Ageas reports Full Year 2016 result

Transcription

1 PRESS RELEASE Regulated information Brussels, 15 February :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 II ageas 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 Operating Performance Balance Sheet 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%) 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 Shareholders equity at EUR 9.7 billion or EUR 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 th 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 Full Year 2016 results 1

2 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, , % 6, ,023.0 ( 1 %) 6, of which inflows from non-consolidated partnerships 21, , % 4, , % 3,965.0 Gross inflows Ageas's part 14, , % 3, ,346.9 ( 4 %) 2,958.8 Net result Insurance attributable to shareholders % ( 87 %) By segment: - Belgium % ( 32 %) UK ( 56.0 ) 29.5 * ( ) ( 35.0 ) * Continental Europe % * Asia % ( 67 %) Reinsurance 2.6 * ( 0.7 ) * 1.1 By type: - Life % ( 45 %) Non-Life ( 36 %) ( 63.2 ) ( 5.0 ) * 77.3 Net result General Account attributable to shareholders ( ) 15.1 * ( 8.4 ) 29.2 * ( 10.7 ) Net result Ageas attributable to shareholders ( 83 %) ( 95 %) Life Technical Liabilities (in EUR bn) % % 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) ( 3 %) ( 3 %) Earnings per share (in EUR) ( 83 %) Shareholders' equity 9,656 11,376 ( 15 %) 9,656 11,376 ( 15 %) 10,451 Net equity per share (in EUR) ( 12 %) ( 12 %) Net equity per share (in EUR) excluding unrealised gains & losses ( 11 %) ( 11 %) Return on Equity - Insurance (excluding unrealised gains & losses) 12.0% 11.0% PRESS RELEASE 15 February 2017 Full Year 2016 results INVESTOR RELATIONS Frank Vandenborre +32 (0) frank.vandenborre@ageas.com Koen Devos +32 (0) koen.a.devos@ageas.com Veerle Verbessem +32 (0) veerle.verbessem@ageas.com Analyst & Investor conference call: 15 February :30 CET (08:30 UK Time) Audiocast: Listen only (access number #) (UK) (Belgium) (USA) Audio playback number: / # Available until 15 March 2017 PRESS Michaël Vandenbergen +32 (0) michael.vandenbergen@ageas.com Content Executive summary... 3 Details per product... 5 Details by business segment... 7 Belgium... 7 United Kingdom... 9 Continental Europe Asia Reinsurance (Intreas) General Account Solvency position and investment portfolio Lexicon on financial disclosure Annexes Annex 1 : Consolidated Statement of financial position as at 31 December Annex 2 : Income Statement Annex 3 : Inflows per region at 100% and at Ageas s part Annex 4 : Solvency by region Annex 5 : Statement of financial position split into Life, Non-Life and Other Insurance Annex 6 : Margins Life (%) Annex 7 : Margins Non-Life (%) Disclaimer PRESS RELEASE Full Year 2016 results 2

3 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 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. 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 per share at the end of 2015 to EUR 9.7 billion or EUR per share at the end of 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 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 PRESS RELEASE Full Year 2016 results 3

4 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 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) % 12.0 % 11.0 % Life Operating Margin - Guaranteed bps 93 bps 90 bps Life Operating Margin - Unit Linked bps 25 bps 36 bps Combined Ratio < 97 % 98.7 % 96.9 % Solvency II Insurance 175 % 182 % 182 % Dividend Range % 52 %* 45 % * 45% pay-out ratio on insurance net result excluding UK exceptionals PRESS RELEASE Full Year 2016 results 4

5 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 in EUR million FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16 Gross Inflows Life (incl non-consolidated partnerships at 100%) 25, , % 5, ,558.7 (1%) 4,842.3 Gross Inflows Life (consolidated entities) 6, ,369.2 (2%) 1, ,764.0 (12%) 1,328.9 Operating result (1%) (32%) Non-allocated other income and expenses ( 1.6 ) * ( 4.4 ) ( 23.9 ) (82%) 30.7 Result before taxation consolidated entities % (24%) Result non-consolidated partnerships (23%) (57%) 49.7 Result before taxation % (33%) Income tax expenses ( ) ( ) 17% ( 32.3 ) ( 30.9 ) 5% ( 39.1 ) Non-controlling interests ( ) ( ) 15% ( 30.1 ) ( 34.8 ) (14%) ( 35.3 ) Net result attributable to shareholders % (45%) 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, , , , , ,369.2 Net underwriting Result Investment Result Operating result Life Technical Liabilities 62, , , , , ,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 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 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. PRESS RELEASE Full Year 2016 results 5

6 Non-Life: Strong Combined ratio excluding exceptional charges related to non-recurring events in the UK and Belgium INCOME STATEMENT in EUR million FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16 Gross Inflows Non-Life (incl non-consolidated partnerships at 100%) 6, ,298.6 (0%) 1, ,464.2 (0%) 1,507.1 Gross Inflows Non-Life (consolidated entities) 4, , % 1, , % 1,055.5 Net Earned Premiums 4, , % 1, , % 1,033.8 Operating result (23%) ( 9.3 ) 23.0 * Non-allocated other income and expenses ( 8.3 ) 20.5 * ( 23.1 ) 8.2 * 5.5 Result before taxation consolidated entities (31%) ( 32.4 ) 31.2 * Result non-consolidated partnerships * ( 2.9 ) ( 8.0 ) (64%) 16.6 Result before taxation (23%) ( 35.3 ) 23.2 * 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 (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) , , , , , ,297.5 Net Earned Premiums , , , , , ,037.5 Net Underwriting result ( 43.2 ) ( 20.0 ) ( 18.4 ) 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 Other Result ( 6.4 ) 0.2 ( 7.0 ) 0.1 ( 0.8 ) ( 0.1 ) ( 0.3 ) 0.2 ( 14.5 ) 0.4 Operating Result Reserves Ratio (in %) 292% 262% 186% 188% 82% 80% 295% 290% 192% 185% Non-Life Technical Liabilities 2, , , , , , , ,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 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 %). 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 Intreas reinsured EUR 41 million of premiums from the operating companies and contributed EUR 3 million to the net result. PRESS RELEASE Full Year 2016 results 6

7 DETAILS BY BUSINESS SEGMENT BELGIUM Net profit EUR 391 million Gross inflows EUR 6.1 billion Combined ratio 96.0% vs. EUR 384 million (+2%). Increased net profit despite adverse impact from Brussels terrorism events and higher weather related costs. vs. EUR 5.7 billion (+7%). Strong growth largely attributable to Life Investment products. 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 in EUR million FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16 Gross Inflows Life 4, , % 1, ,104.7 (5%) Operating result % (42%) 81.3 Non-allocated other income and expenses % % 40.6 Result before taxation % (40%) Income tax expenses ( ) ( ) 0% ( 21.3 ) ( 31.1 ) (32%) ( 31.1 ) Non-controlling interests ( ) ( ) 6% ( 23.8 ) ( 36.6 ) (35%) ( 27.5 ) Net result attributable to shareholders % (44%) 63.3 xxx.xx 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) 3, , , ,798.6 Net underwriting Result ( 24.6 ) ( 8.8 ) ( 6.0 ) 10.0 Investment Result Operating result Life Technical Liabilities 52, , , , , ,336.1 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 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. PRESS RELEASE Full Year 2016 results 7

8 Non-Life: Strong overall performance despite the adverse impact of terrorism and weather events INCOME STATEMENT in EUR million FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16 Gross Inflows Non-Life 1, , % % Net Earned Premium 1, , % % Operating result (8%) % 70.7 Non-allocated other income and expenses % (39%) 7.9 Result before taxation (5%) % 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 (1%) % 39.8 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) , ,880.5 Net Earned Premiums , ,832.4 Net Underwriting result ( 5.5 ) ( 20.0 ) Combined Ratio 97.6% 98.0% 96.1% 92.6% 92.6% 89.1% 102.9% 110.8% 96.0% 94.7% of which Prior Year claims ratio (8.2%) (7.2%) Investment Result Other Result Operating Result ( 0.6 ) Reserves Ratio (in %) 387% 371% 181% 173% 70% 69% 320% 318% 212% 206% Non-Life Technical Liabilities 1, , , , ,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. PRESS RELEASE Full Year 2016 results 8

9 UNITED KINGDOM Net loss of EUR 56 million Gross inflows EUR 2.2 billion Combined ratio 106.0% 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. 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. vs %. Improved expense ratio partly offset by higher claims ratio impacted by exceptional items. Net result impacted by exceptional items INCOME STATEMENT in EUR million FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16 Gross Inflows Non-Life (incl non-consolidated partnerships at 100%) 2, ,456.7 (10%) (19%) Gross Inflows Non-Life (consolidated entities) 1, ,904.8 (10%) (17%) Net Earned Premium 1, ,751.1 (9%) (15%) 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 * ( ) ( 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 * ( ) ( 42.1 ) * 22.7 Income tax expenses 10.8 ( 5.8 ) * * ( 4.0 ) Non-controlling interests Net result attributable to shareholders ( 56.0 ) 29.5 * ( ) ( 35.0 ) * 18.7 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) , , , ,904.8 Net Earned Premiums , , , ,751.1 Net Underwriting result ( 68.7 ) ( 31.5 ) ( 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% of which Prior Year claims ratio (0.3%) (4.4%) Investment Result Other Result Operating Result ( 22.6 ) ( 23.9 ) 2.7 ( 30.8 ) 27.5 Reserves Ratio (in %) 47% 47% 181% 191% 87% 91% 232% 232% 163% 166% Non-Life Technical Liabilities , , , ,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 market 1 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 PRESS RELEASE Full Year 2016 results 9

10 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 %), 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 %), 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. PRESS RELEASE Full Year 2016 results 10

11 CONTINENTAL EUROPE Net profit EUR 90 million Gross inflows EUR 5.4 billion Combined ratio 88.7% vs. EUR 70 million (+28%); excellent fourth quarter and strong full year performance in Life and Non-Life. vs. EUR 5.2 billion (+5%) related to inclusion of Ageas Seguros and increasing importance of Non-Life. vs. 85.4% reflecting a continued excellent operating performance. Life: Solid operating performance INCOME STATEMENT in EUR million FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16 Gross Inflows Life (incl non-consolidated partnerships at 100%) 4, , % ,013.2 (2%) Gross Inflows Life (consolidated entities) 1, ,013.4 (5%) (0%) Operating result % * 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 * 29.1 ( 6.1 ) * 28.5 Result non-consolidated partnerships (37%) (38%) 3.9 Result before taxation * * 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 % * 16.6 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) , , ,013.4 Net underwriting Result Investment Result Operating result Life Technical Liabilities 9, , , , , ,611.7 * 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 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. PRESS RELEASE Full Year 2016 results 11

12 Non-Life: Excellent sales and net result INCOME STATEMENT in EUR million FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16 Gross Inflows Non-Life (incl non-consolidated partnerships at 100%) 1, , % % Gross Inflows Non-Life (consolidated entities) % % Net Earned Premium % % Operating result % % 15.9 Non-allocated other income and expenses 5.4 ( 3.3 ) * * ( 1.9 ) Result before taxation consolidated entities % % 14.0 Result non-consolidated partnerships 7.6 ( 2.2 ) * 1.6 ( 6.7 ) * 2.0 Result before taxation % * 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 % * 7.5 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) Net Earned Premiums Net Underwriting result ( 3.5 ) Combined Ratio 90.0% 84.0% 98.0% 103.8% 80.3% 72.0% 53.4% 72.5% 88.7% 85.4% of which Prior Year claims ratio (6.5%) (6.5%) Investment Result Other Result ( 6.4 ) 0.2 ( 7.0 ) 0.0 ( 0.8 ) ( 0.0 ) ( 0.3 ) 0.2 ( 14.5 ) 0.4 Operating Result Reserves Ratio (in %) 194% 114% 220% 252% 123% 108% 457% 484% 209% 170% Non-Life Technical Liabilities , ** 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. PRESS RELEASE Full Year 2016 results 12

13 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 Life: vs. EUR 16.5 billion (+9%); Continued growth in new business and renewal premiums especially in China and Thailand. Strong profit supported by new business growth and sale of Hong Kong Life activities INCOME STATEMENT in EUR million FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16 Gross Inflows Life (incl non-consolidated partnerships at 100%) 17, , % 3, , % 3,063.9 Gross Inflows Life (consolidated entities) (67%) * Operating result (71%) 10.4 * Non-allocated other income and expenses ( 31.3 ) * ( 8.8 ) ( 11.7 ) (25%) ( 7.3 ) Result before taxation consolidated entities * ( 8.8 ) ( 1.3 ) * ( 7.3 ) Result non-consolidated partnerships (22%) (60%) 45.8 Result before taxation % (78%) 38.5 Income tax expenses ( 1.3 ) ( 4.4 ) (70%) ( 1.3 ) * Non-controlling interests Net result attributable to shareholders % (77%) 38.5 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) Net underwriting Result Investment Result ( 6.0 ) ( 6.2 ) ( 4.8 ) ( 4.6 ) Operating result Life Technical Liabilities 2, ,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 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. PRESS RELEASE Full Year 2016 results 13

14 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 in EUR million FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16 Gross Inflows Non-Life (incl non-consolidated partnerships at 100%) (2%) (3%) 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 * % 10.2 Result before taxation * % 10.2 Income tax expenses Non-controlling interests Net result attributable to shareholders * % 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. PRESS RELEASE Full Year 2016 results 14

15 REINSURANCE (INTREAS) Net profit Gross inflows EUR 3 million. EUR 41 million mainly from European consolidated Non-Life entities. Combined ratio Combined ratio at 86.1%. INCOME STATEMENT in EUR million FY 2016 FY 2015 Change Q4 16 Q4 15 Change Q3 16 Gross Inflows Non-Life (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 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) Net Earned Premiums Net Underwriting result ( 0.1 ) ( 1.0 ) 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 ) Reserves Ratio (in %) 158% 108% 257% 212% Non-Life Technical Liabilities 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 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. 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. Net earned premiums amounted to EUR 14 million, taking into account ceded reinsurance premiums of EUR 27 million. PRESS RELEASE Full Year 2016 results 15