FY 2017 RESULTS Periodical Financial Information Analyst call 3 - PowerPoint PPT Presentation

FY 2017 RESULTS Periodical Financial Information

Analyst call 3 Table of contents Segment information 16 Equity / Solvency/ FCG 49 Investment portfolio 62 Legal Settlement 67 General Information 76

Main messages Ageas reports record Insurance net result  Insurance Insurance net profit of EUR 960 mio (+33%)  performance Inflow @ 100% of EUR 33.8 bn (+7%)  Life Guaranteed margin at 93 bps* (stable)  Unit-Linked margin at 27 bps* (vs. 25 bps)  Group combined ratio at 95.2%* (vs.101.1%)  Life Technical Liabilities at EUR 74.7 bn * ( stable)  Group net profit of EUR 623 mio Group result  General Account net loss of EUR 337 mio (vs. EUR 694 mio negative) including additional provision for Fortis settlement  Shareholders’ equity at EUR 9.6 bn or EUR 48.30 per share Balance sheet  UG/L at EUR 2.8 bn or EUR 14.02 per share  Insurance Solvency II ageas at 196%, Group ratio at 196%  Operating FCG of Solvency II scope of EUR 702 mio  Total Liquid Assets General Account at EUR 1.8 bn (vs.EUR 1.9 bn)  Proposal of 2.10 EUR/share (+24% vs. 2016 regular dividend) Gross dividend  Fortis settlement Hearings Amsterdam Court on 16 & 27 March 2018  Judgment on binding character expected by mid 2018 *Consolidated entities only Periodic financial Information I FY 17 results I 21 February 2018 3

Total Insurance: Headlines Record performance in both Life & Non-Life Net result: Solid result further Inflows*: Continuous growing inflows Life Technical liabilities up in non-conso underpinned by strong Q4 in Asia driven by regular premiums In EUR bn In EUR mio In EUR bn 960 152.7 150.0 144.0 33.8 77 31.7 721 6.2 260 274 6.3 78.0 75.8 69.5 199 77 18 48 (82) 7.0 6.7 150 27.6 81 25.4 1.5 623 1.5 505 74.5 74.2 74.7 (163) 5.5 5.2 Q4 16 Q4 17 FY 16 9M 17 FY 17 FY 16 FY 17 Q4 16 Q4 17 FY 16 FY 17 conso non-conso Life Non-Life Life Non-Life cap gain divestments Non-Life combined ratio: excellent Operating margin Guaranteed: Operating margin Unit-Linked: up in operating performance in BE & CEU absence of capital gains in Q4 both BE & CEU In % NEP In bps avg technical liabilities In bps avg technical liabilities 113.2 93 93 101.1 96.2 80 95.2 54 36 32 27 25 FY 16 FY 17 Q4 16 Q4 17 FY 16 FY 17 Q4 16 Q4 17 FY 16 FY 17 Q4 16 Q4 17 * incl. non-consolidated partnerships @ 100% Periodic financial Information I FY 17 results I 21 February 2018 4

Proposed regular gross cash dividend of EUR 2.1/ share, up 24% Total 4.6 bn returned to shareholders since 2009 5.3% 5.1% 5.0% 4.9% 4.7% 4.6% 4.4% Payment 3.7% 2017 dividend 0.40 on 30 May 2018 2.9% CAGR +13% 2.10 1.70 1.65 1.55 1.40 1.20 0.80 0.80 0.80 2010 2011 2012 2013 2014 2015 2016 2017 2018 gross dividend / share additional dividend / share dividend yield* 2010 2011 2012 2013 2014 2015 2016 2017 2018 since '09 Paid dividend 188 197 188 270 309 329 338 419 408 2,646 Share buy-back executed 230 160 144 209 250 244 244 247 1,728 Capital reduction 223 223 188 427 348 637 518 579 582 663 655 4,597 Total returned to shareholders Periodic financial Information I FY 17 results I 21 February 2018 5

Disciplined cash upstream from operating companies Total upstream up 6% - well above EUR 500 mio Biggest part  Belgium main contributor of cash of upstream  Upstream covering dividend & holding costs on FY basis done in H1 China 46 In EUR mio 516 488 487 Thailand Asia 15 438 440 77 Malaysia Asia Asia 89 16 106 Asia 43 CEU 48 Asia 52 CEU 19 CEU 53 CEU 36 * UK 47 Luxembourg 9 * CEU UK 50 UK 82 150 Italy 15 Portugal Belgium UK 64 25 391 Belgium Belgium 333 Belgium 294 268 Belgium 42 168 Upstream during 2012 2013 2014 2015 2016 2017 based on net result of the year before * internal loan granted Periodic financial Information I FY 17 results I 21 February 2018 6

Group Free Capital Generation roll forward Operational FCG of EUR 702 mio, excl. Non- European NCP’s In EUR mio  Calculation based on 175% of SCR ageas  EUR 702 mio includes  EUR 114 mio related to stop loss cover in UK  EUR 77 mio dividend upstream from Non-European NCP’s * 702 77 114 (318) 511 (249) (5) (419) 265 194 (15) 1,264 Free Capital 1,111 Generation FY '16 Model M&A Market Operational Exceptional Capital M&A Paid FY '17 changes Divestments impact impact items transactions Acquisitions dividend * Operational FCG generated by Non-European NCP’s of EUR 360 mio over 9M ’17 is not included in EUR 702 mio Periodic financial Information I FY 17 results I 21 February 2018 7

Ambition 2018 targets Reaching all but one of the 6 targets Solvency II ageas – comfortably Proposed gross dividend in line with ROE driven by record insurance result – excl. Cargeas @ 14% above 175% promised pay-out ratio 40%-50% 175% 11%-13% * 45% 42% 196% 179% 15% 11% 2016 2017 target 2016 2017 target 2016 2017 target Non-Life combined ratio reaching Operating margin Guaranteed above Operating margin Unit-Linked target despite residual Ogden impact target range below target range but improving 97 % 85 - 90 bps 40 - 45 bps 101.1 95.2 93 93 27 25 2016 2017 target 2016 2017 target 2016 2017 target * Calculated on insurance net result excluding UK exceptionals Periodic financial Information I FY 17 results I 21 February 2018 8

Key dates Fortis’ settlement  Ageas announces agreement with Deminor, Stichting FortisEffect, SICAF & VEB 14/03/2016  Additional support received from Mr. Arnauts & Mr. Lenssens  Filing done 23/05/2016  16/06/2017 Interim decision Amsterdam Court of Appeal declares settlement agreement not binding  Main concerns 1. Discrimination active/non-active shareholders 2. Dilution risk for buyers by holders compensation 3. Uncertainty about scope release  Deadline for amended agreement 17/10/2017 16/10/2017  Court grants extension until 12/12/2017  Ageas announced EUR 100 mio final additional effort  12/12/2017 Agreement reached on revised settlement proposal  Additional support by ConsumentenClaim 16 & 27/03/2018  First hearing focussed on compensation models of claimant organisations  Second hearing on the merits Periodic financial Information I FY 17 results I 21 February 2018 9

Belgium : Headlines Improvement supported by record performance in Non-Life Net result: strong Non-Life – 2016 Inflows: anticipated lower Guaranteed - Life Technical Liabilities slightly down included impact terror & weather continued strong growth in UL In EUR bn In EUR mio In EUR bn 438 6.1 5.7 391 1.9 146 1.9 102 1.5 1.5 59.0 58.3 58.1 82 0.4 0.4 72 4.2 288 292 3.8 26 24 1.1 1.0 55 47 FY 16 FY 17 Q4 16 Q4 17 Q4 16 Q4 17 FY 16 FY 17 FY 16 9M 17 FY 17 Life Non-Life Life Non-Life Operating margin Guaranteed: Operating margin Unit-Linked: driven Excellent Non-Life combined ratio absence of capital gains in Q4 by high underwriting margin In % NEP In bps avg technical liabilities In bps avg technical liabilities 96.0 95.2 92.8 86 85 91.0 70 64 42 41 34 31 FY 16 FY 17 Q4 16 Q4 17 Q4 16 Q4 17 FY 16 FY 17 Q4 16 Q4 17 FY 16 FY 17 Periodic financial Information I FY 17 results I 21 February 2018 10

United Kingdom: Headlines Residual Ogden rate impact on net results Net result impacted by Ogden - Non-Life combined ratio excl. Ogden at Inflows* 3% down at constant FX EUR 213 mio exceptionals in Q4 ‘16 99.5% In EUR bn In EUR mio In % of NEP 29 4 152.2 (156) 2.2 112.2 2.0 (210) 103.2 102.0 0.5 0.4 Q4 16 Q4 17 FY 16 FY 17 Q4 16 Q4 17 FY 16 FY 17 FY 16 FY 17 Q4 16 Q4 17  EUR 46 mio in FY’17 net result Ogden impact  3.7pp on COR - impacting mainly Motor (3.9pp) & Other lines (10.0pp) on results  Impact of around EUR 5 mio in Q4, in line with earlier communication  Risk mitigation product portfolio through stop loss reinsurance cover Ogden rate change  Q1 derisking of investment portfolio impact mitigated by  EUR 77 mio capital injection executed in Q2 various actions  Solvency II ageas FY ‘17 @147% * incl. non-consolidated partnerships @ 100% Periodic financial Information I FY 17 results I 21 February 2018 11

Continental Europe: Headlines Remarkable operating performance & EUR 77 million capital gain on sale of Cargeas in Q4 Inflows driven by strong growth in Net profit up 28% excl. cap gain on Life Technical liabilities up 8% both Life and Non-Life sales of Italian Non-Life activities In EUR bn In EUR mio In EUR bn 38.4 37.7 35.5 193 6.1 5.4 1.5 77 22.1 21.6 1.3 20.0 100 1.6 90 1.4 53 0.5 4.6 0.4 41 77 4.1 30 16.1 16.3 15.5 1.1 62 1.0 15 49 7 16 16 FY 16 FY 17 FY 16 FY 17 Q4 16 Q4 17 Q4 16 Q4 17 FY 16 9M 17 FY 17 Life Non-Life Life Non-Life cap gain Cargeas conso non-conso Non-Life combined ratio @ excellent Operating margin Guaranteed up on Operating margin Unit-Linked significantly level despite fires in Portugal higher investment margin up on higher fees & commissions In % NEP In bps avg technical liabilities In bps avg technical liabilities 139 90.4 136 90.4 125 88.7 121 83.7 23 21 8 7 Q4 16 Q4 17 FY 16 FY 17 Q4 16 Q4 17 FY 16 FY 17 Q4 16 Q4 17 FY 16 FY 17 * incl. non-consolidated partnerships @ 100% Periodic financial Information I FY 17 results I 21 February 2018 12