Post on 26-Jul-2020
Introduction to Ageas
Corporate Presentation I March 2019 1
52%
11%
15%
21%
1%
Belgium United-KingdomContinental Europe AsiaReinsurance
An international insurance Group with a focus on Europe and Asia
2Corporate Presentation I March 2019
UNITED-KINGDOM
Non-Life #4 motorcycle insurer#3 private car insurer
BELGIUM
Life & Non-Life #1 Life
#2 Non-Life#1 real estate
CONTINENTAL EUROPE
Life & Non-Life 3 markets
#2 insurer in Portugal
ASIA
Life & Non-Life 6 partnerships in 9 markets
#5 Life in China#1 General takaful in Malaysia
#3 Life & #4 Non-Life in Thailand
AGEAS SA/NV
Internal Reinsurance with Life & Non-Life license
32%
11%19%
38%
Belgium United-KingdomContinental Europe Asia
GROSS INFLOWS @ageas share2018 TOTAL: EUR 14.5 bn
INSURANCE NET RESULT2018 TOTAL: EUR 797 Mio
Diversified product portfolioFocus on Individuals & SME
3Corporate Presentation I March 2019
LIFE
Guaranteedproducts
Unit-Linkedproducts
76%
24%
Guaranteed products Unit-Linked products
NON-LIFE
22%
42%
26%
10%
Accident & HealthMotorHouseholdOther Lines
2018 GROSS INFLOWS NON-LIFE(consolidated entities)
2018 GROSS INFLOWS LIFE(consolidated entities)
MOTOR
ACCIDENT& HEALTH
HOUSEHOLD
OTHER
mostly driven by Motor & Household
mostly guaranteed products
Internal reinsurance with Life & Non-life license
71%
29%
GROSS INFLOWS @ageas share2018 TOTAL: EUR 14.5 bn
Life Non Life
64%
36%
INSURANCE NET RESULTTOTAL: EUR 797 Mio
Life Non Life
Multiple distribution channels to reach our clients
4Corporate Presentation I March 2019
BANKS AGENTS BROKERS DIRECT
Proven competency in developing strong, long-term and dynamic partnerships with companies leader in their
local market
Ageas’s Insurance knowledge
and expertise
Partner’s Local knowledge and
distribution capabilities+
Management structureA business driven organization
5Corporate Presentation I March 2019
EXECUTIVE COMMITTEE
Bart De SmetCEO
Christophe BoizardCFO
Filip CoremansCRO
Antonio Cano COO
MANAGEMENT COMMITTEE
Gary CristCEO Asia
Hans De CuyperCEO Belgium
Andy WatsonCEO United Kingdom
Steven BraekeveldtCEO Continental
Europe
Emmanuel Van Grimbergen
GRO
Four geographic segments supported by a lean corporate Head Office
A PROFILE OF PROFITABLE GROWTH
6Corporate Presentation I March 2019
Consistent inflow growth
7Corporate Presentation I March 2019
CAGR +9%
< Belgium
in EUR bn
< UK < Continental Europe< Asia
6.9 6.0 5.9 5.7 6.1 5.7 6.1
2.1 2.2 2.3 2.5 2.2 2.0 1.8
4.3 5.2 5.6 5.2 5.4 6.1 5.4
7.4 9.3 11.4
15.9 17.8
20.0 21.0 20.722.6
25.2
29.231.5
33.8 34.4
2012 2013 2014 2015 2016 2017 2018
All non-consolidated partnerships have been included at 100%Excluding UK Life and Hong Kong
Underlying insurance net profit capacity of EUR 850-950 mio
8Corporate Presentation I March 2019
< Belgium< UK < Continental Europe< Asia < Reinsurance
In EUR mio
324 335 392 384 391 438 415
108 100 117
30
(156)
29 87 64 77 56
70 90
193 118 128 142 172 272
394
293
170
2
8
8624
654 737 755
721 960
797
2012 2013 2014 2015 2016 2017 2018
INSURANCE NET PROFIT
3
Disciplined cash upstream from local entities Upstream more than covering dividend and holding costs
9Corporate Presentation I March 2019
268
168
294 333
391 437
82
64
50 47 36
150
53 19
48
85
52 106
43 89
77
92
8
438
488
440
488 516
622
407
2013 2014 2015 2016 2017 2018 Dividend paid in 2018Upstream duringbased on net result of year before
< Belgium< UK < Continental Europe< Asia < Reinsurance
In EUR mio
Strong Solvency IIageas position
10Corporate Presentation I March 2019
Solvency IIageasin %
In EUR bn
Own Funds
SCR
Non EU Non-controlledparticipations*
Belgium UK CEU Reins. Diversification Insurance GA GroupNon-transferable
2.9 2.7
0.5 0.5 0.7 0.60.0 0.1
(0.2) (0.2)
3.9 3.7
0.1 0.1
4.0 3.7
1.9 2.4
6.96.4
0.8 0.81.4 1.0
0.1 0.1(1.4)(1.0)
7.7 7.4
0.20.6
7.9 8.0
4.95.8
FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18
237% 235% 147% 167% 207% 178% 243% 196% 196% 202% 196% 215% 261% 241%
16%
9%
58%
17%
Banking Other financialsNon Financials Government related
EUR 19.9 bn46%
25%
12%
6%7% 4%
Sovereign bonds Corporate bondsLoans EquitiesReal Estate Cash
49%
17%
7%
7%
3%5%
3%2%
7%
Belgium France AustriaPortugal Italy SpainGermany Ireland Other
43%
22%
23%
5%7%
Investment offices Car parksInvestment Retail RE DevelopmentInvestment warehouses
10%
1%9%
12%68%
Loans to banks REInfrastructure MortgagesOther
49%
7%
20%
24%
Equities Equity fundsRE funds Mixed funds & others
Solid & diversified investment portfolioStable asset mix & high quality investments
11Corporate Presentation I March 2019
Loan portfolio Equity portfolio: EUR 0.4 bn UG/L Real Estate portfolio: EUR 1.8 bnUG/L not reflected in equity
Sovereign bond portfolio: over 99% investment grade – EUR 4.6 bn UG/L
Total investment portfolio
EUR 79.6 bn EUR 36.9 bn
Corporate bond portfolio: over 91% investment grade – EUR 1.0 bn UG/L
EUR 9.8 bn EUR 4.5 bn EUR 5.6 bn
4 REGIONS, 14 COUNTRIES
12Corporate Presentation I March 2019
BelgiumA market leader with robust profit levels
13Corporate Presentation I March 2019
#1 Life 29% market share
#2 Non-Life 16% market share
#1 Real Estate EUR 6.3 bn real estate value
Policyholders
3.7 mio
2018 Gross Inflows
(@ageas’ share)
EUR 4.6 bn
2018 Net Result
EUR 415 mio
2018 Combined ratio
93.4%
BELGIUM INSURANCE NET PROFIT
< Non-Life< Life
in EUR mio
260 274
336 281 288 292 287
65 61
55
103 102 146
128 324 335
392 384 391
438 415
2012 2013 2014 2015 2016 2017 2018
United KingdomFocus on profitability
14Corporate Presentation I March 2019
#4 Private car
#4 Motorcycle
Staff
3,500
Brokers
2,500
Active customers
5 mio
2%
64%
23%
11%
Accident & Health Motor
Household Other Lines
2018 GROSS INFLOWS(consolidated entities)
EUR 1.4 bnUK INSURANCE NET PROFIT
In EUR mio
108 100 117
30
(156)
29
87
2012 2013 2014 2015 2016 2017 2018
Excl. Net result UK Life
Continental EuropePortugal 3rd home market
15Corporate Presentation I March 2019
Staff
2,400
2018 Combined ratio
92.4%
3 markets : Portugal, France and Turkey
(Italy divested in 2017 & Luxembourg in 2018)
#1 in Life and #2 overall insurer in Portugal
#4 Non-Life in Turkey
68%
32%
2018 GROSS INFLOWS(@ageas share)
EUR 2.8 bn
Life Non-Life
50 44 45 33 49 62 54
14 32 11 37 41
53 49
77
15 64
77 56
70 90
193
118
2012 2013 2014 2015 2016 2017 2018
Divestments
Non-Life
Life
CONTINENTAL EUROPE INSURANCE NET PROFIT
In EUR mio
2018 Gross Inflows(@ageas share)
EUR 2.8 bn
2018 Net Result
EUR 118 mio
AsiaA fast growing contribution
16Corporate Presentation I March 2019
MalaysiaMaybank
2001
ChinaTaiping Life
ThailandMuang Thai
2004
IndiaIDBI Federal Life
2008
Hong KongAICA*
The PhilippinesEast West Ageas Life
VietnamMilitary Bank
2015 2016
LaosCambodiaMuang Thai
EXPANDING OUR REACH THROUGH PARTNERSIPS
*AICA was sold in 2016
2018 Net Result
EUR 170 mio
2018 Combined ratio
90.7%
2018 Gross Inflows(@ageas share)
EUR 5.4 bn
7.9 9.811.9
16.518.0 20.0 21.0
2012 2013 2014 2015 2016 2017 2018
GROSS INFLOWS (@100%, in EUR bn)
Partnerships in 9 markets :China, India, Malaysia, Thailand, Vietnam, Philippines, Singapore, Laos, Cambodia#5 Life in China#1 General in Malaysia#3 Life & #4 Non-Life in Thailand
X2.6
121 122 156
259 168
269
152 8 21
16
13
27
24
17
199
129 142
172
272
394
293
170
2012 2013 2014 2015 2016 2017 2018
DivestmentsNon-LifeLife
ASIA INSURANCE NET PROFIT
In EUR mio
2019
IndiaRoyal Sundaram General Insurance
STRATEGY
17Corporate Presentation I March 2019
Insurance & beyond
§ Focus on long term sustainable growth
§ Keeping all stakeholders in mind§ Offering additional services &
products§ Increased leveraging of technology
2009 2012 2015 2018
Stabilization
Regain
confidence
Create an
Ageas identity
Solid insurance
company in Europe & Asia
Financial
repositioning
Prepare for
the future
Our new 3-year strategic planAn evolution from the past & preparing for the future
16Corporate Presentation I March 2019
Connect 21 A reflection of Group’s Strategy, Values and KPI’s
19Corporate Presentation I March 2019
M&A StrategyM&A Criteria
20Corporate Presentation I March 2019
EXISTING MARKET
Priority to strengthen positions in existing markets
NON-LIFE
Clear preference for Non-Life
FAST GROWING EMERGING MARKETS
Further expansion in fast growing emerging markets while respecting
financial targets and continuing to build on a successful partnership model
BUSINESS GROWTH OPPORTUNITIES
Flexibility for opportunities where Ageas believes its expertise can create growth
& improve the business
M&A StrategyTotal Financing capacity estimated at around EUR 1.8 bn
21Corporate Presentation I March 2019
TOTAL LIQUID ASSETS
< Ring-fenced for Settlement
< Net Cash and liquid assets
in EUR bn
Financing in case of a compelling M&A transaction can come out of:
• Available Net Cash
• Projected future cash flows
• Debt issuing capacity :
• ~ EUR 0.8 bn @ FY 2018
• ~EUR 1.2 bn after call by AG Insurance
of of 550 USD – 6.75%
1.2
1.9 1.9
1.6
1.10.9
1.0
0.8
0.9 0.71.2
1.9 1.9
1.6
1.91.8
1.7
2012 2013 2014 2015 2016 2017 2018
INVESTMENT CASE
22Corporate Presentation I March 2019
Shareholders returnEUR 5.2 bn returned to shareholders since 2009
23Corporate Presentation I March 2019
in EUR mio
TOTAL RETURNED TO SHAREHOLDERS
< Capital Reduction< Share buy-back executed< Paid Dividend
8 share buy-back programmes
188 197 188 270 309 329 338
419 408 414
230 160
144 209
250 244
244 247 208 223
188
427 348
637
518 579 582
663 655 622
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2011 2012 2013 2014 2015 2016 2017 2018 2019
Gross amount/share 0.80 0.80 1.20 1.40 1.55 1.65 1,70 +0.40
2.10 2.20
Payout ratio 50% - 43% 47% 45% 45% 59% 42% 58%
Dividend yield 3.7% 4.7% 4.6% 4.4% 5.0% 4.9% 5.3% 5.1% 5.3%
Target dividend payout ratio
≥ 50%
Proposed
Cash dividend 2019 of
EUR 2.20
up 5%
Conclusion
24Corporate Presentation I March 2019
BUSINESS MODEL STRENGTHS
Balanced portfolioMarkets/products/channels
Strong positions in matureEuropean countries
+Growth potential in Asian
emerging markets
Proven expertise in growing through partnerships
FINANCIAL DISCIPLINE & LEGACIES SOLVED
Strong capital position (FY 2018)
Shareholder’s equity EUR 9.4 bn
Group Solvency IIageas 215%
Cash upstream from operating entities more than covering dividend and holding costs
Resolution of a almost all legacies from
the past
AMBITION FOR THE FUTURE
Clear strategic priorities to prepare the Group for the
future
Financial targets Connect 21
§ 96% Combined ratio§ Life operating margin
85-95 bps guaranteed30-40 bps unit-linked
§ SII ratio 175%§ 5-7% EPS CAGR
Strong commitments to shareholders
§ ≥ 50% dividend pay-out§ Share buy-back ≥ EUR 150mio
except if M&A
25Corporate Presentation I March 2019
Certain of the statements contained herein are statements offuture 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 RelationsTel:E-mail:Website:
+ 32 2 557 57 32ir@ageas.comwww.ageas.com