1) Ageas aims to create value through improving operational performance in life and non-life insurance, reducing complexity and volatility in its general account, and generating new business growth. 2) In 2011, Ageas increased its embedded value and value of new business primarily through strong performance in Asia, and reduced volatility in its general account by settling legacy issues. 3) Going forward, Ageas will focus on further improving operational performance, unwinding remaining legacy legal issues, managing capital prudently, and preparing for upcoming regulatory changes.

1. Creating value in a
deleveraging environment
Bart De Smet
CEO Ageas
Morgan Stanley Conference
London – 29 March 2012

2. Value creation at Ageas
Work on various levers to come to a more comprehensive story
Insurance

Operational performance




General Account
Life: investment yield
Non-Life: combined ratio
Profit generation
Value creation




Reduce complexity & volatility
Solve legacies
Embedded Value
New business
Simplify Ageas’s story
Constant strive to optimize the use of capital
Morgan Stanley Conference I 29 March 2012
9/30/2009
1

3. Value Life Insurance
Mix of ensuring sustained profit levels vs. long term value enhancing initiatives
+ EUR 734 mio
342
309
2,446
Year‐start 2011
Year‐end 2011
11
20
d
No
rm
al
iz
e
Ga
in
s/
Lo
Ot
he
r
ss
es
ill
dw
64
Asia
Continental Europe
UK
3,360
Ca
p
Value added by New Business (VANB) (EUR mio)
3,686
638
440
162
Go
o
Im
pa
ir
m
en
ts
ts
Eq
ui
ti
es
ek
Gr
e
Embedded Value (EV) (EUR mio)
649
814
157
309
(600)
im
pa
irm
en
11
20
FY
No
rm
al
iz
e
d
20
10
(425)
4,980
+147**
(99)
(172)
Belgium
32
23
0
51
43
(2)
(1)
(15)
(3)
Year‐start 2011
Morgan Stanley Conference I 29 March 2012
Year‐end 2011
2

4. Value Non-Life Insurance
Improved operational performance should drive higher net profits
+ EUR 63 mio
+2
(38)
(27)
102.4%
104.2%
11
No
rm
al
iz
ed
20
er
Ot
h
th
er
W
ea
ss
es
Combined ratio UK
108.2%
109.5%
105%
99.9%
100%
145
Ad
ve
rs
e
Ga
in
s/
Lo
Ca
p
pa
ir
m
en
ts
Im
Eq
ui
ti
es
Im
pa
irm
en
ts
20
Gr
ee
k
FY
110%
110%
105%
11
10
20
rm
al
iz
ed
No
115%
Combined ratio Belgium*
+10
82
81
115%
(9)
95%
99.9%
100%
95%
90%
90%
2009
2010
2011
2009
2010
2011
* Excluding Workmen’s Compensation
Morgan Stanley Conference I 29 March 2012
3

5. Value General Account: Clarity gained on valuation legacy issues
Volatility remains but partially offsetting
Call option on BNP Paribas shares
RPN(i)
In EUR mio
In EUR mio
Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
Average 587
(145)
759
(316)
836
609
581
611
694
436
361
395
(442)
(340)
(496)
(465)
(190)
(583)
(722)
Average (411)
Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
RPI
Sum of legacies +/- EUR 1bn
In EUR mio
In EUR mio
108
Average 876
505
(271)
1,027
760
760
840
933
913
899
850
779
Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
Morgan Stanley Conference I 29 March 2012
(290)
(275)
56
(82)
208
1,025
984
Q4 09
Q4 11
4

6. Solution around CASHES is important step forward
Transaction settled on 26 March 2012

Rationale for Ageas

Reduced credit risk to Fortis Bank
EUR 4.6 bn  EUR 2.8 bn

Decreased volatility in results
RPN(I) volatility

Improved liquidity position

Result of the offer : 63% converted

Impact on Net Cash position:

Impact on Net Result (in Q1 12) :
EUR 953 mio redemption Tier 1
EUR (287) mio indemnifications paid
--------------------EUR 666 mio

EUR 131 mio Tier 1 redemption
EUR 21 mio release RPN(I) liability
EUR (299) mio indemnifications paid
--------------------EUR (147) mio
Limited influence on equity & solvency of General Account
Morgan Stanley Conference I 29 March 2012
+/- (2%)
5

7. General Account: good grasp of outstanding legacy issues
Ageas does not expect new major litigation issues to rise
June 09
June 10
Receipt report Belgian
experts (Van
Gerven/Horsmans)
Receipt report Dutch experts
(Ondernemingskamer)
May 10
February 11
US class action
dismissed
Claim re FRESH hybrid
instrument dismissed by
Brussels Court
2009
May 11
- Claim dismissed of
VEB/Deminor and
FortisEffect by Amsterdam
Court
- Rotterdam court confirmed
fine AFM I: appeal filed
2010
February 12
- Rotterdam court confirmed
fine AFM II; appeal to be filed
- Utrecht court re
communication May-June
2008 in favour of plaintiffs;
appeal to be filed
2011
2012
June 09
Sep- Dec 10
November 11
March 12
Ageas claims
compensation with
respect to “FCC
preferred shares” from
Fortis Bank NL
Ageas starts legal procedure
against Dutch State & ABN AMRO
to obtain compensation in return for
conversion of Mandatory
Convertible Securities (MCS) into
Ageas’ shares
Receipt report
Belgian experts (Cats,
Smets, De Bodt)
Brussels Commercial Court
dismissed all claims initiated
by former MCS holders
Timing and (financial) outcome remains hard to estimate….
In many legal proceedings still at the stage of first instance
To be expected before end June 2012
 Judgment of Ondernemingskamer re mismanagement
Morgan Stanley Conference I 29 March 2012
6

8. Ageas applies a conservative solvency calculation methodology
IFRS Solvency remains solid & well above required minimum
Ageas’ solvency calculation methodology : any
unrealized loss on fixed income on balance is
deducted, any net unrealized gain is eliminated.
Solvency I Belgium
Ageas passed very successfully the EIOPA
solvency stress tests for Belgium & Portugal with
simulated Solvency II ratios exceeding the
average of the European industry in all stress test
scenarios adopted.
Solvency II Belgium
IFRS Solvency ratio :198%
Ageas Insurance ratio: 227%
AG Insurance EIOPA solvency II ratio (MCR): 517%
Average Insurance industry :
380%
Based on 31/12/10 data
Insurance Solvency Ratio Ageas
as reported
In EUR bn
229%
226%
6.4
6.6
207%
227%
6.8
2.8
Q4 09
Q4 10
Total available capital
Morgan Stanley Conference I 29 March 2012
7.5
6.4
3.6
3.1
3.0
2.9
Q2 10
207%
Q2 11
Q4 11
Required Minimum Margin (RMM)
7

9. Ageas strives for an optimal use of cash
Almost equal share of three alternative uses of cash since 2009
Invest in Businesses



Organic growth
Selective acquisitions
Create new partnerships
Return to shareholders


Dividend payment
Share buy back
Return to debtholders

Debt buy back (EMTN)
May 2009 – March 2012:
+/- EUR 740 mio
+/- EUR 450 mio UK (Tesco, KFIS,
Castle Cover)
 +/- EUR 190 mio CEU (Italy, Turkey)
 +/- EUR 100 mio Asia (India, HK)

Going forward :
Insurance:
General Account:
Morgan Stanley Conference I 29 March 2012
9/30/2009
+/- EUR 850 mio
+/- EUR 600 mio constant dividend
over 2009, 2010 & 2011
 EUR 250 mio share buy-back finalized
early 2012
+/- EUR 700 mio


+/- EUR 700 mio EMTN program
redeemed (31/12/2011)
Lower growth in capital intense savings business
Increased proportion of Non-Life and Fee related business
Net cash position at EUR 1.3 bn (before dividend payment)
8

10. Ageas announced a share buy-back program on 24 August 2011
Program successfully completed on 25 January 2012
Ageas stock price in EUR
1.6
1.5
1.4
1.3
1.2
1.1
1
0.9
23/08/2011
Day before announcement of
share buy-back program
Ageas at EUR 1.09/share
Share price + 34%
25/01/2012
Announcement of finalization
share buy-back program
Ageas at EUR 1.46/share

192 mio shares bought back (7.33%) for EUR 250 mio

Cancellation of acquired shares proposed at next shareholders’ meetings (25 & 26/04/12)
Morgan Stanley Conference I 29 March 2012
9

11. Ageas’s operational priorities 2012


Review/ Rethink strategic asset
allocation

Make further progress on unwinding
legacy issues

Disciplined capital management

Morgan Stanley Conference I 29 March 2012
Confirm & further improve operational
performance
Prepare for regulatory changes
10