Achmea Investor Presentation

Transcription

1 Achmea Investor Presentation The leading Dutch insurance company with strong brands, multi-channel distribution strategy, well-diversified product range and conservative investment profile 11/12 October 2016

2 Contents Introduction Key investment considerations Recent results Wrap-up Appendices Achmea overview 2

3 Achmea overview Strong brands, diversified products, focus on insurance Gross written premiums by segment 31/12/2015 Total: 19.9 billion A strong and solid insurance group with mutual roots Clear market leader in Dutch insurance: Property & Casualty #1, Income Protection #3, Health #1, Pension #5 and Life #3 Interpolis, Centraal Beheer and Zilveren Kruis are among the most recognised brands in the Netherlands Pension & Life Non-life International Health 10% 16% 6% 68% Turkey Greece Slovakia Ireland Other 29% 28% 28% 14% 1% Distribution mainly through direct & banking channels, well positioned for future market developments Advanced digital capabilities Strong Solvency II position of 204%¹ A rating on the core insurance subsidiaries and conservative leverage position (25.6%) ¹ Based on approved PIM (internal model for Non-Life risk). 3

4 Ownership structure - Stability through two major cooperative shareholders Achmea Association¹ 65.3% Rabobank Netherlands¹ 29.2% Other¹ 5.5% Preference shareholders 100% Ordinary shares² 94.5% Achmea subholding² 5.5% The mission of Achmea Association is to support the continuity of Achmea and to look after the collective interests of customers ¹ Owners of Capital rights ² Owner of voting rights 4

5 Strong commercial alliance with Rabobank % Rabobank customers New insurance sales through Rabobank (% Interpolis) Our insurance products are distributed through the banking channel under our Interpolis label 1% 1% 23% Preferential distribution of Interpolis products through Rabobank branches; approximately 98% of retail insurance products sold through Rabobank are Achmea insurance products 75% 99% 99% 77% Currently, only 1 out of every 4 customers of Rabobank is insured through Interpolis; both Achmea and Rabobank aim to increase this 25% Retail Small enterprises* Wholesale Retail * Definition of small enterprises: 5 employees or less 5

6 Contents Introduction Key investment considerations Recent results Wrap-up Appendices Dominant player with strong brands and well developed digital capabilities Our strategic agenda Robust capital and solvency position Conservative investment profile 6

7 Achmea has four competitive advantages Strong brands with leading positions in customer satisfaction ratings Best in class distribution mainly via direct and bancassurance channel 7% 14% 70% 79% 3% 6% Direct (total) Bancassurance Broker Direct Health Leading position in mobile and online services A solid customer base with leading positions in our core markets Achmea serves approximately 10 million customers Dutch market Market positon Health # 1 Evelien Online assistant Speech analytics Independer Property & Casualty # 1 Individual Life # 3 Income protection # 3 Doctor- APP Inshared Agro Damage Asset Management # 5 7

8 Strong brands with leading positions in customer satisfaction ratings¹ P&C Retail Ø 7.7 P&C Wholesale Ø 7.3 Health Ø 7.0 Pensions Ø 6.3 Interpolis FBTO Centraal Beheer Generali Centraal Beheer Generali Interpolis De Friesland Pro Life OZF Achmea Interpolis 8, Centraal Beheer Aegon Allianz ASR Aegon NN Group Avéro Aegon ASR CZ Zilveren Kruis VGZ Menzis Generali ASR Direct brand Centraal Beheer voted Most customer orientated insurer ² Direct brand FBTO voted Most customer friendly insurance company over 2015 and 2016³ Achmea brands Centraal Beheer, Interpolis and Avero score MoneyView 5 star productrating on several Non-Life products meaning a TOP-3 best buy position in the market⁴ ¹ Source: the Dutch Association of Insurers customer satisfaction research. Health: Research by Zorgkiezer.nl 2015 ² 5-th Customer Centric DNA Award survey (april 2016) ³ 9 th SAMR and Beeckestijn Business School survey (april 2016) ⁴ Source: 8

9 A solid customer base with leading positions in our core markets Property & Casualty¹ #1 Health² #1 Income Protection¹ #3 Individual Life³ #3 Asset Management⁴ #5 Achmea 21% ASR Achmea 31% ASR NN Group APG Delta Lloyd NN Group Allianz VGZ NN Group Achmea 19% Goudse Vivat Achmea 15% Delta Lloyd PGGM Blackrock NL Other CZ Group Menzis Other Delta Lloyd Aegon Other Aegon ASR Other Delta MN Lloyd Achmea 6% Other Our closed book pension holds a 5 th position (11% market share)³ in the Dutch market. ¹ Publication of DNB (2015 figures), ² Based on own analyses, figures 2015, ³ Publication of DNB (2014 figures) ⁴ Dutchinvestor Total Institutional Managed Assets

10 Contents Introduction Key investment considerations Recent results Wrap-up Appendices Dominant player with strong brands and well developed digital capabilities Our strategic agenda Robust capital and solvency position Conservative investment profile 10

11 Process integration We have made significant progress in recent years Our transition to a true digital insurer Focus our business portfolio Integrated insurer House in order Process standardisation Digital Insurer We made tremendous progress in reshaping our process, products and IT-landscape: 1. IT-complexity reduction 2. Integration of back offices by migration of IT- applications 3. Transition to the digital insurer that uses big data and offers high quality digital customer service Significant progress in reshaping our business portfolio: 1. Divesting operations in Cyprus, Belgium, France, Romania, Bulgaria and Russia, as well as occupational health services provider Achmea Vitale and Achmea Health Centers 2. Recently we announced the sale of the Staalbankiers private banking activities Staff and expense reduction Implementation of integrated Retirement Services strategy FTE¹ 21,332 18,424 15,412 Expenses 3,664 2,879 2,633 Centraal Beheer financial services Achmea Investment Management Achmea Bank 1. Well known Centraal Beheer brand, with high customer satisfaction. Large customer base 2. Excellent asset gathering experience with long lasting roots in pension market with Achmea Investment management 3. Well positioned savings and mortgages propositions by Achmea Bank 4. Experienced Pension fund (administrative) services provider ¹ Internal FTE development of total group activities Syntrus Pension Services Closed book Pension & Life 5. We moved to a closed book Life in (Cost efficient operations and high customer satisfaction.) 6. We decided on a closed book pensions, after receipt permit to establish General Pension Fund (18 July 2016) 11

12 Acceleration & Innovation since 2014: accelerated customer focus Background Acceleration in customer focus and cost savings Innovation of processes and online services These changes are in response to customers fastchanging wishes Customer-driven Ambitions with Acceleration & Innovation Medewerkers Providing new solutions to our customers Maintaining high level of customer satisfaction Responsible returns Employees Competitive costs Maintaining long-term financial health Objectives 450 million cost reduction implying a FTE reduction of approximately 4,000 jobs. 12

13 Our Acceleration & Innovation program delivered good results: Achmea has become a more digital and customer focused organization We strengthened our earnings model and we divested less profitable businesses Our employees have become better equipped for digital work environment In 2016 we continue our initiatives to remain a leading digital insurer, streamlining our organization and further reducing IT-operating costs We invest in our strategic initiatives preparing ourselves to current and future market challenges: Implement advanced Bancassurance with Rabobank Grow international business Offer clear added value in Health Improve and innovate Non-life business Introduce Integrated retirement services together with establishment of General Pension Fund Operating expenses reduced by 355 million as result of the Acceleration & Innovation program started in 2014 As initiatives get finalised in 2016, the goals of Acceleration and Innovation will be visible in our 2017 results 13

14 We have a clear strategy: Stay on Course Complete Accelerate Stay on course: Further strengthening of our core competencies in Non-life and Health Combined with a strong position in pensions and internationally Invest in further innovative solutions for our customers Continuation of strong financial position, now and in the long-term Complete: Achieving the cost and FTE reduction targets of Acceleration & Innovation Migration to Digital Customer Services and Digital Business Case of IT. Accelerate: Additional measures implemented to create financial scope for innovation New strategic initiatives to respond to continued changes in market conditions 14

15 Our strategy will lead to a solid financial profile Solvency II ratio (PIM) (in %) Fixed Charge Coverage (in x) S&P Capital Target Debt leverage¹ (in %) x AA Level 26 35% 1H Available capital Target capital 1H 2016 Our solvency II position is strong Achmea continuously pursues a fixed charge coverage of > 4x Achmea has a stable capital position with a S&P capital surplus at AA-level Debt leverage well below our maximum (35%) ¹Definition Debt leverage: (External Debt + Hybrid capital ) / (Equity - Goodwill + External Debt + Hybrid capital) 15

16 Contents Introduction Key investment considerations Recent results Wrap-up Appendices Dominant player with strong brands and well developed digital capabilities Our strategic agenda Robust capital and solvency position Conservative investment profile 16

17 High quality of capital and low leverage Solvency II ratio In million Tiering of Capital In million 9,801 9, %¹ 199% 9% 14% 4% Total EOF 9,801 H % Unrestricted Tier 1 Restricted Tier 1 Tier 2 Tier 3 4,816 4, Avialable headroom² EOF SCR EOF H SCR 911 RT1 1,341 Tier Tier 3 ¹ Percentage based on an estimate with a range of -10% / +5% ² RT1 capacity: (UT1 / 80%) UT1 Outstanding RT1; Tier 2 capacity: (Consolidated SCR * 50%) - Outstanding Tier 2 current Tier 3; Tier 3 capacity: (Consolidated SCR * 15%) Current Tier 3 17

18 Capital allocation: Commitment predominantly to underwriting risk in line with our risk appetite Solvency Capital Requirements (PIM) H (in million) 60% 33% 6% 1% -35% Non life Underwriting Health Underwriting Life Underwriting , ,494 2,657 4, , ,860 1,925 Underwriting Market CDR Intangible Asset Diversification BSCR Operational SCR non-insur. LAC DT & EP Other SCR 18

19 Resilient capital base under several scenarios, but strong impact credit spread increase due to conservative profile investment portfolio Interest rate Credit Spread Equity Property UFR Scenario Solvency II PIM sensitivities (FY2015, in million) Eligible own funds SCR SII PIM (in %) BASE 9,151 4, bps +100bps +100bps -20% -40% -20% 3.7% 3.2% 9,929 8,118 9,327 8,735 8,319 8,916 8,909 8,656 4,719 4,486 4,494 4,514 4,441 4,549 4,617 4, Δ SII PIM (in %-pt) ¹ Interest rate sensitivity Currently we do not hedge the UFR nor the risk margin, which exposes us to changes in the interest rates Credit spread sensitivity We make use of the volatility adjustment Our fixed income portfolio differs from the EIOPA reference portfolio, as we have less exposure to corporates, French government bonds and peripheral sovereigns (e.g. Italy & Spain), but more exposure to core sovereigns (e.g. Germany and The Netherlands) Equity sensitivity We do not make use of equity derivatives to reduce the impact of developments in equity prices. The impact of the shock is therefore linear UFR sensitivity Limited due to the business mix ¹Credit spread sensitivity amended based on further internal analysis 19

20 Introduction to our approach on Solvency II Focus of approved partial internal model (PIM) Legend SCR Adjustment (LAC DT & TP) BSCR Operational Market Risk Default Risk Health Risk Intangible Risk Life Risk Non-life Risk Equity Interest rate Property Spread Currency Concentration PIM (Since dec 2015) SLT Mortality Longevity Disability & morbidity Lapse Expense Revision Under Development Cat Risk Standard Formula NSLT Premium & Reserve Lapse Mortality Longevity Disability & Morbidity Lapse Expense Revision Cat Premium & reserve Lapse Cat Approved Non-life risk: PIM is calibrated on Achmea s historical experience reflecting the specifics of our Non-life business geared towards retail Health risk SLT: Dominant risks are incident and recovery risk which are not adequately reflected in the SF 10% of total BSCR (pre-diversification) is currently under internal model. With the addition of market risk, this increases to approximately 40% Under development Market Risk: pre-application 2016 Health risk NSLT: Used for internal purposes only. For now we have no ambition to apply for approval, as we need more historical data with respect to lump sums and contract ceilings 20

21 Solvency II dividend policy threshold SII capital adequacy framework is based on the approved PIM Legal entity Group Green zone comfortable The Solvency II zones at legal entity level are based on both the probability of default and the probability of reaching capital levels below SCR level Green zone comfortable Yellow zone caution 130% Yellow zone caution Our formal risk appetite is set at 100% of SCR for the legal entities which translates into a SII ratio of 130% at group level 100% Red zone no dividend Red zone no dividend 21

22 Standard & Poor s rating on solid level Current rating for our insurance entities is A / stable outlook. The group rating is BBB+ / stable outlook. Standard & Poor s confirms distinguishing features of Achmea: Market leader in P/C and Health Multi-brand and multi-distribution strategy Diversified portfolio Strong capital position on an AA-level ERM enhances the rating Strong financial risk profile, but pressured earnings Rating outlook is stable Achmea (A) Stable outlook Anchor A- Business Risk Profile ICCRA Competitive position Financial Risk Profile Capital and Earnings Risk Position Financial Flexibility Strong Intermediate overall Strong Strong Very Strong Intermediate Less than Adequate Modifiers +1 ERM & Management ERM +1 Strong Explanatory remarks: Dutch health and life markets: intermediate risk Non-life in the Netherlands carries a low risk Leading market shares in health and non-life offers competitive strengths Multi-brand, multi-distribution approach is supportive to profile AA-level capital Pressured level of earnings in past 3 years, followed by impact extreme weather conditions and increasing medical costs in 2016 Investment leverage and diversification at conservative levels FCCR is constraining factor Stable financial leverage at around 26%-27% Positive risk culture, risk management and risk controls Strategic positioning is clear, financial management is conservative and organizational effectiveness is good Mgt & Governance Satisfactory Liquidity Exceptional No refinancing concerns ¹ Standard & Poor s rating services August 15,

23 Contents Introduction Key investment considerations Recent results Wrap-up Appendices Dominant player with strong brands and well developed digital capabilities Our strategic agenda Robust capital and solvency position Conservative investment profile 23

24 Not published Quality of own risk investment portfolio remains high Investments by type - 30/06/2016 (, billion) Fixed Income investments by rating - 30/06/2016 Other Real Estate Equities Mortgages Fixed Income¹ <IG & NR BBB A AA AAA % 3% 5% 5% 10% 9% 82% 83% % 5% 1% 2% 1% 2% 46% 47% % 7% 6% 8% 17% 18% 71% 67% 50 2% 3% 20% 75% % 3% 1% 2% 0% 5% 6% 7% 22% 19% 20% 70% 71% 70% 16% 14% 12% 13% 15% 15% 15% 15% 2% 2% 25% 28% 26% 25% 21% 17% 5% 4% 1% 4% 6% 14% 15% 18% 20% 17% 16% 25% 11% 25% 13% 33% 27% 11% 20% 29% 45% 44% 42% 43% 26% 29% 46% 45% 30% 32% 34% Achmea Aegon NL ASR Delta Lloyd H1 16 FY15 H1 16 FY15 H1 16 FY15 H1 16 FY15 Source: Interim reports H1 2016, Press Releases H and Press Presentations H NN Group H1 16 FY15 H1 16 Achmea FY15 Aegon NL² H1 16 FY15 H1 16 ASR FY15 Delta Lloyd H1 16 FY15 NN Group H1 16 FY15 Large exposure to fixed income securities with a high rating profile (84% or more invested in investment grade securities) Mortgages portfolio increased further per HY 2016 to 4.8 billion and is expected to reach 6 billion by the end of the year ¹ Including net position derivatives ² Excludes rating of sovereign bonds 24

25 Contents Introduction Key investment considerations Recent results Wrap-up Appendices Group results Solvency II results Segment results 25

26 Strong financial position of group: solvency ratio 204% Solvency ratio (SII) (in %) 204 1, H Operating expenses (in million) 1,367 H H Operational result (in million) H H Gross written premiums (in million) 16,940 16,902 H H Operational result affected by: Severe weather conditions caused total damages of 267 million for our customers Impact on result of 137 million after reinsurance Higher healthcare expenses than estimated due to: Higher expenditures new medicines Changed portfolio composition Gross written premiums increased at Property & Casualty, Health and International In 2016, operating expenses decreased further by 4% due to the decline in the number of employees and continued digitisation of processes Solid financial position with a solvency level of 204%¹ ¹ Percentage based on an estimate with a range of -10% / +5% 26

27 Results affected by one-offs Segment results (in million) H H Former structure Non-Life Operational result affected by severe weather conditions Non-Life Severe weather conditions Health Pension and Life Banking activities -18 Retirement services International activities Other activities In 2015 realisations on investments due to change in portfolio mix Health Result basic health insurance negative due to: Higher than expected healthcare expenditures for medicines Changed portfolio composition Pension and Life Higher investment results and lower operating expenses Retirement services Result affected by investments in retirement services strategy International activities Underlying result has improved 27

28 Contents Introduction Key investment considerations Recent results Wrap-up Appendices Group results Solvency II results Segment results 28

29 Solvency II ratio primarily influenced by declining interest rates Solvency II (approved model) (in million) H FY 2015 Solvency Solvency II ratio as of Q increased to 204% The solvency ratio is an estimate. Due to uncertainties (including LACDT) a range of -10%/+5% around the estimate is applied. 9,801 9,151 Available capital 4,816 4,589 Increase of available capital as result of interest rate developments (including UFR-effect) Own funds impacted by severe weather conditions, lower health results and capital flows (e.g. coupon payments and dividend) Required capital Higher increased capital mainly due to higher life and market risk as result of interest rate developments Available capital Required capital Available capital Required capital 204%¹ 199% ¹ Percentage based on an estimate with a range of -10% / +5% 29

30 Contents Introduction Key investment considerations Recent results Wrap-up Appendices Group results Solvency II results Segment results 30

31 Non-Life: High impact of severe weather conditions, underlying result improved Operational result Property & Casualty -124 (in million) 64 H H Operational result Income Protection 3 (in million) 11 H H Property & Casualty Due to reinsurance cover the impact on the operational result of the severe weather conditions is 130 million (gross claims: 267 million) Underlying result improved because of return improvement measures within the retail customer and commercial portfolio Income Protection Sickness insurance Higher duration of absence due to sickness Trend towards own risk Individual disability insurance (AOV) Portfolio decline in line with the market Effect of accelerated reintegration smaller Group disability insurance (WIA) Higher inflow combined with accelerated reintegration 31

32 Non-Life: Portfolio growth within Property & Casualty Gross written premiums (in million) Property & Casualty Income Protection 2,007 1, ,505 1,470 H H Combined ratio at Non-Life Operating expenses 448 (in million) 440 H H Combined ratio Income (in %) (in %) Claims ratio Expense ratio Severe weather Claims ratio Expense ratio conditions 109.4% 99.4% 100.5% 94.0% 29.3% 28.2% 25.0% 24.4% 10.4% 69.7% 71.2% 75.5% 69.6% H H H H Property & Casualty Gross written premiums increased due to higher inflow in the retail customer portfolio and price effects in retail and commercial customer portfolio Structurally lower claims ratio Impact of severe weather conditions 10.4%-pt Commission expenses increase in proxy channel Income Protection Portfolio decreases in line with the market for individual disability and sickness insurance. Gross written premiums of group disability insurance portfolio grows due to return improvement measures Operating expenses decline due to realised cost efficiency measures Combined ratio increases due to lower premiums Claims ratio higher because of increased duration of absence due to sickness and a rising number of customers disabled for work Result from previous year lower for our individual disability portfolio due to lower impact of initiatives of accelerated rehabilitation and reintegration 32

33 Health: Negative result basic health insurance mainly due to increased expenditures on new medicines Structural result basic health insurance Current underwriting year (in million) H H Operational result Health Supplemental (in million) Incidental result basis health insurance Previous underwriting years (in million) H H Operational result Health Basic + supplemental (in million) 172 Basic health Insurance Structural result lower: Higher healthcare expenses due to higher than expected expenditures on new medicines Equalisation system does not fully compensate for the change in our portfolio Allocation of 481 million to the results in 2015 is still insufficient Less incidental result from previous years: In 2016, lower than expected expenditures on geriatrics and care received abroad In 2015, increased outpatient care and different development in fixed/variable healthcare expenses than expected H H H H Declining operating expenses contribute to the result Supplemental health insurance Customers with supplemental health insurance take a more conscious decision for choosing their coverage Penetration level of supplemental health insurance on basic health insurance remains stable 33

34 Health: Higher gross written premiums and lower operating expenses Gross written premiums (in million) Basic Supplemental 13,106 12,977 1,318 1,327 11,788 11,650 Operating expenses (in million) Basic health Insurance Higher gross written premiums due to higher contribution equalisation fund Administrative costs declined due to more efficient processes Claims ratio up due to higher healthcare expenditures H H H H Expense ratio down due to initiatives relating to Acceleration & Innovation Combined ratio Basic (in %) Claims ratio 100.7% 2.9% 97.8% Expense ratio 98.2% 3.2% 95.0% Combined ratio Supplemental (in %) Claims ratio Expense ratio 96.2% 95.4% 8.4% 9.4% 87.8% 86.0% Supplemental insurance Gross written premiums for supplemental insurance declined due to a lower number of insured customers Claims ratio has increased due to lower premium revenue and growth in more selective choice of package for supplemental cover H H H H

35 Pension & Life: higher investment results and lower operating expenses Operational result 187 (in million) Gross written premiums Pension & Life closed book 844 (in million) 110 H H H H Operating expenses 130 (in million) Gross written premiums Annuities and term life insurance 148 (in million) 139 H H H H Pension & Life Operational result increased Higher investment results due to recovery real estate market, higher commodity prices and widening of swap spread Lower amortisation on value of business acquired (VOBA) Lower operating expenses Result of complexity reduction visible Decrease in number of employees in line with premium lapses Immediate annuities and term life insurance Ongoing pension and life insurance activities increased by 51% Pension & Life closed-book Licence for Centraal Beheer General Pension Fund obtained on 18 July Sale of pension insurance products ceased with creation of General Pension Fund (APF) Gross written premiums decreased by 9%, mainly due to regular premium lapses and a large single premium contract in 2015 Closed-book yields cost benefits 35

36 Retirement services: Achmea invests in the future Operational result (in million) H H Assets under Management AIM (in mrd) H Operating expenses (in million) H H Interest margin Achmea Bank (in bps) H H Retirement services Underlying operational result 2 million Investment of 15 million (total: 35 million) in implementing the Retirement Services strategy Achmea Investment Management Assets under Management increased due to higher prices on financial markets Management fees increased due to higher Assets under Management Achmea Bank Higher interest margin due to lower financing expenses Quality of mortgage portfolio remains solid with an addition to loan provisions of approximately 5bps Core Tier 1 Ratio increased to 18.0% (H1 2015: 16.8%) Syntrus Achmea Pension Management Preparations well under way for General Pension Fund with investments in a new administrative platform Administration fees decreased slightly to 44 million (H1 2015: 53 million) 36

37 International: Underlying result improved due to premium growth International activities Total increase in premiums of 4%: Gross written premiums (in million) Operational result (in million) 28 8 Strong growth in gross written premiums in Turkey (9%), higher in local currency (24%) Growing market share in Greece in a shrinking market. No. 1 position achieved in Greece s retail customer market Growth in Ireland due to further improving economy Successful online initiatives by Onlia (Slovakia) and Anytime (Greece) Adjusted for one-offs the operational result increased by 2 million H H H H Increase in operating expenses less strong than growth in premiums 37

38 Other activities Achmea Reinsurance Positive contribution of 6 million (H1 2015: 26 million) to the group result from Achmea Reinsurance despite June severe weather conditions and restructuring of reinsurance contracts Life. The restructuring also caused a decrease in gross written premiums Achmea Real Estate & Finance Assets under Management of Syntrus Achmea Real Estate & Finance increased to 16.7 billion, driven by growth in mortgage portfolio and positive revaluation of real estate Management fees stable at 33 million with lower fees on real estate due to growth in mortgage portfolio Staalbankiers Achmea sells private banking activities Staalbankiers to Van Lanschot in line with the strategy 38

39 Investment results affected by lower interest rates and lower realisations Analysis of Change investment results for own risk Achmea Group 726 (in million) -98 Investment results Investments results for own risk decreased with 98 million due to lower interest rates (direct results) and lower realisations (indirect results) Increase in dividends and rental income more than offset by decline in interest rate Positive revaluation of housing portfolio ensures stable indirect investment result Running yield (annualized) at 2.3% Realised and unrealised results in fixed income securities in Pension & Life do not form part of the profit and loss account but run through the FFA (Fund for Future Appropriation) The amount of the FFA in H is 9.5 billion (2015: 6.2 billion) Results own risk Impact portfolio change Non-Life Result own risk H (corrected) Direct results Indirect results Other results Result own risk H

40 Contents Introduction Key investment considerations Recent results Wrap-up Appendices Key highlights 40

41 Key highlights Dominant player in major insurance market Largest Dutch insurer: high market shares in all segments Well positioned with strong brands Strong brands, high customer satisfaction Well diversified portfolio. Distribution primarily through direct and bank distribution Advanced digital capabilities Robust capital and solvency position High quality of capital and low leverage Robust solvency level (1H 2016: 204%¹) Conservative investment profile Majority (74%) is invested in fixed-income Low asset risk compared to peers 41

42 Contents Introduction Key investment considerations Recent results Wrap-up Appendices 42

43 Ownership structure - Stability through two major cooperative shareholders Achmea Association¹ 65.3% Rabobank Netherlands¹ 29.2% Other¹ 5.5% Pref. shareholders 100% Ordinary shares² 94.5% Achmea subholding² 5.5% Insurance & other entities No issuance Senior unsecured Subordinated Achmea Bank N.V. Senior Unsecured Covered Bond Securitisation Secured EMTN Issuing entities ¹ Owners of Capital rights ² Owner of voting rights 43

44 The economy in our home market is doing well GDP development (% - LY same period) Unemployment (%) Dutch economy performs above EU average, Macro- economic figures show signs of further growth 1,9 2,0 1,4 1,5 2,3 1,7 1,7 Average EU per Q ,9 6,6 6,6 6,8 6,2 6,2 6,2 8,7 Dutch economy is growing. Dutch Central Statistical Office expects 1.7% growth in 2016 and ,5 Average EU per Q Q Q Q Q Q E 2017E Q Q Q Q Q E 2017E Leading indicators show improvement: Lowering unemployment Rising housing values and higher mortgage production Housing prices index (% - LY same period) Production Dutch mortgages (#, x1000) Q Q Q Q Q E 2017E E¹ Source: Dutch Central Statistical Office (CBS). Figures Mortgages: Dutch land register. Forecast: MinFin, Rabobank ¹ Based on a 4 quarter rolling average 44

45 Only Pension & Life Operational Free Capital Generation at approximately 260 million Description Free Capital Generation (in m, approximate) Key drivers Operational results Structural operational results of other legal entities (e.g. Non-Life, Health, Asset Management, Bank) 160 Competition Cost initiatives Cost overrun Pensions & Life -60 Investment margin Excess return on investments 155 Credit spreads Risk premiums Asset allocation Leverage Unwind UFR Unwind of risk margin Amortisation of UFR benefit -55 Interest rate levels Release of SII risk margin in technical provisions as value in-force runs off 85¹ Operational initiatives ALM initiatives Unwind SCR excl. equity transitional Release of SCR (excl. impact of equity transitional) as value in-force runs off 115 Operational initiatives ALM initiatives Operational FCG Achmea Group (excluding impact equity transitional) ~400 Unwind of SCR impact equity transtional Impact of equity transitional on the unwind of SCR -140 Equity portfolio changes Holding expenses Operational FCG Achmea Group (including impact equity transitional) ~260 Holding cost and financing expenses -195 Net FCG Achmea Group ~65 Cost initiatives Financing considerations ¹ Includes Time Value of Options and Guarantees (TVOG) of approximately 5 million 45

46 Care Not an insurance market Cure Insurance market Health: Introduction to Dutch healthcare system (1) Private Dutch healthcare system consists of 4 components Description Compulsory basic insurance Public constraints: compulsory, mandatory acceptance & risk equalization Voluntary supplementary insurance Option to risk selection Compulsory Long Term Care (WLZ) Social Support act (WMO) Juvenile (Munic) Public Premium 50% income dependent 45% nominal 5% taxes 100% nominal 100% income dependent 100% taxes 100% taxes Size 45.9 billion 4.0 billion 19.9 billion 4.8 billion Coverages Hospital care Pharmaceuticals Specialists Home care & nursing General practitioners Dental care Supplementary cover Alternative medicine Vitality Long-term care Care for mentally and physically disabled Mental care Social care and support Domestic help Support, focusing on participation and guidance of people at home 1.9 billion Care for persons <18 years Cure Compulsory basic insurance with premium of 45.9 billion in 2016; the Dutch health insurance is the largest private insurance market with public safeguards in Europe Deductible payments ZVW are 3.2 billion in 2016 Care Annual costs are estimated at 27 billion Home care & nursing was transferred from care to cure (approximately 3.3 billion of annual premium) as of the 1st of January The remaining part of the care market is currently still non-insurance Source: Vektis - Verzekerden in beweging 2015 and Ministerie VWS

47 Income compensation (Healthcare allowance) Health: Introduction to Dutch healthcare system (2) Multiple cash flows for basic insurance Insurance companies receive 55% of their GWP through the Risk Equalisation (RE) fund (government) Employer/ Self-employed Government Income-related premium (50%) Government contribution (5%) Risk equalisation fund 55% Consumers pay annually about (nominal) premium to their health insurer (45% of the total income of an insurer) Insurance company For children (18-) no premium has to be paid In addition, consumers pay a contribution for some treatments and they have a legally required deductible of 385 Consumer insured Healthcare provider 47

48 Risk Ex-post compensation Net result Cost Ex-ante budget Gross result Health: Introduction to Dutch healthcare system (3) How it works Fixed costs 0.17 bn 0.4% Fixed amount per insured based on historical cost Macrobudget ZVW = 42.8 billion Variable costs 35.3 bn Nursing and care 3.5 bn GGZ¹ (18+) 3.6 bn LGGZ² (18+) 0.23 bn 82.5% 8.2% 8.4% 0.5% Physiotherapy t-1 Nursing & care t-1 Geriatric rehabilitation t-1 Generic somatic morbidity Medical devices cost group Distribution based on normative risk profiles: Age Gender Source of income Pharmaceutical cost group Diagnostic cost group Real costs per insured Social economic status ZIP code Multiple-year high costs Single person household (L) GGZ t-1 The (ex-ante) budget from the RE-fund depends on the number of insured and their risk profile (expected claims level). Health status of the insured is included in the profile Adjustment for number of insured ex-ante budget RE ex-post is necessary as long as RE Reimbursement 100% Safety net (75% reimbursement outside of bandwith +/ ) Safety net (75% reimbursement outside of bandwith +/- 17.5) Safety net (100% reimbursement outside of bandwith +/- 5.0) ex-ante still has to be fine tuned. Application depending on budget 0% 100% 25% in safety net 100% outside 25% in safety net 100% outside 0% in safety net 100% outside category (that insurers can influence) ¹ GGZ = mental health care, ² LGGZ = long-term mental health care 48

49 Tiering of capital under Solvency II Instrument Tiering onder SII Comments Preference Shares 5,500% Tier 1 (grandfathering) Coupon reset in 2023 Perpetual 6,000 % Tier 1 (grandfathering) Perpetual, callable in November each year Perpetual 4,250% Tier 2 Perpetual, callable from February 2025 Sub debt 6,000% Tier 2 Maturity April 2043, callable from Fixed interest percentage until April 2023 Senior Unsecured 2,500% Debt Maturity November 2020 CHF Senior Unsecured 1,500% Debt Maturity June 2019 Credit facility 750m (undrawn) Debt Maturity

50 Contact details For further information, please contact Achmea Investor Relations Steven Vink Manager Investor Relations +31 (0) Erwin Lusse Investor Relations Officer +31 (0) Internet: 50