Technical liabilities


Asia

43

Growth in Life driven by NB and renewals –Non-Life inflows supported by the new Indian JV

Inflows

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

Life

• Life gross inflows up 8%, driven by strong persistency,

successful sales campaigns and continued channel

developments

• New business premiums and renewals up respectively

15% and 6%

• Regular premium up 13%

Non-Life

• Up 14%, with positive contribution from the newly

acquired business in India

• Down 3% scope on scope due to the decline of the

highly reinsured MAT business in Malaysia.

• Continued growth in all key business lines, especially

Motor (45%) and Household (7%)

In EUR mio

7,9018,715

284

3758,185

9,090

3M 18 3M 19

26 29

97

149

38

4385

71246

292

3M 18 3M 19

incl. non-consolidated partnerships @ 100%

All growth rates are at constant FX Periodic financial information I 3M 19 results I 15 May 2019

Thailand: down 15% - lower Life

renewals, NB returned to growth

Malaysia in line with last year, with higher

Life NB and renewals

Asia

44

Solid growth across the regionInflows per country

China: up 11% with strong renewals and

NB focused on regular premiums

In EUR mio

7,2068,140

3M 18 3M 19

669 604

8287

750691

3M 18 3M 19

Life Non-Life

219 236

164 162

383 398

3M 18 3M 19

Life Non-Life

82 89

4282

131

3M 18 3M 19

Life Non-Life

4 7

3M 18 3M 19

5

15

3M 18 3M 19

India: up 9% in Life – newly acquired

business in Non-Life

Philippines: continued upward trend Vietnam: continued rapid growth


All growth rates are at constant FX Periodic financial information I 3M 19 results I 15 May 2019

In EUR mio

Reinsurance

45

Implementation of new internal reinsurance agreements

Headlines

In % NEPIn EUR mio

Net result: initial negative impact of the new reinsurance programme

Inflows: significant one-off impact of Loss Portfolio Transfer

Combined ratio impacted by initial losses & Belgian weather

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: 30% with AG Insurance in Belgium*, 30% with Ageas

Insurance Limited in the UK, and 20% with all Portuguese Non-Life Entities

Loss Portfolio Transfers (LPT): 30% with Ageas Insurance Limited in the UK, and 20%

with the Portuguese Non-Life Entities

The reinsurance protection programme formerly carried out by Intreas is now managed by

ageas SA/NV

The Pillar I Solvency II for ageas SA/NV amounted to 327%

ageas SA/NV

reinsurance activities

2

(12)

3M 18 3M 19

15

861

3M 18 3M 19

81.8 81.8

3M 18 3M 19

Periodic financial information I 3M 19 results I 15 May 2019* of which 75% is underwritten by ageas SA/NV

22

117

642

80

15

861

3M 2018 3M 2019

In EUR mio

Reinsurance

46

Significant one-off LPT impactNet result & Inflows

Portugal

UK

Former Intreas

Belgium

Inflows

• EUR 240 mio from the new quota share

agreements

• EUR 464 mio from of the LPT

• EUR 135 mio from prior year unearned premiums

• EUR 22 mio from protection programme formerly

managed by Intreas - strong growth thanks to a

new participation in Motor & Third Party Liability in

the UK


2

(12)

3M 18 3M 19

Net result

Gross inflows

• EUR 2 mio from former Intreas – flat year-on-year

• EUR 15 mio loss from the QS treaty in Belgium due

to bad weather, prudent initial reserving for CY and

absence of PY claims reserve releases

• EUR 4 mio gain from the UK thanks to solid

underlying business performance

• EUR 4 mio loss from Portugal as initial impact from

LPT

Value legacies – Settlement liability down on payments

GA


Result driven by revaluation RPN(i) and higher costs

Headlines

Total liquid assets down on Indian acquisition – EUR 0.7 bn ring-fenced

P&L impact RPN(i) Staff & Operating expenses up mainly on execution Fortis Settlement

In EUR mioIn EUR bn

In EUR mio

In EUR mio

Upstream from Portugal & Turkey

(52)

(7)

3M 18 3M 19

(359) (332)

7 5

(812)(764)

FY 18 3M 19

RPN(i) RPI Settlement

1.7 1.5

FY 18 3M 19

6 7

8

2214

29

3M 18 3M 19

Staff & Intercompany Operating

(38)

27

3M 18 3M 19

Net result: positive RPN(i) contribution partly offset by higher costsIn EUR mio

In EUR mio

710

75

3M 18 3M 19

Turkey Portugal

GA


Cash upstream covering paid dividend, holdco costs & part of SBB

Cash position

In EUR mioUpstream received from Turkey & Portugal

M&A relates to India & capital injections in The Philippines

Additional EUR 17 mio cash-out for running SBB in Q2 2019

EUR 0.7 bn ring-fenced for Fortis settlement

≈ 600 ≈ 700

settlement settlement

SBB SBBM&A

(190)

(27) (31)(11)

85(6)

FY 18 Upstream M&A HQ & ROexpenses

Sharebuy-back

Other 3M 19

HQ

RO

GA


Succesful issuance of debt at holding level in April 2019

Outstandinghybrids

In EUR mio ageas SA/NV Ageasfinlux

Fixed-to-Floating

Rate Callable

Tier 2

Fresh

Tier 1

Fixed-to-Floating Rate

Callable

Tier 2

Fixed Rate Reset Perpetual

Subordinated LoansTier 1

Fixed Rate Reset Dated

Subordinated NotesTier 2

CASHES

% 3.25%3m EUR + 135

bps5.25% 6.75% 3.5% 3m EUR +200 bps

Amount outstanding 500 1,250 450 550 USD 400 948

ISIN BE0002644251 XS0147484074 BE6261254013 BE6251340780 BE6277215545 BE0933899800

Call dateJuly 2029

Step up to 3M Euribor +380 bps

Undated, strike 315.0 mandatory

472.5

June 2024

Step up to 3M

Euribor +413 bps

Mar 2019

Step up to 6yr USD

swap + 533 bps

June 2027

Step up after 12

years of 100bps

Undated,

strike 239.4,

mandatory 359.1

Other Public issue

Subscribed by

Ageas & BNP

Paribas Fortis

Public issue Public issue

Coupon served by

FBB, trigger

ACSM linked to

Ageas dividend

Market Price (31/03/19)Issued on 10 April

201953.49 114.31 103.57 74.65

Fortis Bank (now BNP PF)

AG Insurance (Belgium)

Content






Legal Settlement 67


Equity


Equity up on net result & positive impact of financial markets

In EUR mio

6,799 7,126

2,6133,109

251 497 149

(32) (40) (2)

EUR 48.42 EUR 52.05

9,411

10,235

FY 18 result changeUG/L

dividend treasuryshares

FX IAS 19 other 3M 19

Shareholders’ equity

per segment Belgium 4,843 ► 5,138 Asia 2,354 ► 3,014

UK 896 ► 957 Reinsurance 116 ► 112

Continental Europe 1,220 ► 1,193 General Account (17) ► (179)

Shareholdersequity

Equity per share

Unrealised gains &

losses

Equity per segment

Equity


Debt leverage down on call debt instrumentTangible net equity

10/03/2010 I page 52

FY 18 3M 19

IFRS Shareholders' Equity 9,411 10,235

Unrealised gains real estate 649 498

Goodwill (602) (612)

VOBA (Value of Business Acquired) (73) (69)

DAC (Deferred Acquisition Cost) (408) (434)

Other (423) (422)

Goodwill, DAC, VOBA related to N-C interests 331 328

25% tax adjustment DAC, VOBA & Other 146 152

IFRS Tangible net equity 9,031 9,676

IFRS Tangible net equity/ IFRS Shareholder's Equity 96% 95%

Debt leverage on tangible net equity * 20.2% 15.7%

* Leverage calculated as

(Subordinated liabilities + Senior

debt) / (Tangible net equity +

Subordinated liabilities + Senior

debt)

In EUR mio

Estimated increase debt leverage ratio related to new debt instrument of ≈ 3.5 pp in Q2

(based on 3M ’19 tangible equity)

Solvency



Solvency IIageas

Solvency IIageas

in %

Own Funds

SCR

Non EU

Non-controlled

participations*

Belgium UK CEU Reinsurance GA eliminations Group

2.7 2.8

0.5 0.5 0.6 0.6

0.1 0.3 0.1 0.1 (0.3) (0.5)

3.7 3.9

2.4 2.8

6.46.0

0.8 0.9 1.0 1.0

0.10.6

1.3

0.5(1.7) (1.6)

8.07.5

5.8

6.6

FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19

235% 215% 167% 175% 178% 170% 196% 200% 215% 194% 241% 237%

Solvency II


Expected dividend over the period & SBB covered by operational impact

Solvency IIageas

Impact on Solvency IIageas*

FY ’18 3M ’19

215 194%

Call debt instrument -10 pp New deb issuance in Q2 (+13 pp)

Model refinements +2 pp

Market movements (incl. RPN(i))

-5 pp(+1 pp)

Sharp drop in yield curve

Initial impact new internal reinsurance -3 pp LACDT

Operational +4 pp

Acquisition India -5 pp Outside Solvency II scope

SBB -1 pp

Expected dividend -3 pp

* Impact including secondary impact, diversification & non-transferable



Operational FCG driven by the strong result

2,143

1,465

414

526

56 138(92)

(95)

(397)

(185)

2,557

1,992

10


Exceptionalitems

Capitaltransactions

M&A 3M 19

expected

dividend

Operational impact – FY guidance of EUR 500 – 540 mio for Solvency scope

includes EUR 10 mio dividend upstream Non-European NCP’s (Turkey)

driven by time value & business performance

Market: driven by sharp drop in interest rates

Exceptional items: impact of implementation new internal reinsurance agreements

Capital transactions = call debt instrument + SBB + injection in Asia

M&A: Acquisition in India

* FCG Non-European NCP’s of

EUR 18 mio over 2018 of which

EUR 322 mio operational, is not

included

Based on 175% SCR

Solvency IIageas

Solvency IIageas

In EUR mio

*



Evolution SCR & OF split between types of impact Solvency IIageas

Own Funds

SCR

7,9997,500

4145267

12697 (0)

(397) (185)

8,4128,026


Exceptionalitems

Capitaltransactions

QS / LPT 3M 19

3,7283,864

140

54

(28)

(30)


Exceptionalitems

Capitaltransactions

QS / LPT 3M 19

In EUR mio



Operational FCG driven by Belgium – Initial negative impact from start internal reinsurance

Exceptional

OF SCR FCG start new internal

reinsurance

Belgium 100 (18) 132 7

UK 24 11 5 44

CEU 31 1 29 38

Reinsurance 8 (7) 20 (483)

General Account (34) 3 (39) (15)

Group eliminations (32) (20) 1 314

Total Ageas 97 (30) 148 (95)

Solvency II scope

Operational

In EUR mio

Solvency IIageas

Solvency

58

High Solvency ratio providing resilience against market or other external evolutions

Solvency IIageas

sensitivities

As per 31/12/18

SCR OF Solvency

Base case Before stress 3,728 7,998 215%

Yield curve Down 50 bps 3,837 7,883 205%

Up 50 bps 3,619 8,060 223%

Equity Down 25% 3,682 7,704 209%

Property Down 10% 3,788 7,728 204%

Spread* Spreads on corporate & government bonds up 50 bps 3,724 7,693 207%

Corporate spread Up 50 bps 3,698 7,895 213%

Sovereign spread Up 50 bps 3,758 7,796 207%

UFR – base case 4.05% Down 15 bps 3,730 7,989 214%

Down 45 bps 3,750 7,944 212%

* Spread sensitivity doesn’t take into

account any credit rating movement Periodic financial information I 3M 19 results I 15 May 2019

Solvency



PIM

* Based on local solvency

requirements

2.8 3.0

0.5 0.5 0.5 0.5

0.1 0.3 0.1 0.1 (0.3)(0.5)

3.7 4.0

2.4 2.8

6.35.8

0.9 0.91.4 1.4

0.10.6

1.3

0.5

(1.9)(1.7)

8.1 7.5

5.8

6.6

FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19 FY 18 3M 19

In EUR bn

Belgium UK CEU Reinsurance GA eliminations Group Non EU

Non-controlled

participations*

222% 195% 169% 168% 288% 283% 191% 197% 216% 190% 241% 237%Solvency PIM

in %

Own Funds

SCR

Solvency

60

Ageas asset mix not in line with EIOPA reference portfolio

PIMsensitivities

As per 31/12/18

SCR OF Solvency

Base case Before stress 3,728 8,059 216%

Yield curve Down 50 bps 3,801 7,985 210%

Up 50 bps 3,648 8,092 222%

Equity Down 25% 3,671 7,762 211%

Property Down 10% 3,759 7,801 208%

Spread* Spreads on corporate & government bonds up 50 bps 3,928 7,446 190%

Corporate spread Up 50 bps 3,618 8,048 222%

Sovereign spread Up 50 bps 4,101 7,440 181%

UFR – base case 4.05% Down 15 bps 3,730 8,049 216%

Down 45 bps 3,740 8,004 214%

* Credit rating movement not taken

up in spread sensitivity Periodic financial information I 3M 19 results I 15 May 2019

( 1.5 ) ( 1.6 )

( 1.1 ) ( 1.1 )

( 0.8 ) ( 0.8 )

4.3 4.5

0.3 0.3 0.8 0.8 0.5 0.5 0.7 0.8 0.5

0.5 3.7

3.8

FY 18 3M 19

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

Tiering of Group PIM own funds

High quality of own funds

5.6 5.6

1.4 1.3

1.0 0.6

0.1

0.1

8.1

7.5

FY 18 3M 19

Tier 3

Tier 2

Tier 1 restricted

Tier 1

In EUR bn

Content






Legal Settlement 67


Investment portfolio


Investment portfolio up on higher 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 36.9

Sovereign bonds 37.5

Corporate bonds 19.9

Corporate bonds 20.6

Structured0.1

Structured0.1

Loans9.7

Loans9.9

Equities 4.5Equities 4.7

Real Estate5.6

Real Estate5.7

Cash 2.9Cash 2.8

79.681.2

FY 18 3M 19

Total portfolio: up to EUR 7.5 bn (vs. EUR 5.9 bn)

Fixed income: up to EUR 6.9 bn (vs. EUR 5.6 bn)

° Sovereigns at EUR 5.6 bn (vs. EUR 4.6 bn)

° Corporates at EUR 1.3 bn (vs. EUR 1.0 bn)

Equities: up to EUR 0.6 bn (vs. EUR 0.4 bn)

Stable at EUR 1.8 bn

• not reflected in shareholders’ equity

Up to EUR 2.2 bn (vs. EUR 1.9 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 up on higher UG/L


Corporate bond

portfolio*

Belgium18.0

Belgium17.9

France 6.3 France 6.5

Austria 2.6 Austria 2.7

Portugal 2.4 Portugal 2.6Spain 1.8 Spain 2.0Italy, 1.2 Italy, 1.3Germany 1.2 Germany 1.2Ireland 0.5

Ireland 0.6Other 2.9 Other 2.9

36.9 37.5

FY 18 3M 19

Banking 3.1 Banking 3.1

Other financials 1.8

Other financials 1.9

Non Financials

11.5

Non Financials

12.2

Government related 3.4

Government related 3.3

19.9 20.6

FY 18 3M 19

Gross UG/L up to EUR 5.6 bn (vs. EUR 4.6 bn)

Over 99% investment grade; 90% rated A or

higher

Belgium duration gap close to zero – matched

portfolio


Credit quality remains high with 91%

investment grade - 54% rated A or higher

Sovereign bond

portfolio*

In EUR bn



More infrastructure loans

In EUR bn


Equity portfolio*

Loan portfolio

(customers & banks)*

Higher exposure in infrastructure loans

Other: mostly government related loans

benefiting from an explicit guarantee by

the Belgian regions, the French State or

the Dutch State


Equities 2.2 Equities 2.3

Equity funds0.3

Equity funds0.4

RE funds 0.9 RE funds 0.9

Mixed funds & others 1.1

Mixed funds & others 1.2

4.54.7

FY 18 3M 19

Loans to banks1.0 Loans to

banks 0.7

RE 0.1 RE 0.2

Infrastructure0.9

Infrastructure0.9

Mortgages 1.2 Mortgages 1.2

Other 6.6 Other 6.9

9.8 9.9

FY 18 3M 19



Real Estate exposure mainly in Belgium


Real estate portfolio* Gross UG/L at EUR 1.8 bn (not reflected

in shareholders’ equity but contributing to

available capital for solvency calculation)

In EUR bn

Investment Offices 2.4

Investment Offices 2.4

Car Parks1.2

Car Parks1.3

Investment Retail 1.3

Investment Retail 1.3

0.3 0.30.4 0.4

5.6 5.7

FY 18 3M 19

Investment

Warehouses

RE Development

Investment

Warehouses

RE Development

Content






Legal Settlement 67


Legal


Settlement in full execution mode

Ageas offered 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 launches execution of the settlement

Claims filing period will end on 28/07/19

Early filing & opt-out period ended on 31/12/18

Computershare Investor Services plc acting as independent claims administrator

All forms & further information available on www.FORsettlement.com

≈266K claims received of which ≈115K have received early payment, another ≈43K will

receive payment by the end of May

250 opt-outs received for ≈1% of total settlement amount*

≈EUR 455 mio compensation paid to eligible shareholders of which EUR 140 mio coming

from D&O insurers – more payments scheduled

Announcement

14/03/2016

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

Publication binding

declaration notice

27/07/2018

Execution ongoing

* Based on indicative per share

compensation & per 07/05/2019

Ageas’s decision to waive its termination right on 21/12/2018

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 to present its proposal to Chambre du Conseil on referral

Opt-out cases from settlement

< 250 opt-outers for ≈1% of settlement amount

Patrinvest: first instance in favour of ageas, appeal filed by claimant

Several individual cases

Mr. Modrikamen: suspended awaiting outcome criminal procedure

MCS: appeal Court ruled in favour of ageas, appeal before Supreme Court possible until

15/10






Legal Settlement 67


Content

Outstandingshares


Another 4 mio shares proposed to be canceled at Shareholders’ meeting in May 2019

* After deduction of shares for management plans

*

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

situation 31/12/2018 situation 31/03/2019 situation 10/05/2019

203,022,199 203,022,199 203,022,199

12,574,985 13,326,719 13,691,719

4,647,872 5,399,606 5,764,606

3,968,254 3,968,254 3,968,254

0 0 0

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

190,447,214 189,695,480 189,330,480

Shareholdersstructure


Ageas4.8%

Ping An

BlackRock, Inc.

Schroders

Fosun Identified retail investors

22%

Identified institutional investors

44%

Other investors

14%

Based upon press release 13 May 2019

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 May 2019

Based upon the number of shares mentioned in the notification received 8 June 2018

Based upon the number of shares mentioned in the notification received 5 October 2017

Estimate by

Estimate by

Ageas

Ping An

BlackRock, Inc.

Schroders

Fosun

Identified retail investors

Identified institutional investors

Financial calendar


20 February

FY 2018 results

15 May

3M 2019 results

15 May

Ordinary shareholders’ meeting

Brussels

27 May

Ex-dividend date

5 April

Annual report 2018 29 May

Payment 2018 dividend

7 August

6M 2019 results

6 November

9M 2019 results

14 November

9M 2018 results

Ratings


S&P MOODY'S FITCH

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

Last change 22/11/18 26/03/19 07/12/18

unsollicited

Ageas Insurance Limited A / stable A+ / stable

Last change 06/11/15 23/11/16

Muang Thai Life BBB+ / stable A- / stable

Last change 27/11/17 01/04/19

Etiqa Insurance Berhad (Malaysia) A / stable

Last change 11/04/19

China Taiping Life A+ / stable


Intreas A / stable


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

Last change 10/12/18 25/03/19 07/12/18

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 2019 RESULTS - Ageas · Investment portfolio 62 Legal Settlement 67 General Information 70. Ageas Periodic financial information I 3M 19 results I 15 May 2019 16 At the same strong