Periodical Financial Information 6M 2016 RESULTS

Transcription

1 Periodical Financial Information 6M 2016 RESULTS

2 Table of contents Slides used during analyst call 3 Insurance Activities 17 Investment portfolio 44 General Account 49 Equity / Solvency 53 Settlement 60 General Information 65

3 1. Insurance net result of EUR 608 mio the best first half Insurance result so far 2. Ageas s Insurance Solvency II is strong at 183% stable on FY Legal settlement, sale Hong Kong & acquisition Ageas Seguros significant strategic impact on the group 4. New share buyback program of EUR 250 mio 6th consecutive strict respect of capital management policy

4 Main messages Ageas reports the best first half Insurance result so far Insurance performance Insurance net profit of EUR 608 mio (+21%) Q2 at EUR 407 mio 100% of EUR 18.3 bn (+10%) Q2 at EUR 7.2 bn Life Guaranteed margin at 108 bps (vs.90 bps) Q2 at 110 bps Group combined ratio at 99.0%* (vs.95.4%) Q2 at EUR 100.0% Life Technical Liabilities at EUR 74.5 bn* (+1% vs. YE 2015) Group result Group net loss of EUR 67 mio Q2 profit of EUR 566 mio General Account net loss of EUR 675 mio as result of provision for Fortis settlement Q2 profit of EUR 159 mio Balance sheet Shareholders equity at EUR 10.3 bn or EUR per share UG/L at EUR 2.9 bn or EUR per share Insurance Solvency II ageas at 183%, Group ratio at 209% Total Liquid Assets General Account at EUR 2.1 bn (vs.eur 1.6 bn) Fortis settlement Pre-hearing Amsterdam Court 25 August 2016 We hope to obtain binding declaration by mid 2017 *Consolidated entities only 4

5 Disciplined cash upstream from operating companies Consistent upstream level of EUR 400 to 450 mio per annum since Vision 2015 Upstream 6M 2016 Biggest part of upstream done in Q2 Belgium main contributor of cash Upstream covering dividend & holding costs on FY basis Extra upstream linked to capital optimization of EUR 550 mio over Vision 2015 period 517 China Asia 52 CEU 36 UK 82 Asia 135 CEU Asia 43 CEU 53 UK Asia 88 CEU 19 Thailand 11 Malaysia 17 Belgium 243 UK 64 Belgium 168 Belgium 294 Belgium Asia 12 UK 23 CEU 7 Upstream during M 2016 based on net result of the year before Luxembourg 9 Italy 10 5

6 H1 marked by legal settlement, sale HK & acquisition Ageas Seguros Progress in solving legal legacies & building business portfolio Legal settlement filing done 23/05/16 Hong Kong sale completed 12/05/16 Extra support for agreement from Mr. Arnauts & Mr. Lenssens Pre-hearing scheduled 25/08/2016 P&L impact of EUR 889 mio in Q1 First tranche of EUR 247 mio in Q2 paid to Stichting EUR 290 mio paid by D&O insurers directly to Stichting Cap gain Asia Life of EUR 200 mio / General Account of EUR 204 mio Cash position General Account: +EUR 1.2 bn Portugal acquisition closed 01/04/16 Positioning Ageas #2 in inflows in Portugal Non-Life: #3 14% market share Life: #3 19% market share Consolidation of activities as from Q Inflows Life EUR 26 mio / Non-Life EUR 61 mio Net result 6M 16 break even EUR 149 mio goodwill booked 6

7 Ageas announces 6 th consecutive share buy-back Bringing amount returned through SBB to EUR 1.4 bn 24/08/11 Ageas announces EUR 250 mio SBB 06/08/12 Ageas announces EUR 200 mio SBB 02/08/13 Ageas announces EUR 200 mio SBB 06/08/14 Ageas announces EUR 250 mio SBB 05/08/15 Ageas announces EUR 250 mio SBB 05/08/16 Ageas completes 2015 EUR 250 mio SBB - 6,977,544 shares 10/08/16 Ageas announces EUR 250 mio SBB Running from 15/08/16 until 04/08/17 Independent broker Open market purchases on NYSE Euronext Brussels Shares to be held as treasury shares until decision Shareholders Meeting No impact on solvency position of Insurance activities Over 5 programmes 50,518,804 shares bought back of which 45,767,670 shares cancelled - around 19% of outstanding 7

8 Total Insurance: Headlines Best first half year net insurance result so far Net result: good operations & cap gains offset terrorism & weather (EUR 60 mio) Inflows*: strong Life growth in Asia & Belgium In EUR bn Life Technical liabilities up impact sale Hong Kong EUR 3.2 bn In EUR bn cap gain AICA Life Non-Life Life Non-Life FY 15 3M 16 6M 16 conso non-conso Non-Life combined ratio up on terrorism (1.9 pp) & weather (3.6 pp) In % NEP Operating margin Guaranteed up on cap gains on Real Estate in BE In bps avg technical liabilities Operating margin Unit-Linked down in BE In bps avg technical liabilities * incl. non-consolidated 100% 8

9 Belgium : Headlines Solid performance, despite terrorism & weather events Net result strong - higher cap gains offset terrorism & weather (EUR 47 mio) In EUR bn In EUR bn Inflows: strong increase driven by Life short term investment products Life Technical liabilities up 5% vs. FY Life Non-Life Life Non-Life FY 15 3M 16 6M 16 Non-Life combined ratio at 96.7% when excluding terrorism events In % NEP Operating margin Guaranteed up on higher capital gains on real estate In bps avg technical liabilities Operating margin Unit-Linked lower on risk & expense result In bps avg technical liabilities

10 United Kingdom: Headlines Second quarter result impacted by June floods & storms Net result impacted by weather (EUR 13 mio) & adverse FX Inflows* up 5% at constant FX mainly Motor In EUR bn Non-Life combined ratio at 98.1% when excluding June adverse weather In % of NEP * incl. non-consolidated 100% 10

11 Continental Europe: Headlines Results influenced by downward movement equity markets Net result down on equity markets & tax credit France last year Inflows* up 4% - Luxembourg & acquisition Ageas Seguros In EUR bn Life Technical liabilities increased thanks to inclusion of Ageas Seguros In EUR bn Life Non-Life Life Non-Life FY 15 3M 16 6M 16 conso non-conso Non-Life combined ratio excellent but slightly up on inclusion Ageas Seguros In % NEP Operating margin Guaranteed fairly stable In bps avg technical liabilities Operating margin Unit-Linked improved thanks to higher sales & fees In bps avg technical liabilities * incl. non-consolidated 100% 11

12 Asia: Headlines Strong result driven by China & Thailand supported by cap gain from divestment Hong Kong Net result incl. cap gain Hong Kong vs. EUR 100 mio exceptional in 6M Inflows* up 18% at constant FX - strongest growth in China & Thailand In EUR bn Life Technical liabilities up 8% in non-conso s exclusion Hong Kong In EUR bn cap gain AICA Life Non-Life Life Non-Life FY 15 3M 16 6M 16 conso non-conso Non-Life combined ratio: improvement on lower expenses In % NEP Result non-conso s: strong in China (LY exceptional), Thailand & NL Malaysia Life Non-Life * incl. non-consolidated 100% 12

13 General Account: Headlines Impacted by cap gain on sale of Hong Kong, Fortis settlement & revaluation RPN(i) liability Result Q2 driven by cap gain HK (EUR 204 mio) (35) (78) 159 RPN(i) impact on P&L from revaluation & CASHES agreement Staff & Operating expenses up on costs legal settlement (675) (24) 67 (60) (6) Staff & Intercompany Operating Accounting value put option on AG Insurance (1,064) (1,107) (1,041) Accounting value of remaining legacies (402) (328) (291) (133) (1,021) (1,019) Total liquid assets up on sale HK EUR 0.8 bn ring-fenced for settlement FY 15 3M 16 6M 16 FY 15 3M 16 6M 16 RPN(i) RPI Settlement FY 15 3M 16 6M 16 net cash liquid assets 13

14 Shareholders equity at EUR 10.3 bn - UG/L of EUR 14.12/share Down on legal settlement, dividend, SBB & Forex evolution Shareholders equity per share EUR EUR ,376 1,330 2,952 Insurance UCG/L (675) (13) (329) (142) (40) (379) (51) (19) Insurance UCG/L 10, ,987 7,095 6,395 FY 15 Result Insurance Result Gen Acc Change UG/L Dividend Treasury Shares Reval AG put option Forex IAS 19 Other 6M 16 Shareholders equity per segment FY 15 6M 16 FY 15 6M 16 Belgium 4,932 4,757 Asia 3,009 2,142 UK 1,129 1,079 Reinsurance 104 Continental Europe 977 1,301 Insurance 10,047 9,382 General Account 1,

15 Insurance Solvency II ageas stable on FY 2015 Impact spread movement & lower equity exposure more than compensate decreasing i-rates In EUR bn Expected dividend deducted Group ratio: impact settlement absorbed by proceeds Hong Kong Own Funds SCR (1.5) (1.6) 0.0 (0.3) (0.4) FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 Solvency II ageas in % Belgium UK CEU Asia Reins. Diversification Insurance GA Group Non-transferable Non EU Non-controlled participations 242% 246% 130% 134% 131% 114% 179% % 182% 183% 212% 209% 253% 261% 15

16 Kindly invited to the 2016 Ageas Investor Dinner Monday 26 September London - Andaz

17 Table of contents Slides used during analyst call 3 Insurance Activities 17 Investment portfolio 44 General Account 49 Equity / Solvency 53 Settlement 60 General Information 65

18 Key financials Gross inflows 16,618 18,342 10% 6,625 7,231 9% Net result Insurance % % By segment: - Belgium % % - UK (13%) (58%) - Continental Europe (36%) (22%) - Asia % % - Reinsurance By type: - Life % % - Non-Life (15%) (36%) Net result General Account (35) (675) (78) 159 (303%) Net result Ageas 469 (67) % Earnings per share (in EUR) 2.16 (0.32) Life Operating Margin Guaranteed (in bps) Life Operating Margin Unit-Linked (in bps) Combined ratio (in %) FY 15 6M 16 Shareholders' equity 11,376 10,337 (9%) Net equity per share (in EUR) Insurance ROE excl.ug/l 11.0% 18.0% Insurance Solvency II ageas ratio 182% 183% * * 6M 16 results extrapolated over FY 16 18

19 Total Insurance: Headlines Best first half year net insurance result so far Net result: good operations & cap gains offset terrorism & weather (EUR 60 mio) Inflows*: strong Life growth in Asia & Belgium In EUR bn Life Technical liabilities up impact sale Hong Kong EUR 3.2 bn In EUR bn cap gain AICA Life Non-Life Life Non-Life FY 15 3M 16 6M 16 conso non-conso Non-Life combined ratio up on terrorism (1.9 pp) & weather (3.6 pp) In % NEP Operating margin Guaranteed up on cap gains on Real Estate in BE In bps avg technical liabilities Operating margin Unit-Linked down in BE In bps avg technical liabilities * incl. non-consolidated 100% 19

20 100% Growth driven by Life Belgium, China & Thailand Life Non-Life Total EUR mio Belgium 75% 1,844 2,274 23% 1,017 1,015 (0%) 2,862 3,289 15% United Kingdom - 1,203 1,184 (2%) 1,203 1,184 (2%) Consolidated entities 100% (0%) (0%) Non-consolidated JV's (6%) (6%) Continental Europe 2,154 2,207 2% % 2,721 2,839 4% Consolidated entities 1, (13%) % 1,330 1,264 (5%) Portugal 51% - 100% (14%) % (4%) France 100% (11%) (11%) Italy 50% % % Non-consolidated JV's 1,081 1,277 18% (4%) 1,391 1,575 13% Turkey (Aksigorta) 36% (4%) (4%) Luxembourg (Cardif Lux Vie) 33% 1,081 1,277 18% 1,081 1,277 18% Asia 9,328 10,542 13% (3%) 9,832 11,030 12% Consolidated entities 100% (32%) (32%) Non-consolidated JV's 9,058 10,358 14% (3%) 9,563 10,846 13% Malaysia 31% (4%) (8%) (6%) Thailand 31%-15% 1,254 1,309 4% % 1,401 1,468 5% China 25% 7,404 8,669 17% 7,404 8,669 17% Philippines 50% Vietnam 32% India 26% (8%) (8%) Insurance Ageas 13,326 15,023 13% #DIV/0! 3,292 3,319 ###### 1% 16,618 18,342 ###### 10% Consolidated entities 3,186 3,388 6% 2,205 2,277 3% 5,392 5,665 5% Non-consolidated JV's 10,140 11,635 15% 1,086 1,042 (4%) 11,226 12,678 13% Reinsurance

21 Ageas s part Strong growth in Asian JV s & Guaranteed Life in Belgium Up constant FX BE: sales Savings products up CEU: Ageas Seguros contributing EUR 26 mio in Life / EUR 61 mio in Non-Life 7% 7,849 7,331 2,269 2,277 Non-Life Life 15% 2,146 2, (1%) 1,383 1,706 1,067 1,057 1,051 1,015 8% 2,751 2, ,053 5,580 (2%) 132 1,365 1, ,619 2, Belgium UK CEU Asia Insurance Reins. 21

22 Insurance net result Strong operational performance & capital gains offset by terrorism & adverse weather 608 BE: EUR 47 mio higher realised net cap gains, mainly real estate EUR 47 mio impact from terrorism & weather UK: EUR 13 mio impact adverse weather CEU: downward equity movement & tax credit in 6M 16 Asia: EUR 200 mio cap gains HK vs. EUR 100 mio exceptional investment result in Non-Life Life Belgium UK CEU Asia Reins. Insurance 22

23 Overview of net realised capital gains* on investments Lower impact of net capital gains on the investment portfolio EUR mio Life Cap gain on real estate Non-Life transactions both in Q1 & Q2 Total Belgium Non-Life Total UK Life 5 (6) 2 (5) Non-Life Downward equity movements Total CEU 5 (6) 3 (5) Life (6) EUR 100 mio exceptional Non-Life investment result in 2015 Total Asia (6) Life Non-Life Total Ageas * Net capital gains include capital gains, impairment & related changes in profit sharing, net of tax ageas s part CEU JV s not included 23 10/03/2010 I page 23

24 Insurance Combined ratio Strong combined ratio when excluding terrorism impact & adverse weather In % Net earned premium Combined ratio Benefiting from higher PY reserve releases Brussels terrorism events impacting for 1.9 pp - mainly in Other lines and Accident & Health Weather events in Belgium & UK increasing COR with 3.6 pp Motor : significant improvement in UK Claims ratio CY claims ratio at 73.0% (vs. 67.0%) (3.7) (3.5) (3.1) (3.8) (4.0) (5.9) (6.8) (5.5) (8.4) (7.0) claims ratio expense ratio PY claims ratio PY claims ratio significantly higher than usual - coming from positive evolution in UK & mainly BE - following higher prudency in claims reserving Net earned premium () 2,858 3,507 4,178 3,749 3,843 4,038 1,982 2, ,058 Expense ratio Lower UK commissions 24

25 Insurance Combined ratio per product line Strong improvement in Motor Accident & Health: 4.3 pp terrorism (Worker s Comp.) Motor: significant improvement in UK NEP NEP 1,134 1,571 2,058 1,557 1,616 1, Household: 7.4 pp impact weather events in BE & UK Other: deteriorating accross all segments 7.3 pp terrorism NEP , ,029 1, NEP

26 Insurance Life operating margin per product line Margins in Guaranteed above target range driven by timing differences realised cap gains In bps Avg techn. liabilities Guaranteed: driven by investment margin Unit-linked: decrease driven by Belgium Operating margin Expense & other m (23) (33) (31) (39) (25) (34) (25) (38) (2) Investment m. Underwriting m Avg techn liabilities (In EUR bn) Avg techn liabilities (In EUR bn) Investment margin : timing difference in realisation cap gains on Real Estate in Belgium Sum of underwriting and expense & other margin stable Underwriting margin significantly down in Belgium Expense & other margin improving thank to higher inflows & fees in Portugal 26

27 Belgium : Headlines Solid performance, despite terrorism & weather events Net result strong - higher cap gains offset terrorism & weather (EUR 47 mio) In EUR bn In EUR bn Inflows: strong increase driven by Life short term investment products Life Technical liabilities up 5% vs. FY Life Non-Life Life Non-Life FY 15 3M 16 6M 16 Non-Life combined ratio at 96.7% when excluding terrorism events In % NEP Operating margin Guaranteed up on higher capital gains on real estate In bps avg technical liabilities Operating margin Unit-Linked lower on risk & expense result In bps avg technical liabilities

28 Belgium: 100% Guaranteed Individual Life: Strong growth driven by Life investment products Life 1, , % 2, ,052 Unit-Linked Guaranteed Guaranteed Strong growth (+27%) attributable to short term investment products thanks to attractive guarantee comparison with alternative savings products available in the market & despite the lowered guaranteed rate as from 1 April 2016 (0.75%) Group Life Inflows 3% below last year Non-Life stable 1,017 1, Other Household Motor Accident & Health Unit-linked Slight decrease in Individual Unit-linked (-4%) due to volatile financial markets Technical liabilities Up 5% vs. FY 15 to EUR 59.2 bn mainly as a consequence of lower interest rates Up 1.2% when excluding shadow accounting Household, Motor, Other stable Accident & Health Pruning actions in Workers Compensation drive inflows slightly lower 28

29 Belgium: Combined ratio Strong impact of the Brussels terrorism & adverse weather events In % Net earned premium Combined ratio Strongly impacted by terrorism events of 22 March 2016 (4.2 pp) adverse weather events (6.2 pp) partly offset by strong prior year result in all product lines Claims ratio (6.6) (7.3) (4.5) (3.6) (3.4) (7.2) (7.0) (10.1) (9.2) (12.7) claims ratio expense ratio PY claims ratio CY ratio (75.4%% vs. 66.9%) - excluding terrorism & weather events, improvement on LY PY ratio: Strong positive PY in all product lines Expense ratio stable Net earned premium (in EUR mio) 1,541 1,601 1,698 1,785 1,815 1,

30 Belgium: Combined ratio per product line Strong impact of the terrorism and adverse weather events Accident & Health: 7.5 pp terrorism (Workers Comp.) Motor: remained in line with last year NEP NEP Household: impact terrorism (1.5 pp) & weather (17.7 pp) Other: strongly impacted by terrorism events (16.3 pp) NEP NEP

31 Belgium Life operating margin per product line In bps Avg techn. liabilities Guaranteed: exceptional operating margin thanks to realised capital gains Unit-linked: lower underwriting result Operating margin Investment m. Expense & other m. Underwriting m (29) (31) (38) 31 (27) (30) (35) 20 (28) 34 (37) 4 4 (2) 1 8 (7) 10 (15) Avg techn liabilities (In EUR bn) Avg techn liabilities (In EUR bn) Operating result at EUR 253 mio, up from EUR 195 mio Investment margin up on higher allocated capital gains in real estate Sum of underwriting and expense & other margin stable Operating result down from EUR 13 mio to EUR 7 mio due to a significantly lower risk result, driven by higher level of mortality reserving Expense & Other margin lower on expense margin 31

32 Margin evolution Assets & Liabilities Belgium Yield & guaranteed rate on back book down at the same pace Life Back book FY 13 FY 14 FY 15 6M 16 Guaranteed interest rate 2.80% 2.71% 2.63% 2.54% Fixed income yield 3.97% 3.84% 3.71% 3.64%* New money Life & Non-Life FY 14 FY 15 6M 16 Fixed income yield 2.89% 2.11% 1.87% Reinvested amount (EUR bn) Newly invested money mostly corporate bonds, government related loans & infrastructure loans All investment grade quality Guaranteed yield lowered to 0.75% as from 1 April 2016 Guaranteed yield further lowered to 0.5% as from 1 August 2016 * Total fixed income yield figure are as at end of May

33 United Kingdom: Headlines Second quarter result impacted by June floods & storms Net result impacted by weather (EUR 13 mio) & adverse FX Inflows* up 5% at constant FX mainly Motor In EUR bn Non-Life combined ratio at 98.1% when excluding June adverse weather In % of NEP * incl. non-consolidated 100% 33

34 United Kingdom: 100% Inflows down 2%, impacted by adverse FX Non-Life -2% 1,203 1, Other Household Non-Life Up 5% at constant FX, driven by volume growth in Motor Motor up 3% volumes up as a result of actions taken ahead of the market, although signs of slowing down are starting to show in Q2 Household down 3% - up 3% at constant FX, with growth driven by new deals Motor Other lines down 1% - but up 5% at constant FX - growth driven by additional volumes due to new commercial insurance deals Accident & Health * incl. non-consolidated 100% 34

35 United Kingdom: Combined ratio Combined ratio impacted by June adverse weather In % Net earned premium Combined ratio Adverse weather in June impacted COR by 2.0% Motor combined ratio well below 100% Combined ratio Tesco Underwriting 98.5% (vs %) - favourable PY releases & improving expense ratio Claims ratio CY ratio (73.2% vs. 68.0%) reflecting the June storms & floods (1.1) 0.1 (2.1) (4.0) (4.6) (4.4) (3.6) (5.0) (3.7) (5.8) PY ratio: higher releases - Motor more than compensating for lower releases in Other lines claims ratio expense ratio PY claims ratio Net earned premium () 948 1,524 2,083 1,562 1,613 1, Expense ratio Expense ratio lower driven by favourable commissions. Restatement for deconsolidation of Tesco Underwriting since M 15 figures restated for consolidation Non-Life & Other 35

36 United Kingdom: Combined ratio per product line Loss ratio deteriorated in all product lines except Motor Accident & Health lower volumes & lower PY releases Motor: Strong PY & improving expense ratio NEP NEP , , Household: impact of adverse weather (8.9 pp) Other: adverse special risks & PY lower expenses NEP NEP Restatement for deconsolidation of Tesco Underwriting since M 15 figures restated for consolidation Non-Life & Other 36

37 Continental Europe: Headlines Results influenced by downward movement equity markets Net result down on equity markets & tax credit France last year Inflows* up 4% - Luxembourg & acquisition Ageas Seguros In EUR bn Life Technical liabilities increased thanks to inclusion of Ageas Seguros In EUR bn Life Non-Life Life Non-Life FY 15 3M 16 6M 16 conso non-conso Non-Life combined ratio excellent but slightly up on inclusion Ageas Seguros In % NEP Operating margin Guaranteed fairly stable In bps avg technical liabilities Operating margin Unit-Linked improved thanks to higher sales & fees In bps avg technical liabilities * incl. non-consolidated 100% 37

38 Continental Europe: 100% Higher sales in Non-Life & stable in Life Life Non-Life +2% 2,154 2, ,062 1,172 1, % Unit-Linked Guaranteed Other Household Motor Accident & Health Life Inflows including non-controlling 100%, up 2% with strong sales in Luxembourg & inclusion of Ageas Seguros Consolidated down 13% Portugal: down 14% reflecting voluntary lower sales in guaranteed business in a continued low interest rate environment, partially offset by a boost in Unit-Linked (+63%) & Ageas Seguros (EUR 26 mio) France: down 11% as last year s level of single premium was exceptionally high Luxembourg: up 18% benefiting from High-Net-Worth customers Technical liabilities Consolidated at EUR 15.4 bn mainly related to inclusion of Ageas Seguros Non-consolidated 100%: at EUR 19.2bn Non-Life Inflows consolidated entities up 30% driven by an excellent performance in Portugal strongly outperforming the market (+4.6%) & inclusion of Ageas Seguros (EUR 61 mio) Turkey down 4% - up constant FX - Sales focused on profitable growth & short term products * incl. non-consolidated 100% 38

39 Continental Europe: Combined ratio Excellent combined ratio well below group target In % Net earned premium Combined ratio Combined ratio improving both in Italy & existing business in Portugal Slightly deteriorating due to inclusion Ageas Seguros because of different business mix already showing encouraging improvement since the start of the year Combined ratio Turkey at 98.8% (vs %) Results improved in nearly all product lines Claims ratio 1.9 (2.0) (2.5) (4.0) (4.3) (6.5) (5.3) (4.7) (5.8) (4.5) CY ratio at 61.1% (vs 58.4%) increase related to commercial lines of Ageas Seguros claims ratio expense ratio PY claims ratio Net earned premium () PY ratio slightly down Expense ratio Expense ratio increase in Italy & inclusion of Ageas Seguros * Scope: only consolidated companies 39

40 Continental Europe: Combined ratio per product line Continued good claims experience in all product lines Accident & Health: increase related to Workers Comp Motor: driven by positive run-off in Italy NEP NEP Household: very strong ratio despite a large fire claim & bad weather in Portugal (Q1) Other: very good claims & expense ratio NEP NEP

41 Continental Europe Life operating margin per product line Stable in both Guaranteed & Unit-Linked In bps Avg techn. liabilities Guaranteed: lower investment margin partly offset by improved expense margin Unit-linked: improved expense margin Operating margin Expense & other m. Underwriting m. Investment m (85) (83) (71) (75) (65) (62) (81) (102) (5) (1) Avg techn liabilities (In EUR bn) Avg techn liabilities (In EUR bn) Investment margin down on investment income in Portugal Underwriting margin stable Expenses & other margin improving due to higher technical liabilities Expense & other margin improving thanks to higher inflows & fees in Portugal 41

42 Asia: Headlines Strong result driven by China & Thailand supported by cap gain from divestment Hong Kong Net result incl. cap gain Hong Kong vs. EUR 100 mio exceptional in 6M Inflows* up 18% at constant FX - strongest growth in China & Thailand In EUR bn Life Technical liabilities up 8% in non-conso s exclusion Hong Kong In EUR bn cap gain AICA Life Non-Life Life Non-Life FY 15 3M 16 6M 16 conso non-conso Non-Life combined ratio: improvement on lower expenses In % NEP Result non-conso s: strong in China (LY exceptional), Thailand & NL Malaysia Life Non-Life * incl. non-consolidated 100% 42

43 Asia: 100% Strong growth in new business & renewals especially in China & Thailand Life 9, ,150 Non-Life +13% 10, ,443-3% Unit-Linked Guaranteed Life New business premiums up 14% with EUR 3.0 bn single premium (-3%) & EUR 2.7 bn regular premium (+42%) Renewal premiums increased to EUR 4.8 bn (+11%) benefiting from prior year strong sales & continued good persistency China +17% - new business premium up 21% with successful sales campaigns & increased number of agents ( ) Malaysia -4%- up 8% at constant FX with strong sales in Banca regular premium Thailand +4% - good persistency resulted in higher renewal India -8% - only 2% down at constant FX- good performance in Banca regular premium Hong Kong inflow until May 12 th (closing of sale) amounted to EUR 183 mio Other Accident & Health Household Motor Technical 100%: EUR 45.7 bn, up 8% vs FY 15 Non-Life Malaysia - 8% - up 4% at constant FX mainly in Household & Personal Accident Thailand +7% - up 16% at constant FX mainly driven by Motor & Personal Accident 43

44 Table of contents Slides used during analyst call 3 Insurance Activities 17 Investment portfolio 44 General Account 49 Equity / Solvency 53 Settlement 60 General Information 65

45 Investment portfolio Investment portfolio up on unrealized gains on fixed income & investment in loans In EUR bn Asset mix Cash 2.4 Real Estate 5.4 Equities 3.9 Structured Loans Loans 8.1 Cash 2.3 Real Estate 5.5 Equities 3.6 Structured 0.1 Changed scope with divestment Hong Kong (-EUR 2.4 bn) & acquisition Ageas Seguros (+EUR 1.4 bn) Combined negative impact of scope change more than compensated by increased market value bonds because of lower interest rates Gross unrealized gains/losses on Available for Sale Corporate bonds 25.9 Corporate bonds 24.8 Total portfolio: up to EUR 9.8 bn (vs.eur 7.6 bn); up in fixed income Fixed income: at EUR 9.5 bn (vs. EUR 7.1 bn FY 15) Sovereigns at EUR 7.3 bn (vs. EUR 5.5 bn) Corporates at EUR 2.2 bn (vs. EUR 1.6 bn) Equities: down to EUR 0.3 bn (vs. EUR 0.5 bn) Sovereign bonds 36.4 Sovereign bonds 39.0 Gross UG/L on Real Estate: stable at EUR 1.5 bn - not reflected in shareholders equity FY 15 6M 16 EUR 2.9 bn unrealized gains/losses on Held to Maturity (vs. EUR 2 bn) - not reflected in shareholders equity * All assets at fair value except the Held to Maturity assets & loans which are valued at amortized costs 45

46 Sovereign & Corporate bond portfolio Value fixed income portfolio impacted by evolution unrealized gains In EUR bn Sovereign bond portfolio* 36.4 Others 3.7 Germany 1.3 Austria 2.8 Southern Europe 4.5 France Others Austria 3.1 Germany 5.6 Southern Europe France 6.6 Corporate bond portfolio* 25.9 Government related Government related 5.5 Belgium 18.2 Belgium 19.2 Other financials 1.7 Non Financials 13.6 Non Financials 13.3 Banking 4.6 Banking 4.2 Other financials 1.8 FY 15 6M 16 Increase driven by lower i-rates Gross UG/L at EUR 7.3 bn (vs. EUR 5.5 bn) 94% investment grade; 86% rated A or higher Duration gap close to zero matched portfolio FY 15 6M 16 Gross UG/L at EUR 2.2 bn (vs. EUR 1.6 bn) Decrease mainly due to divestment of Hong Kong with investments predominantly in corporate bonds Credit quality remains very good with 93% investment grade; 60% rated A or higher * All assets at fair value except the Held to Maturity assets & loans which are valued at amortized costs 46

47 Loan & Equity portfolio More loans with guarantee In EUR bn Loan portfolio (customers + banks)* Equity portfolio* Other 4.2 Other 4.6 Mortgages 1.4 Mortgages 1.3 Infrastructure Infrastructure 0.3 RE 0.4 Loans to Loans to RE banks 1.1 banks 1.3 FY 15 6M 16 Increase in other: long term lending to social housing agencies in Belgium, benefiting from explicit guarantee by the region New investments in loans to banks & infrastructure loans 3.9 Equities Mixed funds & others 0.6 Mixed funds RE funds 0.8 & others 0.6 Equity funds RE funds Equity funds 0.2 Equities 2.0 FY 15 6M 16 Gross UG/L down to EUR 0.3 bn (vs. EUR 0.5 bn) Decrease in equity portfolio driven by sales & lower equity markets * All assets at fair value except the Held to Maturity assets & loans which are valued at amortized costs 47

48 Real estate portfolio In EUR bn Investment Warehouses RE Development Investment Warehouses RE Development Investment Retail 1.5 Car Parks 1.1 Investment Offices 2.1 Investment Retail 1.5 Car Parks 1.1 Investment Offices 1.9 Gross UG/L stable at EUR 1.5 bn (not reflected in shareholders equity but contributing to available capital for solvency calculation*) Real Estate exposure mainly in Belgium FY 15 6M 16 * All assets at fair value except the Held to Maturity assets & loans which are valued at amortized costs 48 10/03/2010

49 Table of contents Slides commented during analyst call 3 Insurance Activities 17 Investment portfolio 44 General Account 49 Equity / Solvency 53 Settlement 60 General Information 65

50 General Account: Headlines Impacted by cap gain on sale of Hong Kong, Fortis settlement & revaluation RPN(i) liability Result Q2 driven by cap gain HK (EUR 204 mio) (35) (78) 159 RPN(i) impact on P&L from revaluation & CASHES agreement Staff & Operating expenses up on costs legal settlement (675) (24) 67 (60) (6) Staff & Intercompany Operating Accounting value put option on AG Insurance (1,064) (1,107) (1,041) Accounting value of remaining legacies (402) (328) (291) (133) (1,021) (1,019) Total liquid assets up on sale HK EUR 0.8 bn ring-fenced for settlement FY 15 3M 16 6M 16 FY 15 3M 16 6M 16 RPN(i) RPI Settlement FY 15 3M 16 6M 16 net cash liquid assets 50

51 Total liquid assets General Account Net cash position down on SBB & investments in Portugal & Asia 35 1, (339) (141) (247) (71) (284) (34) (63) 5 1,604 Ring-fenced for legal settlement 2,100 FY 15 sale HK Upstream Dividend Share buy-back Legal settlement Around EUR 300 mio of liquid assets included Proceeds of sale Hong Kong activities received on 12/05/16 Upstream from operating companies compensate for dividend & holding costs Share buy-back completed dd. 05/08/16 Asia Portugal CASHES Regional & HQ expenses Cash-out in Asia related to various investments in developing business Other 6M 16 First cash out related to legal settlement of EUR 247 mio EUR 0.8 bn ring-fenced 51

52 Main characteristics Hybrids Leverage optimized at holding level & at AG Insurance Amount outstanding Ageasfinlux Fresh Ageas Ageas Hybrid Financing Hybrone Fixed-to- Floating Rate Callable Fixed Rate Reset Perpetual Subordinated Loans Fixed Rate Reset Dated Subordinated Notes CASHES % 3m EUR bps 5.125% 5.25% 6.75% 3.5% 3m EUR +200 bps 1, USD 400 1,110 Called 20/06/16 AG Insurance (Belgium) Fortis Bank (now BNP PF) ISIN XS XS BE BE BE BE Call date Undated, strike mandatory Jun 16 Step up to 3M Euribor +200 bps Jun 24 Step up to 3M Euribor +413 bps Mar 19 Step up to 6yr USD swap bps June 2027 Step up after 12 years of 100bps Undated, strike 239.4, mandatory Other Market Price (30/06/16) On lent to AG Insurance Subscribed by Ageas & BNP Paribas Fortis Public issue Public issue Coupon served by FBB, trigger ACSM linked to Ageas dividend

53 Table of contents Slides commented during analyst call 3 Insurance Activities 17 Investment portfolio 44 General Account 49 Equity / Solvency 53 Settlement 60 General Information 65

54 Shareholders equity at EUR 10.3 bn - UG/L of EUR 14.12/share Down on legal settlement, dividend, SBB & Forex evolution Shareholders equity per share EUR EUR ,376 1,330 2,952 Insurance UCG/L (675) (13) (329) (142) (40) (379) (51) (19) Insurance UCG/L 10, ,987 7,095 6,395 FY 15 Result Insurance Result Gen Acc Change UG/L Dividend Treasury Shares Reval AG put option Forex IAS 19 Other 6M 16 Shareholders equity per segment FY 15 6M 16 FY 15 6M 16 Belgium 4,932 4,757 Asia 3,009 2,142 UK 1,129 1,079 Reinsurance 104 Continental Europe 977 1,301 Insurance 10,047 9,382 General Account 1,

55 Insurance Solvency II ageas stable on FY 2015 Own funds & SCR down on sale of Hong Kong In EUR bn Impact spread movement & lower equity exposure more than compensate decreasing i-rates Group ratio: impact settlement absorbed by proceeds Hong Kong Expected dividend deducted Own Funds SCR (1.5) (1.6) 0.0 (0.3) (0.4) FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 Solvency II ageas in % Belgium UK CEU Asia Reins. Diversification Insurance GA Group Non-transferable Non EU Non-controlled participations 242% 246% 130% 134% 131% 114% 179% % 182% 183% 212% 209% 253% 261% 55

56 Ageas Insurance Solvency sensitivities Adequately capitalized even after severe stress tests As per 31/12/ 15 SCR OF Solvency Based on Solvency II ageas Base case Before stress excl. Hong Kong Yield curve Down 1% (floor 0%, UFR 4.2%) UFR Down to 3.7% Equity Down 30% Property Down 20% Spread Corporate & government bonds spread up 50 bps 4,132 7, % 4,539 7, % 4,148 7, % 3,938 6, % 3,946 7, % 4,256 6, % 56

57 Insurance SCR ageas per risk type Exclusion of Hong Kong driving lower SCR In EUR bn Market risk: higher spread & interest risk compensated by lower equity & currency risk Market risk main factor in SCR down on sale Hong Kong ( 1.6 ) ( 1.6 ) ( 0.6 ) ( 0.4 ) ( 1.1 ) ( 1.3 ) FY 15 6M 16 Non Diversifiable Non-life UW Health UW Life UW Counterparty Default Market Diversification Loss-Absorption Deferred Taxes Loss-Absorption Techn. Liab. Loss-Absorption Diversification Deferred Taxes 57

58 Solvency PIM as reported to the regulator Insurance & Group ratio stable on FY 2015 In EUR bn Own Funds SCR (1.5) (1.5) (0.3) (0.4) FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 FY 15 6M 16 Solvency II ageas in % Belgium UK CEU Asia Reins. Diversification Insurance GA Group Non-transferable Non EU Non-controlled participations 234% 235% 124% 127% 148% 136% 158% % 178% 181% 206% 206% 253% 261% 58

59 Tiering of Group PIM own funds High quality of own funds In EUR bn Tier 1 restricted: Hybrone repaid Tier 1: Equity down on legal settlement Tier 3 Tier 2 Tier 1 restricted Tier 1 FY 15 6M 16 59

60 Table of contents Slides used during analyst call 3 Insurance Activities 17 Investment portfolio 44 General Account 49 Equity / Solvency 53 Settlement 60 General Information 65

61 Progress in solving legal legacies Settlement between Ageas & claimants organisations Announcement 14/03/2016 Ageas pays EUR 1,204 mio compensation - Cash impact of EUR 1,021 mio P&L impact of EUR 889 mio in 3M 2016 No recognition of any wrongdoing by Ageas Commitment by eligible shareholders to abandon any ongoing civil proceeding & not to start any legal proceeding related to the events Based on WCAM Intervention of Amsterdam Court declaring settlement binding First distribution of compensation not before 18 months after announcement Current status Filing done 23/05/2016 Additional support received since announcement Pre-hearing scheduled on 25/08/2016 First cash-out of EUR 247 mio in Q We hope to obtain binding declaration by mid 2017 More details on compensation per share & calculation aid available on 61

62 Progress in solving legal legacies WCAM indicative timeline Filing done 23/05/16 - at least 18 months after announcement until first payments Announcement at least 18 months Distribution Opt-out period 2 months 2 4 months 6 9 months 3 6 months 3 12 months 2.Filing 23/05/ Settlement 14/03/ Pre-hearing 25/08/ Notification & Announcement 5.Hearing 6.Notification & Announcement of Court s binding decision 7. Decision on termination right 8. Distribution of compensation Claim forms can be submitted to claims administrator as from notification of binding declaration, & up to one year as from that moment 62

63 Progress in solving legal legacies Periods involved Eligible period Open of business Close of business (cob) 4 21/09/07 07/11/07 13/05/08 25/06/08 29/09/08 03/10/ /02/07 14/10/ Reference periods based on 3 reference periods The various litigation procedures Main allegations Judgments rendered so far 21 September November 2007 cob Communication on subprime exposure, organisation of capital increase for ABN AMRO acquisition - period linked to AFM II fine 13 May June 2008 cob Communication on solvency after full integration of ABN AMRO period linked to AFM I fine 29 September October 2008 cob Communication on the deal with the Benelux governments period linked to FortisEffect case 63

64 Details of settlement Indicative compensation per unit based on estimated participation in settlement In eurocent Period 1 Period 2 Period 3 Active claimants Buyers Holders Retail add-on: 50 eurocent/unit - max EUR 550 calculated on highest # units held over the 3 periods Claim form add-on: 50 eurocent/unit max EUR 400 Non-active claimants Buyers Holders Claim form add-on: 50 eurocent/unit max EUR 200 EUR 1.2 bn is capped Final compensation/unit determined after submission period Participating units > estimated compensation/unit lower Participating units < estimated compensation/unit higher Calculation module based on indicative amounts available on 64

65 Table of contents Slides used during analyst call 3 Insurance Activities 17 Investment portfolio 44 General Account 49 Equity / Solvency 53 Settlement 60 General Information 65

66 Total number of outstanding shares AGM April 2016 has approved cancellation of another 7.2 mio shares situation 31/12/2015 situation 30/06/2016 situation 05/08/2016 Total Issued Shares Shares not entitled to dividend nore voting rights 223,778, ,570, ,570,471 16,086,350 11,960,509 12,724, TREASURY SHARES Share buy-back FRESH Other treasury shares 2. CASHES 2015 SBB 7,207,962 SBB 3,987,592 completed 4,751,194 3,968,254 3,968,254 3,968, ,230 45,804 45,804 CASHES deal 4,643,904 with BNP 3,958,859 3,958,859 Shares entitled to dividend & voting rights 207,692, ,609, ,846,360 66

67 Shareholders structure Following cancellation of bought back shares, Ageas holds less than 5% Based on number of shares as at 8 August 2016 Franklin Mutual Advisers Schroders Identified retail investors 19% BlackRock, Inc. Ping An Ageas 4.05% Other investors 19% Identified institutional investors 39% Ageas Ping An BlackRock, Inc. Schroders Franklin Mutual Advisers Identified retail investors Identified institutional investors Based upon press release 8 August 2016 Based upon the number of shares mentioned in the notification received 6 May 2013 Based upon the number of shares mentioned in the notification received 17 March 2014 Based upon the number of shares mentioned in the notification received 14 December 2015 Based upon the number of shares mentioned in the notification received 14 July 2015 Estimate by Estimate by 67

68 Financial calendar August 16 November 15 February 10 May 9 August 8 November 6M 2016 results 9M 2016 results FY 2016 results 3M 2017 results 6M 2017 results 9M 2017 results 7 April Annual report September Investor Dinner 31 May Payment 2016 dividend 17 May Ordinary & Extraordinary shareholders meeting Brussels 29 May Ex-dividend date 68

69 Rating Improved rating for operating entities & holding S&P MOODY'S FITCH Operating AG Insurance (Belgium) A / stable A2 / stable* A+ / stable entities Last change 06/11/15 17/03/16 10/12/13 unsollicited Ageas Insurance Limited A / stable A+ / stable Last change 06/11/15 30/03/15 Muang Thai Life BBB+ / stable A- / stable Etiqa Insurance Berhad (Malaysia) Last change 29/12/10 16/06/15 A / stable Last change 25/09/11 Holding ageas SA/NV BBB / stable Baa3 / negative* A- / stable Last change 15/03/16 17/03/16 15/03/16 unsollicited * Ageas has requested in early 2009 that this rating should be withdrawn. Ageas no longer participates in Moody's credit rating process. Ageas does not provide, for purposes of Moody's rating, access to the books, records and other relevant internal documents of these rated entities. 69

70 Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Future actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in Ageas s core markets, (ii) performance of financial markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates, (viii) increasing levels of competition, (ix) changes in laws and regulations, including monetary convergence and the Economic and Monetary Union, (x) changes in the policies of central banks and/or foreign governments and (xi) general competitive factors, in each case on a global, regional and/or national basis. In addition, the financial information contained in this presentation, including the pro forma information contained herein, is unaudited and is provided for illustrative purposes only. It does not purport to be indicative of what the actual results of operations or financial condition of Ageas and its subsidiaries would have been had these events occurred or transactions been consummated on or as of the dates indicated, nor does it purport to be indicative of the results of operations or financial condition that may be achieved in the future. Investor Relations Tel: Website: ir@ageas.com 70