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Investor Day 2011 - Asian Key Financials
 

Investor Day 2011 - Asian Key Financials

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Filip Coremans, CFO Asia, on the key financials

Filip Coremans, CFO Asia, on the key financials

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    Investor Day 2011 - Asian Key Financials Investor Day 2011 - Asian Key Financials Presentation Transcript

    • INVESTOR DA Y 29 September 2011 Asian Key Financials Filip Coremans CFO Asia
    • Ageas Net Investments in Asia to date EUR 1.1 bn with a duration of 5.5 years In EUR mio EUR 1,059 mio total Net Investments 28 * (10)* 5.5 years average duration (677) 09 9* (9) (666) 10 08 07 Ageas Insurance Company Asia (Hong Kong)& India Malaysia National Insurance holdings Mayban Ageas Holdings (Malaysia) (85) Muang Thai (Thailand) Taiping Life (China) (14) 06 (85) 05 (93) (60) (33) 04 (13) 0 Taiping Life (China) Mayban (Malaysia) Malaysia China 03 02 (100) (104) 01 Hong Kong India (204) Thailand * Dividends paid by Malaysia & Thailand in 08-10 / Capital gain realised in Thailand in 09 Asian Key Financials - Filip Coremans I 29/09/11 1
    • Ageas Net Investments in Asia to date (2) Limited remaining organic capital commitments EUR 1,059 mio total Net Investments China  EUR 188 mio invested  Duration: 8 years  Most likely self-supporting in the next 3 years but capital restructuring required 5.5 years average duration India  EUR 20 mio  Duration: 2.5 years  Greenfield; funding requirements function of growth Thailand  EUR 19 mio  Duration: 6.5 years  Dividend-paying Asian Key Financials - Filip Coremans I 29/09/11 Hong Kong  EUR 666 mio  Duration: 3.5 years  Self-supporting going forward Malaysia  EUR 166 mio  Duration: 8 years  Self-supporting  Entering dividend-paying mode 2
    • Our Asian Franchise Today Steadily growing Inflow, Profit Level & Value indicators Inflows Net profit In EUR bn At 100% In EUR mio Ageas’ stake 6.1 3.3 91 4.1 1.1 94 09 10 1.9 1.3 9 08 09 10 08 09 10 08 Net book value Embedded value In EUR mio In EUR mio 1,138 1,204 08 09 Asian Key Financials - Filip Coremans I 29/09/11 1,440 10 1,466 969 09 10 3
    • Strong build up of Life gross inflows across all countries Consistent focus on high quality business Inflow evolution Inflow by nature In EUR mio 5,578 3,689 In EUR mio 3,228 131 335 714 2,142 67 297 456 2,954 29 282 358 3,681 1,316 2,371 1,850 435 498 08 09 10 China Thailand Hong Kong 1,119 826 717 Malaysia 2,109 2009 2010 NB Recurring Premiums India Renewals 2010 Single Premiums Consistent focus on:  Quality and sustainability of New Business margins 38% 42% NB Recurring Premiums Renewals  Building regular premium books 20% Asian Key Financials - Filip Coremans I 29/09/11 4
    • Strong build up of Life gross inflows across all countries Consistent focus on high quality business 13-m persistency levels (2009-2010) 91% Sum Assured over FUM (2010) 93% 82% 1339% 81% 75% 71% 65% 71% 71% 62% 781% 677% 515% 369% Malaysia China Thailand Hong Kong India Malaysia Life China Thailand - Hong Kong Life India  Consistent focus on:  Retaining the relationship  Being an insurer (Protection & Riders) Asian Key Financials - Filip Coremans I 29/09/11 5
    • Balanced growth in Non-Life premium Alignment of interest and discipline in underwriting and retention Gross Inflow evolution Net earned by product Gross inflowpremium by product In EUR mio 2010 515 Other Other 26% 24% 111 381 337 68 MAT 0% 89 405 269 09 Fire MAT 20% 25% Fire 16% 293 08 Motor Motor 54% 35% Malaysia 10 Thailand  Balanced mix of lines and channels Inflow by distribution channel 2010 Agency 29% Brokers 37%  Competence based underwriting  “Control” based retention  Alignment of interest with the channel Asian Key Financials - Filip Coremans I 29/09/11 Banca 23% Other 11% 6
    • High quality net profit levels, steadily increasing Focus on Value Drivers and Value Sources across all countries Net profit by country 94 91 In EUR mio 13 12 50  Sustainable book building with a strong 18  Deliberate Underwriting & Retention Protection component 21 9 (4) (3) 08 09 Malaysia Thailand India 1,267  Operating excellence China Hong Kong Regional costs and income Ageas’ share In EUR mio 311 (10) 10 Funds Under Management 964 Appetite based Strategic Asset Allocation (4) (8) strategies in Non-Life  Balanced investment approach: Risk 25 (16) 3,303  15 57 6 11 11 3,959 6 5,620 1,419 26 Investment Mix (end 10) 63 2% 6% 10% 587 1,130 385 2,434 82% 1,589 756 828 1,117 08 09 10 Asian Key Financials - Filip Coremans I 29/09/11 Fixed income Real Estate Equity Cash & cash equivalents 7
    • Rock Solid Operating Performance Reliable, Efficient and Sustainable Life: productivity improvements 40% Non-Life: Combined ratio 42% 96.7% 95.5% 12.5% 11.5% 24.6% 21.9% 59.6% 62.2% 2009 36% 2010 OPEX 26% Sum Assured PVNBP FuM Claims Growth 2010 Expenses Commission   Building a cost advantage (“Strategic Fuel” for our partnerships)  Excellent combined ratios Asian Key Financials - Filip Coremans I 29/09/11 8
    • Proof of concept: Emerging Accounting Returns Tip of the iceberg? Net book value per country In EUR mio Net book value 1,440 1,204 1,138 5 In EUR mio 8 95 11 780 69 63 683 764 154 90 199 220 08 Malaysia China 1,135 08 1,346 09 254 09 146 77 145 1,075 244 10 Thailand Hong Kong India Return on Equity 2010 Life 10 Non-Life Net profit In EUR mio 19.9% 91 12 94 9 11.6% 7.3% 7.3% 78 7.8% 9 6 Malaysia China Thailand Hong Kong Asian Key Financials - Filip Coremans I 29/09/11 Total 08 85 3 09 10 9
    • Proof of concept: Value Creation Past, Present and Prospects Embedded value (based on Ageas’s stake) In EUR mio 1,466 969 17 649 •  175 104 422 203 09 10 China Thailand Hong Kong EUR 67mio • VANB EUR 85 mio Variances EUR 345 mio  Good underlying Return on EV  Attractive VANB margins 307 133 Unwind • 16 408 Malaysia  Figures based on “local” EV & GAAP  Strong growth 2010: India VANB (based on Ageas’s stake) VANB margin In EUR mio 85 2009 2010 23 13 46 6 6 20.9% 15.5% 44 31 5 Malaysia 09 China (1) Thailand 7 10 Hong Kong (1) India Asian Key Financials - Filip Coremans I 29/09/11 2.8% 3.8% % of PVNBP % of APE 10
    • Strong solvency across the region Ready for future challenges and opportunities Based on FY 2010 data 1004% 920% 492% 224% Malaysia 271% China 245% Thailand - Thailand Life Non-Life Hong Kong India   Ready to weather a storm, for a change in regulatory capital regimes and to take advantage of market opportunities if/when they arise Asian Key Financials - Filip Coremans I 29/09/11 11
    • Conclusion 10 Years of Value Creation EUR 1,059 mio total Net Investments 5.5 years average duration LIFE Net Book Value: EUR 1,346 mio Net profit after Tax: EUR 85 mio Embedded Value : EUR 1,466 mio VANB: EUR 85 mio NON-LIFE Net Book Value: EUR 95 mio Net profit after Tax: EUR 9 mio Asian Key Financials - Filip Coremans I 29/09/11 12
    • Conclusion We Love the Future   A constant and keen eye for sustainable value creation in alignment with our partners  Limited capital commitments and adequate solvency levels  Asian Key Financials - Filip Coremans I 29/09/11 A strong growth pillar for Ageas with deliberate focus on quality business Strong partnerships and ventures with relevant (and growing) market positions 13
    • Disclaimer 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. Asian Key Financials - Filip Coremans I 29/09/11 14