PRESS RELEASE · 2019. 7. 19. · impact linked to the Fortis settlement agreement, with respect to...

PRESS RELEASE Full Year 2016 results 1

PRESS RELEASE Regulated information

Brussels, 15 February 2017 - 7:30 (CET)

Ageas reports Full Year 2016 result

Steady growth of Insurance net result due to solid operating performance

Fourth quarter net result impacted by exceptional items in the UK and Asia

Insurance Solvency IIageas ratio above target at 182%

Proposed gross cash dividend of EUR 2.10, including EUR 0.40 related to the Hong Kong sale

Full year 2016

Net Result

Insurance net result up 9% to EUR 821 million versus EUR 755 million

General Account net result of EUR 694 million negative versus EUR 15 million

Group net result at EUR 127 million versus EUR 770 million

Inflows

Group inflows (at 100%) at EUR 31.7 billion, up 6% (including 4% negative foreign exchange impact)

Group inflows (Ageas’s part) at EUR 14.1 billion, up 3% (including 4% negative foreign exchange impact)

Life inflows up 8% to EUR 25.4 billion and Non-Life stable at EUR 6.3 billion (both at 100%)

Operating

Performance

Combined ratio at 98.7% versus 96.9%

Operating Margin Guaranteed at 93 bps versus 90 bps

Operating Margin Unit-Linked at 25 bps versus 36 bps

Life Technical Liabilities of the consolidated entities at EUR 74.5 billion and stable compared to the end of 2015

Balance Sheet

Shareholders’ equity at EUR 9.7 billion or EUR 47.03 per share

Insurance Solvency II ageas ratio at 182% and Group Solvency IIageas ratio at 195%

General Account Total Liquid Assets at EUR 1.9 billion versus EUR 1.6 billion at the end of 2015

4th Quarter 2016

Net Result Insurance net result down 87% to EUR 18 million versus EUR 142 million

Belgium Strong Non-Life operating performance

UK Impact from restructuring costs and exceptional reserves strengthening

Continental

Europe Excellent performance in both Life and Non-Life

Asia Life net result impacted by equity impairments

All 12 month 2016 figures are compared to the 12 month 2015 figures unless otherwise stated.

Ageas CEO Bart De Smet said: “2016 has been an eventful year for Ageas marked by by the sale of Hong Kong, the acquisition of Ageas Seguros, the

launch of activities in the Philippines and Vietnam, and the Fortis Settlement. A court decision to declare the settlement binding that is expected by mid-

2017, would bring to a close a difficult period for the people concerned and for the Group as a whole.

At an operational level, all segments, with the exception of the UK, achieved very good results. In the UK a number of exceptional events forced the Group

to take significant one-off charges for restructuring and reserve strengthening partly in anticipation of changing regulations. Unfortunately these events also

prevented us from realising the combined ratio target set out as part of our Ambition 2018 strategy.

Taking into account the strong underlying operating performance and the solid balance sheet, the Ageas Board proposes to distribute a total gross cash

dividend of EUR 2.10 for the 2016 performance, EUR 0.40 of which is related to the capital gain on the Hong Kong divestment ”


PRESS RELEASE

15 February 2017

Full Year 2016 results

INVESTOR RELATIONS

Frank Vandenborre

+32 (0)2 557 57 33 [email protected]

Koen Devos

+32 (0)2 557 57 35 [email protected]

Veerle Verbessem

+32 (0)2 557 57 32 [email protected]

Analyst & Investor conference call:

15 February 2017 - 09:30 CET (08:30 UK Time)

Audiocast: www.ageas.com

Listen only (access number 77070727#)

+44 207 750 99 26 (UK)

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Available until 15 March 2017

PRESS

Michaël Vandenbergen

+32 (0)2 557 57 36 [email protected]

Key figures Ageas

in EUR million FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16

Gross inflows (incl. non-consolidated partnerships at 100%) 31,653.8 29,791.5 6 % 6,962.0 7,023.0 ( 1 %) 6,349.4

- of which inflows from non-consolidated partnerships 21,043.1 19,124.8 10 % 4,400.6 4,252.9 3 % 3,965.0

Gross inflows Ageas's part 14,093.0 13,705.0 3 % 3,198.3 3,346.9 ( 4 %) 2,958.8

Net result Insurance attributable to shareholders 821.2 755.1 9 % 17.9 142.1 ( 87 %) 195.7

By segment:

- Belgium 390.6 383.7 2 % 81.5 119.7 ( 32 %) 103.1

- UK ( 56.0 ) 29.5 * ( 109.5 ) ( 35.0 ) * 18.7

- Continental Europe 89.8 70.0 28 % 30.1 7.0 * 24.1

- Asia 394.2 271.9 45 % 16.5 50.4 ( 67 %) 48.7

- Reinsurance 2.6 * ( 0.7 ) * 1.1

By type:

- Life 703.6 572.7 23 % 81.1 147.1 ( 45 %) 118.4

- Non-Life 117.6 182.4 ( 36 %) ( 63.2 ) ( 5.0 ) * 77.3

Net result General Account attributable to shareholders ( 693.9 ) 15.1 * ( 8.4 ) 29.2 * ( 10.7 )

Net result Ageas attributable to shareholders 127.1 770.2 ( 83 %) 9.3 171.3 ( 95 %) 185.0

Life Technical Liabilities (in EUR bn) 74.5 74.1 0 % 74.5 74.1 0 % 75.3

Life Operating Margin Guaranteed 0.93% 0.90% 0.80% 1.19% 0.77%

Life Operating Margin Unit-Linked 0.25% 0.36% 0.36% 0.35% 0.08%

Combined ratio 98.7% 96.9% 103.7% 102.1% 93.2%

Total Insurance solvency II ageas ratio 182.3% 182.3%

Total Group solvency II ageas ratio 194.7% 211.6%

Weighted average number of ordinary shares (in million) 208.5 215.5 ( 3 %) 208.5 215.5 ( 3 %) 209.4

Earnings per share (in EUR) 0.61 3.57 ( 83 %)

Shareholders' equity 9,656 11,376 ( 15 %) 9,656 11,376 ( 15 %) 10,451

Net equity per share (in EUR) 47.03 53.59 ( 12 %) 47.03 53.59 ( 12 %) 50.55

Net equity per share (in EUR) excluding unrealised gains & losses 35.00 39.44 ( 11 %) 35.00 39.44 ( 11 %) 35.82

Return on Equity - Insurance (excluding unrealised gains & losses) 12.0% 11.0%

Content Executive summary ........................................................................................................... 3

Details per product ............................................................................................................ 5

Details by business segment ............................................................................................. 7 Belgium ...................................................................................................................... 7 United Kingdom ......................................................................................................... 9 Continental Europe .................................................................................................. 11 Asia .......................................................................................................................... 13 Reinsurance (Intreas) .............................................................................................. 15 General Account ...................................................................................................... 16

Solvency position and investment portfolio ..................................................................... 18

Lexicon on financial disclosure........................................................................................ 20

Annexes ........................................................................................................................... 21 Annex 1 : Consolidated Statement of financial position as at 31 December 2016 .................. 21 Annex 2 : Income Statement .................................................................................................... 22 Annex 3 : Inflows per region at 100% and at Ageas’s part ...................................................... 23 Annex 4 : Solvency by region ................................................................................................... 24 Annex 5 : Statement of financial position split into Life, Non-Life and Other Insurance .......... 25 Annex 6 : Margins Life (%)........................................................................................................ 26 Annex 7 : Margins Non-Life (%) ................................................................................................ 27 Disclaimer ........................................................................................................................ 27

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EXECUTIVE SUMMARY Solid Insurance net result in Life. Non-Life net result impacted by exceptional charges in the UK in the fourth quarter.

Group 2016 net result reflected charge related to Fortis settlement.

The Insurance net result for 2016 reached EUR 821 million, up 9% and includes an exceptional net result related to the sale of the Hong Kong activities.

The result is driven by a resilient performance in Belgium and improved results in Asia and Continental Europe, affected however by disappointing results in

the UK. An improved operating margin on Guaranteed products of 93 bps reflected the solid Life result. In Non-Life, the combined ratio of 98.7%

deteriorated year-on-year. The fourth quarter net result has been significantly impacted by an exceptional charge related to the previously announced

restructuring and exceptional reserve strengthening, both in the UK for an amount of EUR 107 million, and equity impairments in Asia, totalling EUR 30

million. The Group 2016 net result amounted to EUR 127 million, impacted by the provision related to the Fortis settlement, announced in March 2016.

Ageas’s Insurance Solvency IIageas ratio remained strong at 182%, well above the 175% target. Total liquid assets stood at EUR 1.9 billion, EUR 0.8 billion of

which is ring-fenced for the Fortis settlement agreement. Ageas’ Board of Directors proposes a gross cash dividend of EUR 2.10 per share over 2016,

EUR 1.70 of which is related to the 2016 Insurance net result and EUR 0.40 to the capital gain realised on the sale of the Hong Kong activities.

Belgian and Asian Life businesses driving growth in inflows

Total inflows amounted to EUR 31.7 billion, an increase of 6% despite a 4%

negative currency impact. Inflows remained solid in the fourth quarter, in

line with the trend observed in the first nine months. In local currency, all

business segments reported increasing volumes with the highest growth

being recorded in Asia and Belgium. After a strong increase in the first half,

inflows in short term investment products in Belgium leveled off towards the

end of the year. Inflows in Continental Europe rose as a result of higher

sales in Luxembourg and the inclusion of Ageas Seguros in Portugal. UK

inflows were up 1% in local currency but suffered from worsening exchange

rates. In Asia, the growth originated from both new business and renewal

premiums specifically in China and Thailand.

Solid insurance result boosted by capital gain from Hong Kong sale

The Insurance net result amounted to EUR 821 million, compared to EUR

755 million. The fourth quarter net result amounted to EUR 18 million with

solid contributions from Belgium and Continental Europe on the one hand

but net equity impairments in Asia and a net loss in the UK related to the

aforementioned exceptional items.

The net result of the Life activities amounted to EUR 704 million, up EUR

131 million compared to last year, largely related to recognition of the

capital gain on the Hong Kong sale. The Non-Life net result amounted to

EUR 118 million down EUR 64 million. The result included a total net

impact of EUR 173 million of which EUR 60 million related to terrorism

events and above average weather costs in the first half, and EUR 113

million related to restructuring, a poor performing Special Risks scheme

and reserve strengthening in anticipation of legal changes in the UK, mostly

recorded in the fourth quarter.

Group net result including provision related to Fortis settlement

The Group net result amounted to EUR 127 million. The General

Account net result of EUR 694 million negative, reflected the accounting

impact linked to the Fortis settlement agreement, with respect to all civil

proceedings related to the events in 2007 and 2008 (EUR 894 million

negative) partly offset by the part of the realised capital gain on the sale of

Hong Kong allocated to the General Account (EUR 204 million). The

combination of the revaluation and the partial settlement resulted in a EUR

83 million positive result on the RPN(i) liability.

Staff and other operating expenses increased to EUR 95 million due to a

combination of one-off costs related to the Fortis settlement and variable

remuneration and pension costs.

Shareholders’ equity and solvency

Total shareholders’ equity decreased from EUR 11.4 billion or EUR 53.59

per share at the end of 2015 to EUR 9.7 billion or EUR 47.03 per share at

the end of 2016. This decrease is mainly attributable to the legal settlement,

the change in unrealised gains and losses, negative currency exchange

differences, the payment of the 2015 dividend, the revaluation of the put

option and the ongoing share buy back programme. The Insurance

Solvency IIageas ratio remained stable at 182% and above the 175% target.

Group Solvency IIageas ratio was down from 212% at year end to 195%.

The total liquid assets in the General Account increased from EUR 1.6

billion at the end of 2015 to EUR 1.9 billion, out of which EUR 0.8 billion is

ring-fenced for the Fortis settlement agreement.

Contingent liabilities

For the latest update on the Contingent Liabilities, please refer to note 46 of

the Consolidated Annual Financial Statements 2016 that will be published

on 7 April 2017.


2016 gross cash dividend of EUR 2.10 of which EUR 0.4 related to the

capital gain on the Hong Kong sale

Ageas’s Board of Directors will propose to the Annual Shareholders’

meeting of 17 May 2017 in Brussels, a gross dividend of EUR 2.10 per

share to be paid in cash. This dividend is made up of the regular

component which in this case will be EUR 1.70 compared to EUR 1.65 over

2015, and an exceptional component of EUR 0.40 related to the capital

gain on the Hong Kong divestment. The ex-dividend date is 29 May 2017

and the payment of the dividend is planned on 31 May 2017.

Ageas's Ambition 2018 financial targets

Ambition 2018 Position 31 Dec 2016 Position end 2015

Return on Equity of Insurance activities (excluding unrealised gains & losses) 11 - 13 % 12.0 % 11.0 %

Life Operating Margin - Guaranteed 85 - 90 bps 93 bps 90 bps

Life Operating Margin - Unit Linked 40 - 45 bps 25 bps 36 bps

Combined Ratio < 97 % 98.7 % 96.9 %

Solvency II Insurance 175 % 182 % 182 %

Dividend Range 40 - 50 % 52 %* 45 %

* 45% pay-out ratio on insurance net result excluding UK exceptionals


DETAILS BY PRODUCT Life: Net result boosted by capital gain Hong Kong sale; solid operating margin despite equity

impairments in the fourth quarter.

INCOME STATEMENT


Gross Inflows Life

(incl non-consolidated partnerships at 100%) 25,368.3 23,492.9 8% 5,502.8 5,558.7 (1%) 4,842.3

Gross Inflows Life (consolidated entities) 6,268.5 6,369.2 (2%) 1,551.8 1,764.0 (12%) 1,328.9

Operating result 561.6 565.7 (1%) 125.0 183.4 (32%) 112.4

Non-allocated other income and expenses 229.7 ( 1.6 ) * ( 4.4 ) ( 23.9 ) (82%) 30.7

Result before taxation consolidated entities 791.3 564.1 40% 120.6 159.5 (24%) 143.1

Result non-consolidated partnerships 192.1 250.4 (23%) 22.9 53.3 (57%) 49.7

Result before taxation 983.4 814.5 21% 143.5 212.8 (33%) 192.8

Income tax expenses ( 145.1 ) ( 124.2 ) 17% ( 32.3 ) ( 30.9 ) 5% ( 39.1 )

Non-controlling interests ( 134.7 ) ( 117.6 ) 15% ( 30.1 ) ( 34.8 ) (14%) ( 35.3 )

Net result attributable to shareholders 703.6 572.7 23% 81.1 147.1 (45%) 118.4

XXX

KEY PERFORMANCE INDICATORS BY FAMILY GUARANTEED UNIT - LINKED TOTAL

in EUR million FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015

Gross Inflows Life (consolidated entities) 4,897.5 5,011.6 1,371.0 1,357.6 6,268.5 6,369.2

Net underwriting Result 30.2 56.0 27.7 44.9 57.9 100.9

Investment Result 501.7 462.7 2.0 2.1 503.7 464.8

Operating result 531.9 518.7 29.7 47.0 561.6 565.7

Life Technical Liabilities 62,449.5 61,087.2 12,032.2 13,036.0 74,481.7 74,123.2

Inflows, including non-consolidated partnerships at 100%, increased 8%

compared to last year to EUR 25.4 billion, including a negative currency

impact of 4%. Inflows in Belgium grew 10% to EUR 4.2 billion, mainly

driven by a strong first half anticipating the lowering of the guaranteed rate

on short term investment products. Inflows in Asia amounted to EUR 17.1

billion, an increase of 9%, including a 5% negative currency impact. The

strongest growth was again recorded in China and Thailand as a result of

successful sales campaigns and continued channel development. In

Continental Europe inflows remained virtually unchanged at EUR 4.1 billion,

marked by strong sales in Luxembourg offsetting lower volumes in Portugal

and France.

The Technical Liabilities for the consolidated activities amounted to EUR

74.5 billion (vs. EUR 74.1 billion at the end of 2015) despite the exclusion of

the sold Hong Kong activity (EUR 3.2 billion). Growth in both Guaranteed

and Unit-Linked resulted in higher technical liabilities in Belgium, up 5% to

EUR 59 billion. The technical liabilities of the non-consolidated partnerships

at 100% in Asia and Continental Europe increased to EUR 69.6 billion,

compared to EUR 61.1 billion (+14%) end 2015, in line with the growth in

inflows.

The operating result stagnated somewhat in the fourth quarter as a result

of a lower level of capital gains in Belgium year on year. For the full year

the operating margin was nearly stable, amounting to EUR 562 million

compared to EUR 566 million in 2015. Scope on scope for the sale of the

Hong Kong activities, the operating result increased by EUR 38 million,

driven by a strong increase in Continental Europe marked by good results

in Portugal. The Guaranteed margin increased from 90 bps to 93 bps, well

ahead of the Ambition 2018 target, with a stable operating margin in

Belgium and an improved margin in Continental Europe. The Unit-Linked

margin decreased from 36 bps to 25 bps due to the divestment of Hong

Kong, which contributed positively to the margin in 2015.

The net result increased from EUR 573 million to EUR 704 million

including an exceptional contribution related to the Hong Kong divestment.

The net result was impacted by adverse financial markets in Asia (net

capital gains down EUR 112 million year-on-year) and an adverse

exchange rate evolution (EUR 8 million). This could not be entirely offset by

the strong operating performance across all the Life activities. In Belgium

and Continental Europe the net result increased to EUR 288 million and

EUR 49 million respectively, the latter benefitting from strong results in

Portugal and the inclusion of the acquired activities from Ageas Seguros. In

Asia, the net result increased to EUR 367 million (vs. EUR 259 million) with

a net contribution related to the Hong Kong activities of EUR 158 million,

being the sum of the allocated capital gain (EUR 199 million) minus the

lower net result contribution (EUR 41 million). Excluding this and the

aforementioned lower net capital gains, the net result remained

fundamentally strong and above last year’s level.


Non-Life: Strong Combined ratio excluding exceptional charges related to non-recurring events in the UK and Belgium

INCOME STATEMENT


Gross Inflows Non-Life

(incl non-consolidated partnerships at 100%) 6,285.5 6,298.6 (0%) 1,459.2 1,464.2 (0%) 1,507.1

Gross Inflows Non-Life (consolidated entities) 4,342.2 4,297.5 1% 1,009.6 1,006.1 0% 1,055.5

Net Earned Premiums 4,112.3 4,037.5 2% 1,033.6 1,025.7 1% 1,033.8

Operating result 230.8 300.3 (23%) ( 9.3 ) 23.0 * 106.5

Non-allocated other income and expenses ( 8.3 ) 20.5 * ( 23.1 ) 8.2 * 5.5

Result before taxation consolidated entities 222.5 320.8 (31%) ( 32.4 ) 31.2 * 112.0

Result non-consolidated partnerships 33.1 10.6 * ( 2.9 ) ( 8.0 ) (64%) 16.6

Result before taxation 255.6 331.4 (23%) ( 35.3 ) 23.2 * 128.6

Income tax expenses ( 77.2 ) ( 97.2 ) (21%) ( 5.8 ) ( 15.1 ) (62%) ( 33.1 )

Non-controlling interests ( 60.8 ) ( 51.8 ) 17% ( 22.1 ) ( 13.1 ) 69% ( 18.2 )

Net result attributable to shareholders 117.6 182.4 (36%) ( 63.2 ) ( 5.0 ) * 77.3

XXX

KEY PERFORMANCE INDICATORS BY FAMILY ACCIDENT & HEALTH MOTOR HOUSEHOLD OTHER LINES TOTAL

in EUR million FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015

Gross Inflows Non-Life (consolidated entities) 867.0 843.7 1,864.8 1,839.0 1,145.6 1,139.0 464.8 475.8 4,342.2 4,297.5

Net Earned Premiums 838.0 811.2 1,789.5 1,709.0 1,066.5 1,077.9 418.3 439.4 4,112.3 4,037.5

Net Underwriting result 44.4 51.2 ( 43.2 ) 6.9 72.5 86.5 ( 20.0 ) ( 18.4 ) 53.7 126.2

Combined Ratio 94.7% 93.7% 102.4% 99.6% 93.2% 92.0% 104.8% 104.3% 98.7% 96.9%

of which Prior Year claims ratio (4.8%) (5.9%)

Investment Result 38.8 32.4 90.7 85.5 25.6 22.6 36.5 33.2 191.6 173.7

Other Result ( 6.4 ) 0.2 ( 7.0 ) 0.1 ( 0.8 ) ( 0.1 ) ( 0.3 ) 0.2 ( 14.5 ) 0.4

Operating Result 76.8 83.8 40.5 92.5 97.3 109.0 16.2 15.0 230.8 300.3

Reserves Ratio (in %) 292% 262% 186% 188% 82% 80% 295% 290% 192% 185%

Non-Life Technical Liabilities 2,451.2 2,122.3 3,321.9 3,242.8 873.0 864.9 1,234.4 1,229.8 7,880.5 7,459.8

As a result of integration within the UK business, from 2016 Ageas is presenting its Non-Life and Other Insurance segments in the UK on a consolidated basis and has furthermore

reclassified some minor products from Other lines into both Motor and Household. The 2015 comparative figures have been restated accordingly.

Gross inflows remained in line with last year at EUR 6.3 billion including a

6% negative currency impact. Gross inflows in Belgium remained stable at

EUR 1.9 billion. Gross inflows in the UK amounted to EUR 2.2. billion,

slightly up at constant exchange rates and mainly driven by strong Motor

renewals. In Continental Europe inflows increased 25% to EUR 1.3 billion

largely driven by Portugal. The acquired activity, Ageas Seguros,

contributed EUR 191 million while the existing business in Portugal also

outperformed the market. Asian gross inflows further grew in local currency

mainly in Thailand and across all major product lines.

The Group combined ratio ended 2016 at 98.7%, compared to 96.9% in

2015. The impact of the exceptional charges in the UK and Belgium had a

total negative impact on the combined ratio of 4.9 pp. As anticipated, the

prior year claims ratio normalised to 5.8%, in line with last year’s level

(5.9%). Excluding the terrorism events, the combined ratio in Belgium

would have been a solid 93.9%. The combined ratio in the UK increased to

106.0% (vs.102.1%) with all business lines impacted by the exceptional

reserve strengthening. In Continental Europe the combined ratio remained

strong at 88.7%. The increase compared to last year entirely relates to the

inclusion of Ageas Seguros, which adds a different business mix compared

to the existing business in Portugal.

The fourth quarter combined ratio amounted to 103.7% (vs. 102.1%). The

very strong operating performance across all product lines in Belgium

(92.8%) was not enough to offset the adverse results in the UK.

The 2016 net result of the Non-Life activities amounted to EUR 118 million

(vs. EUR 182 million) and included a net negative impact of EUR 113

million related to the UK, of which EUR 55 million anticipates on the review

of the Ogden discount rate for claim reserves for personal injuries, EUR 27

million relates to the announced restructuring of the Glasgow site and EUR

31 million relates to a bad performing Special Risks partnership which has

since been terminated. Furthermore the aforementioned terrorism and

adverse weather events that occurred in the first half represented a charge

of EUR 60 million while integration costs related to Ageas Seguros in

Portugal (Continental Europe) amounted to EUR 9 million. These adverse

items were more than offset by improving operating results, better

investment results and a larger contribution from all non-consolidated

entities both in Continental Europe and Asia. The fourth quarter net result

was EUR 63 million negative essentially due to the recording of EUR 107

million exceptional charge in the UK.

In the fourth quarter of 2015, the Non-Life activities were severely hit by

adverse weather events in the UK resulting in an exceptional charge of

EUR 64 million.

Ageas Group’s internal Non-Life reinsurer Intreas, established in mid-2015,

has been reported under Non-Life since 2016. Intreas reinsured EUR 41

million of premiums from the operating companies and contributed EUR 3

million to the net result.


DETAILS BY BUSINESS SEGMENT

BELGIUM Net profit EUR 391 million vs. EUR 384 million (+2%). Increased net profit despite adverse impact from Brussels terrorism events and

higher weather related costs.

Gross inflows EUR 6.1 billion vs. EUR 5.7 billion (+7%). Strong growth largely attributable to Life Investment products.

Combined ratio 96.0% vs. 94.7%. Excluding the Brussels terrorism events, combined ratio at 93.9%, illustrating excellent operating

performance.

Life: Solid inflows and operating margin

INCOME STATEMENT


Gross Inflows Life 4,182.3 3,798.6 10% 1,047.0 1,104.7 (5%) 861.1

Operating result 435.7 431.9 1% 94.3 161.5 (42%) 81.3

Non-allocated other income and expenses 84.9 74.0 15% 6.0 5.4 11% 40.6


Income tax expenses ( 117.1 ) ( 116.8 ) 0% ( 21.3 ) ( 31.1 ) (32%) ( 31.1 )

Non-controlling interests ( 115.3 ) ( 108.4 ) 6% ( 23.8 ) ( 36.6 ) (35%) ( 27.5 )


xxx

.xx



Gross Inflows Life (consolidated entities) 3,778.8 3,307.9 403.5 490.7 4,182.3 3,798.6

Net underwriting Result ( 24.6 ) ( 8.8 ) 18.6 18.8 ( 6.0 ) 10.0

Investment Result 441.7 421.9 441.7 421.9



Gross inflows amounted to EUR 4.2 billion (+10%). This growth was

primarily achieved in Guaranteed (+14%) driven by strong inflow in short

term investment products especially in the first half year. As a result of a

third consecutive lowering of the guaranteed rate, which stands at 0.25% as

at 1 November 2016, the growth in inflows slowed down in the last quarter

of the year. Unit-Linked inflows amounted to EUR 0.4 billion, a decrease of

18% compared to last year mostly due to a lower appetite for open funds.

Group Life inflow remained stable at EUR 1.1 billion.

Overall, the Life Technical Liabilities increased by 5% from EUR 56.3

billion at the end of 2015 to EUR 59 billion. Excluding shadow accounting,

the Life Technical Liabilities are 2.4% up compared to the end of 2015 with

growth in both Guaranteed and Unit-Linked.

The operating result remained relatively stable, amounting to EUR 436

million (vs. EUR 432 million last year).

The operating margin of the Guaranteed products amounted to 86 bps,

similar to the level of 2015. The fourth quarter result was down compared to

last year due to lower capital gains. The realisation of the 2016 capital

gains was concentrated in the first half of the year. The operating margin in

Unit-Linked remained almost stable at 31 bps.

The net result increased from EUR 281 million to EUR 288 million.


Non-Life: Strong overall performance despite the adverse impact of terrorism and weather events

INCOME STATEMENT


Gross Inflows Non-Life 1,882.6 1,880.5 0% 421.1 418.6 1% 446.5

Net Earned Premium 1,836.1 1,832.4 0% 462.1 459.3 1% 464.5

Operating result 175.1 189.6 (8%) 49.7 39.4 26% 70.7

Non-allocated other income and expenses 19.8 15.8 25% 1.4 2.3 (39%) 7.9

Result before taxation 194.9 205.4 (5%) 51.1 41.7 23% 78.6

Income tax expenses ( 53.6 ) ( 65.0 ) (18%) ( 14.7 ) ( 13.5 ) 9% ( 23.9 )

Non-controlling interests ( 38.9 ) ( 37.4 ) 4% ( 10.1 ) ( 7.7 ) 31% ( 14.9 )

Net result attributable to shareholders 102.4 103.0 (1%) 26.3 20.5 28% 39.8

xxx



Gross Inflows Non-Life (consolidated entities) 478.8 490.6 577.5 576.1 632.5 625.1 193.8 188.7 1,882.6 1,880.5

Net Earned Premiums 471.5 484.2 570.2 567.9 604.5 595.3 189.9 185.0 1,836.1 1,832.4

Net Underwriting result 11.4 9.7 22.5 42.0 44.8 65.0 ( 5.5 ) ( 20.0 ) 73.2 96.7

Combined Ratio 97.6% 98.0% 96.1% 92.6% 92.6% 89.1% 102.9% 110.8% 96.0% 94.7%



Other Result

Operating Result 38.4 34.6 59.8 76.4 60.3 79.2 16.6 ( 0.6 ) 175.1 189.6


Non-Life Technical Liabilities 1,822.3 1,797.4 1,033.5 980.4 423.4 413.5 607.5 587.8 3,886.7 3,779.1

Gross inflows remained stable at EUR 1.9 billion.

The combined ratio amounted to 96.0%. Excluding the Brussels terrorism

events, the combined ratio stood at 93.9%, underscoring the solid operating

performance during the year across all business lines. This was also

confirmed in the last quarter of the year, with a combined ratio at an

excellent 92.8%. Over the year there was a good prior year claims ratio

development.

The operating result decreased from EUR 190 million last year to EUR

175 million due to the 22nd March 2016 terrorism events (EUR 39 million)

and worse weather conditions compared to last year.

The net result remained almost stable at EUR 102 million.


UNITED KINGDOM Net loss of EUR 56 million vs. EUR 30 million (net profit). Including an exceptional charge of EUR 113 million related to the announced

closure of the Glasgow office, the impact from exceptional underwriting losses in Special Risks and

anticipation of a regulatory review of the Ogden discount rate.

Gross inflows EUR 2.2 billion vs. EUR 2.5 billion (-10%). Inflows up 1% in local currency driven by continued strong Motor renewals and

the contribution of new deals to Household and Commercial lines.

Combined ratio 106.0% vs. 102.1%. Improved expense ratio partly offset by higher claims ratio impacted by exceptional items.

Net result impacted by exceptional items

INCOME STATEMENT



(incl non-consolidated partnerships at 100%) 2,203.0 2,456.7 (10%) 469.7 576.5 (19%) 549.0

Gross Inflows Non-Life (consolidated entities) 1,719.8 1,904.8 (10%) 369.9 447.5 (17%) 421.8

Net Earned Premium 1,598.4 1,751.1 (9%) 381.9 450.0 (15%) 387.2

Operating result ( 30.8 ) 27.5 * ( 87.8 ) ( 39.9 ) * 18.8

Non-allocated other income and expenses ( 34.1 ) 8.0 * ( 34.0 ) 4.9 * ( 0.5 )

Result before taxation consolidated entities ( 64.9 ) 35.5 * ( 121.8 ) ( 35.0 ) * 18.3

Result non-consolidated partnerships ( 1.9 ) ( 0.2 ) * ( 10.7 ) ( 7.1 ) 51% 4.4

Result before taxation ( 66.8 ) 35.3 * ( 132.5 ) ( 42.1 ) * 22.7

Income tax expenses 10.8 ( 5.8 ) * 23.0 7.1 * ( 4.0 )

Non-controlling interests

Net result attributable to shareholders ( 56.0 ) 29.5 * ( 109.5 ) ( 35.0 ) * 18.7

XXX



Gross Inflows Non-Life (consolidated entities) 36.5 70.6 1,069.4 1,166.3 392.6 425.7 221.3 242.2 1,719.8 1,904.8

Net Earned Premiums 38.5 71.8 1,013.6 1,061.9 360.9 413.0 185.4 204.4 1,598.4 1,751.1

Net Underwriting result 0.3 0.7 ( 68.7 ) ( 31.5 ) 6.5 1.9 ( 34.5 ) ( 8.0 ) ( 96.4 ) ( 36.9 )

Combined Ratio 99.3% 99.1% 106.8% 103.0% 98.2% 99.5% 118.6% 103.9% 106.0% 102.1%



Other Result

Operating Result 1.0 1.6 ( 22.6 ) 14.3 14.7 8.9 ( 23.9 ) 2.7 ( 30.8 ) 27.5


Non-Life Technical Liabilities 18.0 33.6 1,839.5 2,025.4 312.3 376.1 430.1 473.8 2,599.9 2,908.9

As a result of integration within the UK business, from 2016 Ageas is

presenting its Non-Life and Other Insurance segments in the UK on a

consolidated basis and has furthermore reclassified some minor products

from Other lines into both Motor and Household. The 2015 comparative

figures have been restated accordingly.

Gross Inflows, including non-consolidated partnerships, decreased to

EUR 2.2 billion (vs. EUR 2.5 billion), but in local currency increased 1.2%,

driven by strong Motor renewals and the contribution of new deals to the

Household and Commercial lines books. Motor inflows reduced to EUR 1.1

billion (vs. EUR 1.2 billion), but up 4% at constant exchange rates driven by

strong renewal volumes in the continued hardening market1 Household

inflows were down to EUR 393 million (vs. EUR 426 million), but up 4% at

constant exchange rates due to the good performance of new schemes

announced earlier in the year. Inflows in Other lines decreased to EUR 221

million (vs. EUR 242 million), but 3% up in local currency, reflecting the

contribution of new Non-Motor Commercial insurance deals.

1 Association of British Insurers Quarterly Motor Insurance Premium Tracker Q4 2016:

Year on year private car insurance premiums rose 7% and were up 5% over the third

quarter 2016.


Inflows of the non-consolidated entity, Tesco Underwriting Ltd,

reduced to EUR 483 million (vs. EUR 552 million), but in local currency

premiums remained broadly flat.

The combined ratio of the consolidated entities deteriorated to 106.0%

(vs. 102.1%), marked by a lower expense ratio as a result of the move to a

new single organisation structure more than offset by a declining claims

ratio, that was affected by exceptional reserves strengthening impacting all

product families, and underwriting losses in Special Risks. The total impact

of these items amounted to 6.6%. Household benefitted from the overall

benign weather in 2016 compared to 2015, despite the negative impact of

water damage claims and Flood Re levies. The prior year reserve release

decreased to 0.3% (vs 4.4%).

The combined ratio of Tesco Underwriting slightly improved to 104.2%

(vs. 104.4%), carrying also part of the reserves strengthening charge

related to the anticipated review of the Ogden discount rate.

The UK consolidated net result was EUR 56 million negative (vs. EUR 30

million). The net result in the last quarter, was negatively impacted by the

cost related to the recently announced closure of the Glasgow office (EUR

27 million) and the aforementioned underperforming Special Risks scheme

(EUR 25 million) and the anticipated review of the Ogden discount rate

(EUR 55 million).

The net result of Tesco Underwriting was EUR 2 million negative (vs. a

loss of EUR 0.2 million), including EUR 11 million related to the anticipated

review of the Ogden discount rate.


CONTINENTAL EUROPE Net profit EUR 90 million vs. EUR 70 million (+28%); excellent fourth quarter and strong full year performance in Life and Non-Life.

Gross inflows EUR 5.4 billion vs. EUR 5.2 billion (+5%) related to inclusion of Ageas Seguros and increasing importance of Non-Life.

Combined ratio 88.7% vs. 85.4% reflecting a continued excellent operating performance.

Life: Solid operating performance

INCOME STATEMENT


Gross Inflows Life

(incl non-consolidated partnerships at 100%) 4,121.8 4,109.0 0% 997.1 1,013.2 (2%) 917.3

Gross Inflows Life (consolidated entities) 1,902.9 2,013.4 (5%) 504.8 505.6 (0%) 467.8

Operating result 108.8 74.3 46% 30.7 11.5 * 31.1

Non-allocated other income and expenses ( 23.7 ) ( 44.3 ) (47%) ( 1.6 ) ( 17.6 ) (91%) ( 2.6 )

Result before taxation consolidated entities 85.1 30.0 * 29.1 ( 6.1 ) * 28.5


Result before taxation 94.7 45.3 * 32.9 0.0 * 32.4

Income tax expenses ( 26.7 ) ( 3.0 ) * ( 11.0 ) 1.5 * ( 8.0 )

Non-controlling interests ( 19.4 ) ( 9.2 ) * ( 6.3 ) 1.8 * ( 7.8 )

Net result attributable to shareholders 48.6 33.1 47% 15.6 3.3 * 16.6

XXX



Gross Inflows Life (consolidated entities) 981.2 1,306.4 921.7 707.0 1,902.9 2,013.4


Investment Result 66.0 47.0 0.8 0.5 66.8 47.5



* Scope change: as from Q2 2016, Ageas Seguros Portugal (former Axa Portugal) is included in the reporting scope.

Gross inflows, including non-consolidated partnerships at 100%, reached

EUR 4.1 billion in line with last year. A good performance in Luxembourg

and the inclusion of Ageas Seguros was offset by lower sales of

guaranteed products in France and Portugal.

In Portugal, gross inflows stood at EUR 1.5 billion or 2% below last year’s

level, in a market down more than 25%. In line with the strategy to reduce

new business in Guaranteed products, Ocidental managed to increase

Unit-Linked sales by 41%, whereas the market decreased by 23%. Ageas

Seguros contributed EUR 89 million.

Gross inflows in France amounted to EUR 406 million down 15%

compared to last year. The decrease was due to the decision to sell less

guaranteed business and last year’s exceptionally high level of single

premiums.

In Luxembourg gross inflows exceeded last year’s performance by 6% to

reach EUR 2.2 billion, with increased sales to High-Net-Worth customers in

Italy and France. Unit-Linked sales represented approximately 57% of

inflows.

Life Technical Liabilities of the consolidated entities amounted to EUR

15.5 billion compared to EUR 14.6 billion in 2015. The increase is due to

the inclusion of Ageas Seguros. The non-consolidated Life Technical

Liabilities in Luxembourg increased by 7% and amounted to EUR 20 billion.

The operating result was up 46% to EUR 109 million. A strong investment

result both in France and Portugal and an excellent underwriting result in

Portugal, partly related to the inclusion of Ageas Seguros, explained this

positive evolution. As a consequence, the operating margin increased to

121 bps on Guaranteed products and remained stable at 7 bps on Unit-

Linked products.

The full year net profit reached EUR 49 million, well above last year

(+47%). The increase is explained by the excellent evolution of the

operating result even if partly offset by fair value adjustments on assets

classified as ‘Held For Trading’ in Luxembourg.


Non-Life: Excellent sales and net result

INCOME STATEMENT



(incl non-consolidated partnerships at 100%) 1,306.8 1,048.4 25% 365.1 260.4 40% 309.9

Gross Inflows Non-Life (consolidated entities) 739.8 512.2 44% 218.6 140.2 56% 187.2

Net Earned Premium 663.7 454.1 46% 189.1 117.7 61% 177.6

Operating result 84.5 83.2 2% 29.9 23.5 27% 15.9

Non-allocated other income and expenses 5.4 ( 3.3 ) * 9.1 1.0 * ( 1.9 )

Result before taxation consolidated entities 89.9 79.9 13% 39.0 24.5 59% 14.0

Result non-consolidated partnerships 7.6 ( 2.2 ) * 1.6 ( 6.7 ) * 2.0

Result before taxation 97.5 77.7 25% 40.6 17.8 * 16.0

Income tax expenses ( 34.4 ) ( 26.4 ) 30% ( 14.1 ) ( 8.7 ) 62% ( 5.2 )

Non-controlling interests ( 21.9 ) ( 14.4 ) 52% ( 12.0 ) ( 5.4 ) * ( 3.3 )

Net result attributable to shareholders 41.2 36.9 12% 14.5 3.7 * 7.5

XXX



Gross Inflows Non-Life (consolidated entities) 351.7 282.5 217.9 96.7 120.5 88.1 49.7 44.9 739.8 512.2

Net Earned Premiums 327.7 255.2 201.6 94.2 91.4 69.9 43.0 34.8 663.7 454.1

Net Underwriting result 32.8 40.8 4.0 ( 3.5 ) 18.1 19.6 20.0 9.6 74.9 66.5

Combined Ratio 90.0% 84.0% 98.0% 103.8% 80.3% 72.0% 53.4% 72.5% 88.7% 85.4%



Other Result ( 6.4 ) 0.2 ( 7.0 ) 0.0 ( 0.8 ) ( 0.0 ) ( 0.3 ) 0.2 ( 14.5 ) 0.4

Operating Result 37.5 47.6 4.3 1.7 19.2 21.0 23.5 12.9 84.5 83.2


Non-Life Technical Liabilities 635.2 291.3 444.5 236.9 112.3 75.3 196.8 168.3 1,388.8 771.8

** Scope change: as from Q2 2016, Ageas Seguros Portugal (former Axa Portugal) is included in the reporting scope.

Gross Inflows, including non-consolidated partnerships at 100% amounted

to EUR 1.3 billion, up 25% on previous year. At constant exchange rates

inflows would have been up 31%.

Inflows in Portugal amounted to EUR 513 million (vs. EUR 293 million),

including EUR 191 million inflows from Ageas Seguros. Excluding Ageas

Seguros, inflows grew 10%, again outperforming the market (+5% at end

November). The growth relates mainly to higher inflows in Health Care and

successful cross-selling campaigns in Household and Motor. Nine months

after its integration, Ageas Seguros started to see the results of its

transformation plan with an encouraging turnaround observed in New

Business sales.

In Italy inflows increased by 3%, reaching EUR 227 million in a slightly

declining market. Inflows through the main bank channel confirmed strong

growth in non-CPI products (Consumer Protection Insurance) (+8%) mainly

as a result of new sales in Household, growth in Motor and the launch of

new products in Health. CPI sales continued to slow down following new

legislation.

Inflows in Turkey were 6% up year on year and 17% at constant exchange

rate thanks to a strong growth in Motor, both in Motor Own Damage and

Motor Third Party Liability. The latter benefited from a substantial increase

in average premiums.

The operating result of the consolidated entities increased 2%.The solid

results of Ocidental and Italy more than compensated for Ageas Seguros,

still in the midst of its transformation plan. The combined ratio remained

very strong at 88.7% vs. 85.4% last year.

Even with the EUR 9 million integration cost for Ageas Seguros, the

positive evolution of the operating result from the consolidated entities and

the strongly improved performance in Turkey drove the net result up to

EUR 41 million (+12%). In Turkey, the result recovered considerably

compared to last year that was particularly affected by bad weather and

strengthening of reserves in Motor Third Party Liability, amongst other, due

to changes in legislation.


ASIA Net profit EUR 394 million vs. EUR 272 million (+45%); Continued strong performance in China and Thailand and result supported by the

capital gain on the divestment of the Hong Kong Life activities. Fourth quarter net result impacted by equity

impairments.

Gross Inflows EUR 18 billion vs. EUR 16.5 billion (+9%); Continued growth in new business and renewal premiums especially in China and

Thailand.

Life: Strong profit supported by new business growth and sale of Hong Kong Life activities INCOME STATEMENT


Gross Inflows Life

(incl non-consolidated partnerships at 100%) 17,064.2 15,585.3 9% 3,458.7 3,440.9 1% 3,063.9

Gross Inflows Life (consolidated entities) 183.3 557.2 (67%) 153.7 *

Operating result 17.1 59.5 (71%) 10.4 *

Non-allocated other income and expenses 168.5 ( 31.3 ) * ( 8.8 ) ( 11.7 ) (25%) ( 7.3 )

Result before taxation consolidated entities 185.6 28.2 * ( 8.8 ) ( 1.3 ) * ( 7.3 )



Income tax expenses ( 1.3 ) ( 4.4 ) (70%) ( 1.3 ) *



XXX



Gross Inflows Life (consolidated entities) 137.5 397.3 45.8 159.9 183.3 557.2


Investment Result ( 6.0 ) ( 6.2 ) 1.2 1.6 ( 4.8 ) ( 4.6 )


Life Technical Liabilities 2,244.1 931.4 3,175.5

Gross inflows at EUR 17.1 billion were up 9% (+15% at constant

exchange rates) including non-consolidated partnerships at 100%. Higher

sales primarily originated from China and Thailand as a result of successful

sales campaigns and continued channel development, including a further

increase in the number of agents. India’s growth in the bank channel further

contributed to the increase in gross inflows. A new joint venture in the

Philippines started selling insurance solutions while the joint venture in

Vietnam obtained its operating license mid 2016 and started commercial

activities mid December 2016.

Both new business premiums and renewals increased strongly by 10% to

EUR 7.6 billion and 9% to EUR 9.5 billion respectively. The increase in new

business premiums came mainly from regular premiums, up 19% at EUR

3.8 billion. Single premium inflows amounted to EUR 3.8 billion, slightly up

versus last year. New business premiums in the agency channel grew

significantly by 28% to EUR 3.5 billion while the bank channel realised EUR

3.9 billion inflows (at same level as last year).

In China, inflows increased by 14% year-on-year to EUR 13.6 billion (+20%

at constant exchange rates). New business premiums amounted to EUR

6.3 billion, up 17%, of which nearly half in regular premium business, an

increase of more than 30%, and in line with the commercial strategy. New

business through the agency channel grew by 37% amounting to EUR 3.2

billion, with regular premiums increased by 33%, supported by new

campaigns and a further expanded agency force of almost 254,000 agents.

Renewals increased by 11% to EUR 7.3 billion with persistency levels

continuing to be amongst the best in the market.

Thailand achieved solid business growth with inflows up 8% (+10% at

constant exchange rates) to EUR 2.5 billion. Inflows were marked by strong

growth in renewal premiums to EUR 1.6 billion following last year’s growth

in new business volumes and continued customer loyalty.

Inflows in Malaysia amounted to EUR 587 million increasing by 9% at

constant exchange rates. The bank channel’s focus on regular premium

business resulted in a better product mix with regular premiums up by 49%

at constant exchange rates. Renewal business amounted to EUR 296

million, up 17% at constant exchange rates.

Inflows in India amounted to EUR 193 million (+12% at constant exchange

rates) supported by growth in regular premiums and higher renewal

premiums.


Gross inflows from the consolidated operations in Hong Kong amounted to

EUR 183 million up until 12 May 2016 when the divestment was completed.

Technical Liabilities increased 9% from the end of last year to EUR 49.5

billion following top line growth.

Total net profit in Asia amounted to EUR 367 million (vs. EUR 259 million)

including the adverse currency rate impact of EUR 10 million. Net profit

included part of the capital gain of the divestment of the Hong Kong Life

activities amounting to EUR 199 million while the net profit from the Hong

Kong operations was down EUR 41 million following the divestment.

Excluding this and the exceptional investment results of last year, the net

result remained fundamentally strong and above last year’s level. The

fourth quarter was impacted by equity impairments leading to a

substantially lower level of net capital gains in the quarter (EUR 19 million

negative) compared to last year (EUR 37 million positive).

The net profit of the consolidated operations in Hong Kong amounted to

EUR 13 million (vs. EUR 54 million) until 12 May 2016 when the divestment

was completed.

The non-consolidated partnerships realised a net profit of EUR 183

million (vs. EUR 235 million), or minus 22%. Excluding last year’s

exceptional investment results net profit showed strong growth. Both China

and Thailand benefited from sales campaigns related to profitable regular

premium products.

Regional headquarters costs amounted to EUR 28 million (vs. EUR 30

million).

Non-Life: Growth in profitable business lines at constant exchange rates

INCOME STATEMENT



(incl non-consolidated partnerships at 100%) 893.1 913.0 (2%) 203.4 208.9 (3%) 201.7

Gross Inflows Non-Life (consolidated entities)

Net Earned Premium

Operating result

Non-allocated other income and expenses

Result before taxation consolidated entities

Result non-consolidated partnerships 27.4 13.0 * 6.2 5.8 7% 10.2

Result before taxation 27.4 13.0 * 6.2 5.8 7% 10.2

Income tax expenses


Net result attributable to shareholders 27.4 13.0 * 6.2 5.8 7% 10.2

Gross inflows increased by +2% at constant exchange rates to EUR 893

million. In Malaysia inflows amounted to EUR 575 million (stable versus last

year) with growth in profitable Personal Accident and Fire. Inflows in

Thailand (at constant exchange rates) were up 10% to EUR 318 million with

substantial growth in both Motor (+9%) and Personal Accident (+8%).

The net result amounted to EUR 27 million (vs. EUR 13 million) positively

impacted by a further improved combined ratio of 85.1% (vs. 91.1%)

including an IBNR (Incurred But Not Reported) release, and a capital gain

on the sale of real estate.

Strategic developments in 2016

In May 2016 the divestment of the Hong Kong Life insurance operations to

JD Capital for a cash consideration of approximately EUR 1.26 billion was

closed. Also in 2016, Ageas started commercial operations in the new joint

ventures in Vietnam and the Philippines.

Ageas has further strengthened its partnership with Maybank through

several initiatives in Singapore.


REINSURANCE (INTREAS) Net profit EUR 3 million.

Gross inflows EUR 41 million mainly from European consolidated Non-Life entities.

Combined ratio Combined ratio at 86.1%.

INCOME STATEMENT



(incl non-consolidated partnerships at 100%) 41.1 * 9.0 * 10.8

Gross Inflows Non-Life (consolidated entities) 41.1 * 9.0 * 10.8

Net Earned Premium 14.1 * 0.5 * 4.6

Operating result 2.0 * ( 1.1 ) * 1.1

Non-allocated other income and expenses 0.6 * 0.4 *

Result before taxation consolidated entities 2.6 * ( 0.7 ) * 1.1

Result non-consolidated partnerships * *

Result before taxation 2.6 * ( 0.7 ) * 1.1

Income tax expenses * *

Non-controlling interests * *

Net result attributable to shareholders 2.6 * ( 0.7 ) * 1.1

XXX



Gross Inflows Non-Life (consolidated entities) 0.4 4.2 36.5 41.1

Net Earned Premiums 0.3 4.1 9.7 14.1

Net Underwriting result ( 0.1 ) ( 1.0 ) 3.1 2.0

Combined Ratio 147.6% 123.7% 68.3% 86.1%

of which Prior Year claims ratio 6.5%

Investment Result

Other Result

Operating Result ( 0.1 ) ( 1.0 ) 3.1 2.0

Reserves Ratio (in %) 158% 108% 257% 212%

Non-Life Technical Liabilities 0.5 4.4 25.0 29.9

Compared to Q1 2016, the figures of Other lines have been integrated in Motor as the majority of the concerned reinsurance contracts relates to Motor Third Party Liability.

Intreas is the internal Non-Life reinsurer of Ageas, founded mid-2015. The

company has been established to optimise Ageas’s Group Non-Life

reinsurance programmes.

Gross inflows, amounted to EUR 41 million. The inflows mainly related to

the fully consolidated Non-Life entities in Europe and to Household,

Accident & Health and Motor Third Party Liability & other Liability business.

Net earned premiums amounted to EUR 14 million, taking into account

ceded reinsurance premiums of EUR 27 million.

The operating result of Intreas amounted to EUR 2 million, with a

combined ratio of 86.1%.

Intreas’s first full year net result amounted to EUR 3 million in a soft

reinsurance market. Since the start of underwriting mid-2015, the net

insurance liabilities (after reinsurance), including IBNR, amounted to EUR 9

million.


GENERAL ACCOUNT Net loss of EUR 694 million vs. EUR 15 million and mainly impacted by the Fortis settlement provision, partly offset by the capital gain

related to the divestment of Hong Kong.

Total Liquid Assets EUR 1.9 billion vs. EUR 1.6 billion end 2015.

INCOME STATEMENT


Net interest Income 8.4 5.9 42 % 1.3 1.0 30 % 2.4

Unrealised gain (loss) on RPN(I) 82.7 65.0 27 % 20.1 43.4 ( 54 %) ( 4.5 )

Result on sales and revaluations 196.1 ( 0.6 ) * ( 0.8 ) ( 5.2 ) ( 85 %) ( 0.4 )

Share of result of associates 25.9 21.8 19 % 0.8 7.6 ( 89 %) 12.6

Other income 0.5 5.8 ( 91 %) 0.1 2.6 ( 96 %) 0.1

Total income 313.6 97.9 * 21.5 49.4 ( 56 %) 10.2

Change in impairments and provisions ( 905.4 ) ( 8.2 ) * ( 5.7 ) ( 0.3 ) * ( 1.3 )

Net revenues ( 591.8 ) 89.7 * 15.8 49.1 ( 68 %) 8.9

Staff expenses ( 39.2 ) ( 22.8 ) 72 % ( 11.5 ) ( 5.9 ) 95 % ( 12.0 )

Other operating and administrative expenses ( 63.0 ) ( 52.7 ) 20 % ( 13.9 ) ( 14.8 ) ( 6 %) ( 8.7 )

Intercompany Staff & Other expenses 7.5 5.5 36 % 2.3 1.6 44 % 1.8

Total expenses ( 94.7 ) ( 70.0 ) 35 % ( 23.1 ) ( 19.1 ) 21 % ( 18.9 )

Result before taxation ( 686.5 ) 19.7 * ( 7.3 ) 30.0 * ( 10.0 )

Income tax expenses ( 7.4 ) ( 4.6 ) ( 61 %) ( 1.1 ) ( 0.8 ) ( 38 %) ( 0.7 )

Net result for the period ( 693.9 ) 15.1 * ( 8.4 ) 29.2 * ( 10.7 )

Net result attributable to non-controlling interests

Net result attributable to shareholders ( 693.9 ) 15.1 * ( 8.4 ) 29.2 * ( 10.7 )

BALANCE SHEET (MAIN ITEMS)

in EUR million 31 Dec 2016 31 Dec 2015 Change RPN(I) ( 275.0 ) ( 402.0 ) ( 32 %) Royal Park Investments 41.9 41.1 2 % Provision Fortis Settlement ( 1,024.4 ) ( 132.6 ) *

The General Account 2016 net result amounted to EUR 694 million

negative compared to EUR 15 million in 2015. The change primarily reflects

the provision of EUR 894 million made for the Fortis settlement announced

on 14 March 2016, the capital gain related to the divestment of the Hong

Kong Life entity (EUR 204 million), and the positive value difference on the

RPN(I) (EUR 83 million).

Fortis settlement

In March 2016 Ageas and the claimants’ organisations, Deminor, VEB,

Stichting FortisEffect, and Stichting Investor Claims Against Fortis (SICAF),

announced a settlement proposal with respect to all civil proceedings

related to the former Fortis group for the events in 2007 and 2008.

The net impact of the proposed settlement at the end of 2016 amounted to

EUR 894 million.

Over 2016, a cash transfer of EUR 250 million has been made to

FORSettlement, the foundation handling the settlement agreement.

RPN(I)

The RPN(I) reference amount liability decreased from EUR 402 million at

the end of 2015 to EUR 275 million at the end of 2016 due to price

movements and a partial settlement linked to the conversion of 656

CASHES by BNP Paribas in 2016, following the agreement concluded with

BNP Paribas.

The combination of the revaluation of the liability (EUR 127 million) and the

partial settlement (EUR 44 million) resulted in a EUR 83 million positive

impact on net income.

Royal Park Investments (RPI)

RPI sold its asset portfolio in April 2013. The remaining activity of RPI is

essentially limited to the management of litigations initiated on a number of

US assets.

Ageas’s part in the 2016 net profit of RPI, accounted under ‘Share of result

of associates’ amounted to EUR 28 million which was mainly driven by the

resolution of outstanding US proceedings. In 2016, RPI up-streamed a

dividend amount of EUR 17 million. In addition, Ageas received another

EUR 9 million as a result of a capital reduction at RPI.

Other items

Net interest income amounted to EUR 8 million.

Staff and other operating expenses, after recharges increased from EUR 70

million last year, to EUR 95 million mainly due to some one-off costs related

to the legal settlement, variable remuneration and pension provisions.


Total Liquid Assets

The total liquid assets in the General Account, including liquid assets with

maturity over 1 year, amounted to EUR 1.9 billion, EUR 0.3 billion higher

than end of 2015. The increase compared to the beginning of the year is

primarily driven by the cash received from the divestment of the Hong Kong

Life entity (EUR 1.2 billion).

Important elements lowering the cash position related to the acquisition in

Portugal, various investments in developing businesses in Asia and a first

cash-out related to the Fortis settlement. The remaining cash out of EUR

0.8 billion related to the Fortis settlement has been ring-fenced.

EVOLUTION LIQUID ASSETS DURING 2016

in EUR million

Cash 1,308.2

Liquid assets 296.1

Total Liquid Assets 31 December 2015 1,604.3

Distribution to shareholders

Dividend paid ( 339.1 )

Share buy-back program 2015-2016* ( 165.7 )

Share buy-back program 2016-2017** ( 77.9 )

( 582.7 )

Dividend upstream, net received

Belgium 332.8

UK 46.5

Continental Europe:

- Luxembourg 8.7

- Italy 10.3

Asia:

- Thailand 11.2

- China 60.9

- Malaysia 16.7

Royal Park Investments: 26.1

513.2

Capital Restructuring

AICA loan redemption 35.1

Granted sub-loan AIL ( 45.3 )

Capital support Ageas France ( 50.0 )

( 60.2 )

M&A

Divestment Hong Kong 1,221.4

Capital injection China TPEC ( 8.0 )

Capital injection China TPAM ( 14.0 )

Capital injection Ageas Portugal Holding ( 284.0 )

Capital injection Philippines ( 27.1 )

Capital injection Singapore ( 22.9 )

Capital injection Vietnam ( 12.0 )

853.4

Other (incl. regional costs CE, Asia and interest) ( 90.8 )

Settlement RPN(i) ( 44.3 )

Litigation settlement ( 250.2 )

Total Liquid Assets 31 December 2016 1,942.7

Cash 1,759.4

Liquid assets 183.3

* Total buy-back amounts to EUR 250 million, EUR 84.3 million was cash out in 2015 ** Total buy-back amounts to EUR 250 million, remainder will be cash out in 2017

Contingent Liabilities

On 14 March 2016 Ageas announced a settlement with Deminor, VEB

Stichting FortisEffect, and Stichting Investor Claims Against Fortis with

respect to the civil proceedings related to the former Fortis group for events

in 2007 and 2008. On 23 May 2016, Ageas and the claimants’

organisations jointly submitted a request to the Amsterdam Court of Appeal

to declare the Fortis settlement agreement binding.

As a next step, the Amsterdam Court of Appeal will organise on 24 March

2017 a public hearing as part of the procedure to declare the settlement

agreement binding.

For full details of contingent liabilities, see note 46 of the Consolidated

Annual Financial Statements for 2016 that will be published on 7 April 2017.


SOLVENCY POSITION AND INVESTMENT PORTFOLIO Insurance Solvency IIageas ratio at 182% exceeding the 175% target.

Investment portfolio EUR 82.7 billion compared to EUR 81.5 billion at the end of 2015 (+1%).

Strong balance sheet Shareholders’ equity at EUR 9.7 billion and Insurance Solvency IIageas and Group Solvency IIageasratios at

182% and 195%.

Solvency II

31 Dec 2016 31 Dec 2015

Group Solvency IIageas 194.7% 211.6%

Insurance Solvency IIageas 182.3% 182.3%

- Belgium 243.7% 242.3%

- UK 119.6% 130.4%

- Continental Europe 126.8% 130.6%

- Asia 179.1%

- Reinsurance (Intreas) 278.1%

* Because of the Hong Kong divestment concluded in the second quarter of 2016, no figure is reported for Asia as from the third quarter 2016.

Solvency position

The own funds of the insurance activities amounted to EUR 7.6 billion, and

stood EUR 3.4 billion above SCR. This led to a strong total Insurance

Solvency IIageas ratio of 182%, above the 175% target. The impact from

decreasing interest rates during 2016 and exceptional items in the UK was

compensated by a number of scope changes and model refinements,

mainly related to our real estate investments.

The Insurance Solvency ratios by segments amounted to 244% for

Belgium, 120% for the United Kingdom, 127% for Continental Europe and

278% for Reinsurance.

The Group Solvency IIageas ratio was down from 212% at the end of 2015 to

195%. While the SCR benefitted from model refinements, the own funds

decreased from EUR 9.4 billion at the end of 2015 to EUR 8.3 billion,

exceeding the total solvency capital requirements by EUR 4.0 billion. The

main drivers of this decrease relate to some impact of market movements,

the legal settlement, the M&A transactions throughout the year, the change

in value of the put option on AG Insurance shares, the share buy-back and

the proposed cash dividend, exceptionally higher due to divestment in Hong

Kong.

Shareholders’ equity

Total shareholders’ equity decreased from EUR 11.4 billion or EUR 53.59

per share at the end of 2015 to EUR 9.7 billion or EUR 47.03 per share at

the end of 2016. This decrease is mainly attributable to the legal settlement,

the change in unrealised gains and losses, negative currency exchange

differences (EUR 0.5 billion) out of which EUR 0.3 billion from Asia, mainly

related to the sale of Hong Kong, and EUR 0.2 billion from the UK, the

payment of the 2015 dividend (EUR 0.3 billion), the revaluation of the put

option and the ongoing share buy back programme (EUR 0.2 billion).

INVESTMENT PORTFOLIO

in EUR billion 31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015

Fixed Income portfolio 70.8 69.8 86% 85%

Bonds 62.1 62.5 75% 76%

Government bonds 37.9 36.4 46% 44%

Corporate debt securities 24.1 25.9 29% 32%

Structured credit instruments 0.1 0.2 0% 0%

Loans 8.7 7.3 11% 9%

Loans to Banks 1.3 1.1 2% 1%

Loans to Customers 7.4 6.2 9% 8%

Real Estate 0.2 0.4 0% 1%

Infrastructure 0.5 0.3 1% 0%

Mortgages 1.3 1.3 2% 2%

Other 5.4 4.2 6% 5%

Equity portfolio 4.4 3.9 5% 5%

Real Estate 5.3 5.4 6% 7%

Investment property 3.8 4.0 4% 5%

For own use 1.5 1.4 2% 2%

Cash and Cash equivalents 2.2 2.4 3% 3%

Total 82.7 81.5 100% 100%


Investment portfolio

Ageas’s investment portfolio at the end of 2016 amounted to EUR 82.7

billion compared to EUR 81.5 billion at the end of 2015. The sale of Ageas’s

Hong Kong entity during the second quarter led to a decrease in the

investment portfolio by EUR 2.4 billion, whereas the inclusion of Ageas

Seguros led to an increase of the investment portfolio by EUR 1.4 billion.

The value of the investment portfolio was driven by an increase in

unrealised capital gains. At the end of the year, the unrealised gains and

losses on the total ‘available for sale’ investment and real estate portfolio

amounted to EUR 9.8 billion compared to EUR 9.1 billion at the end of

2015. The unrealised capital gains on the ‘Held to Maturity’ portfolio

increased with EUR 0.4 billion to EUR 2.4 billion.

The exposure to loans and equities has increased by new investments, at

the expense of corporate bonds. All other asset classes remained relatively

stable.

Fixed income portfolio

Bonds

The government bond portfolio increased by EUR 1.4 billion over the year

to EUR 37.9 billion, partly driven by higher unrealised capital gains.

Corporate fixed income exposure decreased by EUR 1.8 billion to EUR

24.1 billion. The decrease in corporate bonds is mainly due to the exclusion

of the Hong Kong portfolio in the second quarter, which was predominantly

invested in corporate bonds.

End 2016, the corporate bond portfolio consisted of 56% industrials, 24%

financials, and 20% government related bonds. The credit quality of the

corporate bond portfolio remained very high, with 93% at investment grade,

of which 58% was rated A or higher.

The unrealised gains on the total ‘available for sale’ bond portfolio

increased to EUR 7.7 billion (of which EUR 5.9 billion on government bonds

and EUR 1.8 billion on corporates) compared to EUR 7.1 billion at the end

of 2015, driven by lower yields.

Loans

Ageas’s loan portfolio increased from EUR 7.3 billion to EUR 8.7 billion,

mainly thanks to a higher exposure in ‘loans to customers’. This evolution

was realised through an increase in infrastructure loans and in ‘other loans’,

more specifically loans benefiting from an explicit guarantee by the Belgian

regions or the Dutch State.

Equity portfolio

Equity investments at fair value increased by EUR 0.5 billion to EUR 4.4

billion. Gross unrealised capital gains were relatively stable at EUR 0.6

billion.

Real estate

Ageas’s real estate portfolio at fair value remained relatively stable at EUR

5.3 billion despite the realisation of two important real estate sales in the

first half year. Gross unrealised capital gains were stable at EUR 1.5 billion.


LEXICON ON FINANCIAL DISCLOSURE

Ageas’s part in inflows Inflows calculated on the basis of Ageas’s pro rata ownership in its operating companies.

Claims ratio Cost of claims, net of reinsurance, as a percentage of net earned premiums.

Combined Ratio Insurer’s total expenses as a percentage of net earned premiums. This is the sum of the claims ratio and the expense ratio

(see separate definitions).

Current year claims ratio Cost of claims relating to the current year as a percentage of net earned premiums.

Expense ratio Expenses as a percentage of net earned premiums. Included in expenses are internal costs of claims handling and

commissions, net of reinsurance.

Gross inflows Sum of gross written premiums of insurance contracts and amounts received from investment contracts without DPF

(Discretionary Participation Features).

Guaranteed products Family of products including Traditional products, Savings products and Group Life products. Traditional products typically

are protection based while Savings products mostly consist of products with a minimum guaranteed interest rate. Group Life

products are offered by an employer or large-scale entity to its workers or members and can have various characteristics.

Investment margin For Life the annualised investment result divided by the average net Life insurance liabilities during the reporting period. For

Non-Life the investment result divided by the net earned premium.

Investment result Sum of investment income and realised capital gains or losses on assets covering insurance liabilities, after deduction of

related investment expenses. Life investment result is also reduced by the amount allocated to the policyholders as technical

interest and profit sharing. The investment result in Accident & Health (part of Non-Life) is also reduced by the technical

interest that has been accrued to the insurance liabilities.

Net earned premiums Written premiums of Non-Life covering the risks for the current accounting period, netted for the premiums paid to reinsurers

and the change in unearned premiums reserves.

Net realised capital gains or

losses

Realised results, after tax, on the sale of investments in financial instruments, associates, investment property and property

for own use. Impairment charges and the related changes in profit sharing are also reported under this heading.

Net underwriting margin

For Life the net annualised underwriting result divided by the average net Life insurance liabilities during the reporting period.

For Non-Life the net underwriting result divided by the net earned premium.

Net underwriting result

The difference between the earned premiums and the sum of the actual claim payments and the change in insurance

liabilities, all net of reinsurance. The result is presented after deduction of allocated claim handling expenses, general

expenses and commissions net of reinsurance.

Operating Margin For Life the annualised operating result of the period divided by the average net Life insurance liabilities.

For Non-Life the operating result divided by the net earned premium.

Operating result Sum of net underwriting result, investment result and other result allocated to the insurance and/or investment contracts. The

difference between operating result and result before taxation consists of all income and costs not allocated to the insurance

and/or investment contracts and thus not reported in the operating result and result from non-consolidated partnerships.

Other margin Other result divided by the net earned premium.

Other result Results from other activities not allocated to net Underwriting result or Investment result.

Prior year claims ratio Claims ratio (net) relating to prior underwriting years.

Reserve ratio (%) Non-Life gross insurance liabilities divided by the annualised net earned premiums.

Return on equity (ROE) Net result as a percentage of average shareholders’ equity (without unrealised capital gains & losses).

Shadow accounting Under IFRS 4 unrealised gains or losses on assets covering the insurance liabilities can be recognised in the measurement

of the insurance liabilities in the same way as realised gains or losses. The adjustment to the insurance liabilities is

recognised in other comprehensive income if the unrealised gains or losses are also recognised in other comprehensive

income.

Solvency II ageas ratio Solvency II ratio calculated by taking the Solvency II PIM ratio and (1) replacing the spread risk treatment by fundamental

spread risk on both government and corporate bonds, (2) applying an Internal Model for AG Real Estate while (3) excluding

the impact of transitional measures

Technical liabilities Insurance liabilities or the obligations the insurer has towards its policyholders, based on the terms of the contracts.

Unit-Linked products Unit-Linked products are a type of Life insurance contracts where the investments are held on behalf of the policyholder and

the investment risk is born by the policyholder.

The definitions follow the ESMA guidelines regarding Alternative Performance Measures. A reconciliation from the income statements Life and Non-life to the Consolidated income statement

is provided in the published Interim Financial Statements.


ANNEXES Please note that the historical segment information and key performance indicators by segment, together with more detailed and historical margin

information can be downloaded on ageas.com (Investors/Reporting Centre).

Annex 1 : Consolidated Statement of financial position as at 31 December 2016

in EUR million 31 December 2016 31 December 2015

Assets

Cash and cash equivalents 2,180.9 2,394.3

Financial investments 66,571.4 66,547.2

Investment property 2,772.5 2,847.1

Loans 8,685.0 7,286.3

Investments related to unit-linked contracts 14,355.7 15,126.0

Investments in associates 2,873.7 2,841.4

Reinsurance and other receivables 2,192.3 2,013.9

Current tax assets 50.1 39.1

Deferred tax assets 171.5 131.2

Accrued interest and other assets 1,906.1 2,568.0

Property, plant and equipment 1,172.3 1,152.1

Goodwill and other intangible assets 1,217.7 1,539.2

Assets held for sale 145.3

Total assets 104,294.5 104,485.8

Liabilities

Liabilities arising from life insurance contracts 28,218.1 29,073.7

Liabilities arising from life investment contracts 31,902.2 29,902.9

Liabilities related to unit-linked contracts 14,353.3 15,141.8

Liabilities arising from non-life insurance contracts 7,880.5 7,463.5

Subordinated liabilities 2,322.7 2,380.4

Borrowings 2,495.8 2,787.5

Current tax liabilities 94.2 82.8

Deferred tax liabilities 1,350.6 1,565.0

RPN(I) 275.0 402.0

Accrued interest and other liabilities 2,659.3 2,373.1

Provisions 1,067.2 175.0

Liabilities related to written put options on NCI 1,374.9 1,163.1

Total liabilities 93,993.8 92,510.8

Shareholders' equity 9,656.3 11,376.1

Non-controlling interests 644.4 598.9

Total equity 10,300.7 11,975.0

Total liabilities and equity 104,294.5 104,485.8


Annex 2 : Income Statement

in EUR million

FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16

Income

- Gross premium income 9,276.7 9,358.6 ( 1 %) 2,266.6 2,456.4 ( 8 %) 2,094.8

- Change in unearned premiums ( 9.7 ) ( 31.0 ) ( 69 %) 79.5 73.3 8 % 35.1

- Ceded earned premiums ( 265.7 ) ( 291.7 ) ( 9 %) ( 59.2 ) ( 64.9 ) ( 9 %) ( 68.3 )

Net earned premiums 9,001.3 9,035.9 ( 0 %) 2,286.9 2,464.8 ( 7 %) 2,061.6

Interest, dividend and other investment income 2,938.7 3,006.5 ( 2 %) 718.6 759.3 ( 5 %) 732.0

Unrealised gain (loss) on RPN(I) (incl. settlement on RPN(I)/CASHES) 82.7 65.0 27 % 20.1 43.4 ( 54 %) ( 4.5 )

Result on sales and revaluations 645.7 192.0 * 13.4 60.3 ( 78 %) 13.5

Investment income related to unit-linked contracts 425.7 464.7 ( 8 %) 109.9 368.3 ( 70 %) 332.1

Share of result of associates 268.6 286.1 ( 6 %) 23.6 50.9 ( 54 %) 92.6

Fee and commission income 370.8 435.2 ( 15 %) 88.1 96.6 ( 9 %) 76.1

Other income 199.4 167.1 19 % 43.1 52.0 ( 17 %) 41.9

Total income 13,932.9 13,652.5 2 % 3,303.7 3,895.6 ( 15 %) 3,345.3

Expenses

- Insurance claims and benefits, gross ( 8,735.1 ) ( 8,610.0 ) 1 % ( 2,250.3 ) ( 2,371.5 ) ( 5 %) ( 1,920.1 )

- Insurance claims and benefits, ceded 174.4 102.5 70 % 59.0 21.1 * 25.8

Insurance claims and benefits, net ( 8,560.7 ) ( 8,507.5 ) 1 % ( 2,191.3 ) ( 2,350.4 ) ( 7 %) ( 1,894.3 )

Charges related to unit-linked contracts ( 488.7 ) ( 562.2 ) ( 13 %) ( 139.3 ) ( 403.0 ) ( 65 %) ( 348.6 )

Finance costs ( 167.2 ) ( 167.0 ) 0 % ( 38.9 ) ( 42.7 ) ( 9 %) ( 37.5 )

Change in impairments ( 64.7 ) ( 79.6 ) ( 19 %) ( 9.4 ) ( 12.8 ) ( 27 %) ( 7.4 )

Change in provisions ( 892.7 ) 0.4 * ( 4.5 ) ( 0.5 ) * ( 1.1 )

Fee and commission expense ( 1,177.3 ) ( 1,220.6 ) ( 4 %) ( 277.6 ) ( 309.5 ) ( 10 %) ( 277.3 )

Staff expenses ( 846.0 ) ( 846.7 ) ( 0 %) ( 212.4 ) ( 207.5 ) 2 % ( 206.2 )

Other expenses ( 1,183.1 ) ( 1,103.7 ) 7 % ( 329.4 ) ( 303.2 ) 9 % ( 261.5 )

Total expenses ( 13,380.4 ) ( 12,486.9 ) 7 % ( 3,202.8 ) ( 3,629.6 ) ( 12 %) ( 3,033.9 )

Result before taxation 552.5 1,165.6 ( 53 %) 100.9 266.0 ( 62 %) 311.4

Income tax expenses ( 229.7 ) ( 226.0 ) ( 2 %) ( 39.2 ) ( 46.8 ) 16 % ( 72.9 )

Net result for the period 322.8 939.6 ( 66 %) 61.7 219.2 ( 72 %) 238.5

Attributable to non-controlling interests 195.7 169.4 16 % 52.4 47.9 9 % 53.5

Net result attributable to shareholders 127.1 770.2 ( 83 %) 9.3 171.3 ( 95 %) 185.0

Per share data (EUR)

Basic earnings per share 0.61 3.57

Diluted earnings per share 0.61 3.57

As a result of integration within the UK business, from 2016 Ageas is presenting its Non-Life and Other Insurance segments in the UK on a consolidated basis and has furthermore

reclassified some minor products from Other lines into both Motor and Household. The 2015 comparative figures have been restated accordingly.


Annex 3 : Inflows per region at 100% and at Ageas’s part

KEY FIGURES PER REGION at 100 % Gross Inflows Life Gross Inflows Non-Life Total

in EUR million FY 2016 FY 2015 Q4 16 Q4 15 FY 2016 FY 2015 Q4 16 Q4 15 FY 2016 FY 2015 Q4 16 Q4 15 Belgium 4,182.3 3,798.6 1,047.0 1,104.7 1,882.6 1,880.5 421.1 418.5 6,064.9 5,679.1 1,468.1 1,523.2

United Kingdom 2,203.0 2,456.7 469.7 576.5 2,203.0 2,456.7 469.7 576.5

Consolidated entities 1,719.8 1,904.8 369.9 447.5 1,719.8 1,904.8 369.9 447.5

Non-consolidated

partnerships at 100% 483.2 551.9 99.8 129.0 483.2 551.9 99.8 129.0

Tesco 483.2 551.9 99.8 129.0 483.2 551.9 99.8 129.0 Continental Europe 4,121.8 4,109.0 997.1 1,013.2 1,306.8 1,048.4 365.1 260.4 5,428.6 5,157.4 1,362.2 1,273.6

Consolidated entities 1,902.9 2,013.4 504.8 505.6 739.8 512.2 218.6 140.1 2,642.7 2,525.6 723.4 645.7

Portugal 1,497.1 1,533.3 421.0 405.5 512.9 292.8 145.3 71.6 2,010.0 1,826.1 566.3 477.1

France 405.8 480.1 83.8 100.1 405.8 480.1 83.8 100.1

Italy 226.9 219.4 73.3 68.5 226.9 219.4 73.3 68.5

Non-consolidated

partnerships at 100% 2,218.9 2,095.6 492.3 507.6 567.0 536.2 146.5 120.3 2,785.9 2,631.8 638.8 627.9

Turkey (Aksigorta) 567.0 536.2 146.5 120.3 567.0 536.2 146.5 120.3

Luxembourg (Cardif Lux Vie) 2,218.9 2,095.6 492.3 507.6 2,218.9 2,095.6 492.3 507.6 Asia 17,064.2 15,585.3 3,458.7 3,440.9 893.1 913.0 203.3 208.8 17,957.3 16,498.3 3,662.0 3,649.7

Consolidated entities 183.3 557.2 153.7 183.3 557.2 153.7

Hong Kong 183.3 557.2 153.7 183.3 557.2 153.7

Non-consolidated

partnerships at 100% 16,880.9 15,028.1 3,458.7 3,287.2 893.1 913.0 203.3 208.8 17,774.0 15,941.1 3,662.0 3,496.0

Malaysia 587.1 570.5 162.3 139.8 575.0 615.1 123.6 132.2 1,162.1 1,185.6 285.9 272.0

Thailand 2,484.8 2,311.0 629.3 565.3 318.1 297.9 79.7 76.6 2,802.9 2,608.9 709.0 641.9

China 13,610.6 11,966.4 2,613.3 2,545.1 13,610.6 11,966.4 2,613.3 2,545.1

Philippines 5.3 2.1 5.3 2.1

Vietnam

India 193.1 180.2 51.7 37.0 193.1 180.2 51.7 37.0

Grand Total 25,368.3 23,492.9 5,502.8 5,558.8 6,285.5 6,298.6 1,459.2 1,464.2 31,653.8 29,791.5 6,962.0 7,023.0

Consolidated entities 6,268.5 6,369.2 1,551.8 1,764.0 4,342.2 4,297.5 1,009.6 1,006.1 10,610.7 10,666.7 2,561.4 2,770.1

Non-consolidated

partnerships 19,099.8 17,123.7 3,948.9 3,794.8 1,943.3 2,001.1 449.6 458.1 21,043.1 19,124.8 4,398.5 4,252.9

Reinsurance 41.1 9.1 41.1 9.1 X XX

KEY FIGURES PER REGION Ageas's part Gross Inflows Life Gross Inflows Non-Life Gross Inflows Total

in EUR million % ownership FY 2016 FY 2015 Q4 16 Q4 15 FY 2016 FY 2015 Q4 16 Q4 15 FY 2016 FY 2015 Q4 16 Q4 15 Belgium 75% 3,136.7 2,849.0 785.3 828.6 1,412.0 1,410.3 315.9 313.8 4,548.7 4,259.3 1,101.2 1,142.4 United Kingdom 1,961.8 2,181.3 419.8 512.1 1,961.8 2,181.3 419.8 512.1

Consolidated entities 100% 1,719.8 1,904.8 369.9 447.5 1,719.8 1,904.8 369.9 447.5 Non-consolidated

partnerships 242.0 276.5 49.9 64.6 242.0 276.5 49.9 64.6

Tesco 50% 242.0 276.5 49.9 64.6 242.0 276.5 49.9 64.6 Continental Europe 1,952.5 1,960.6 482.6 476.2 830.6 595.5 234.8 149.1 2,783.1 2,556.0 717.4 625.2

Consolidated entities 1,212.9 1,262.1 318.5 307.0 626.5 402.5 182.1 105.8 1,839.4 1,664.5 500.6 412.7

Portugal 51% - 100% 807.1 782.0 234.7 206.9 513.0 292.8 145.4 71.6 1,320.1 1,074.7 380.1 278.4

France 100% 405.8 480.1 83.8 100.1 405.8 480.1 83.8 100.1

Italy 50% 113.5 109.7 36.7 34.2 113.5 109.7 36.7 34.2

Non-consolidated

partnerships 739.6 698.5 164.1 169.2 204.1 193.0 52.7 43.3 943.7 891.5 216.8 212.5

Turkey (Aksigorta) 36% 204.1 193.0 52.7 43.3 204.1 193.0 52.7 43.3

Luxembourg (Cardif Lux Vie) 33% 739.6 698.5 164.1 169.2 739.6 698.5 164.1 169.2 Asia 4,574.1 4,473.8 909.8 1,014.9 225.3 234.7 50.1 52.4 4,799.4 4,708.4 959.9 1,067.2

Consolidated entities 183.3 557.2 153.7 183.3 557.2 153.7

Hong Kong 100% 183.3 557.2 153.7 183.3 557.2 153.7

Non-consolidated

partnerships 4,390.8 3,916.6 909.8 861.2 225.3 234.7 50.1 52.4 4,616.1 4,151.2 959.9 913.5

Malaysia 31% 181.7 176.6 50.2 43.3 178.0 190.4 38.3 41.0 359.7 366.9 88.5 84.3

Thailand 15% - 31% 767.2 713.5 194.3 174.5 47.3 44.3 11.8 11.4 814.5 757.8 206.1 185.9

China 25% 3,389.0 2,979.6 650.7 633.7 3,389.0 2,979.6 650.7 633.7

Philippines 50% 2.7 1.1 2.7 1.1

Vietnam 32%

India 26% 50.2 46.9 13.5 9.7 50.2 46.9 13.5 9.7

Grand Total 9,663.3 9,283.4 2,177.7 2,319.7 4,429.7 4,421.8 1,020.6 1,027.4 14,093.0 13,705.0 3,198.3 3,346.9

Consolidated entities 4,532.9 4,668.3 1,103.8 1,289.3 3,758.3 3,717.6 867.9 867.1 8,291.2 8,385.8 1,971.7 2,156.3

Non-consolidated

partnerships 5,130.4 4,615.1 1,073.9 1,030.4 671.4 704.2 152.7 160.3 5,801.8 5,319.2 1,226.6 1,190.6

Reinsurance 100% 41.1 9.1 41.1 9.1


Annex 4 : Solvency by region

Key Capital Indicators in EUR million

31 Dec 2016 31 Dec 2015

Belgium

Shareholders’ equity 4,682.8 4,932.0

Own Funds 6,943.6 6,911.8

SCR ageas 2,849.6 2,852.0

Amount of Own Funds above SCR 4,094.0 4,059.8

Total solvency II ageas ratio 243.7% 242.3%

United Kingdom

Shareholders’ equity 910.8 1,128.6

Own Funds 818.6 1,099.1

SCR ageas 684.7 843.0

Amount of Own Funds above SCR 133.9 256.1


Continental Europe

Shareholders’ equity 1,350.0 976.5

Own Funds 1,184.7 943.0

SCR ageas 934.2 722.0

Amount of Own Funds above SCR 250.5 221.0


Asia


Own Funds 574.8

SCR ageas 321.0

Amount of Own Funds above SCR 253.8

Total solvency II ageas ratio 179.1%

Reinsurance

Shareholders’ equity 104.2

Own Funds 106.4

SCR ageas 38.2

Amount of Own Funds above SCR 68.2

Total solvency II ageas ratio 278.1%

Non Transferable Own Funds ( 1,457.9 ) ( 1,520.7 )

Diversification SCR ageas ( 341.3 ) ( 346.0 )

Total Insurance


Own Funds 7,595.4 8,008.0

SCR ageas 4,165.4 4,392.0

Amount of Own Funds above SCR 3,430.0 3,616.0


General Account (after eliminations)

Shareholders’ equity 603.7 1,329.6

Own Funds 662.1 1,359.0

SCR ageas 76.6 34.0

Group Solvency II 194.7% 211.6%

Total solvency ratio JVs not included in Ageas ratio 263.5% 252.5%


Annex 5 : Statement of financial position split into Life, Non-Life and Other Insurance

31 December 2016

in EUR million Life Non-life Insurance

Eliminations Total Insurance General Account Group

Eliminations Total

Assets

Cash and cash equivalents 993.3 387.0 1,380.3 800.6 2,180.9

Financial investments 58,353.2 7,851.3 66,204.5 377.2 ( 10.3 ) 66,571.4

Investment property 2,506.6 265.9 2,772.5 2,772.5

Loans 6,972.3 959.2 ( 35.9 ) 7,895.6 1,458.0 ( 668.6 ) 8,685.0

Investments related to unit-linked contracts 14,355.7 14,355.7 14,355.7

Investments in associates 2,416.0 404.3 2,820.3 46.9 6.5 2,873.7

Reinsurance and other receivables 474.1 1,939.4 ( 467.7 ) 1,945.8 252.8 ( 6.3 ) 2,192.3

Current tax assets 5.7 44.4 50.1 50.1

Deferred tax assets 80.5 91.0 171.5 171.5

Accrued interest and other assets 1,399.0 504.2 1,903.2 129.0 ( 126.1 ) 1,906.1

Property, plant and equipment 979.8 191.9 1,171.7 0.6 1,172.3

Goodwill and other intangible assets 838.4 379.3 1,217.7 1,217.7

Assets held for sale 129.7 15.6 145.3 145.3

Total assets 89,504.3 13,033.5 ( 503.6 ) 102,034.2 3,065.1 ( 804.8 ) 104,294.5

Liabilities

Liabilities arising from life insurance contracts 28,226.2 28,226.2 ( 8.1 ) 28,218.1

Liabilities arising from life investment contracts 31,902.2 31,902.2 31,902.2

Liabilities related to unit-linked contracts 14,353.3 14,353.3 14,353.3

Liabilities arising from non-life insurance contracts 7,905.3 ( 24.8 ) 7,880.5 7,880.5

Subordinated liabilities 1,266.6 510.6 ( 35.9 ) 1,741.3 1,250.0 ( 668.6 ) 2,322.7

Borrowings 2,159.7 336.1 2,495.8 2,495.8

Current tax liabilities 58.8 35.4 94.2 94.2

Deferred tax liabilities 1,046.7 301.7 1,348.4 2.2 1,350.6

RPN(I) 275.0 275.0

Accrued interest and other liabilities 2,146.2 900.7 ( 443.4 ) 2,603.5 173.4 ( 117.6 ) 2,659.3

Provisions 21.1 17.5 38.6 1,028.6 1,067.2

Liabilities related to written put options on NCI 87.2 21.7 108.9 1,266.0 1,374.9

Total liabilities 81,268.0 10,029.0 ( 504.1 ) 90,792.9 3,995.2 ( 794.3 ) 93,993.8

Shareholders' equity 6,371.4 2,680.7 0.5 9,052.6 614.8 ( 11.1 ) 9,656.3

Non-controlling interests 1,864.9 323.8 2,188.7 ( 1,544.9 ) 0.6 644.4

Total equity 8,236.3 3,004.5 0.5 11,241.3 ( 930.1 ) ( 10.5 ) 10,300.7

Total liabilities and equity 89,504.3 13,033.5 ( 503.6 ) 102,034.2 3,065.1 ( 804.8 ) 104,294.5

Number of employees 3,994 7,952 11,946 134 12,080


Annex 6 : Margins Life (%)

KEY PERFORMANCE INDICATORS BY FAMILY GUARANTEED UNIT - LINKED

in % of average Life Technical Liabilities (excluding non-consolidated partnerships) FY 2016 FY 2015 FY 2016 FY 2015

BELGIUM

Net underwriting margin (0.05%) (0.02%) 0.31% 0.32%

Investment margin 0.91% 0.88%

Operating margin 0.86% 0.86% 0.31% 0.32%

CEU

Net underwriting margin 0.45% 0.29% 0.05% 0.06%

Investment margin 0.76% 0.59% 0.02% 0.01%

Operating margin 1.21% 0.88% 0.07% 0.07%

ASIA

Net underwriting margin 2.22% 2.40%

Investment margin (0.33%) 0.17%

Operating margin 1.89% 2.57%


Annex 7 : Margins Non-Life (%)


in % of Net Earned Premiums FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015

BELGIUM

Combined Ratio 97.6% 98.0% 96.1% 92.6% 92.6% 89.1% 102.9% 110.8% 96.0% 94.7%

Claims Ratio 70.0% 70.4% 59.7% 56.2% 47.8% 43.9% 58.3% 65.8% 58.3% 56.9%

of which Current Year claims ratio 66.5% 64.1%


Net Underwriting ratio 2.4% 2.0% 3.9% 7.4% 7.4% 10.9% (2.9%) (10.8%) 4.0% 5.3%

Investment Ratio 5.8% 5.2% 6.6% 6.1% 2.6% 2.4% 11.7% 10.5% 5.5% 5.0%

Other Margin

Operating Margin 8.2% 7.2% 10.5% 13.5% 10.0% 13.3% 8.8% (0.3%) 9.5% 10.3%

Reserves Ratio 386% 371% 181% 173% 70% 69% 320% 318% 212% 206%

UK

Combined Ratio 99.3% 99.1% 106.8% 103.0% 98.2% 99.5% 118.6% 103.9% 106.0% 102.1%

Claims Ratio 58.4% 55.8% 81.2% 75.8% 57.6% 62.2% 73.7% 55.3% 74.5% 69.3%



Net Underwriting ratio 0.7% 0.9% (6.8%) (3.0%) 1.8% 0.5% (18.6%) (3.9%) (6.0%) (2.1%)


Other Margin

Operating Margin 2.5% 2.2% (2.2%) 1.3% 4.1% 2.2% (12.9%) 1.3% (1.9%) 1.6%

Reserves Ratio 47% 47% 181% 191% 87% 91% 232% 232% 163% 166%

CEU

Combined Ratio 90.0% 84.0% 98.0% 103.8% 80.3% 72.0% 53.4% 72.5% 88.7% 85.4%

Claims Ratio 64.9% 58.8% 65.5% 71.5% 42.3% 36.1% 12.1% 31.7% 58.6% 55.9%



Net Underwriting ratio 10.0% 16.0% 2.0% (3.8%) 19.7% 28.0% 46.6% 27.5% 11.3% 14.6%


Other Margin (1.9%) 0.1% (3.5%) 0.0% (0.9%) (0.0%) (0.7%) 0.7% (2.2%) 0.1%

Operating Margin 11.5% 18.7% 2.1% 1.8% 21.0% 30.0% 54.6% 37.1% 12.7% 18.3%

Reserves Ratio 194% 114% 220% 252% 123% 108% 457% 484% 209% 170%

Reinsurance

Combined Ratio 147.6% 123.7% 68.3% 86.1%

Claims Ratio 130.7% 107.8% 28.5% 53.7%

of which Current Year claims ratio 47.2%

of which Prior Year claims ratio 6.5%

Net Underwriting ratio (47.6%) (23.7%) 31.7% 13.9%

Investment Ratio

Other Margin

Operating Margin (47.6%) (23.7%) 31.7% 13.9%

Reserves Ratio 150% 108% 257% 212%

DISCLAIMER

The information on which the statements in this press release are based may be subject to change and this press release may also contain certain projections or other forward looking-

statements concerning Ageas. These statements are based on current expectations of the management of Ageas and are naturally subject to uncertainties, assumptions and changes in

circumstances. The financial information included in this press release is unaudited.

The forward-looking statements are no guarantee of future performance and involve risks and uncertainties that could cause actual results to differ materially from those expressed in the

forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Ageas’s ability to control or estimate precisely, such as future market conditions and the

behaviour of other market participants. Other unknown or unpredictable factors beyond the control of Ageas could also cause actual results to differ materially from those in the statements

and include but are not limited to the consent required from regulatory and supervisory authorities and the outcome of pending and future litigation involving Ageas. Therefore undue reliance

should not be placed on such statements. Ageas assumes no obligation and does not intend to update these statements, whether as a result of new information, future events or otherwise,

except as required pursuant to applicable law.

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