Naar een coherente ontwikkeling van de Belgische markt · Final after Ageas’s decision to waive...

Periodical Financial Information

FY 2018RESULTS

Slides used during analyst call 2

Segment information 18

Equity / Solvency 48

Investment portfolio 59

Legal Settlement 64

General Information 71

Important events of the last year shaping Ageas’s future

3Periodic financial information I FY 18 results I 20 February 2019

Fortis Settlement &

other legacies

Rating

Reshaping of

company profile

Ambition &

Connect

Fortis Settlement declared binding on 13/07/2018

Final after Ageas’s decision to waive termination right on 21/12/2018

In full execution mode – ≈ EUR 420 mio paid to eligible shareholders

FSMA appeal final

Favourable decision in MCS

Rating upgrade from S&P, Fitch & Moody’s

Sale of 33% share in Cardif Lux Vie closed on 21/12/2018

Cash impact of EUR 182 mio - incl. repayment EUR 30 mio subordinated loan

Acquisition of 40% stake in RSGI in India announced

Closing expected in H1

Net cash impact of EUR 186* mio

Start of reinsurance activities @ holding level

5 out of 6 targets reached

Ready to enter the new strategic period

*Based on FX 13/11/2018

Main messagesStrong increase of net result – Proposed dividend of EUR 2.2/share

4

*Consolidated entities only

Net result

Insurance performance

Balance sheet

Proposed dividend

Group net profit of EUR 809 mio (vs. EUR 623mio) – Q EUR 154 mio

Insurance net profit of EUR 797mio (vs. EUR 960mio) – Q EUR 133 mio

General Account net profit of EUR 12 mio (vs. loss of EUR 337 mio) – Q EUR 21 mio

Life Guaranteed margin at 88 bps* (vs.93 bps) – Q 75 bps

Unit-Linked margin at 25 bps* (vs. 27 bps) – Q 21 bps

Group combined ratio at 94.3%* (vs.95.2%) – Q 92.0%

Inflow @ 100% of EUR 34.4 bn (+ 2%) – Q EUR 7.0 bn

Life Technical Liabilities at EUR 73.4 bn* (vs. EUR 74.7 bn)

Shareholders’ equity at EUR 9.4 bn or EUR 48.43 per share

UG/L at EUR 2.7 bn or EUR 13.73 per share

Insurance Solvency IIageas at 202%, Group ratio at 215%

Operational FCG of EUR 629 mio

Total Liquid Assets General Account at EUR 1.7 bn

EUR 2.2/share – up 5%

Periodic financial information I FY 18 results I 20 February 2019

Ambition 2018 finalizedDelivered on our promises - 5 out of 6 targets reached

5

*Consolidated entities only


in % of Insurance SCR

76

9990 88

2009 2012 2015 2018

30

48

36

25

2009 2012 2015 2018

10399

9794

2009 2012 2015 2018

9.0

10.7 11.011.8

2009 2012 2015 2018

182 179

196202

2015 2016 2017 2018

41 43 45

58

2009 2012 2015 2018

0.80 0.80 0.80

1.201.40

1.55 1.65 1.70

2.10 2.20

0.40

2.9%

3.7%

4.7% 4.6%4.4%

5.0% 4.9%

5.3%5.1%

5.3%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

gross dividend / share additional dividend / share dividend yield*


Proposed regular gross cash dividend of EUR 2.2/ share, up 5% Total 5.2 bn returned to shareholders since 2009

Payment

2018 dividend

on 29 May 2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 since '09

Paid dividend 188 197 188 270 309 329 338 419 407 416 2,645

Share buy-back executed 230 160 144 209 250 244 244 247 208 1,728

Capital reduction 223 223

Total returned to shareholders 188 427 348 637 518 579 582 663 654 624 5,220

CAGR

+12%

623493

244

289

93

15

960

797

FY 17 FY 18

Life Non-Life divestments

In EUR mio In EUR bnIn EUR bn

Total Insurance: HeadlinesStrong result in Non-Life – Life impacted by weak equity markets


In bps avg technical liabilities In bps avg technical liabilities

* incl. non-consolidated partnerships @ 100%

In % NEP

15030

44

88

81

15

274

133

Q4 17 Q4 18

27.6 28.4

6.2 5.9

33.8 34.4

FY 17 FY 18

Life Non-Life

5.2 5.6

1.5 1.4

6.7 7.0

Q4 17 Q4 18

95.2 94.3

FY 17 FY 18

96.2 92.0

Q4 17 Q4 18

93 88

FY 17 FY 18

5475

Q4 17 Q4 18

27 25

FY 17 FY 18

3221

Q4 17 Q4 18

74.7 73.6 73.4

55.963.0 65.6

22.123.3

152.7159.9

139.0

FY 17 9M 18 FY 18

conso non-conso Lux

Net result: very strong in Non-Life –Life: lower net cap gains in Asia & BE

Non-Life combined ratio: excellent H2 compensating H1 weather impact

Inflows*: Strong sales momentum in BE & China

Life Technical liabilities down on sale Luxembourg

Operating margin Guaranteed: lower net cap gains – still within target range

Operating margin Unit-Linked: up in BE & down in CEU

10/03/2010 I page 8

Net realised capital gains* on investmentsEUR 256 mio lower support of capital gains compared to last year


* Net capital gains include capital gains, impairments & related changes in profit sharing (consolidated entitities), net of tax &

@ ageas’s part – CEU JV’s not included

EUR mio FY 17 FY 18 Q4 17 Q4 18

Life 96 85 (6) 22 H1 cap gains mainly on equities & RE

Non-Life 12 7 (1) 1 H2 impairments in all asset classes

Total Belgium 109 92 (7) 23

Non-Life 19 1 1 (1) Derisking of portfolio in Q1 '17

Total UK 19 1 1 (1)

Life (0) 8 1 2

Non-Life 0 2 0 0

Total CEU 0 10 1 2

Life 73 (153) 35 (95) Cap gains on equities in Q1

Non-Life 3 (1) 2 (1) IFRS equity impairments in Q2, Q3 & Q4

Total Asia 76 (154) 36 (96)

Life 169 (60) 29 (72)

Non-Life 35 9 1 (0)

Total Ageas 204 (52) 31 (72)

3.8 4.1

1.92.0

5.76.1

FY 17 FY 18

Life Non-Life

4766

24

4372

109

Q4 17 Q4 18

In bps avg technical liabilities In bps avg technical liabilitiesIn % NEP

9

In EUR mio In EUR bn In EUR bn

292 287

146 128

438415

FY 17 FY 18

Life Non-Life

1.1 1.2

0.4 0.4

1.5 1.6

Q4 17 Q4 18

55.8 56.0 55.9

2.6 1.4 1.4

58.3 57.5 57.3

FY 17 9M 18 FY 18

Underlying Shadow

85 85

FY 17 FY 18

91.0 93.4

FY 17 FY 18

95.290.1

Q4 17 Q4 18

41 38

Q4 17 Q4 18

34 40

FY 17 FY 18

42

77

Q4 17 Q4 18

Life Technical Liabilities stable when excluding shadow accounting

Belgium : HeadlinesExcellent net result despite lower capital gains & H1 weather events

Non-Life combined ratio – @ 90.6% when excl. weather

Operating margin Unit-Linked: higher inflows & change in product mix

Net result: Life stable despite lower cap gains – excellent Non-Life

Inflows: Growth in both Life (+10%) & Non-Life (+4%)

Operating margin Guaranteed: lower investment offset by better underwriting


103.296.8

FY 17 FY 18

In EUR mio


In % of NEP

In EUR bn


29

87

FY 17 FY 18

4

25

Q4 17 Q4 18

102.094.2

Q4 17 Q4 18

1,9881,775

FY 17 FY 18

419 400

Q4 17 Q4 18

United Kingdom: HeadlinesResults impacted by H1 weather events offset by continued good Motor performance

Net result in both years impacted by non-recurring items

Inflows* down 10% @ constant FX Non-Life combined ratio @ 94.1% when excluding weather



62 54

37 49

93

15

193

118

FY 17 FY 18


16 10

3 11

81

15

100

36

Q4 17 Q4 18

4.6 4.2

1.51.3

6.15.4

FY 17 FY 18

Life Non-Life

1.1 1.0

0.50.3

1.61.3

Q4 17 Q4 18

90.4 92.4

FY 17 FY 18

90.495.8

Q4 17 Q4 18

139108

FY 17 FY 18

125

65

Q4 17 Q4 18

219

FY 17 FY 18

232

Q4 17 Q4 18

In EUR mioIn EUR bn In EUR bn


Non-Life combined ratio remained @excellent level

Operating margin Unit-Linked mainly down on lower sales

Continental Europe: Headlines Net result supported by strong Non-Life profit & sale Luxembourg

Net result up 3% scope-on-scope Inflows down 8% due to sale Luxembourg & lower UL appetite

Life Technical liabilities consolidated entities stable

Operating margin Guaranteed down on lower U/W & investment result

16.3 16.1 16.1

22.1 23.3

38.4 39.4

16.1

FY 17 9M 18 FY 18

conso non-conso



In % NEP


269

152

24

17

293

170

FY 17 FY 18

Life Non-Life

19.2 20.1

0.80.9

20.021.0

FY 17 FY 18

Life Non-Life

55.963.0 65.6

FY 17 9M 18 FY 18

81.889.1

Q4 17 Q4 18

87.4 90.7

FY 17 FY 18

Asia: Headlines Strong operational performance – significant impact of equity impairments

Net result: EUR 230 mio lower net cap gains contribution

Non-Life combined ratio remains strong

Inflows* up 7% @ constant FX – higher renewals & catch up of NB since Q1

Life Technical liabilities up 17% @ constant FX

3.0 3.40.2 0.2

3.2 3.7

Q4 17 Q4 18

87

(46)

9

6

96

(41)

Q4 17

15.8 18.6

3.41.5

19.220.1

FY 17 FY 18

regular single

In EUR bn

Regular premium: strong growth -exceeding 90% of Life inflows

2.8 3.1

0.30.3

3.03.4

Q4 17 Q4 18

In EUR mio

13

In % NEPIn EUR mio

Reinsurance: HeadlinesFirst steps in shift towards reinsurance activities at holding level

Net result: reflecting prudent claims reserving

Inflows: incl. EUR 2 mio from ageasSA/NV

Combined ratio: higher claims related to BE & CEU

0

8 8

FY 17 FY 18

34

Q4 17 Q4 18

5261

FY 17 FY 18

14 16

Q4 17 Q4 18

75.782.6

FY 17 FY 18

61.7 64.5

Q4 17 Q4 18

PR 02/07/2018: Ageas received the approval of the National Bank of Belgium (NBB) to

organise and operate reinsurance activities

Increased capital fungibility within the Group

Ageas holding becoming operating entity with access to operational cash-flows through

internal quota shares acceptance

All reinsurance activities integrated in ageas SA/NV in the course of 2019

Solvency II for ageas SA/NV @ 402%

ageas SA/NV

reinsurance activities


Net result positive following RPN(i) revaluation & cap gain LuxembourgIn EUR mio

Value legacies – Settlement liability down on payments

General Account: Headlines


Total liquid assets slightly down

In EUR mioImpact on P&L from RPN(i) Operating expenses up on execution

Fortis Settlement

In EUR mio In EUR bn

In EUR mio

AG Insurance put option expired

(337)

12

FY 17 FY 18

(11)21

Q4 17 Q4 18

1.8 1.8 1.7

FY 17 9M 18 FY 18

(448) (391) (359)

18 5 7

(1,110)

(886)(812)

FY 17 9M 18 FY 18

RPN(i) RPI Settlement

(1,449)

(0) (0)

FY 17 9M 18 FY 18

26 25

5062

7687

FY 17 FY 18

Staff & Intercompany Operating

4 3

1224

16

27

Q4 17 Q4 18

(173)

89

FY 17 FY 18

(11)

32

Q4 17 Q4 18

In EUR mio

1,532

2,143

407

414

489

213

530

45

(112) (23)

(216)

(407)

1,940

2,557

99629

FY 17 Put option &Luxembourg

Capitalfungibility

Modelrefinements

Market Operationalimpact

Ogdenadjustment

Capitaltransactions

Paiddividend

FY 18


Group Free Capital Generation Operational FCG in line with FY guidance - more than covering dividend accrual & SBB

In EUR mio

15

FCG Non-European NCP’s of EUR 146 mio over 9M 2018 of which EUR 372 mio operational, not included in EUR 629 mio

Operational impact – FY guidance of EUR 500 – 540 mio for Solvency scope

includes EUR 99 mio dividend upstream Non-European NCP’s

driven by time value, business performance, yearly assumption changes & asset mix

Market: driven by spread movements & lower equity markets

Ogden adjustment: discount rate set @ 0% - no impact on IFRS result

Capital transactions = SBB + injection in Asia

expected

dividendFree Capital

Generation

Based on 175% of

SCRageas

expected

dividend


Solvency IIageas Group up to 215% - proposed dividend already deductedInsurance@ 202% supported by higher fungibility of capital

Solvency IIageas

in %

In EUR bn

Own Funds

SCR

Non EU

Non-controlled

participations*

16

Belgium UK CEU Reins. Diversification Insurance GA Group

Non-transferable

* Based on local solvency requirements

2.9 2.7

0.5 0.5 0.7 0.6

0.0 0.1

(0.2) (0.2)

3.93.7

0.1 0.1

4.0 3.7

1.92.4

6.96.4

0.8 0.81.4

1.0

0.1 0.1(1.4)

(1.0)

7.77.4

0.20.6

7.9 8.0

4.9

5.8

FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18

237% 235% 147% 167% 207% 178% 243% 196% 196% 202% 196% 215% 261% 241%

1. Almost all the legacies from the past solved

2. 5 out of 6 Ambitions 2018 targets reached

3. In full working order to execute Connect21

4. A strong year in terms of operational performance

5. Increased dividend of EUR 2.20 / share proposed

Conclusions

Periodic financial information I FY 18 results I 20 February 2019 17





Legal Settlement 64


Periodic financial information I FY 18 results I 20 February 2019 19

Key financials

In EUR mio FY 17 FY 18 Q4 17 Q4 18

Gross inflows 33,800 34,375 2% 6,738 6,988 4%

Net result Insurance 960 797 (17%) 274 133By segment: - Belgium 438 415 (5%) 72 109 52%

- UK 29 87 199% 4 25 584%

- Continental Europe 193 118 (39%) 100 36 (64%)

- Asia 293 170 (42%) 96 (41) (143%)

- Reinsurance 8 8 (3%) 3 4 23%

By type: - Life 623 508 (18%) 150 45 (70%)

- Non-Life 337 289 (14%) 125 88 (29%)

Net result General Account (337) 12 (11) 21

Net result Ageas 623 809 30% 264 154 (42%)

Earnings per share (in EUR) 3.09 4.11 33%

Life Operating Margin Guaranteed (in bps) 93 88 (5%) 54 75 39%

Life Operating Margin Unit-Linked (in bps) 27 25 (7%) 32 21 (34%)

Combined ratio (in %) 95.2 94.3 -0.9% 96.2 92.0 (4%)

FY 17 FY 18

Shareholders' equity 9,611 9,411 (2%)

Net equity per share (in EUR) 48.30 48.42 0%

Insurance ROE excl.UG/L 14.6% 11.8%

Insurance Solvency IIageas ratio 196% 202%

623493

244

289

93

15

960

797

FY 17 FY 18


In EUR mio In EUR bnIn EUR bn

Total Insurance: HeadlinesStrong result in Non-Life – Life impacted by weak equity markets


In bps avg technical liabilities In bps avg technical liabilities


In % NEP

15030

44

88

81

15

274

133

Q4 17 Q4 18

27.6 28.4

6.2 5.9

33.8 34.4

FY 17 FY 18

Life Non-Life

5.2 5.6

1.5 1.4

6.7 7.0

Q4 17 Q4 18

95.2 94.3

FY 17 FY 18

96.2 92.0

Q4 17 Q4 18

93 88

FY 17 FY 18

5475

Q4 17 Q4 18

27 25

FY 17 FY 18

3221

Q4 17 Q4 18

74.6 73.6 73.4

55.963.0 65.6

22.123.3

152.6159.9

139.0

FY 17 9M 18 FY 18

conso non-conso Lux

Net result: very strong in Non-Life –Life: lower net cap gains in Asia & BE

Non-Life combined ratio: excellent H2 compensating H1 weather impact

Inflows*: Strong sales momentum in BE & China

Life Technical liabilities down on sale Luxembourg

Operating margin Guaranteed: lower net cap gains – still within target range

Operating margin Unit-Linked: up in BE & down in CEU

Inflows @ 100% Strong growth in Belgium & catch-up in Asia – up 3% @ constant FX


EUR mio FY 17 FY 18 FY 17 FY 18 FY 17 FY 18

Belgium 75% 3,781 4,146 10% 1,915 2,000 4% 5,697 6,146 8%

United Kingdom - 1,988 1,775 (11%) 1,988 1,775 (11%)

Consolidated entities 100% - 1,546 1,388 (10%) 1,546 1,388 (10%)

Non-consolidated JV's 442 387 (13%) 442 387 (13%)0 0

Continental Europe 4,604 4,152 (10%) 1,483 1,275 (14%) 6,087 5,428 (11%)

Consolidated entities 1,975 1,849 (6%) 843 677 (20%) 2,818 2,526 (10%)

Portugal 51% - 100% 1,541 1,494 (3%) 628 677 8% 2,170 2,170 0%

France 100% 433 356 (18%) 433 356 (18%)

Italy 50% 215 0 215 0 Non-consolidated JV's 2,629 2,303 (12%) 640 599 (6%) 3,269 2,902 (11%)

Turkey 36% 640 599 (6%) 640 599 (6%)

Luxembourg 33% 2,629 2,303 (12%) 2,629 2,303 (12%)

Asia 19,201 20,142 5% 827 884 7% 20,029 21,026 5%

Non-consolidated JV's 19,201 20,142 5% 827 884 7% 20,029 21,026 5%

Malaysia 31% 721 863 20% 506 561 11% 1,227 1,424 16%

Thailand 31% - 15% 2,681 2,475 (8%) 322 323 0% 3,003 2,798 (7%)

China 25% 15,541 16,502 6% 15,541 16,502 6%

Philippines 50% 15 23 48% 15 23 48%

Vietnam 32% 10 47 388% 10 47 India 26% 233 232 (0%) 233 232

Insurance Ageas 27,586 28,440 3% 6,214 5,935 (4%) 33,800 34,375 2%#DIV/0! ###### ######

Reinsurance 52 61 18% 52 61 18%

accepted from Consolidated entities 52 59 13% 52 59 13%

accepted from Non-consolidated partnerships 0 2 0 2

Life Non-Life Total

Inflows @ Ageas’s partStrong growth in Belgium offset by UK – up 3% constant FX

In EUR mio


2,836 3,110 2,149 1,943

4,992 5,227

9,977 10,280

1,436 1,500

1,768 1,582

966 892

204 222

4,375 4,196

+8%

-10%

-9%

+5%

+1%

+13%

4,272 4,610

3,115 2,836

5,197 5,449

14,351 14,476

52 59

FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18

Belgium: up in Life (both Guaranteed & UL) & Non-Life across all product lines

UK down 10% @ constant FX – focus on profitability

CEU down 6% @ constant FX – scope changes & lower UL appetite

Asia up 7% @ constant FX – catch-up after Q1

Non-Life

Life

Belgium UK CEU Asia Insurance Reins.

Strong insurance net resultLower support of net cap gains bringing Asia result down


BE: EUR 17 mio less net cap gains – EUR 29 mio adverse weather impact

UK: exceptional items affect net result in both periods

CEU: EUR 93 mio contribution from Cargeas 2017 – EUR 15 mio cap gain Luxembourg

Asia: driven by China: strong operations & huge equity impairments

Non-Life

Life

Belgium UK CEU Asia Reins. Insurance

In EUR mio

292 287

62 54

269

152

623

493

146128

53 49

24

17

270

299

438 415

29

87 193 118

293

170

8 8

960

797

FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18


Insurance Combined ratio Continuously improving operating performance strengthened by outstanding Q4

Combined ratio

Impact from weather in Belgium & UK (2.3 pp) mainly in Household – vs. UK Ogden rate change impact (1.3 pp) mainly in Other lines & Motor

Outstanding combined ratio in Belgium & Continental Europe – group target level reached in UK

Strong performance in all product lines

Quarterly combined ratio

Extremely strong quarterly combined in all business segments & all product lines

Claims ratio

CY claims ratio at 66.2% (vs. 65.3%) – excellent claims performance compared to strong 2017 with extremely benign weather

PY claims: higher on Motor

Expense ratio flat

Net earned premium (In EUR mio)

In % Net earned premium

3,749 3,843 4,038 4,112 4,148 3,892 1,096 962

64.3 64.4 62.267.0

59.7 58.5 59.9 55.6

34.0 35.234.7

34.1

35.5 35.8 36.336.4

98.3 99.6 96.9101.1

95.2 94.3 96.292.0

(3.8) (4.0)(5.9)

(3.0) (5.6) (7.7) (6.0)(7.4)

2013 2014 2015 2016 2017 2018 Q4 17 Q4 18

claims ratio expense ratio PY claims ratio

Insurance Combined ratio per product line


Motor: excellent in BE & UKAccident & Health: stable

Other: excellent in BE Household: 8.1 pp poor weather in BE & UK

70.0 67.3 65.4 67.5 64.8 67.4

25.6 27.0 28.3 27.2 27.5 25.4

95.6 94.3 93.7 94.7 92.3 92.8

2013 2014 2015 2016 2017 2018

NEP 813 813 811 838 884 871 871

69.8 69.6 69.178.2

68.7 61.2

29.3 29.7 30.529.7

31.633.0

99.1 99.3 99.6107.9

100.394.2

2013 2014 2015 2016 2017 2018

NEP 1,557 1,616 1,724 1,790 1,782 1,636 1,636

51.5 51.5 50.4 50.5 43.8 51.8

44.0 44.6 41.6 42.745.1

44.8

95.5 96.1 92.0 93.2 88.996.6

2013 2014 2015 2016 2017 2018

NEP 986 1,029 1,078 1,067 1,072 1,028 1,028 NEP 394 385 424 418 410 358 358

62.4 71.257.9 60.4

51.0 43.7

45.5

50.6

46.4 44.445.1

48.1

107.9

121.8

104.3 104.896.1 91.8

2013 2014 2015 2016 2017 2018

In bps Avg techn. liabilities

Insurance Life operating margin per product lineMargins in Guaranteed above target range – Q4 impacted by impairments

Guaranteed: lower investment margin Unit-linked: increase in BE – decrease in CEU

Evolution of operating margin influenced by sales volumes Investment margin: lower contribution from allocated capital

gains

Underwriting margin & Expense & other margin stable


43 38 33 41 39 41 3343

83 9080

88 96 89

67

77

(31) (39)(23)

(36) (42) (42) (47) (45)

96 8990

9393 88

54

75

2013 2014 2015 2016 2017 2018 Q4 17 Q4 18

13 1217

4 32

3 2

(2)

2 1

2

(3)

186

18

19 24 2327

22

28

20

36

25 27 25

32

21

2013 2014 2015 2016 2017 2018 Q4 17 Q4 18

Operating margin

Expense & other m.

Investment m.

Underwriting m.

Avg techn liabilities (In EUR bn)

55.5 56.9 57.9 57.3 55.9 55.9 55.9 55.9


12.3 12.6 13.0 12.1 15.1 15.7 15.1 15.7

3.8 4.1

1.92.0

5.76.1

FY 17 FY 18

Life Non-Life

4766

24

4372

109

Q4 17 Q4 18


27


292 287

146 128

438415

FY 17 FY 18

Life Non-Life

1.1 1.2

0.4 0.4

1.5 1.6

Q4 17 Q4 18

55.8 56.0 55.9

2.6 1.4 1.4

58.3 57.5 57.3

FY 17 9M 18 FY 18

Underlying Shadow

85 85

FY 17 FY 18

91.0 93.4

FY 17 FY 18

95.290.1

Q4 17 Q4 18

41 38

Q4 17 Q4 18

34 40

FY 17 FY 18

42

77

Q4 17 Q4 18

Life Technical Liabilities stable when excluding shadow accounting

Belgium : HeadlinesExcellent net result despite lower capital gains & H1 weather events

Non-Life combined ratio – @ 90.6% when excl. weather

Operating margin Unit-Linked: higher inflows & change in product mix

Net result: Life stable despite lower cap gains – excellent Non-Life

Inflows: Growth in both Life (+10%) & Non-Life (+4%)

Operating margin Guaranteed: lower investment offset by better underwriting


488 532

587 608

643656

197205

+4%

1,9152,000

FY 17 FY 18

3,0053,281

776

865

+10%

3,7814,146

FY 17 FY 18

Life In EUR mio

Non-Life In EUR mio

28

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

Belgium: Inflows@ 100%Considerable increase in UL & Guaranteed - Non-Life growth in all business lines


Guaranteed

Growth of more than 9% (+12% in Q4)

Growth in all channels especially in Group Life (+14%) & Bank channel

(+8%) confirming the positive trend since the beginning of the year

Unit-linked

Inflows +11% thanks to a successful sales campaign in the first half

Non-Life

Record inflows with an increase in all product lines

Significant increase in Accident & Health (+9%) and in Motor (+4%) -

growth in Health Care mainly explained by a new public sector plan

with over 115,000 insured.

29

Net earned premium (in EUR mio)

Belgium: Combined ratio Strong ratio including adverse weather events in H1


1,698 1,785 1,815 1,832 1,836 1,861 1,944 472 494

62.7 63.2 63.556.9 58.3

53.1 56.0 58.052.4

36.8 36.7 37.7

37.8 37.737.9

37.4 37.237.7

99.5 99.9 101.294.7 96.0

91.0 93.4 95.290.1

(4.5) (3.6) (3.4)(7.2) (8.2) (7.7) (8.3)

(3.3)(6.8)

2012 2013 2014 2015 2016 2017 2018 Q4 17 Q4 18


Combined ratio

H1 weather events impact flattened out over the

year (2.8 pp) – exceptionally benign 2017

Outstanding performance of all Non-Life activities


Excellent Q4 driven by strong claims ratio across all

product lines except in Accident & Health

Claims ratio

CY ratio impacted by weather events mainly in

Household vs. exceptionally benign 2017

PY ratio: relatively stable – Q4 benefitting from

higher release in TPL & Motor

Expense ratio stable across all products lines

Belgium: Combined ratio per product lineSolid combined ratio

30

Accident & Health: gradual improvement Motor: continuous improvement of performance

Household: 8.3 pp weather impact – very benign 2017 Other: important improvement thanks to lower claims


NEP 480 507 504 484 472 481 522 NEP 540 552 562 568 570 578 596

NEP 530 564 579 595 605 609 621 NEP 149 162 170 185 190 193 206

73.0 73.7 70.1 70.4 70.0 68.0 71.0

24.0 23.8 25.4 27.6 27.6 26.9 24.4

97.0 97.5 95.5 98.0 97.6 94.9 95.4

2012 2013 2014 2015 2016 2017 2018

64.7 64.7 62.6 56.2 59.7 58.0 55.3

35.8 36.3 37.236.4 36.4 36.8 37.3

100.5 101.0 99.892.6 96.1 94.8 92.6

2012 2013 2014 2015 2016 2017 2018

50.5 51.4 51.7 43.9 47.838.6

49.3

46.2 45.6 45.745.2 44.8

45.6

46.6

96.7 97.0 97.489.1 92.6

84.295.9

2012 2013 2014 2015 2016 2017 2018

65.9 66.187.5

65.8 58.346.8 40.3

48.1 47.2

47.6

45.044.6

44.843.0

114.0 113.3

135.1

110.8102.9

91.683.3

2012 2013 2014 2015 2016 2017 2018

4 (2) 1 1 1 1 1

38

32 31 31 3339 40 37

41

30 32 3134

40 4138

2013 2014 2015 2016 2017 2018 Q4 17 Q4 18

Operating margin

Investment m.

Expense & other m.

Underwriting m.

(31) (38)(27) (34) (36) (37) (39) (39)

32 30 25 29 27 3121

33

88 9588

91 94 91

60

83

8987

8686 85 85

42

77

2013 2014 2015 2016 2017 2018 Q4 17 Q4 18

Guaranteed: strong underwriting result compensating

lower investment margin

Unit-linked: on target supported by higher inflows &

product mix

31




46.4 47.5 48.1 48.7 48.0 47.7 48.0 47.7


5.4 5.7 5.9 6.1 7.6 8.1 7.6 8.1

Operating result @ EUR 406 mio

Operating margin stable - Q4 significantly better due to

higher realized capital gains

Underwriting margin improving thanks to a better risk result

Expense margin stable

Operating result up from EUR 26 mio to EUR 32 mio

Operating margin driven by higher volumes & change in

product mix

Life operating margin per product lineGuaranteed & Unit-Linked on target

FY 15 FY 16 FY 17 FY18

Guaranteed interest rate 2.63% 2.49% 2.32% 2.17%

Fixed income yield 3.71% 3.45% 3.34% 3.25%

Liabilities Guaranteed (EUR bn) 50.3 52.9 50.4 49.1

FY 15 FY 16 FY 17 FY 18

Fixed income yield 2.11% 1.71% 1.88% 1.96%

Reinvested amount (EUR bn) 4.2 4.5 2.9 3.2

Newly invested money mostly government bonds, government related loans, corporate bonds (non

financial sector) & mortgage loans

Almost all new investments have investment grade quality

EUR 0.1 invested in high yield

Guaranteed retail Life:

3 consecutive guarantee decreases in 2016 from 1% to 0.25%

Guaranteed yield increased from 0.25% to 0.5% as from 1 March 2018 in some specific products

in bank channel

Margin evolution Assets & Liabilities BelgiumYield & guaranteed rate on back book down at the same pace

Life

Back book

New money

Life & Non-Life

32Periodic financial Information I FY 18 results I 20 February 2019

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q32014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Guaranteed interest rate Total fixed income yield

Margin evolution Assets & Liabilities BelgiumMargin on back book stable since 2011

33

3.25%

2.17%

Periodic financial Information I FY 18 results I 20 February 2019

103.296.8

FY 17 FY 18

In EUR mio


In % of NEP

In EUR bn


29

87

FY 17 FY 18

4

25

Q4 17 Q4 18

102.094.2

Q4 17 Q4 18

1,9881,775

FY 17 FY 18

419 400

Q4 17 Q4 18

United Kingdom: HeadlinesResults impacted by H1 weather events offset by continued good Motor performance

Net result in both years impacted by non-recurring items

Inflows* down 10% @ constant FX Non-Life combined ratio @ 94.1% when excluding weather


* inc. incl. non-consolidated partnerships @ 100%

** all growth percentages on this slide calculated @ constant FX

Non-LifeIn EUR mio

Other

Household

Accident & Health

Motor

United Kingdom: Inflows@ 100%Inflows* down 10% at constant FX, impacted by Personal Motor

Non-Life

Down 10%** - Continued focus on pricing & underwriting

discipline in softening Motor market

Motor down 10% reflecting softening Personal Motor

market with uncertainty around timing & quantum of future

changes to Ogden discount rate - continued growth in

Direct distribution channel

Household down 12% resulting from strategic exits of

underperforming business

Other lines down 10% reflecting planned run off in Special

Risks

Accident & Health in line - marginal impact on total

32 32

1,367

1,224

416

364

174

155

-11%1,988

1,775

FY 17 FY 18

73.365.6 66.3 69.3

80.768.3

60.2 65.456.1

26.532.2 33.5 32.8

31.5

34.936.6

36.6

38.1

99.8 97.8 99.8 102.1

112.2103.2

96.8102.0

94.2

(2.1) (4.0) (4.6) (4.4)

4.5(1.4)

(9.2)(3.7)

(12.3)2012 2013 2014 2015 2016 2017 2018 Q4 17 Q4 18



Restatement for deconsolidation of Tesco Underwriting since 2013. 2015 figures restated for consolidation Non-Life & Other


United Kingdom: Combined ratio Impacted by weather events offset by favorable Motor prior year performance


YTD Combined ratio

Impact from weather events (2.7 pp) offset by strong claims

performance in Motor - 2017 depressed from Ogden impact

Combined ratio Tesco Underwriting 95.8% (vs. 95.3%)

reflecting weather impact partly offset by good Motor prior year

performance


Good underlying Household performance & solid PY releases

in Motor - Q4‘17 depressed from Ogden impact

Strong PY development from Motor large loss experience &

impact of strategic exit from legacy lines

Claims ratio

CY ratio 69.4% (vs. 69.8%) - continued solid performance in

Motor & good underlying Household performance offset by

weather events

PY releases - higher releases mainly in Motor from favourable

large & third party damage claims development

Expense ratio

Strong reduction in operating expenses offset by ratio strain

from lower earned premiums

2,083 1,562 1,613 1,751 1,598 1,493 1,321 366 307


United Kingdom: Combined ratio per product line

Restatement for deconsolidation of Tesco Underwriting since 2013. 2015 figures restated for consolidation Non-Life & Other

78.1 76.266.0

55.8 58.4 56.1 56.1 57.8

28.2 34.338.7

43.3 40.9 46.7 46.7 51.4

106.3 110.5104.7

99.1 99.3 102.8 102.8109.2

2012 2013 2014 2015 2016 2017 FY 17 FY 18

77.2 71.9 74.6 75.891.0

75.0 75.063.7

21.325.0 25.1 27.2

25.5

27.6 27.6

29.7

98.5 96.9 99.7 103.0

116.5

102.6 102.693.4

2012 2013 2014 2015 2016 2017 FY 17 FY 18

62.351.4 51.0

62.2 57.6 51.7 51.7 56.9

36.742.4 43.3

37.340.6

47.8 47.845.1

99.093.8 94.3

99.5 98.2 99.5 99.5 102.0

2012 2013 2014 2015 2016 2017 FY 17 FY 18

67.7 59.8 56.0 55.373.7 67.0 67.0

46.3

42.144.4 54.3 48.6

44.947.0 47.0

56.7

109.8104.2

110.3103.9

118.6 114.0 114.0103.0

2012 2013 2014 2015 2016 2017 FY 17 FY 18

NEP 57 79 71 72 39 30 30 30 NEP 1,420 907 958 1,062 1,014 947 947 844

NEP 434 374 399 413 361 341 341 309 NEP 173 202 185 204 185 175 175 138

Accident & Health: Small portfolio, marginal impact on total Motor: Robust CY claims performance & strong PY run off

Household: weather event impact (10.1 pp) Other: Ogden impacting 2017, exit from legacy lines



62 54

37 49

93

15

193

118

FY 17 FY 18


16 10

3 11

81

15

100

36

Q4 17 Q4 18

4.6 4.2

1.51.3

6.15.4

FY 17 FY 18

Life Non-Life

1.1 1.0

0.50.3

1.61.3

Q4 17 Q4 18

90.4 92.4

FY 17 FY 18

90.495.8

Q4 17 Q4 18

139108

FY 17 FY 18

125

65

Q4 17 Q4 18

219

FY 17 FY 18

232

Q4 17 Q4 18

In EUR mioIn EUR bn In EUR bn


Non-Life combined ratio remained @excellent level

Operating margin Unit-Linked mainly down on lower sales

Continental Europe: Headlines Net result supported by strong Non-Life profit & sale Luxembourg

Net result up 3% scope-on-scope Inflows down 8% due to sale Luxembourg & lower UL appetite

Life Technical liabilities consolidated entities stable

Operating margin Guaranteed down on lower U/W & investment result

16.3 16.1 16.1

22.1 23.3

38.4 39.4

16.1

FY 17 9M 18 FY 18

conso non-conso

Life In EUR mio

In EUR mio

39

Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

Non-Life


Continental Europe: Inflows @ 100%Life strong Q4 in Portugal - Non-Life up 19% scope-on-scope @ constant FX

Life

Inflows including non-controlling interests @ 100% down 10% due to

Luxembourg & fewer UL sales in both Portugal & France

Consolidated inflows down 6%

Portugal: down 3% - appetite for UL down on changed market

circumstances - Q4 strong inflow in retirement products

France: slightly down when corrected for 2017 large single

premium - UL continued to be the main business with 45% of total

inflows

Luxembourg: accounted for only 11 months due to closing of sale in

December

Technical liabilities

Consolidated at EUR 16.1 bn, stable versus last year

Non-Life

Inflows consolidated entities (Portugal) up 8% scope on scope, driven

by strong performance in both Ocidental & Ageas Seguros

Turkey up 30% @ constant FX (down EUR - 6%) – strong growth in

all product lines especially in Motor

1,7082,158

2,896 1,995

4,604

4,152

FY 17 FY 18

455 388

579541

293

230

156

116

1,483

1,275

FY 17 FY 18

-10%

-14%


40




397 403 415 454 664 768 594 251 152

63.6 63.7 61.355.9 58.6 59.2 62.7

56.165.3

29.8 30.0 30.8

29.530.1 31.2

29.734.3

30.5

93.4 93.7 92.185.4

88.7 90.4 92.4 90.495.8

(2.5) (4.0) (4.3) (6.5) (6.5) (8.0)(2.9)

(11.9)

0.8

2012 2013 2014 2015 2016 2017 2018 Q4 17 Q4 18


Continental Europe: Combined ratio Combined Ratio at very good level & well below group target

Combined ratio

Since the sale of Cargeas, the combined ratio reflects

the Portuguese activities only

Slight increase mainly due to scope change (Italy)

Combined Ratio in Turkey (@ 101.2% vs. 96.7%)

compensated by higher financial income


3.9 pp impact storm Leslie in Portugal – comparison

impacted by sale Cargeas

Claims ratio

CY ratio at 65.6% (vs. 67.2%) 2017 impacted by

large claims in Motor in Italy

PY ratio: lower releases following sale of Cargeas

Expense ratio

Continued cost containment

Continental Europe: Combined ratio per product lineContinued good claims experience in all lines

41

NEP 226 227 238 255 328 373 318 NEP 99 99 96 94 202 249 188

NEP 44 48 51 70 91 105 74 NEP 28 29 30 35 43 41 13


63.3 59.7 61.9 58.8 64.9 61.4 62.5

28.226.6 26.7 25.2

25.1 26.8 24.8

91.586.3 88.6

84.090.0 88.2 87.3

2012 2013 2014 2015 2016 2017 2018

69.879.3

60.171.5 65.5 70.4 68.0

28.129.2

31.6

32.332.5

35.0 35.3

97.9108.5

91.7

103.898.0

105.4 103.3

2012 2013 2014 2015 2016 2017 2018

51.8 53.5 54.036.1 42.3 46.5 48.5

33.538.8 40.3

35.938.0 34.7 34.2

85.392.3 94.3

72.080.3 81.2 82.7

2012 2013 2014 2015 2016 2017 2018

62.8 59.672.3

31.712.1 3.9

72.6

43.3 43.7

45.1

40.8

41.339.2

41.5

106.1103.3 117.4

72.5

53.443.1

114.1

2012 2013 2014 2015 2016 2017 2018

Accident & Health: improved due to lower expense ratio Motor: 2017 impacted by large claims at Cargeas

Household: very strong claims ratio – impact Leslie 8.1 pp Other: up on sale Cargeas (very small & volatile portfolio)

Guaranteed: strongly exceeding target level Unit-linked: down on lower sales

42



95 100 110 111 99 111 102

77 5976

106

80

113

40

(102)(71) (65) (78) (71)

(99)(77)

70 88

121

139

108

125

65

2014 2015 2016 2017 2018 Q4 17 Q4 18

0 1 20 (1)

4

(6)

1 20 5 4

4

3

9 4 5

16

6

15

5

107 7

21

9

23

2

2014 2015 2016 2017 2018 Q4 17 Q4 18

Operating margin

Expense & other m.

Underwriting m.

Investment m.

Continental Europe Life operating margin per product lineGuaranteed and UL margin down on U/W & investment margin

Investment margin decreased due to lower investment yield

in 2018 and some one-offs in 2017

Underwriting margin decreased due to a reviewed margin in

a large risk contract in our portfolio

Expenses & other margin slightly improved versus last year

thanks to higher volumes

Expense & other margin decreased due to lower fees -

combined effect of management and upfront fees

Underwriting margin 2017 benefited from high surrender

result at Ocidental


6.2 6.1 6.0 7.5 7.6 7.5 7.6


7.7 8.0 8.7 7.9 8.1 7.9 8.1



In % NEP


269

152

24

17

293

170

FY 17 FY 18

Life Non-Life cap gain HK

19.2 20.1

0.80.9

20.021.0

FY 17 FY 18

Life Non-Life

55.963.0 65.6

FY 17 9M 18 FY 18

81.889.1

Q4 17 Q4 18

87.4 90.7

FY 17 FY 18

Asia: Headlines Strong operational performance – significant impact of equity impairments

Net result: EUR 230 mio lower net cap gains contribution

Non-Life combined ratio remains strong

Inflows* up 7% @ constant FX – higher renewals & catch up of NB since Q1

Life Technical liabilities up 17% @ constant FX

3.0 3.40.2 0.2

3.2 3.7

Q4 17 Q4 18

87

(46)

9

6

96

(41)

Q4 17

15.8 18.6

3.41.5

19.220.1

FY 17 FY 18

regular single

In EUR bn

Regular premium: strong growth -exceeding 90% of Life inflows

2.8 3.1

0.30.3

3.03.4

Q4 17 Q4 18

Life

Non-Life


Unit-Linked

Guaranteed

Other

Household

Accident & Health

Motor

In EUR mio

In EUR mio

Asia: Inflow @ 100%Significantly higher renewals across the region – strong new business catch-up in Q4

18,394 19,252

808891

+3%

19,20120,142

FY 17 FY 18

386 407

104 104

111130

226243

+7%

827884

FY 17 FY 18

Life up +7%* - Q4 up +13%

Renewal premiums +27% benefiting from continued good persistency

New business -22% to EUR 6.1 bn due to discontinuation of SP following

regulation changes in China – Q4 up +45%

China +9% – renewals up a strong +34%, more than offsetting new business

decrease – Q4 inflow up +17% with new business up +70%

Thailand -8% – renewals in line with last year, new business -27% mainly due

to stricter regulatory context

Malaysia +18% – new business up +26% & renewals up +8%

India +9% – supported by growth in renewal premium +27%

Philippines Inflow @ EUR 23 mio – reflecting growth in new business (+48%)

& in renewals (+215%)

Vietnam Inflow @ EUR 47 mio, Banca channel key contributor

Non-Life up 5% - Q4 up 11%

Malaysia +9%– strong growth in all businesses

Thailand in line with LY

* inc. incl. non-consolidated partnerships @ 100%

** all growth percentages on this slide calculated @ constant FX

Net result positive following RPN(i) revaluation & cap gain LuxembourgIn EUR mio

Value legacies – Settlement liability down on payments

General Account: Headlines


Total liquid assets slightly down

In EUR mioImpact on P&L from RPN(i) Staff & Operating expenses up on

execution Fortis Settlement

In EUR mio In EUR bn

In EUR mio

AG Insurance put option expired

(337)

12

FY 17 FY 18

(11)21

Q4 17 Q4 18

1.8 1.8 1.7

FY 17 9M 18 FY 18

(448) (391) (359)

18 5 7

(1,110)

(886)(812)

FY 17 9M 18 FY 18

RPN(i) RPI Settlement

(1,449)

(0) (0)

FY 17 9M 18 FY 18

26 25

5062

7687

FY 17 FY 18

Staff & Intercompany Operating

4 3

1224

16

27

Q4 17 Q4 18

(173)

89

FY 17 FY 18

(11)

32

Q4 17 Q4 18

In EUR mio


Total liquid assets General Account slightly downCash upstream covering paid dividend, holdco costs & part of SBB

In EUR mio

Upstream from operating companies more than covering paid dividend & holding

expenses

M&A relates to Luxembourg & capital injections in Vietnam & The Philippines

Additional EUR 12 mio cash-out for running SBB in Q1 2019

EUR 0.7 bn ring-fenced for Fortis settlement vs. EUR 0.9 bn at YE 2017

– pre-payments to ForSettlement & compensation to claimant's’ organisations

≈ 800 ≈ 900

settlement settlement

SBB SBB

1,778 1,713

(407)(137)

(86)(125)

(7)

62213

174 (28)(83)

FY 17 Upstream Dividend RPI M&A Settlement HQ & ROexpenses

Sharebuy-back

Other FY 18

HQ

RO


Main characteristics Hybrids

In EUR mio Ageas

AgeasfinluxFresh

Tier 1

Fixed-to-FloatingRate Callable

Tier 2

Fixed Rate Reset Perpetual

Subordinated LoansTier 1

Fixed Rate Reset Dated Subordinated

NotesTier 2

CASHES

% 3m EUR + 135 bps 5.25% 6.75% 3.5% 3m EUR +200 bps

Amountoutstanding

1,250 450 550 USD 400 948

ISIN XS0147484074 BE6261254013 BE6251340780 BE6277215545 BE0933899800

Call dateUndated,

strike 315.0 mandatory 472.5

Jun 2024Step up to 3M

Euribor +413 bps

Mar 2019 Step up to 6yr USD

swap + 533 bps

June 2027Step up after 12 years of 100bps

Undated, strike 239.4, mandatory

359.1

OtherSubscribed byAgeas & BNP Paribas Fortis

Public issue Public issueCoupon served by FBB, trigger ACSM linked to

Ageas dividend

Market Price (31/12/18)

51.74 114.02 100.09 98.27 75.95

Fortis Bank (now BNP PF)

AG Insurance (Belgium)





Legal Settlement 64


49

Shareholders’ equity down on expiration put option to EUR 9.4 bnEquity per share up following bought back shares - UCG/L per share of EUR 13.44

In EUR mio

6,681 6,798

2,8012,631

129 (17)

797 12

8 33 (176) (403) (207) (253) (11)

EUR 48.30EUR 48.42

9,611 9,411

FY 17 resultInsurance

resultGen Acc

changeUG/L

dividend treasuryshares

expirationput option

FX IAS 19 other FY 18

InsuranceUCG/L Insurance

UCG/L

Shareholders’

equity per

segment

Shareholders’

equity per share

Belgium 5,096 ► 4,843 Asia 2,036 ► 2,354

UK 852 ► 896 Reinsurance 113 ► 116

Continental Europe 1,385 ► 1,220 Insurance 9,482 ► 9,429

General Account 129 ► (17)


50

Tangible net equityHigh quality capital structure

10/03/2010 I page 50

EUR bn FY 17 FY 18

IFRS Shareholders' Equity 9.6 9.4

Unrealised gains real estate 0.6 0.6

Goodwill (0.6) (0.6)

VOBA (Value of Business Acquired) (0.1) (0.1)

DAC (Deferred Acquisition Cost) (0.4) (0.4)

Other (0.4) (0.4)

Goodwill, DAC, VOBA related to N-C interests 0.3 0.3

25% tax adjustment DAC, VOBA & Other 0.1 0.1

IFRS Tangible net equity 9.1 9.0

IFRS Tangible net equity/ IFRS Shareholder's Equity 95% 96%

Debt leverage on tangible net equity 19.8% 20.2%


* Leverage calculated as (Subordinated liabilities + Senior debt) / (Tangible net equity + Subordinated liabilities + Senior debt)


Solvency IIageas Group up to 215% - proposed dividend already deductedInsurance@ 202% supported by higher fungibility of capital

Solvency IIageas

in %

In EUR bn

Own Funds

SCR

Non EU

Non-controlled

participations*

51


Non-transferable


2.9 2.7

0.5 0.5 0.7 0.6

0.0 0.1

(0.2) (0.2)

3.93.7

0.1 0.1

4.0 3.7

1.92.4

6.96.4

0.8 0.81.4

1.0

0.1 0.1(1.4)

(1.0)

7.77.4

0.20.6

7.9 8.0

4.9

5.8


237% 235% 147% 167% 207% 178% 243% 196% 196% 202% 196% 215% 261% 241%

52

Ageas Group Solvency IIageasIncrease driven by operating performance, supported by put option & reinsurance license

Impact on

Solvency IIageas*

FY ’17 FY ’18

196% 215%

9M ’18 FY ’18

215% 215%

Expiration put option +7 pp

Capital fungibility (Reinsurance license) +5 pp

Sale Luxembourg +6 pp + 8 pp

Model refinements -3 pp -2 pp

Market movements (incl. RPN(i))

+1 pp(+2 pp)

-4 pp(+1 pp)

Ogden adjustment +1 pp +1 pp

Operational +16 pp + 1 pp

SBB -5 pp -1 pp

Expected dividend -10 pp -3 pp

* Impact including secondary impact, diversification & non-transferable


1,532

2,143

407

414

489

213

530

45

(112) (23)

(216)

(407)

1,940

2,557

99629


Capitalfungibility

Modelrefinements


Ogdenadjustment

Capitaltransactions

Paiddividend

FY 18


Group Free Capital Generation Operational FCG in line with FY guidance - more than covering dividend accrual & SBB

In EUR mio

53

FCG Non-European NCP’s of EUR 146 mio over 9M 2018 of which EUR 372 mio operational, not included in EUR 629 mio

Operational impact – FY guidance of EUR 500 – 540 mio for Solvency scope

includes EUR 99 mio dividend upstream Non-European NCP’s

driven by time value, business performance, yearly assumption changes & asset mix

Market: driven by spread movements & lower equity markets

Ogden adjustment: discount rate set @ 0% - no impact on IFRS result

Capital transactions = SBB + injection in Asia

expected

dividendFree Capital

Generation

Based on 175% of

SCRageas

expected

dividend


Evolution SCR & OF split between types of impact

In EUR mio

54

Own Funds

SCR

7,874 7,998

407 414259 21315 587

41

(361)(216)

(407)

8,281 8,412


Capitalfungibility

Modelrefinements


Ogdenadjustment

Capitaltransactions

Paiddividend

FY 18

4,010

3,728

76

(133)(209)

(17)(2)


Capitalfungibility

Modelrefinements


Ogdenadjustment

Capitaltransactions

Paiddividend

FY 18

10/03/2010 I page 55

Operational FCG per segmentDriven by Belgium & UK, Q4 lower on several one-offs


EUR mio

OF SCR FCG Quarterly

impact

Belgium 586 (35) 648 overall very strong year

167 strong Q4 / SCR down on changes in asset-mix

UK 99 (40) 169 overall very strong year / SCR benefiting from credit insurance

68 strong Q4 / SCR down on lower business volumes

CEU 129 31 74 strong OF generation

(61) SCR up on high business volumes & changes in asset-mix

Reinsurance 3 10 (14)

(16) SCR increase related to increase in insurance operations

General Account (40) 18 (71) OF including dividend Non-European JV's & CC costs

(90) SCR up on temporay high cash exposure (Settlement & Lux) & FX (UK)

Group eliminations (190) 0 (177) (13) related to minority shareholders' part in BE & Portugal

Total Ageas 587 (17) 629 including dividend Non-European JV's, H1 weather impact

Solvency II scope 55 lower in Continental Europe & General Account

56

Ageas Insurance Solvency sensitivitiesProviding updated sensitivities to allow more accurate assessment

As per 31/12/17Based on Solvency IIageas

SCR OF Solvency

Base caseBefore stress

3,934 7,713 196% ∆ 2017

sensitivities

∆ 2016

sensitivities

Yield curve downDown 50 bps

4,088 7,623 186% -10pp -13pp

Yield curve upUp 50 bps

3,812 7,764 204% +8pp +10pp

EquityDown 25%

3,935 7,414 188% -8pp -3pp

PropertyDown 15%

3,995 7,284 182% -14pp -3pp

Spread*Spreads on corporate & government bonds up 50 bps

3,910 7,395 189% -7pp -22pp

Corporate spread up 50 bps 3,941 7,664 194% -2pp +6pp

Sovereign spread up 50 bps 3,912 7,449 190% -6pp -28pp

UFR– base case 4.20%Down to 4.05% (already included in 3M ’18 results)

Down to 3.65% (further down from 4.05%)

3,949

3,962

7,703

7,659

195%

193%-1pp

-2pp

-1pp

-3pp

* Spread sensitivity doesn’t take into account any credit rating movement



Solvency PIM – as reported under Pillar I – proposed dividend deductedGroup @ 216% supported by divestment Luxembourg, expiring put option & higher fungibility

Solvency II PIM

in %

In EUR bn

Own Funds

SCR

Non EU

Non-controlled

participations*

57



Non-transferable

3.0 2.8

0.5 0.5 0.6 0.5

0.1 0.1 (0.2) (0.2)

4.0 3.6

0.1 0.1

4.1 3.7

1.92.4

6.66.3

0.8 0.9

1.71.4

0.1 0.1 (1.6)

(1.1)

7.7 7.5

0.10.6

7.78.1

4.9

5.8


220% 222% 143% 169% 300% 288% 230% 191% 192% 206% 191% 216% 261% 241%

( 1.4 ) ( 1.5 )

( 1.3 ) ( 1.1 )

( 0.9 ) ( 0.8 )

4.8 4.3

0.3 0.3

0.7 0.8

0.5 0.5

0.7 0.7

0.7 0.5

3.9 3.7

FY 17 FY 18

Non Diversifiable

Non-life UW

Health UW

Life UW

Counterparty Default

Market

Loss-Absorption Deferred Taxes

Loss-Absorption Techn. Liab.

Diversification


Composition of SCR & OF

58

In EUR bn

Diversification

Loss-Absorption Deferred Taxes

Insurance SCRageas per risk type

Market risk main factor in SCR

Tiering of Group PIM own funds

High quality of own funds

5.3 5.6

1.3 1.4

1.0 1.0

0.1 0.1

7.7

8.1

FY 17 FY 18

Tier 3

Tier 2

Tier 1 restricted

Tier 1





Legal Settlement 64



In EUR bn

* All assets at fair value except the ‘Held to Maturity’ assets & loans which are valued at amortized costs

Asset mix

Asset allocation stable a part from valuation movements

Gross unrealized gains/losses on Available for Sale

Total portfolio: down to EUR 5.9 bn (vs. EUR 7.7 bn)

Fixed income: at EUR 5.6 bn (vs. EUR 6.9 bn)

Sovereigns at EUR 4.6 bn (vs. EUR 5.3 bn)

Corporates at EUR 1.0 bn (vs. EUR 1.6 bn)

Equities: down to EUR 0.4 bn (vs. EUR 0.8 bn)

Gross UG/L on Real Estate: at EUR 1.8 bn (vs. EUR 1.6 bn)

- not reflected in shareholders’ equity

Unrealized gains/losses on Held to Maturity portfolio at EUR 1.9 bn

- not reflected in shareholders’ equity

Ageas Group has joined the commitment to

incorporate ESG issues into its investment

analysis and decisions and signed on behalf

of all its consolidated entities the UN PRI

Investment portfolio Investment portfolio allocation down on lower UG/L

Sovereign bonds 37.5

Sovereign bonds 36.9

Corporate bonds 20.8

Corporate bonds 19.9

Structured0.1

Structured0.1

Loans9.4

Loans9.8

Equities 4.9Equities 4.5

Real Estate5.3

Real Estate5.6

Cash 2.6 Cash 2.9

80.6 79.6

FY 17 FY 18

Gross UG/L at EUR 4.6 bn (vs. EUR 5.3 bn)

Over 99% investment grade; 90% rated A or higher

Belgium duration gap close to zero – matched portfolio

Belgium18.6

Belgium18.0

France 6.3 France 6.3

Austria 2.8 Austria 2.6

Portugal 2.7Portugal 2.6

Spain 1.4 Spain 1.8

Italy, 1.2 Italy, 1.2Germany 1.1 Germany 1.2Ireland 0.6 Ireland 0.5

Other 2.8 Other 2.7

37.5 36.9

FY 17 FY 18

In EUR bn

Sovereign bond portfolio*

Sovereign & Corporate bond portfolioValue fixed income assets slightly down on lower UG/L


Gross UG/L at EUR 1.0 bn (vs. EUR 1.6 bn)

Credit quality remains high with 91% investment grade -

54% rated A or higher

Corporate bond portfolio*

Banking 3.2 Banking 3.1

Other financials 1.7

Other financials 1.8

Non Financials

12.6

Non Financials

11.5

Government related 3.2

Government related 3.4

20.819.9

FY 17 FY 18


Loan portfolio (customers + banks)*

Loan & Equity portfolioMore infrastructure loans

Loans to banks 1.3

Loans to banks 1.0

RE 0.1RE 0.1

Infrastructure0.7

Infrastructure0.9

Mortgages 1.2 Mortgages 1.2

Other 6.1 Other 6.6

9.49.8

FY 17 FY 18

Higher exposure in infrastructure loans

Other: mostly government related loans benefiting

from an explicit guarantee by the Belgian regions, the

French State or the Dutch State


Equity portfolio*

Gross UG/L down to EUR 0.4 bn (vs. EUR 0.8 bn)

Equities 2.8Equities 2.2

Equity funds0.3

Equity funds0.3

RE funds 0.8

RE funds 0.9

Mixed funds & others 0.9

Mixed funds & others 1.1

4.94.5

FY 17 FY 18


In EUR bn


Real estate portfolio*

10/03/2010

Gross UG/L up to EUR 1.8 bn (not reflected in

shareholders’ equity but contributing to available

capital for solvency calculation)

Real Estate exposure mainly in Belgium

Investment Offices 2.2

Investment Offices 2.4

Car Parks1.1

Car Parks1.2

Investment Retail 1.3

Investment Retail 1.3

0.40.30.40.4

5.35.6

FY 17 FY 18

Investment

Warehouses

RE Development

Investment

Warehouses

RE Development

In EUR bn






Legal Settlement 64


65

Ageas offers to pay EUR 1.2 bn compensation – additional effort of EUR 0.1 bn

announced 16/10/2017

Cash impact of EUR 1.0 bn

No recognition of any wrongdoing by Ageas

Commitment by eligible shareholders to abandon any ongoing civil proceeding & not to

start any legal proceeding related to the events

Publication of binding declaration notice launches execution of the settlement

Claims file period will end on 28/07/19

Early filing & opt-out period ended on 31/12/18

Computershare Investor Services plc acting as independent claims administrator

All forms & further information available on www.FORsettlement.com

≈ 250K claims received of which ≈ 73 K have received early payment

272 opt-outs received related to slightly above 1% of total settlement amount*

≈ EUR 420 mio compensation paid to eligible shareholders of which EUR 140 mio

coming from D&O insurers – more payments scheduled

Announcement

14/03/2016


Court’s decision to declare the settlement binding on 13/07/2018

Publication binding

declaration notice

27/07/2018

Settlement between Ageas & claimant organisationsDeclared binding in July & in full execution mode

Execution ongoing

* Based on indicative per share compensation & per 12/02/2019

Ageas’s decision to waive its termination right on 21/12/2018

http://www.forsettlement.com/

Notification process will ensure all eligible shareholders are duly informed

Early filers (during the opt-out period) can already receive 70% of their compensation

Ageas has a termination right at the end of the opt-out period if the amount represented by the

number of Fortis Shares opting out of the settlement exceeds 5% of the settlement amount

66

Better view on timingsEarly payment for fast filers

13 July 2018

Court’s decision to declare settlement binding

Remaining

payment

est. around

YE 2019

28 July 2019

Claims submission

deadline

27 July 2018

start claims filing31 December 2018

End of opt-out

period

Early payment

7

months

2

weeks

5

months


max. 8 weeks

Decision on

termination right

67

Indicative per share compensation amountsEqual treatment of all eligible shareholders in terms of damages

Per share compensation

In EUR Period 1 Period 2 Period 3

Buyers 0.47 1.07 0.31

Holders 0.23 0.51 0.15

Compensation add-on

EUR 0.5/share – max EUR 950 - calculated on highest # shares

held between 28/02/07 cob & 14/10/08 cob

Cost addition

25% of per share compensation for buyer and/or holder

All eligible shareholders

Cost addition for active

claimants

All amounts subject to potential dilution / increase depending on number of Fortis

shares that will ultimately be presented

Ageas has termination right if amount represented by number of Fortis shares opting

out exceeds 5% of settlement amount

Calculation module based on indicative amounts available www.FORsettlement.com

Be aware that

All eligible shareholders


http://www.forsettlement.com/

21 September 2007 7 November 2007 cob Communication on subprime exposure, organisation of capital increase for ABN AMRO

acquisition - period linked to AFM II fine

13 May 2008 25 June 2008 cob Communication on solvency after full integration of ABN AMRO – period linked to AFM I fine

29 September 2008 3 October 2008 cob Communication on the deal with the Benelux governments – period linked to FortisEffect case

The various litigation procedures

Main allegations

Judgments rendered so far

Open of

business

Close of

business

(cob) 28/02/07 14/10/08

21/09/07 07/11/07 13/05/08 25/06/08 29/09/08 03/10/081 2

3

4

5

6

7

8

Eligible period

3 reference

periods

Reference

periods

based on

Progress in solving legal legaciesPeriods involved



NL Stichting Investor Claims Against Fortis (SICAF) – terminated

BE Deminor – will be largely terminated

BE – 2 claimants – awaiting termination

BE Mr. Lenssens – will be largely terminated

NL Consumentenclaim – awaiting termination

NL Stichting FortisEffect – terminated

BE Mr. Modrikamen – suspended awaiting outcome criminal procedure

BE Mr. Arnauts – will be largely terminated

NL VEB – terminated

NL Mr. Bos – within eligible period – can be re-activated

NL 5 separate proceedings – Mr. Meijer – terminated or awaiting termination

NL Archand – terminated

BE Patrinvest – within eligible period – not suspended – appeal filed by claimant

Ongoing civil litigations all in scope of WCAM procedureVast majority of proceedings terminated or awaiting termination

20082007

May/June 08

Communication re solvency & EC

remedies

September - October 08

Rescue operations & Split up of

Fortis Group, spread over 2 WE’sAugust 07

Communication Q2 figures

September 07

Capital increase, Prospectus,

Communication about subprime

exposure

May 07

Press release re bid on ABN AMRO

January 08

Press release on subprime & solvency


AFM I : final - fine imposed

FSMA: final - fine imposed

20082007

May/June 08

Communication re solvency & EC

remedies

September -

October 08

Rescue operations & Split

up of Fortis Group,

spread over 2 WE’sAugust 07

Communication Q2 figures

AFM II : final - acquittal

September 07

Capital increase, Prospectus,

Communication about subprime

exposure

May 07

Press release re bid on ABN AMRO

January 08

Press release on subprime & solvency

Criminal Investigation : referral to court asked for 7 individuals, not for ageas - awaiting decision Chambre du

Conseil on referral

Administrative proceedings

Criminal proceedings

Other proceedings: almost all cases closed

Other proceedings

RBS claim related to take-over of ABN AMRO: judgement 2/2/18 in favour of Ageas

MCS holders against conversion of MCS : judgement 1/2/19 in favour of Ageas





Legal Settlement 64



Total number of outstanding sharesAnother 6 mio shares cancelled during Shareholders’ meeting in April 2018

situation 31/12/2017 situation 31/12/2018 situation 15/02/2019

209,399,949 203,022,199 203,022,199

14,304,863 12,574,985 12,884,085

6,377,750 4,647,872 4,956,972

3,968,254 3,968,254 3,968,254

0 0 0

3,958,859 3,958,859 3,958,859

195,095,086 190,447,214 190,138,114

Total Issued Shares

Shares not entitled to dividend nor voting rights

1. TREASURY SHARES Share buy-back

FRESH

Other treasury shares

2. CASHES

Shares entitled to dividend & voting rights

* After deduction of shares for management plans

*


Shareholders structure

Based on number of shares as at 15 February 2019

Ageas4.4%

Ping An

BlackRock, Inc.

Schroders

Fosun Identified retail investors

22%

Identified institutional investors

44%

Other investors

14%

Based upon press release 18 February 2019

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 7 February 2019

Based upon the number of shares mentioned in the notification received 8 June 2018

Based upon the number of shares mentioned in the notification received 5 October 2017

Estimate by

Estimate by

Ageas

Ping An

BlackRock, Inc.

Schroders

Fosun

Identified retail investors

Identified institutional investors


Financial calendar 2018 - 2019

20 February

FY 2018 results

15 May

3M 2019 results

15 May

Ordinary shareholders’ meeting

Brussels

27 May

Ex-dividend date

5 April

Annual report 2018 29 May

Payment 2018 dividend

7 August

6M 2019 results

6 November

9M 2019 results

14 November

9M 2018 results


Rating

S&P MOODY'S FITCH

Operating AG Insurance (Belgium) A / stable A2 / stable* A+ / stable

entities Last change 22/11/18 02/08/18 07/12/18

unsollicited

Ageas Insurance Limited A / stable A+ / stable

Last change 06/11/15 23/11/16

Muang Thai Life BBB+ / stable BBB+ / stable

Last change 29/12/10 27/07/16

Etiqa Insurance Berhad (Malaysia) A- / stable

Last change 27/07/16

China Taiping Life A+ / stable


Intreas A / stable


Holding ageas SA/NV A / stable A3 / stable* A+ / stable

Last change 10/12/18 29/01/19 07/12/18

unsollicited

* Ageas has requested in early 2009 that this rating should be withdrawn. Ageas no longer participates in Moody's credit rating process.

Ageas does not provide, for purposes of Moody's rating, access to the books, records and other relevant internal documents of these rated entities.

76

Certain of the statements contained herein are statements of

future expectations and other forward-looking statements that

are based on management's current views and assumptions

and involve known and unknown risks and uncertainties that

could cause actual results, performance or events to differ

materially from those expressed or implied in such

statements. Future actual results, performance or events

may differ materially from those in such statements due to,

without limitation, (i) general economic conditions, including

in particular economic conditions in Ageas’s core markets, (ii)

performance of financial markets, (iii) the frequency and

severity of insured loss events, (iv) mortality and morbidity

levels and trends, (v) persistency levels, (vi) interest rate

levels, (vii) currency exchange rates, (viii) increasing levels of

competition, (ix) changes in laws and regulations, including

monetary convergence and the Economic and Monetary

Union, (x) changes in the policies of central banks and/or

foreign governments and (xi) general competitive factors, in

each case on a global, regional and/or national basis. In

addition, the financial information contained in this

presentation, including the pro forma information contained

herein, is unaudited and is provided for illustrative purposes

only. It does not purport to be indicative of what the actual

results of operations or financial condition of Ageas and its

subsidiaries would have been had these events occurred or

transactions been consummated on or as of the dates

indicated, nor does it purport to be indicative of the results of

operations or financial condition that may be achieved in the

future.

Investor Relations

Tel:

E-mail:

Website:

+ 32 2 557 57 34

[email protected]

www.ageas.com


Naar een coherente ontwikkeling van de Belgische markt · Final after Ageas’s decision to waive...

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