2. Solid Insurance
performance
– Non-Life affected by
floods & storms
Group net result
driven by Insurance
– General Account
impacted by legacies
Shareholders’
equity up on UG/L
New
share buy-back
Insurance net profit of EUR 340 mio (+3%) – Q2 EUR 195 mio
Inflow @ 100% of EUR 13.8 bn (+10%) – Q2 EUR 6.0 bn
Group combined ratio at 102.0% (vs.96.8%)
Life Technical Liabilities at EUR 72.0 bn* (+4%)
Group net profit of EUR 31 mio (-93%) – Q2 EUR 1 mio
General Account net result of EUR (309) mio
Incl. EUR (157) mio RPN(i) & EUR (130) mio FortisEffect provision
Shareholders’ equity at EUR 9.2 bn or EUR 41.11 per share
Insurance solvency at 208%, Group solvency at 203%
Net cash position General Account at EUR 1.6 bn
Starting as of 11/08/14 for EUR 250 mio
Main messages
Ageas posts solid 6M 14 Insurance results
Periodic financial Information I 6M 14 Results I 6 August 2014 1
* Consolidated entities only
3. Up to EUR 250 mio of its outstanding shares
Buy-back launched as of 11 August 2014
For a period ending at 31 July 2015
Independent broker mandated to execute
Through open market purchases on NYSE Euronext Brussels
Shares to be held as treasury shares
Cancellation of these shares subject to approval @ General meeting of Shareholders
No impact on solvency position of Insurance activities
Ageas announces new share buy-back
4rth consecutive share buy-back confirming capital management strategy
June 12
Cancellation bought-
back shares (7.3% of
outstanding)
6 August 12
Ageas announces
EUR 200 mio
share buy-back
24 August 11
Ageas announces
EUR 250 mio
share buy-back
April 13
Cancellation bought-
back shares (3.8% of
outstanding)
2 August 13
Ageas announces
EUR 200 mio
share buy-back
Periodic financial Information I 6M 14 Results I 6 August 2014 2
April 14
Cancellation bought-
back shares (1.1% of
outstanding)
6 August 14
Ageas announces
EUR 250 mio
share buy-back*
September 13
Cancellation bought-
back shares (0.2% of
outstanding)
Since 2012
31,341,889 shares cancelled
- around 12% of outstanding -
1 August 14
Ageas completes 2013
EUR 200 mio share buy-back
- 6,513,207 shares
* Ageas has informed NBB this SBB can be considered as non-strategic according to article 36/3 §2 of the law 22/02/98 determining statute of NBB
4. Periodic financial Information I 6M 14 Results I 6 August 2014 3
Towards desired company profile
Ageas takes full control of the Portuguese Non-Life activities (PR 26 May ‘14)
Ageas acquires remaining 49% Médis & Occidental Seguros for
EUR 122.5 mio subject to price adjustment after 4 years
linked to sales volume & quality targets
Upstream of EUR 290 mio dividend (Life & Non-Life, @ 100%) –
net cash accretive for Ageas
Exclusive distribution agreement with BCP renewed up to 2029 ;
Médis & Occidental Seguros free to enter in other agreements
No goodwill creation
Possibility to explore other distribution opportunities: strengthen
foothold & enhance distribution reach
6M 14 combined ratio at 90.7%
6M 14 net result of EUR 9 mio (@100%)
Balance Life/Non-Life 0.9 pp in favour of Non-Life
Positive impact on ROE: equity down EUR 72 mio, net profit up
Transaction
details
Portuguese Non-
Life activities
Impact on Vision
2015 targets
(Based on 6M 14 figures)
Rationale
5. Periodic financial Information I 6M 14 Results I 6 August 2014 4
Towards desired company profile
Ageas & BNPP Cardif take full ownership of Italian Non-Life activities (PR 6 August ‘14)
Ageas & BNPPC both acquire 25% of UBI Assicurazioni (now each
25%*) for EUR 75 mio, (each EUR 37.5 mio) subject to closing adjustment
Long-term distribution agreement with UBI Banca
UBIA free to enter into other distribution agreements – potential of BNP
bank network through BNL & Findomestic
Subject to regulatory approval - Expected to close in 2014
Further expand Non-Life bancassurance business
Possibility to explore other distribution opportunities : strengthen foothold
In Italy, one of more profitable Non-Life markets in Europe
6M 14 combined ratio at 92.1%
6M 14 net result of EUR 11 mio (@100%)
Balance Life/Non-Life 0.5 pp in favour of Non-Life
Positive impact on ROE: net profit up
Transaction
details
Italian Non-Life
activities
Impact on Vision
2015 targets
(Based on 6M 14 figures)
Rationale
* After the transaction Ageas will detain 50% + 1 share & will continue to consolidate
6. Periodic financial Information I 6M 14 Results I 6 August 2014 5
Towards desired company profile
Ageas sells Ageas Protect (UK Life activities) to AIG (PR 6 August ‘14)
Transaction price of around EUR 228 mio (GBP 181 mio)
Net proceeds after costs & repayment internal loan of around
EUR 33 mio (GBP 26 mio) will be up streamed to General Account
Subject to regulatory approval - Expected to close in 2014
UK Protect activities better chance to further develop in Life driven
environment of AIG
Focus on developing the more material Non-Life business &
distribution activities in UK
Launched in 2008, Covering over 305.000 lives, 4.8% share in
Protection market
Continuous efforts in developing business & widening product
portfolio reflected in 6M 14 increase in inflow & results
Balance Life/Non-Life 0.5 pp in favour of Non-Life
Positive impact on ROE: activity with low ROE
Rationale
Impact on Vision
2015 targets
(Based on 6M 14 figures)
Transaction
details
Details on
UK Protect
7. 6
Amsterdam Court of Appeal renders judgment FortisEffect case
Ageas announces appeal & accounting of provision
Accounting
consequence
Main elements of
ruling 29/07/14
Sale of Dutch entities remains unaffected
Dutch State: confirmation of original ruling: no liability retained
Ageas:
Miscommunication in period 29/09/08 – 01/10/08
Liability retained for indemnifying damages suffered –
existence of damages & amount to be decided upon in
further proceedings
Ageas will file appeal before the Supreme Court
Ageas sets up provision of EUR 130 mio
Provision of EUR 130 mio in 6M 14, based on
Methods & assumptions commonly used in the market
Benchmarking with other cases
Assumptions on # shares eligible, % participation
shareholders, relative share performance
Ageas’s position
Periodic financial Information I 6M 14 Results I 6 August 2014
8. 9
6
6M 13 6M 14
Other Life Non-Life
74
37
5 2
Q2 13 Q2 14
3.1
3.1
6M 13 6M 14
Life Non-Life
4.3 4.5
1.4 1.5
5.7 6.0
Q2 13 Q2 14
6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14
Net result: Strong Life more than
offsets lower Non-Life
In EUR mio In EUR bn
Non-Life combined ratio: estimated
impact storms & floods of 4.6%
Inflow*: strong growth in Asia & CEU
In EUR bn
Total Insurance: Headlines
Solid 6M results despite floods & storms in Belgium & UK
Periodic financial Information I 6M 14 Results I 6 August 2014 7
Life Technical liabilities up both in
conso & non conso
Operating margin Guaranteed: strong
margin in Belgium
Operating margin Unit-Linked: lower
fee income in Portugal
In % avg technical liabilities In % avg technical liabilities
201 285
93 157
119
49
329 340
172 195
9.4 10.7
12.5
13.8
109.6
117.5
96.8% 102.0% 94.7% 101.4% 0.89% 0.99% 0.93% 1.02%
0.43%
0.20%
0.38%
0.20%
* incl. non-consolidated partnerships @ 100%
In % NEP
69.2 70.5 72.0
40.9
43.4 45.5
FY 13 3M 14 6M 14
Conso Non-conso
113.9
9. 6M 13 6M 146M 13 6M 14
Periodic financial Information I 6M 14 Results I 6 August 2014 8
Net result: Strong in Life; Non-Life
negatively impacted by hailstorm
In EUR mio
In EUR bn
Operating margin Guaranteed: solid
investment margin
Non-Life combined ratio @
100.2% excluding hailstorm
Inflow: Non-Life increased but offset
by Life
Life Technical liabilities: Fidea’s
group Life & shadow accounting
In EUR bn
Belgium : Headlines
Strong operating results in Life offset by hailstorm effect in Non-Life
**
Operating margin Unit-Linked
In % avg technical liabilities
In % avg technical liabilities
6
6M 13 6M 14
Life Non-Life
57
23
(6)
Q2 13 Q2 14
2.1 2.1
1.0 1.0
3.1 3.1
6M 13 6M 14
Life Non-Life
1.1 1.0
0.4 0.4
1.5 1.4
Q2 13 Q2 14
Q2 13 Q2 14
In % NEP
Q2 13 Q2 146M 13 6M 14Q2 13 Q2 14
97.5% 105.7% 95.4% 109.9%
0.29%
0.38%
0.27%
0.41%
1.06%0.91%0.98%0.84%
121
186
38
160
193
80
111
105
53.2 54.0 55.5
FY 13 3M 14 6M 14
10. 6M 13 6M 14
When excluding weather, better Non-
Life & Life results offset by Retail
In EUR mio
United Kingdom: Headlines
Strong recovery of operating results in Q2
Non-Life combined ratio Q1 weather
impact, excellent Q2
9 6
(1) 1
50
25
58
32
6M 13 6M 14
Life Other Non-Life
Q2 13 Q2 14
96.3% 100.7%
94.0% 95.5%
50
5
Inflow* up 5%, flat excluding FX
In EUR bn
In % NEP In EUR mio
Other Income: incl. positive contribution
from legal settlement (EUR 6 mio)
0.1 0.1
1.1 1.1
1.2 1.2
6M 13 6M 14
Life Non-Life
0.0 0.0
0.6 0.6
0.6 0.6
Q2 13 Q2 14
6M 13 6M 14
59 59
Q2 13 Q2 14
122 129
* incl. non-consolidated partnerships @ 100%
5
1
(1) 1
31 35
35 38
Q2 13 Q2 14
9Periodic financial Information I 6M 14 Results I 6 August 2014
11. Net profit Q2 13 included EUR 9 mio
one-off in Turkey
In EUR mio In EUR bn
Excellent Non-Life combined ratio
improvement in Motor & Household
227% 210% 207%
Inflow* boosted by strong sales in
Luxembourg Life In EUR bn
Continental Europe: Headlines
Results on track with expectations
**
Operating margin Guaranteed:
lower U/W & investment margin
Periodic financial Information I 6M 14 Results I 6 August 2014 10
Life Technical liabilities up 2%
In % avg technical liabilities
Operating margin Unit-Linked:
lower fee income in Portugal
In % avg technical liabilities
25 28
20
10
46
37
6M 13 6M 14
Life Non-Life
13
9
16
4
28
13
Q2 13 Q2 14
1.8
2.3
0.6
0.62.4
2.8
6M 13 6M 14
Life Non-Life
0.9
1.4
0.3
0.3
1.2
1.6
Q2 13 Q2 14
6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14
95.5% 91.4%
94.4% 88.1%
0.94% 0.82% 0.98% 0.58%
0.53%
0.17%
0.53%
0.10%
In % NEP
* incl. non-consolidated partnerships @ 100%
13.9 14.3 14.2
15.0 15.2 15.9
28.9 29.5 30.1
FY 13 3M 14 6M 14
Conso Non-conso
12. 24
32
4
528
36
Q2 13 Q2 146M 13 6M 14 Q2 13 Q2 14
Inflow: successful sales campaigns &
channel development in China & Thailand
10
8
6M 13 6M 14
Life Non-Life
10
8
6M 13 6M 14
Life Non-Life
Net result: strong growth due to good
operational performance
In EUR mio In EUR bn
Non-Life combined ratio reflects good
underwriting performance
Life Technical liabilities up across
all entities
In EUR bn
Asia: Headlines
New business & profit growth Life / Strong Non-Life underwriting result
Periodic financial Information I 6M 14 Results I 6 August 2014 11
**
In % avg technical liabilities In EUR mio
Result non-conso partnerships: up 30%
on good Life operational performance
5.4
6.3
0.4
0.45.9
6.7
6M 13 6M 14
Life Non-Life
2.3 2.1
0.2
0.2
2.5
2.3
Q2 13 Q2 14
Q2 13 Q2 146M 13 6M 14
94.2%
89.1%
95.9%
89.1%
1.54% 1.53%
0.97%
1.60%
56 70
66
78
49 64
59
72
In % NEP
* incl. non-consolidated partnerships @ 100%
Life operating margin Hong Kong:
improved due to capital gains
24
35
4
529
40
Q2 13 Q2 14
2.0 2.0 2.1
25.9 28.2 29.6
27.9
30.3 31.7
FY 13 3M 14 6M 14
Conso Non-conso
13. (6)
6M 13 6M 14
Q2 13 Q2 14
7
Q2 13 Q2 14
Net result driven by RPN(i) & legal
provision of EUR 130 mio
In EUR mio
Accounting value of remaining
legacies
General Account: Headlines
Impacted by revaluation RPN(i) liability & legal provision
Periodic financial Information I 6M 14 Results I 6 August 2014 12
Accounting value put option
In EUR mioIn EUR mio
6M 13 6M 14
1.9 1.8 1.6
FY 13 3M 14 6M 14
143
(309) (195)
RPN(i) impact on P&L Staff & Operating expenses
Net cash position
8 9
12 12
20 21
6M 13 6M 14
Staff Operating
In EUR mio
In EUR mio In EUR bn
(370)
(474) (527)
37 37 29
(130)
FY 13 3M 14 6M 14
RPN(i) RPI FortisEffect
3 4
7
6
9
11
Q2 13 Q2 14
(157)
(16)
(53)
1,255 1,274 1,282
FY 13 3M 14 6M 14
14. Periodic financial Information I 6M 14 Results I 6 August 2014 13
Shareholders’ equity roll forward
Up on UG/L, net profit & put option
In EUR mio
Shareholders’
equity per
segment
Shareholders’
equity per share
FY 13 6M 14 FY 13 6M 14
Belgium 3,676 ► 4,254 Asia 1,592 ► 1,929
UK 1,121 ► 1,191 Insurance 7,613 ► 8,595
Continental Europe 1,224 ► 1,221 General Account 912 ► 581
6,206 6,333 6,379
1,939 1,280
2,217
1,655
912
581
340
945
166 69
(309)
(308) (106) (55) (72) (19)
EUR 37.65 EUR 41.11
9,799
8,525
9,175
FY 12 FY 13 Result
Insurance
Result
Gen Acc
Change
UG/L
Dividend Treasury
Shares
IAS 19 Reval
put option
Forex Portugal
Non-Life
Other 6M 14
Insurance
UG/L
Insurance
UG/L
15. Periodic financial Information I 6M 14 Results I 6 August 2014 14
Insurance Solvency up on net result & UG/L
Group Solvency down on net result General Account & returns to shareholders
2.5 2.5
0.4 0.4 0.6 0.6 0.6 0.6
4.0 4.2 4.0 4.2
2.0 2.2
0.5 0.5
1.0 0.8 0.7 0.9
4.3
4.5
0.3 (0.2)
4.6 4.3
4.5
4.7
0.9
1.0 1.6
1.4 1.3
1.6
8.3 8.6 8.6 8.4
FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14
Belgium
UK
CEU
Asia
Total Ageas
General Account
RMC Excess Capital
RMC Excess Capital
RMC Excess Capital
RMC Excess Capital
RMC Excess Capital
Available Capital
In EUR bn
183% 188% 225% 226% 271% 238% 221% 244% 207% 208% 214% 203%Solvency ratio
16. Conclusions
Periodic financial Information I 6M 14 Results I 6 August 2014 15
Takeaways
Healthy growing inflow
Net profit Insurance impacted by one-offs
in both directions
Progress in a number of strategic files
- focus on more material business
- more power to develop
4th share buy back
17. 16
Investor Dinner – Monday 29 September 2014
An opportunity to meet with Ageas’s Management Committee
Periodic financial Information I 6M 14 Results I 6 August 2014
Dear investor, dear analyst,
You are kindly invited to a dinner hosted by Ageas in the Andaz Hotel in London on Monday 29 September.
The event will be introduced by our CEO Mr Bart De Smet and will offer you the opportunity to meet with
all members of Ageas’s Management Committee including Mr Filip Coremans, our new CRO.
We look forward to welcoming you in London!
Drinks will be served as from 7:00pm (UK Time) and dinner is expected to finish around 10pm.
For practical reasons, please confirm your attendance by the 8th of September at the latest via https://www.surveymonkey.com/s/JTLRJPC
19. Periodic financial Information I 6M 14 Results I 6 August 2014 18
Key financials
Strong Life performance
In EUR mio 6M 13 6M 14 Q2 13 Q2 14
Gross inflows 12,497 13,789 10% 5,744 5,992 4%
- of which inflows from non-consolidated partnerships 7,232 8,470 17% 3,107 3,463 11%
Net result Insurance 329 340 3% 172 195 14%
By segment: - Belgium 160 193 21% 80 105 31%
- UK 58 32 (45%) 35 38 7%
- Continental Europe 46 37 (19%) 28 13 (55%)
- Asia 66 78 19% 29 40 39%
By type: - Life 201 285 42% 93 157 68%
- Non-Life 119 49 (59%) 74 37 (49%)
- Other 9 6 (33%) 5 1 (73%)
Net result General Account 143 (309) - 7 (195) -
Net result Ageas 472 31 (93%) 179 1 (100%)
Earnings per share (in EUR) 2.05 0.14 (93%)
FY 13 6M 14
Insurance Solvency 207% 208%
Shareholders' equity 8,525 9,175 8%
Net equity per share (in EUR) 37.65 41.11
Insurance ROE 8.3% 8.4%
Insurance ROE excl.UG/L 10.4% 10.7%
20. Periodic financial Information I 6M 14 Results I 6 August 2014 19
Shareholders’ equity roll forward
Up on UG/L, net profit & put option
In EUR mio
Shareholders’
equity per
segment
Shareholders’
equity per share
FY 13 6M 14 FY 13 6M 14
Belgium 3,676 ► 4,254 Asia 1,592 ► 1,929
UK 1,121 ► 1,191 Insurance 7,613 ► 8,595
Continental Europe 1,224 ► 1,221 General Account 912 ► 581
6,206 6,333 6,379
1,939 1,280
2,217
1,655
912
581
340
945
166 69
(309)
(308) (106) (55) (72) (19)
EUR 37.65 EUR 41.11
9,799
8,525
9,175
FY 12 FY 13 Result
Insurance
Result
Gen Acc
Change
UG/L
Dividend Treasury
Shares
IAS 19 Reval
put option
Forex Portugal
Non-Life
Other 6M 14
Insurance
UG/L
Insurance
UG/L
21. Periodic financial Information I 6M 14 Results I 6 August 2014 20
Tangible net equity
High quality capital structure
10/03/2010 I page 20
EUR bn FY13 6M 14
IFRS Shareholders' Equity 8.5 9.2
Unrealised gains real estate 0.6 0.6
Goodwill (0.7) (0.7)
VOBA (Value of Business Acquired) (0.3) (0.3)
DAC (Deferred Acquisition Cost) (0.9) (0.9)
Other (0.4) (0.4)
Goodwill, DAC, VOBA related to N-C interests 0.5 0.4
25% tax adjustment DAC, VOBA & Other 0.3 0.3
IFRS Tangible net equity 7.7 8.2
IFRS Tangible net equity/ IFRS Shareholder's Equity 90% 89%
22. Periodic financial Information I 6M 14 Results I 6 August 2014 21
Insurance Solvency up on net result & UG/L
Group Solvency down on net result General Account & returns to shareholders
2.5 2.5
0.4 0.4 0.6 0.6 0.6 0.6
4.0 4.2 4.0 4.2
2.0 2.2
0.5 0.5
1.0 0.8 0.7 0.9
4.3
4.5
0.3 (0.2)
4.6 4.3
4.5
4.7
0.9
1.0 1.6
1.4 1.3
1.6
8.3 8.6 8.6 8.4
FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14 FY 136M 14
Belgium
UK
CEU
Asia
Total Ageas
General Account
RMC Excess Capital
RMC Excess Capital
RMC Excess Capital
RMC Excess Capital
RMC Excess Capital
Available Capital
In EUR bn
183% 188% 225% 226% 271% 238% 221% 244% 207% 208% 214% 203%Solvency ratio
25. Belgium
UK
CEU
Asia
Total Ageas
Life Non-Life
Life Non-Life
Life Non-Life
Life Non-Life
Life Non-Life
Inflow @ Ageas’s part
Strong Life growth, excluding FX impact total inflows up 8%
In EUR mio
Periodic financial Information I 6M 14 Results I 6 August 2014 24
1,595 1,547
51 64
849 1,000
1,590 1,798
4,085
4,410
739 761
971 1,010
207
212
114
110
2,032
2,092
(1%)
5%
15%
12%
6%
2,334 2,308
1,023 1,074 1,056
1,213
1,704
1,908
6,117
6,502
6M 13 6M 14 6M 13 6M 14 6M 13 6M 14 6M 13 6M 14 6M 13 6M 14
26. Insurance net result
Strong Life result in all segments, Non-Life down on floods & storms
Belgium
UK
CEU
Asia
Total Ageas
Life Non-Life
Life Non-Life Other
Life Non-Life
Life Non-Life
Life Non-Life Other
9 6 9 6
121
186
(1)
1 25 28
56
70
201
285
38
6
50
25
20 10
10
8
119
49
160
193
58
32
46
37
66
78
329
340
6M 13 6M 14 6M 13 6M 14 6M 13 6M 14 6M 13 6M 14 6M 13 6M 14
In EUR mio
Periodic financial Information I 6M 14 Results I 6 August 2014 25
27. 10/03/2010 I page 26
Overview impairments & net capital gains on investments
Higher capital gains realized, benefiting from favourable market conditions
*
Periodic financial Information I 6M 14 Results I 6 August 2014 26
EUR mio 6M 13 6M 14 6M 13 6M 14 6M 13 6M 14
Life 35 92 (17) (28) 18 64
Non-Life 7 5 (2) (0) 4 4
Total Belgium 42 96 (20) (28) 22 68
Life
Non-Life 4 3 4 3
Other
Total UK 4 3 4 3
Life 13 2 (8) (5) 5 (3)
Non-Life (0) (0) (0) (0)
Total CEU 13 2 (8) (5) 5 (3)
Life 21 23 (5) (4) 16 19
Non-Life 3 1 (0) 3 1
Total Asia 23 24 (5) (4) 19 20
Life 69 116 (30) (37) 39 79
Non-Life 13 9 (2) (0) 11 9
Other
Total Ageas 82 125 (33) (37) 50 88
Capital gains/losses
Impairments &
Profit sharing
Net impact
28. 9
6
6M 13 6M 14
Other Life Non-Life
74
37
5 2
Q2 13 Q2 14
3.1
3.1
6M 13 6M 14
Life Non-Life
4.3 4.5
1.4 1.5
5.7 6.0
Q2 13 Q2 14
6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14
Net result: Strong Life more than
offsets lower Non-Life
In EUR mio In EUR bn
Non-Life combined ratio: estimated
impact storms & floods of 4.6%
Inflow*: strong growth in Asia & CEU
In EUR bn
Total Insurance: Headlines
Solid 6M results despite floods & storms in Belgium & UK
Periodic financial Information I 6M 14 Results I 6 August 2014 27
Life Technical liabilities: up on higher
market values
Operating margin Guaranteed: strong
margin in Belgium
Operating margin Unit-Linked: lower
fee income in Portugal
In % avg technical liabilities In % avg technical liabilities
201 285
93 157
119
49
329 340
172 195
9.4 10.7
12.5
13.8
109.6
117.5
96.8% 102.0% 94.7% 101.4% 0.89% 0.99% 0.93% 1.02%
0.43%
0.20%
0.38%
0.20%
* incl. non-consolidated partnerships @ 100%
In % NEP
69.2 70.5 72.0
40.9
43.4 45.5
FY 13 3M 14 6M 14
Conso Non-conso
113.9
29. Periodic financial Information I 6M 14 Results I 6 August 2014 28
Insurance Combined ratio
Impacted by storms & floods in Belgium & UK
Net earned premium in EUR mio
Combined ratio at 102.0% vs. 96.8%
Storms & floods in UK in Q1 & severe
hailstorm in Belgium in June impacting
combined ratio with 4.6%, influencing Motor,
Household & Other
Household at 100.4% (vs.91.9%): storms &
floods
Accident & Health: at 94.6% (vs.93.4%):
strong ratio in CEU & improvement resulting
from cleansing book in UK
Motor at 101.1% (vs. 100.5%): next to impact
of floods & storms, improving operational
performance
Claims ratio at 66.7% vs. 62.3%
CY claims ratio (70.4% vs. 66.7%) most
significant impact in Household
PY claims ratio slightly down to release of
3.7% (vs. 4.4%), higher claims in TPL Belgium
Expense ratio at 35.3% vs. 34.5%
Integration costs UK
69.4% 73.2% 69.0% 68.1% 64.3% 62.3% 66.7%
59.8%
65.9%
33.1%
32.8%
31.1% 31.0% 34.0% 34.5%
35.3%
34.9%
35.5%
102.5%
106.0%
100.1% 99.1% 98.3% 96.8%
102.0%
94.7%
101.4%
(6.0%)
(3.7%) (3.5%) (3.1%) (3.8%) (4.4%) (3.7%) (4.8%) (4.6%)
2009 2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
claims ratio expense ratio PY claims ratio
2,497 2,858 3,507 4,178 3,749 1,846 1,879 926 948
30. Periodic financial Information I 6M 14 Results I 6 August 2014 29
Combined ratio not reaching target
Non-Life combined ratio & net result impacted by several negative events
No reinsurance intervention
Impact on Ageas combined ratio around 2%
Impact on Ageas net result around EUR 36 mio
Reinsurance event intervention
Impact on Ageas combined ratio around 2.6%
Impact on Ageas net result around EUR 24 mio
Reserve strengthening
Corrective measures launched – pruning & tariff increases
Q1: UK floods
Q2: BE hailstorm
Q2: BE TPL
4.6%
Main elements:
32. Insurance Life operating margin per product line
Margins in Guaranteed in line with objectives
Guaranteed: driven by investment margin Belgium Unit-linked: decrease in both Belgium & Portugal
Average technical liabilities Average technical liabilities
Underwriting margin lower due to negative one-off in
Belgium (Q1)
Expense & other margin decrease related to lower fee
income in Portugal
Investment margin benefiting from better recurring
investment income & capital gains in Belgium
Underwriting margin slightly down in BE
Expense margin stable
Periodic financial Information I 6M 14 Results I 6 August 2014 31
0.44% 0.41% 0.44% 0.43% 0.44% 0.40% 0.47% 0.32%
0.67%
(0.79%)
0.87% 0.83% 0.78% 0.91% 0.79% 1.01%
(0.33%)
(0.36%)
(0.33%) (0.31%) (0.33%) (0.32%) (0.32%) (0.31%)
0.78%
(0.74%)
0.99% 0.96% 0.89% 0.99% 0.93% 1.02%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
Expense & other m. Investment m. Underwriting m.
0.07%
0.04%
0.11% 0.13% 0.14% 0.10% 0.13% 0.10%
0.01%
0.01%
(0.02%)
0.27%
0.42%
0.37%
0.18%
0.29%
0.10%
0.25%
0.10%
0.35%
0.45% 0.48%
0.28%
0.43%
0.20%
0.38%
0.20%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
50.4 52.3 54.0 55.5 55.3 56.5 55.3 56.5 20.2 12.4 11.8 12.3 12.1 12.6 12.1 12.6
33. 6M 13 6M 146M 13 6M 14
Periodic financial Information I 6M 14 Results I 6 August 2014 32
Net result: Strong in Life; Non-Life
negatively impacted by hailstorm
In EUR mio
In EUR bn
Operating margin Guaranteed: solid
investment margin
Non-Life combined ratio @
100.2% excluding hailstorm
Inflow*: Non-Life increased but offset
by Life
Life Technical liabilities: acquisition
of Fidea’s group Life & shadow
accounting
In EUR bn
Belgium : Headlines
Strong operating results in Life offset by hailstorm effect in Non-Life
**
Operating margin Unit-Linked
In % avg technical liabilities
In % avg technical liabilities
6
6M 13 6M 14
Life Non-Life
57
23
(6)
Q2 13 Q2 14
2.1 2.1
1.0 1.0
3.1 3.1
6M 13 6M 14
Life Non-Life
1.1 1.0
0.4 0.4
1.5 1.4
Q2 13 Q2 14
Q2 13 Q2 14
In % NEP
Q2 13 Q2 146M 13 6M 14Q2 13 Q2 14
97.5% 105.7% 95.4% 109.9%
0.29%
0.38%
0.27%
0.41%
1.06%0.91%0.98%0.84%
121
186
38
160
193
80
111
105
53.2 54.0 55.5
FY 13 3M 14 6M 14
34. 1,775 1,824
351 239
2,126 2,063
6M 13 6M 14
(3%)
Life
In EUR mio
Non-Life
In EUR mio
Unit-Linked
Guaranteed
Other
Household
Accident & Health
Motor
Periodic financial Information I 6M 14 Results I 6 August 2014 33
Belgium: Inflow @ 100%
Guaranteed Life inflows increase offset by UL and Group, Non-Life increase
276 281
303 311
316 325
91 98
985 1,015
6M 13 6M 14
+3%
Guaranteed
Guaranteed interest rate in Individual Life reduced to 1.25% as of
01/06/14
Guaranteed Life products increased mainly driven by Savings
products
Group Life inflow came down to EUR 545 mio (-7%)
Unit-linked
Individual Unit-linked further down in Q2 to EUR 239 mio (-32%) as a
result of reduced customer appetite
Household, Motor, Other
GWP up 3%, well spread across bank & broker distribtion, all product
lines contributing
Household (+3%): higher volume & tariff increases
Motor (+3%): mainly driven by tariff increases
Other (+8%): mainly driven by tariff increase in Legal Assistance
(VAT on lawyer fees since 2013)
Accident & Health
Accident & Health (+2%)
35. 64.1% 68.7% 64.3% 62.7% 63.2% 60.4%
67.7%
57.9%
71.6%
36.8%
36.4%
36.8% 36.8% 36.7%
37.1%
38.0%
37.5%
38.4%
100.9%
105.1%
101.1% 99.5% 99.9% 97.5%
105.7%
95.4%
110.0%
(8.0%)
(6.6%) (7.3%)
(4.5%) (3.6%) (5.9%) (4.2%) (5.0%) (3.5%)
2009 2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
claims ratio expense ratio PY claims ratio
Periodic financial Information I 6M 14 Results I 6 August 2014 34
Belgium: Combined ratio
Impacted by severe hailstorm in June, weaker results in Other Lines
Net earned premium in EUR mio
Combined ratio at 105.7% vs. 97.5%
Severe hailstorm in June with impact on combined
ratio of EUR 49 mio or 5.5% (after reinsurance)
Impact Household 12.5% - Motor 5.1%
Excluding hailstorm, positive evolution combined
ratio in both products
Accident & Health at 96.3% vs. 93.9%, large claims
in Workmen’s Compensation in Q1, significant
improvement in Q2
Other Lines at 150.3% vs. 100,2%
Higher claims TPL - pruning actions on portfolio
launched & tariff increases foreseen
Claims ratio at 67.7% vs. 60.4%
CY ratio (71.9% vs. 66.3%) impacted by hailstorm
in Motor & Household
PY ratio (4.2% vs. 5.9%), impacted mainly by
Accident & Health & Other
Expense ratio at 38.0% vs. 37.1%, mainly
Accident & Health1,469 1,541 1,601 1,698 1,785 872 890 440 445
37. 0.03%
(0.05%) 0.04% 0.04%
0.03% (0.01%)
0.02%
0.02%
0.64%
0.50% 0.44%
0.38% 0.38%
0.28%
0.36%
0.27%
0.66%
0.45% 0.47%
0.41%
0.41%
0.27%
0.38%
0.29%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
Belgium Life operating margin per product line
Guaranteed: solid investment result & higher capital
gains
Unit-linked: lower mortality result
Avg techn liabilities Avg techn liabilities
Periodic financial Information I 6M 14 Results I 6 August 2014 36
Operating result amounted to EUR 8 mio
Lower mortality result & one-off recorded in Q1
Average Technical Liabilities increased
Operating result amounted to EUR 233 mio, up 20%
Operating margin rose to 0.98% vs. 0.84% driven by
investment margin
Investment margin : solid investment result & higher
capital gains on both equities & fixed income
Average Technical Liabilities up, mainly explained by
higher market values & acquisition Fidea (+EUR 0.5bn)
0.28% 0.32% 0.32% 0.32% 0.35% 0.32% 0.37% 0.30%
0.57%
(0.80%)
0.93% 0.88% 0.80% 0.96% 0.81% 1.08%
(0.21%)
(0.30%)
(0.29%) (0.31%) (0.31%) (0.30%) (0.28%) (0.32%)
0.64%
(0.78%)
0.96% 0.89% 0.84%
0.98%
0.91%
1.06%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
Expense & other m. Investment m. Underwriting m.
40.7 42.9 44.9 46.4 46.2 47.4 46.2 47.4 6.0 5.6 5.2 5.4 5.3 5.6 5.3 5.6
38. 6M 13 6M 14
When excluding weather, better Non-
Life & Life results offset by Retail
In EUR mio
United Kingdom: Headlines
Strong recovery of operating results in Q2
Non-Life combined ratio Q1 weather
impact, excellent Q2
9 6
(1) 1
50
25
58
32
6M 13 6M 14
Life Other Non-Life
Q2 13 Q2 14
96.3% 100.7%
94.0% 95.5%
50
5
Inflow* up 5%, flat excluding FX
In EUR bn
In % NEP In EUR mio
Other Income: incl. positive contribution
from legal settlement (EUR 6 mio)
0.1 0.1
1.1 1.1
1.2 1.2
6M 13 6M 14
Life Non-Life
0.0 0.0
0.6 0.6
0.6 0.6
Q2 13 Q2 14
6M 13 6M 14
59 59
Q2 13 Q2 14
122 129
* incl. non-consolidated partnerships @ 100%
5
1
(1) 1
31 35
35 38
Q2 13 Q2 14
37Periodic financial Information I 6M 14 Results I 6 August 2014
39. 1,101 1,145
51
64
1,152 1,209
6M 13 6M 14
44 40
730 755
231 242
96 108
1,101 1,145
6M 13 6M 14
Motor
Non-Life
Life
Other
Household
Accident & Health
Total
In EUR mio
Non-Life
In EUR mio
4%
5%
United Kingdom: Inflow @ 100%
Inflow up 5% but flat at constant FX
Life
Up 25%, +20% at constant FX
Continued development of the book & widening of product offering:
launch of a new product: “Relevant Life Cover”
New business APE up 11%, as new products launched
Non-Life
Up 4%, flat at constant FX.
Motor up 3%, flat at constant FX, due to volumes increase offset by
lower premiums
Household up 5% as a result of the positive impact of Ageas
Insurance Limited (AIL) becoming sole underwriter of Ageas’s over
50’s brands
Accident & Health remains broadly stable
Other lines (including Commercial & Special Risks) up 12% from
growth in business schemes
Other Insurance (including Retail)
YTD total income of EUR 129 mio, up 6% including a EUR 6 mio
positive contribution from a legal settlement
38Periodic financial Information I 6M 14 Results I 6 August 2014
40. 39
United Kingdom: Combined ratio
COR recovers after excellent Q2
Net earned premium in EUR mio
Combined ratio at 100.7% vs. 96.3%
Strong Q2 in Motor & Household leading to
Q2 combined ratio of 95.4%
Impact of Q1 storms & floods diminishes
Claims ratio at 66.7% vs. 63.4%
Claims ratio Weather impact of 4.7% - most
important impact in Household
CY ratio (69.6% vs. 66.7%) primarily due to
adverse weather in Q1
PY ratio: (release of 2.8% vs.3.3%) broadly
in line with 6M 13
Expense ratio at 34.0% vs. 32.9%
Increased expense ratio due to higher
commissions arising from greater business
through MGAs & DAs
Integration costs recorded in Other
80.4% 81.5%
74.6% 73.3%
65.6% 63.4% 66.7%
60.7% 61.3%
27.7% 28.0%
25.3% 26.5%
32.2% 32.9%
34.0%
33.3% 34.2%
108.1%109.5%
99.9% 99.8% 97.8% 96.3%
100.7%
94.0% 95.5%
(3.5%)
(1.1%) 0.1% (2.1%) (4.0%) (3.3%) (2.8%)
(4.9%) (5.0%)
2009 2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
claims ratio expense ratio PY claims ratio
834 948 1,524 2,083 1,562 775 783 386 397
Periodic financial Information I 6M 14 Results I 6 August 2014
not restated for deconsolidation
Tesco Underwriting
41. 83.5%
97.9%
87.7%
78.1% 76.2% 72.8% 66.7%
26.2%
24.0%
23.2%
28.2% 34.3% 34.1%
36.7%
109.7%
121.9%
110.9% 106.3% 110.5%
106.9%
103.4%
2009 2010 2011 2012 2013 6M 13 6M 14
88.9% 82.9% 79.2% 77.2% 71.9% 70.8% 73.9%
22.8%
23.3%
19.5% 21.3% 25.0% 26.1% 25.7%
111.7%
106.2%
98.7% 98.5% 96.9% 96.9% 99.6%
2009 2010 2011 2012 2013 6M 13 6M 14
61.2%
77.4%
61.4% 62.3%
51.4% 46.2% 54.3%
38.0%
38.2%
35.3% 36.7%
42.4%
42.2%
43.8%
99.2%
115.6%
96.7% 99.0% 93.8% 88.4%
98.1%
2009 2010 2011 2012 2013 6M 13 6M 14
66.0% 75.1% 71.6% 67.7% 59.7% 59.0% 56.6%
38.1% 30.4% 39.3% 42.1%
44.5% 44.7% 54.6%
104.1% 105.5% 110.9% 109.8% 104.2% 103.7%
111.2%
2009 2010 2011 2012 2013 6M 13 6M 14
United Kingdom: Combined ratio per product line
Loss ratios impacted by Q1 weather and Motor large claims
Motor: small number of large claimsAccident & Health: Cleansing the book has improved
loss ratio
Household: adverse weather impact Q1 Other: integration costs
40
53 58 65 57 79 36 35 524 532 949 1,420 907 450 464
187 248 366 434 374 185 197 69 110 143 173 202 105 87
NEPNEP
NEP NEP
not restated not restated
not restated not restated
Periodic financial Information I 6M 14 Results I 6 August 2014
42. Net profit Q2 13 included EUR 9 mio
one-off in Turkey
In EUR mio In EUR bn
Excellent Non-Life combined ratio
improvement in Motor & Household
227% 210% 207%
Inflow* boosted by strong sales in
Luxembourg Life In EUR bn
Continental Europe: Headlines
Results on track with expectations
**
Operating margin Guaranteed:
lower U/W & investment margin
Periodic financial Information I 6M 14 Results I 6 August 2014 41
Life Technical liabilities up 2%
In % avg technical liabilities
Operating margin Unit-Linked:
lower fee income in Portugal
In % avg technical liabilities
25 28
20
10
46
37
6M 13 6M 14
Life Non-Life
13
9
16
4
28
13
Q2 13 Q2 14
1.8
2.3
0.6
0.62.4
2.8
6M 13 6M 14
Life Non-Life
0.9
1.4
0.3
0.3
1.2
1.6
Q2 13 Q2 14
6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14 6M 13 6M 14 Q2 13 Q2 14
95.5% 91.4%
94.4% 88.1%
0.94% 0.82% 0.98% 0.58%
0.53%
0.17%
0.53%
0.10%
In % NEP
* incl. non-consolidated partnerships @ 100%
13.9 14.3 14.2
15.0 15.2 15.9
28.9 29.5 30.1
FY 13 3M 14 6M 14
Conso Non-conso
43. 841
1,366
986
903
1,826
2,269
6M 13 6M 14
171 178
183 180
106 102
94 106
553 566
6M 13 6M 14
Accident & Health
Motor
Unit-Linked
Guaranteed
+24%
Other
Household
Life
In EUR mio
Non-Life
In EUR mio
Continental Europe: Inflow @ 100%
Higher sales both in Life & in Non-Life
+2%
Periodic financial Information I 6M 14 Results I 6 August 2014 42
Life
Consolidated inflow up 3%
Portugal: +5% due to higher volumes in new saving products. UL
slowed down but still 53% of total inflow
France: in line with last year’s sales
Luxembourg +41%, inflows more than doubled in Q2 with large Wealth
business contracts concluded in Italy
Technical liabilities
End of period technical liabilities: up 2%
Non-Life
GWP consolidated entities up 6%
Portugal +5% outperforming local markets in A&H & growing in Motor
Italy +7%, better commercial performance in bank channel in all product
lines, particularly Household & Consumer protection business
Turkey (Aksigorta) flat at EUR 321 mio, up 24% at constant FX:
regaining momentum in Motor despite intense competition
A&H and Motor remain the major business lines in the portfolio
44. Periodic financial Information I 6M 14 Results I 6 August 2014 43
Continental Europe: Combined ratio
Well below group target
Net earned premium in EUR mio
* Scope: only consolidated companies: 2009 Portugal; as from 2010 Portugal & Italy
62.4%
71.0% 66.4% 63.6% 63.7% 66.2% 62.0% 64.7%
58.9%
27.6%
30.3%
30.3%
29.8% 30.0% 29.3%
29.4%
29.7%
29.2%
90.0%
101.3%
96.7%
93.4% 93.7% 95.5%
91.4%
94.4%
88.1%
(1.3%)
1.9%
(2.0%) (2.5%) (4.0%) (2.3%) (4.5%) (3.7%)
(7.9%)
2009 2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
claims ratio expense ratio PY claims ratio
194 369 382 397 403 199 207 100 106
Combined ratio at 91.4%
Combined ratio further decreased vs. last year
mainly due to improved ratio’s in Motor &
Household
Combined ratio Turkey at 99.8% vs. 88.6%; due
to some large claims & higher frequency partially
due to adverse weather
Claims ratio at 62.0%
Claims ratio improved in Motor & Household
PY ratio: 4.5% release vs. 2.3% driven by
positive reserve developments notably in Motor &
Other Lines
Expense ratio at 29.4%
Expense ratio in line with last year
46. 0.01% 0.02% 0.02% 0.01% 0.01% 0.01% 0.01% 0.02%
0.18%
0.55%
0.41%
0.51% 0.51%
0.17%
0.51%
0.08%
0.20%
0.56%
0.44%
0.47% 0.53%
0.17%
0.53%
0.10%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
Continental Europe Life operating margin per product line
Guaranteed: lower underwriting & investment margin Unit-linked: decreasing expense & other margin
Avg techn liabilities Avg techn liabilities
Periodic financial Information I 6M 14 Results I 6 August 2014 45
Decrease expense & other margin related to lower
fee income in the old Portuguese book, implemented
to safeguard the commercial franchise
1.25% 1.00% 1.18% 1.06% 0.91% 0.88% 0.93% 0.80%
0.84%
(0.75%)
0.69% 0.68% 0.84% 0.76% 0.91%
0.75%
(0.93%)
(1.08%)
(0.85%) (0.83%) (0.81%) (0.82%) (0.86%) (0.97%)
1.16%
(0.83%)
1.02% 0.91% 0.94% 0.82%
0.98%
0.58%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
Expense & other m. Investment m. Underwriting m.
8.7 8.3 7.8 7.6 7.7 7.6 7.7 7.6 13.9 6.4 6.1 6.3 6.2 6.3 6.2 6.3
Investment margin below last year – high cap gains in 6M 13
Decline in underwriting margin YTD to reserve strengthening
in annuity business partially offset by strong technical
performance in traditional business
Expenses & other margin in line
47. 24
32
4
528
36
Q2 13 Q2 146M 13 6M 14 Q2 13 Q2 14
Inflow: successful sales campaigns &
channel development in China & Thailand
10
8
6M 13 6M 14
Life Non-Life
10
8
6M 13 6M 14
Life Non-Life
Net result: strong growth due to good
operational performance
In EUR mio In EUR bn
Non-Life combined ratio reflects good
underwriting performance
Life Technical liabilities up across
all entities
In EUR bn
Asia: Headlines
New business & profit growth Life / Strong Non-Life underwriting result
Periodic financial Information I 6M 14 Results I 6 August 2014 46
**
In % avg technical liabilities In EUR mio
Result non-conso partnerships: up 30%
on good Life operational performance
5.4
6.3
0.4
0.45.9
6.7
6M 13 6M 14
Life Non-Life
2.3 2.1
0.2
0.2
2.5
2.3
Q2 13 Q2 14
Q2 13 Q2 146M 13 6M 14
94.2%
89.1%
95.9%
89.1%
1.54% 1.53%
0.97%
1.60%
56 70
66
78
49 64
59
72
In % NEP
* incl. non-consolidated partnerships @ 100%
Life operating margin Hong Kong:
improved due to capital gains
24
35
4
529
40
Q2 13 Q2 14
2.0 2.0 2.1
25.9 28.2 29.6
27.9
30.3 31.7
FY 13 3M 14 6M 14
Conso Non-conso
48. 171 170
56 52
34 36
164 153
424 411
Q2 13 Q2 14
Other
Accident &
Health
Fire
Motor
5,253
6,095
178
1625,431
6,257
Q2 13 Q2 14
Unit-Linked
Guaranteed
+15%
-3%
Life
Non-Life
In EUR mio
In EUR mio
Asia: Inflow @ 100%
Strong growth new business, boosted by sales campaigns & channel development
Periodic financial Information I 6M 14 Results I 6 August 2014 47
Life
Hong Kong, +1%, New business impacted by new regulations on sales
procedures investment linked products. Continued focus on higher value
products through combination of re-pricing, new product launches &
refining sales incentives
China, +20%, New business bank channel up 12%, supported by very
successful single premium campaign in Q1 & shift towards regular
premiums in Q2 (up >60% vs. last year); agency sales up 43% thanks to
expansion in number of agents & successful sales campaigns
Malaysia, -26%, New business down following transition in distribution
strategy of both bank & agency channel from single premium sales towards
more sustainable & profitable regular premium sales
Thailand, +15%, New business premiums up 24%; strong performance in
both bank & the agency channel
India, -16%, Inflow down due to the continuation of a difficult regulatory
environment.
Technical liabilities – end-of-period
Hong Kong : EUR 2.1 bn, up 8% vs. FY 13
Including non-consolidated JVs @ 100%: EUR 31.7bn, up 13%
Non-Life
Malaysia, -6% due to FX impact. Excluding FX, inflows up 5% spread over all
product lines, except for Marine, Aviation and Transport
Thailand, +5%, growth in all product lines, especially in Motor
49. Hong Kong Life operating margin per product line
Realized capital gains and higher fee income
Guaranteed: slightly higher operating margin Unit-linked: improved margin due to higher fee income
from higher technical liabilities
Periodic financial Information I 6M 14 Results I 6 August 2014 48
Avg techn liabilities Avg techn liabilities
Underwriting margin deteriorated due to lower
persistency
Expense & Other margin improved because of higher fee
income derived from higher net asset value of the
portfolio
Underwriting margin slightly improved due to better
reinsurance result
Investment margin: higher realised capital gains
Expense & Other margin deteriorated as a result of lower
sales of regular premium products
(0.15%)
(0.71%)
(0.15%) (0.32%) (0.57%) (0.44%) (0.33%)
(2.35%)
3.62%
(0.57%)
(0.11%)
0.27% 0.04% 0.18%
(0.86%)
0.22%
1.30%
3.52%
2.52%
4.19%
2.91% 2.70% 3.11%
4.34%
4.77%
2.24%
2.26%
4.14%
2.38% 2.44%
1.92%
2.21%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
Expense & other m. Investment m. Underwriting m.
1.0 1.1 1.3 1.3 1.3 1.3 1.3 1.3
3.11%
1.75% 2.13% 2.15% 2.65% 1.88%
2.61%
1.59%
(0.06%) (0.14%)
(2.40%)
(3.21%)
(0.95%)
(5.01%)
(3.12%)
(2.10%)
(3.77%)
(1.18%)
0.70%
(1.47%)
1.18%(2.86%)
(0.53%)
(0.22%)
(1.30%)
0.41%
2010 2011 2012 2013 6M 13 6M 14 Q2 13 Q2 14
0.3 0.4 0.5 0.6 0.6 0.7 0.6 0.7
51. Periodic financial Information I 6M 14 Results I 6 August 2014 50
In EUR bn
Asset mix
Asset mix relatively stable
Increased positions in bonds because of lower interest
rates
Gross unrealized gains/losses on Available for Sale
Total portfolio: up to EUR 6.6 bn (EUR 4.0 bn FY 13),
driven by UG/L on fixed income
Fixed income: at EUR 6.1 bn (EUR 3.5 bn FY 13)
Sovereigns at EUR 4.2 bn (vs. EUR 2.3 bn)
Corporates at EUR 1.9 bn (vs. EUR 1.2 bn)
Equities: slightly up, at EUR 0.5 bn
Gross UG/L on Real Estate: slightly down to EUR 1.2 bn
(EUR 1.3 bn FY 13); - not reflected in shareholders’ equity
EUR 1.5 bn unrealized gains/losses on Held to Maturity
- not reflected in shareholders’ equity
Treasury bills
0.3
Sovereign
bonds 34.3
Sovereign
bonds 35.8
Corporate
bonds 23.8
Corporate
bonds 25.2
Structured
0.4
Structured
0.4Loans 5.8
Loans 5.5
Equities 3.2
Equities 3.4Real Estate 4.6
Real Estate 4.5Cash 2.2
Cash 2.474.3
77.5
FY 13 6M 14
Investment portfolio
Unrealized gains fixed income up because of lower interest rates
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
52. Belgium
18.4
Belgium
18.6
France 5.1 France 5.7
3.4
4.0
Austria 2.6
Austria 2.81.1
1.20.7
0.5Others 3.0
Others 3.2
34.3
35.8
FY 13 6M 14
In EUR bn
Gross UG/L at EUR 4.2 bn (vs. EUR 2.3 bn)
94% investment grade; 87% rated A or higher
Maturity sovereign bond portfolio unchanged & close to
maturity liabilities , limited interest rate sensitivity
Sovereign bond portfolio*
Sovereign & Corporate bond portfolio
Value fixed income portfolio impacted by evolution unrealized gains
Periodic financial Information I 6M 14 Results I 6 August 2014 51
Gross UG/L at EUR 1.9 bn (vs. EUR 1.2 bn)
Priority to investment grade industrials has led to
increased share within corporate bond portfolio of
46% (vs. 42% FY 13)
Credit quality remains very good with 95% investment
grade; 69% rated A or higher
Corporate bond portfolio*
Banking 5.3 Banking 5.0
Other
financials 1.7
Other
financials 1.8
Non
Financials
10.1
Non
Financials
11.7
Government
related 6.7
Government
related 6.7
23.8
25.2
FY 13 6M 14
The Netherlands
The Netherlands
Germany
Germany
Southern Europe
Southern Europe
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
53. In EUR bn
Loan portfolio (customers + banks)*
Loan & Equity portfolio
More loans with guarantee
Loans to
banks 1.6 Loans to
banks 0.9
RE 0.2
RE 0.2
Infrastructure
0.1
Infrastructure
0.1
Mortgages 1.5
Mortgages 1.5
Other 2.4
Other 2.8
5.8 5.5
FY 13 6M 14
Increase in other: long term lending to social housing
agencies in Belgium, benefiting from explicit guarantee by
the region
Loans to banks down: priority to long-term secured loans
Periodic financial Information I 6M 14 Results I 6 August 2014 52
Equity portfolio*
Gross UG/L slightly up, at EUR 0.5 bn
Increase in equity portfolio supported by
investments & strong equity markets
Equities 1.7 Equities 1.8
Equity funds
0.1
Equity funds
0.3
RE funds 0.7
RE funds 0.7
Mixed funds
& others 0.7
Mixed funds
& others 0.7
3.2
3.4
FY 13 6M 14
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
54. Periodic financial Information I 6M 14 Results I 6 August 2014 53
Real estate portfolio
Real Estate development down because of sale of a project
10/03/2010
Gross UG/L slightly down to EUR 1.2 bn (not reflected in
shareholders’ equity but contributing to available capital for
solvency calculation)
In PR 18/07/2014 AG Real Estate announced sale of 39% stake
in Interparking for EUR 376 mio – accounting in Q3
– car parks in asset mix will go down to 15% (vs.25%)
– no P&L impact
– shareholders’ equity up EUR 0.1 bn, solvency up around 7pp
Investment
Offices 1.5
Investment
Offices 1.6
Car Parks
1.0
Car Parks
1.0
Investment
Retail 1.4
Investment
Retail 1.4
0.4 0.1
0.3 0.4
4.6 4.5
FY 13 6M 14
In EUR bn
Real Estate portfolio*
Investment Warehouses
RE Development
Investment
Warehouses
RE Development
* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs
56. (6)
6M 13 6M 14
Q2 13 Q2 14
7
Q2 13 Q2 14
Net result driven by RPN(i) & legal
provision of EUR 130 mio
In EUR mio
Accounting value of remaining
legacies
General Account: Headlines
Impacted by revaluation RPN(i) liability & legal provision
Periodic financial Information I 6M 14 Results I 6 August 2014 55
Accounting value put option
In EUR mioIn EUR mio
6M 13 6M 14
1.9 1.8 1.6
FY 13 3M 14 6M 14
143
(309)
(195)
RPN(i) impact on P&L Staff & Operating expenses
Net cash position
8 9
12 12
20 21
6M 13 6M 14
Staff Operating
In EUR mio
In EUR mio In EUR bn
(370)
(474) (527)
37 37 29
(130)
FY 13 3M 14 6M 14
RPN(i) RPI FortisEffect
3 4
7
6
9
11
Q2 13 Q2 14
(157)
(16)
(53)
1,255 1,274 1,282
FY 13 3M 14 6M 14
57. 56
General Account: components of Net result
Result driven by legacies
* Including Interest Margin, Other Expenses & Other Losses (Realised/Unrealised)
In EUR mio
2013 driven by
agreements on
legacy items
(90)
(6) (8)
(12)
(12)270
143
RPI Call Option Reval RPN(i) Legal
provision
Staff
expenses
Other
operating
expenses
Other* Net result
(157)
(130)
(9)
(12) (2)
(309)
Net result 2014
driven by non-cash
volatility RPN(i)
Periodic financial Information I 6M 14 Results I 6 August 2014
58. 1,913
1,639
(309)
(103) (7) (60)
(9) (126)
(44)383 -
FY 13 dividend share
buy-back
CASHES
& FRESH
investment
in liquid
assets
upstream capital
restructuring
M&A other 6M 14
Periodic financial Information I 6M 14 Results I 6 August 2014 57
Net cash position General Account at EUR 1.6 bn
3rd Share buy-back completed as per 1 August 2014
EUR 126 mio invested in acquisition of remaining 49% in Portuguese Non-Life activities
EUR 1.4 dividend par share paid out in May 2014 -
Dividend upstream from operating companies will cover paid dividend & holding costs on FY
basis – still upstream to be expected in H2 14
As per 01/08/2014 share buy-back 2013 completed : EUR 200 mio of which EUR 103 mio
executed in 6M 14
Next to this, Ageas holds EUR 117 mio in liquid assets (original maturity > 1 year)
In EUR bn
Net cach position
mainly down on
return to
shareholders
Priority 1:
invest in business
Priority 2:
return to
shareholders
59. Periodic financial Information I 6M 14 Results I 6 August 2014 58
Only 2 alternative uses for General Account net cash withheld
Continuation of capital management principles since 2009
1. Invest in Businesses
Organic growth
Selective acquisitions
Create new partnerships
2. Return to shareholders
Dividend payment
Share buy-back
≈ EUR 2.1 bn
≈ EUR 900 mio cash dividend over ‘09, ’10, ‘11 & ‘12
EUR 650 mio share buy-backs finalized’12, ‘13 & ’14
EUR 222 mio capital reduction from proceeds of BNPP Call
Option & RPI
EUR 250 mio share buy-back announced 06/08/14
≈ EUR 1.3 bn from net cash on
top of retained earnings
≈ EUR 600 mio UK (Tesco, KFIS, Castle
Cover, Groupama)
≈ EUR 200 mio CE (Italy, Turkey)
≈ EUR 320 mio Asia (India, HK, China)
≈ EUR 160 mio CE (Portugal, Italy)
60. Periodic financial Information I 6M 14 Results I 6 August 2014 59
Status on various legal procedures
Timing & (financial) outcome remains hard to estimate
2014 expected
next steps
Brussels Commercial Court re Sep/Oct 2008 transactions (Modrikamen) – interim judgement
on procedural matters expected – pleadings on the merits in 2015
February 11
Claim re FRESH hybrid
instrument dismissed by
Brussels Court
Sep- Dec 10
Ageas starts legal procedure against Dutch
State & ABN AMRO to obtain compensation
in return for conversion MCS (Mandatory
Convertible Securities) into Ageas’ shares
AgeasinitiatorAgainstAgeas
February 12
BNP P tender for CASHES & subsequent
conversion into Ageas shares – partial
settlement of RPN/RPN(I) – call Fortis Bank
Tier 1 Debt Securities
February 12
Utrecht court re
communication Q2 2008
in favour of plaintiffs,
appeal filed
March 12
Brussels Commercial Court
rules in favour of Ageas in
MCS-case, appeal filed
2011 20122009... 2010 ...
December 13
Supreme Court rejects appeal against
judgement Ondernemingskamer re
mismanagement mainly in favour of
plaintiffs
June 12
Agreement with ABN AMRO to settle
legal proceedings concerning FCC &
MCS, closing all outstanding disputes
with Dutch State
2013
June 13
Fine imposed by
FSMA, appeal filed
February 14
Trade & Industry Appeals Tribunal
renders final judgment on AFM II
in favour of Ageas
2014
March 14
T&I A Tribunal
rejects appeal
in AFM I
July 14
Amsterman Court of
Appeal judges partly in
favour of plaintiffs; appeal
will be filed
61. Legal proceedings
Managed in interest of shareholders
Administrative proceedings
NL: AFM fine imposed 05/02/10 re price sensitive info June 08
NL: AFM 2nd fine imposed 19/08/10 re price sensitive information Sep 07
Final judgement 04/03/2014; appeal rejected
Final judgement 14/02/2014 in favour of Ageas
BE: FSMA re communication in Q2 2008 Appeal filed before Court of Appeal
Criminal procedure
Brussels – several alleged crimes June 2007 – April 2008 Public prosecutor requests referral of 7 individuals
Enterprise Court (Ondernemingskamer)
At request of VEB re 2007-2008
Final judgement 06/12/13 re mismanagement, mainly in favour
plaintiffs.
Civil Lawsuits
Amsterdam - VEB re alleged miscommunication 2007-08 against Ageas,
former directors/executives & banks
Amsterdam - Stichting FortisEffect, re sale of Dutch activities
against Dutch State & Ageas
Proceedings ongoing
Judgement partly in favour of plaintiffs; appeal will be filed
Utrecht - Stichting Investor Claims Against Fortis re alleged
miscommunication 2007-08 against Ageas & 2 financial institutions
Utrecht - 2nd case by Stichting on behalf of certain shareholders for
damages from same defendants & certain former directors/executives
Proceedings ongoing
Proceedings initiated in August 2012 ; at present unclear whether
both actions will be joined
Arnhem - Mr.Bos, re alleged miscommunication 2007 - 08 Appeal filed before Arnhem Court of Appeal
Brussels - Modrikamen, re Sep/Oct 2008 transactions
Brussels – Various lawsuits initiated by shareholders re alleged
miscommunication 2007 – 08
Judgement procedural matters expected; Pleadings merits H1 2015
Proceedings ongoing
Deminor: interim judgment procedural matters 28/04/2014
Financial instruments
Brussels Court of Appeal - MCS-holders contesting validity of conversion Judgment Brussels court 23/03/12 in favour of Ageas; Appeal by
certain MCS-holders; no judgment before 2015
Other litigation
Brussels/Paris – RBS re alleged indemnity in context of
ABN AMRO take- over
Proceedings before Brussels court & ICC arbitration in
Paris initiated in April 2014
Periodic financial Information I 6M 14 Results I 6 August 2014 60
Situation 6 August 2014
62. Periodic financial Information I 6M 14 Results I 6 August 2014 61
Main characteristics Hybrids
Leverage optimized at holding level and at AG Insurance
In EUR mio Ageas
Ageasfinlux
Fresh
Ageas Hybrid
Financing
Hybrone
Fixed-to-
Floating Rate
Callable
Fixed Rate
Reset Perpetual
Subordinated
Loans
Direct issue
FBB, 2004 CASHES
% 3m EUR + 135
bps 5.125% 5.25% 6.75% 4.625% 3m EUR +200
bps
Amount
outstanding 1,250 336 450 550 USD 1,000 1,110
ISIN XS0147484074 XS0257650019 BE6261254013 BE6251340780 BE0119806116 BE0933899800
Call date
Undated,
strike 315.0
mandatory 472.5
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 + 533 bps
Oct 14
Step up to 3M
Euribor+170 bps
Undated,
strike 239.4,
mandatory 359.1
Other
On lent to AG
Insurance
Subscribed by
Ageas & BNP
Paribas Fortis
Public issue
No stock
settlement feature
Coupon served by
FBB, trigger ACSM
linked to Ageas
dividend
Market Price
(30/06/14)
69.79 102.89 100.00 108.50 100.48 81.23
Fortis Bank (now BNP Paribas)AG Insurance (Belgium)
64. Periodic financial Information I 3M 14 Results I 14 May 2014 63
Shareholders structure
Based on number of shares as at 6 August 2014
Ageas
3.63%
Ping An
BlackRock, Inc.
Schroders
Franklin Mutual
Advisers
Norges Bank Identified retail
investors
16%
Identified
institutional
investors
41%
Other investors
20%
Ageas
Ping An
BlackRock, Inc.
Schroders
Franklin Mutual Advisers
Norges Bank
Identified retail investors
Identified institutional investors
Other investors
Based upon press release 4 August 2014
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 2 June 2014
Based upon the number of shares mentioned in the notification received 5 August 2014
Based upon the number of shares mentioned in the notification received 22 July 2013
Based upon the number of shares mentioned in the notification received 20 August 2012
Estimate by
Estimate by
65. Periodic financial Information I 6M 14 Results I 6 August 2014 64
Financial calendar 2014 - 2015
12 February
Annual results
2013
8 May
3M 2015
results
29 April
Ordinary & Extraordinary
shareholders’ meeting - Brussels
6 May
Ex date
6 March
Annual report
2013
8 May
Payment 2013
dividend
5 August
6M 2015
results
4 November
9M 2015
results
6 August
6M 2014
results
5 November
9M 2014
results
66. Periodic financial Information I 6M 14 Results I 6 August 2014 65
Rating
Improved rating for Portuguese entities
S&P MOODY'S FITCH
Operating AG Insurance (Belgium) A- / positive A2 / stable* A+ / stable
entities Last change 20/12/13 02/10/13 29/05/13
Millenniumbcp Ageas Occidental Vida (Portugal) BB / stable BBB- / positive
Last change 16/05/14 16/04/14
Millenniumbcp Ageas Occidental (Portugal) BB / positive BBB- / positive
Last change 06/06/14 10/06/14
Millenniumbcp Ageas Médis (Portugal) BB / positive BBB- / positive
Last change 06/06/14 10/06/14
Ageas Insurance Co. (Asia) Baa1 / stable A / stable
Last change 16/01/13 26/03/13
Muang Thai Life BBB+ / stable BBB+ / stable
Last change 29/12/10 16/12/10
Etiqa Insurance Berhad (Malaysia) A / stable
Last change 26/09/11
Holding ageas SA/NV
Long-term BBB- / A-3 Baa3 / P-3 * BBB+ / F2
Outlook positive negative stable
Last change 20/12/13 02/10/13 24/01/14
* 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.
67. Periodic financial Information I 6M 14 Results I 6 August 2014 66
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.
68. Periodic financial Information I 6M 14 Results I 6 August 2014 67
Investor Relations
Tel:
E-mail:
Website:
+ 32 2 557 57 34
ir@ageas.com
www.ageas.com
Investor Relations
