Full year results 2011
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Transcript of Full year results 2011
AGENDA
CEO update
Financials
Selected topics
220 February 2012 I
Insurance results affected by adverse financial markets, Strong operational improvement in Non-Life
Group net loss of EUR 578 mio
Resilient balance sheet
Highlights FY 2011*
Net loss of EUR 313 mio (vs. EUR 391 mio positive)
Total net impairment charges of EUR 908 mio Group combined ratio at 101.1% (vs.107.3%)
Inflow at EUR 17.2 bn, -4% FuM scope-on-scope stable at EUR 70.6 bn
General Account net loss at EUR 265 mio EUR 215 mio legacy related charges
Shareholders’ equity at EUR 3.23 per share Insurance solvency ratio resilient at 207%, Group
solvency at 237%
* All FY11 data are compared to the FY 10 figures unless otherwise stated
Proposed gross cash dividend of 8 eurocent per share
320 February 2012 I
(313)
908391595
FY 10 FY 11
223
(168) (265)
391
(313)
(578)
FY 10 FY 11
FY 10 9M 11 FY 11
Impairment charges cloud the insurance performanceBalance sheet remains strong & stableNet result : Capital gains partly offset impairmentsIn EUR mio In EUR mio
Strong Insurance solvency*, not impacted by impairments
Proposed gross dividend 2011 In eurocent
Combined ratio substantially improved
Group : General Account remains volatile
Insurance General Account
227% 2.893.233.26
FY 10 H1 11 FY 11
Shareholders’ equity upEUR per share
8 88
FY 09 FY 10 FY 11
FY 10 H1 11 FY 11
101.1%101.2%107.3%
210%
* Based on regulator’s view
207%
Reported Ins resultAdjusted Insurance resultImpairments Greece, equities, & AICACapital gains: EUR 167 mio (EUR 62 mio in 2010)
420 February 2012 I
Lower Life inflows, Non-Life up across all segmentsTotal inflows at EUR 17.2 bn, -4%; UK up 69%
Asia* :Life : EUR 5.6 bn, -1% Outstanding 2010 performance equalled; Increased focus on
regular premiums Banks across Asia focus on liquidity & growing deposit baseNon-Life : EUR 0.6 bn, +18%
Continental Europe* :Life : EUR 2.2 bn, -36% Portugal, -38% due to macro-economic environment Luxembourg, -37%, due to lower benefit FoS regulationNon-Life : EUR 0.6 bn, +42% Portugal : further up in Healthcare, driven by strong Médis brand Italy : stable premiums despite increased focus on profitability Turkey: EUR 0.2 bn inflows since August 11 (Ageas’s share)
Belgium :Life : EUR 4.5 bn, -12% Strong competition from banks & state bonds Overall lower appetite for insurance savings productsNon-Life : EUR 1.7 bn, +5% Growth outperforms the market Mix of portfolio growth & tariff increases
UK :Non-Life : EUR 2.0bn, +68% Tesco Underwriting : EUR 755 mio in 2011 Ageas Insurance : Inflows +14% Household +24% ex Tesco; Commercial +10% Life : EUR 51 mio, +82% Increasing market share of Ageas ProtectOther : EUR 272 mio, +51% Acquisitions KFFS & Castle Cover drive growth
* incl. Non-controlling interests at 100%
520 February 2012 I
EUR 2,381 mio
86
(327)
(64)(8)
Belgium UK CE Asia
Inflow breakdown by segment Gross inflow FY 11 = EUR 17.2 bn*
Result breakdown by segment Net result FY 11 = EUR 313 mio negative
Equity breakdown by segmentTotal shareholders’ equity FY 11 = EUR 7.8 bn
Asia 36%
Belgium 36%
ContinentalEurope 16%
Belgium 40%
ContinentalEurope 15%
Asia 28%
* Including non-consolidated partnerships at 100%: EUR 6.0bn
United Kingdom 12%
UK 17%
Life FuM breakdown by segmentTotal FuM FY 11 = EUR 82.9 bn*
Belgium 59%
ContinentalEurope 17%
Asia 24%
* Including non-consolidated partnerships at 100%
Asia non-consolidated JV’s
EUR 1,008 mio
EUR 1,687 mio
EUR 929 mio
General Account EUR 1,756 mio
AKSigorta, Turkey
Asia non-consolidated JV’s
Insurance: Various views on Ageas by segment Contribution UK nearly doubled vs. 2010
620 February 2012 I
Improve operational performance Underlying Insurance result up, driven by better
Non-Life performance
Strengthen Insurance activities Non-Life: successful start Tesco Underwriting
(UK) & acquisition stake (Turkey – CEU)
Life: focus on consolidation / strengthening market position, ao in Luxembourg
Make progress on legacy issues Progress in a number of legal files
Transaction with BNP P: partial settlement RPN(I) & full redemption Tier 1 Debt Securities
Disciplined capital management EUR 250 mio share buy-back programme
Dividend maintained despite negative Insurance result
Prepare for regulatory changes Solvency II preparations on track
Status realization strategic priorities in 2011Priorities published on 09/03/2011 (annual results 2010)
720 February 2012 I
UK
Deployment multi-channel distribution in Non-Life & strengthen market position
Qualify Life protection business across IFA market
Further diversify revenue base through development Retail distribution business
Belgium
≈ Strengthen Life & Non-Life market position
Further develop multi-distribution strategy
Focus on operational performance
Continental Europe
Focus on operational excellence
Streamline current Insurance portfolio
Selective investments in areas of growth
Focus on knowledge transfer
Asia
Strengthen local market positions and partnerships
Focus on value creation
≈ Increased focus on profitability
Status realization strategic priorities in 2011 by segmentPriorities published on 09/03/2011 (annual results 2010)
820 February 2012 I
Belgium : Combined ratio 103.3% vs. 107.4%excl. WC 99.9% vs. 104.2%
Q4 11 combined ratio excl. WC at 99.1%
Motor: FY 11 at 94.2%; Q4 at 92.1% (FY 10: 106.7%)
Fire: FY 11 at 109.9%; Q4 at 105.3% (FY 10: 122.6%)
UK : Combined ratio at 99.9% vs. 109.5%excl. Tesco Underwriting 98.8%
Q4 11 combined ratio at 99.8%
Motor: FY 11 at 98.7%; Q4 at 99.7% (FY 10: 106.2%)
Fire: FY 11 at 96.7%; Q4 at 88.0% (FY 10: 115.6%)
10/03/2010 I page 8
Non-Life combined ratio : Operational targets nearly achievedCombined ratio excluding Workmen’s Compensation below 100%
90
100
110
120
130
2008 2009 2010 2011
Belgium Motor Belgium Fire Belgium
% Combined ratio (excl. Workmen’s Compensation)
90
100
110
120
130
2008 2009 2010 2011
UK Motor UK Fire UK
920 February 2012 I
Substantial progress made in streamlining the insurance portfolioCombined with selective expansion & strengthening partnerships
CEU :18/02/11 : Ageas enters Turkish Non-Life market; acquisition 31% in AKSigorta / stakeincreased to 33%
GA :23/06/11 : Transfer reinsuranceliabilities Intreincoto Swiss Re
UK:24/03/11 : Acquisition CastleCover, strenghtening marketposition in over 50s market
Asia :09/11/09 : Ageas, KasikornBank & Muang Thaiforge stronger ties (Thailand)
CEU :28/10/09 : DiscontinuationRussianInsurance activities
CEU :16/09/10 :Sale Ukrainian LifeInsurance activities announced
CEU :06/10/09 : Sale LuxembourgNon-Life to La Bâloise
CEU :08/06/11 : Ageas, BNP Paribas Cardif & BGL BNP Paribas concludeLuxembourg Life partnership
CEU :17/09/09 : Ageas & BNP Paribas Assurance into a Non-Life strategicpartnership in Italy; acquisition majoritystake in UBI Assicurazioni
UK : 11/09/09 : Tesco & Fortis announce Non-Lifepartnership
UK : 02/07/10 : Acquisition Kwik FitInsurance Services, consolidatingPersonal Lines intermediary marketposition
STREAMLINE
STRENGHTEN
CEU :26/07/10 : Sale TurkishLife Insurance activitiesannounced
CEU :03/10/11 : Sale German LifeInsurance activities announced
201120102009
1020 February 2012 I
November 11Receipt report Belgian experts (Cats, Smets, De Bodt)
General Account: good grasp of outstanding legacy issuesAgeas does not expect new major litigation issues to rise
May 10US class action dismissed
June 10Receipt report Dutch experts (Ondernemingskamer)
Sep- Dec 10Ageas starts legal procedure against Dutch State & ABN AMRO to obtain compensation in return for conversion of Mandatory Convertible Securities (MCS) into Ageas’ shares
June 09Ageas claims compensation with respect to “FCC preferred shares” from Fortis Bank NL
June 09Receipt report Belgian experts (Van Gerven/Horsmans)
February 11Claim re FRESH hybrid instrument dismissed by Brussels Court
September 11Exchange of uncalled Fortis Bank Tier 1 Debt Securities for cash by Ageas
Timing and (financial) outcome remains hard to estimate….In many legal proceedings still at the stage of first instance
Judgment of Ondernemingskamer re mismanagement Judgment proceedings initiated by MCS holders (re conversion of MCS)
May 11- Claim dismissed of VEB/Deminor and
FortisEffect by Amsterdam Court- Rotterdam court confirmed fine AFM I:
appeal filed
Initi
ated
byAg
eas
Act
ions
agai
nstA
geas
To be expected before end June 2012
February 12BNPP tender for CASHES and subsequent conversion into Ageas shares – partial settlement of RPN/RPN(I) –call Fortis Bank Tier 1 Debt Securities
February 12- Rotterdam court confirmed
fine AFM II; appeal to be filed- Utrecht court re
communication May-June2008 in favour of plaintiffs; appeal to be filed
201120102009 2012
1120 February 2012 I
Agreement with BNP P on partial settlement of RPN(I) & call Tier 1A next step in simplifying the company with financial impact in Q1 12
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 Settlement on 26 March 2012
Result of the offer Pick-up rate of 62.94%, corresponding to 7,553 CASHES, at offer rate of 47.50%
78,874,241 Ageas’s shares getting dividend and voting rights
Impact on Net Cash position: EUR 953 mio redemption Tier 1
EUR (287) mio indemnifications paid---------------------EUR 666 mio
Limited influence on equity & solvency of General Account +/- (2%)
Impact on Net Result (in Q1 12) : EUR 131 mio Tier 1 redemption
EUR 21 mio release RPN(I) liability
EUR (299) mio indemnifications paid---------------------EUR (147) mio
1220 February 2012 I
Ageas announced a share buy-back programme on 24 AugustProgramme successfully completed on 25 January 2012
24 August: EUR 250 mio share buy-back programme launched
31 December: Ageas had bought back175 mio shares
25 January: Ageas finalises the share buy-back programme:
192,168,091 shares bought back
corresponding to 7.33% of the total shares outstanding
Ageas now holds 8.93% of the total amount of outstanding shares as treasury shares.
Ageas’s Board has decided to propose thecancellation of the bought back shares at the next shareholders’ meetings (on 25/04/12 in Brussels and on 26/04/12 in Utrecht).
1320 February 2012 I
Ageas proposes a dividend over 2011
Proposed gross dividend in cash 8 eurocent per share
In line with 2009/2010 dividend
Sign of trust and belief in the underlying quality of the assets and our business
Dividend to be approved at AGM (25/04/12 in Brussels and on 26/04/12 in Utrecht)
30 April : Ex-dividend date & Start dividend election period
21 May : End dividend election period
31 May : Payment 2011 dividend
1420 February 2012 I
Upcoming...
Find out more about ourNon-Life activities...
Ageas’s Investor Day 2012London
24 & 25 September
AGENDA
CEO update
Financials
Selected topics
1620 February 2012 I
Key financials FY 2011
* Based on average number of outstanding shares** Life & Non-Life/ Scope on scope Fortis Luxembourg Vie excluded as a result of merger
10/03/2010 I page 16
EUR mio FY 11 FY 10 Q4 11 Q4 10 Q3 11
Gross inflows (EUR bn) 17.2 17.9 (4%) 4.3 4.2 3.9Incl. non-consolidated entitities at 100% 6.0 5.8 4% 1.5 1.3 1.4
Net profit Insurance (313) 391 (180%) (104) 58 (320)Belgium (327) 264 (224%) 4 58 (354)UK 86 (17) (612%) 24 (32) 4Continental Europe (8) 51 (116%) 4 24 (15)Asia (64) 94 (169%) (136) 7 18
Net profit General Account (265) (168) (58%) 60 (480) (155)Net profit Group (578) 223 (359%) (45) (423) (475)
Funds under management (EUR bn)** 70.6 71.0 (1%) 70.2
Net shareholders' equity 7,760 8,422 (8%) 7,927Belgium 2,381 2,632 (10%) 2,730UK 1,008 776 30% 941Continental Europe 928 893 4% 863Asia 1,687 1,440 17% 1,549General Account 1,755 2,677 (34%) 2,017
Net equity per share (EUR) 3.23 3.26 (1%) 3.15
Earnings per share (EUR) * (0.23) 0.09 (356%) *
Net cash General Account (EUR bn) 0.7 2.3 (70%) 0.8
1720 February 2012 I
Detailed overview inflows FY 2011By segment/ country/business
EUR mio FY 11 FY 10 FY 11 FY 10 FY 11 FY 10
Belgium 75% 4,508 5,118 1,671 1,591 6,179 6,709
United Kingdom 100% 51 28 1,983 1,179 2,035 1,207
Continental Europe 2,219 3,490 630 443 2,849 3,933 Consolidated entities 2,219 3,490 453 443 2,672 3,933
Portugal 51% 1,071 1,724 237 230 1,308 1,954 France 100% 289 375 0 0 289 375 Luxembourg 50% 814 1,293 0 0 814 1,293 Ukraine 100% 0 2 0 0 0 2 Germany 100% 44 45 0 0 44 45 Turkey 100% 0 51 0 0 0 51 Italy 25% 0 0 216 213 216 213
Non-consolidated partnerships 0 0 177 0 177 0 Turkey (AKsigorta) 33% 0 0 177 0 177 0
Asia 5,550 5,578 607 516 6,157 6,094 Consolidated entities 353 335 0 0 353 335
Hong Kong 100% 353 335 0 0 353 335 Non-consolidated partnerships 5,197 5,243 607 516 5,804 5,759
Malaysia 31% 622 717 478 405 1,100 1,122 Thailand 31%/15% 907 714 129 111 1,036 825 China 25% 3,552 3,681 0 0 3,552 3,681 India 26% 116 131 0 0 116 131
Total 12,329 14,214 4,891 3,729 17,220 17,943
Life Non-Life Total
1820 February 2012 I
Greek bonds Equities Goodwill Total EUR mio 9M Q4 FY 9M Q4 FY FY 9M Q4 FY FY
Belgium Life (449) (109) (558) (86) (7) (93) (535) (116) (651)Non-Life (21) (5) (27) (9) (0) (9) (30) (6) (36)Total (470) (114) (584) (95) (8) (103) (565) (122) (687) 144
UK LifeNon-LifeTotal 8
CEU Life (32) (10) (42) (17) (5) (22) (50) (15) (65)Non-Life (1) 0 (1) 0 (0) (0) (1) 0 (1)Total (33) (10) (43) (17) (5) (22) (50) (16) (66) (8)
Asia* Life (56) (56) (99) (155) (155)Non-LifeTotal (56) (56) (99) (155) (155) 23
Ageas Life (481) (119) (600) (103) (68) (172) (99) (584) (286) (871)
Insurance Non-Life (22) (5) (27) (9) (0) (9) 0 (31) (6) (36)Total (503) (124) (627) (113) (69) (182) (99) (614) (294) (908) 167
Impairments Net Realised Cap gains
* Asia includes EUR 20 mio capital gain on TPL/TPAM
Overview impairments & net realised capital gains by segmentSituation as per 31 December 2011
1920 February 2012 I
InsuranceLife underlying resilient, Non-Life strongly improved
Net loss of EUR 313 mio (vs. EUR 391 mio positive) Negative impact financial turmoil of EUR 809 mio, impacting mainly
Belgium, Continental Europe & Asia;
EUR 627 mio impairment charge on Greek bonds & EUR 182 mio on equities
Life at EUR 425 mio negative (vs. EUR 377 mio positive) Total impairment Greek bonds & equities of EUR 772 mio
Impairment goodwill AICA (Hong Kong) of EUR 99 mio
Belgium includes EUR 20 mio charge related to 0.15% state contribution introduced in 2011;
Non-Life at EUR 82 mio (vs. EUR 2 mio positive) Total impairment Greek bonds & equities of EUR 37 mio
UK returned to net profit at EUR 61 mio; Belgium hampered by impairment charges and adverse weather impact
Total adverse weather related costs of EUR 37 mio of which EUR 22 mio in Belgium, EUR 11 mio in the UK & EUR 4 mio in Asia;
Other at EUR 30 mio (vs. EUR 12 mio positive) Benefits from synergies with recently acquired activities.
EUR mio FY 11 FY 10
Gross inflow 17,219 17,943
Operating costs 849 808
Technical result 325 431
Operating margin (187) 432
Profit before tax (403) 704
Net profit after tax & non-controlling interests (313) 390
Life FUM (EUR bn)* 64.4 64.8**
* Consolidated entities only** Scope-on-scope, adjusted for the reclassification of Fortis Luxembourg Vie and Ageas Deutschland to “Assets & Liabilities Held for Sale”
2020 February 2012 I
BelgiumImpairments cloud Life performance; Intrinsic performance Non-Life on track
10/03/2010 I page 20
EUR mio FY 11 FY 10
Gross inflow 6,179 6,709
Operating costs 457 440
Technical result 240 344
Operating margin (266) 299
Profit before tax (470) 481
Net profit after tax & non-controlling interests (327) 264
Life FUM (EUR bn) 49.1 48.2
Net profit at EUR 327 mio negative (vs. EUR 264 mio) FY 11 net impairment charge on Greece & equities of EUR 687 mio
of which EUR 122 mio in Q4
FY 11 net profit excluding net impairments charges amounted to 360 mio, partly supported by capital gains
Positive evolution Non-Life performance confirmed, driven by positive turnaround in Motor
IFRS Solvency ratio down but remained solid at 174%
Life at EUR 330 mio negative (vs. EUR 252 mio) FY 11 net impairment charge on Greece & equities of EUR 651 mio
of which EUR 116 mio in Q4
Life FUM at EUR 49.1 bn, +2% vs. 2010
Non-Life at EUR 3 mio (vs. EUR 11 mio) FY 11 net impairment charge on Greece & equities of EUR 36 mio of
which EUR 6 mio in Q4
Net impact weather events of EUR 22 mio
Further improvement Motor and strong performance Health;
Fire impacted by weather conditions and a higher large claims costs
Continued underperformance in Workmen's Compensation.
2120 February 2012 I
United KingdomBetter overall financial performance despite exceptional claims in Household
10/03/2010 I page 21
EUR mio FY 11 FY 10
Gross inflow 2,035 1,207
Operating costs 167 124
Technical result 59 (57)
Operating margin 66 (54)
Profit before tax 121 (29)
Net profit after tax & non-controlling interests 86 (17)
Net result at EUR 86 mio (vs. EUR -17 mio) Multi-distribution strategy creating good returns
Improved performance overall but especially in private Motor
Robust return from Retail activities
Life at EUR -4 mio (vs. EUR -9 mio) Continued progress in roll-out of protection business; over 8%
market share among IFAs (6.4% 2010)
Non-Life at EUR 61 mio (vs. EUR -21 mio) Improved Motor result through positive impact of management
actions
EUR 12 mio adverse weather impact (vs. EUR 49 mio in 2010)
Other Insurance at EUR 30 mio (vs. EUR 13 mio) Strong commission income and partnership growth
KFFS & Castle Cover contributed EUR 8 mio, including EUR 5 mioamortisation of intangible assets & acquisition and financing costs Castle Cover earlier this year
2220 February 2012 I
Continental EuropeNet profit impacted by impairments and net realised capital losses; solid Non-Life underwriting performance reflected in an excellent combined ratio
10/03/2010 I page 22
EUR mio FY 11 FY 10
Gross inflow 2,849 3,933
Operating costs 186 206
Technical result 11 135
Operating margin (6) 136
Profit before tax 7 157
Net profit after tax & non-controlling interests (8) 51
Life FUM (EUR bn)* 13.7 15.2*
* Scope-on-scope, adjusted for the reclassification of Fortis Luxembourg Vie and Ageas Deutschland to “Assets & Liabilities Held for Sale”
Net result at EUR 8 mio negative (vs. EUR 51 miopositive)
Life at EUR 19 mio negative (vs. EUR 48 mio positive) Impairment charge related to Greek bonds & net realised
capital losses, following de-risking portfolio, totalling EUR 73 mio
Operating costs further down on continued streamlining insurance portfolio and cost containment focus
Non-Life at EUR 11 mio (vs. EUR 3 mio) Operating margin increased by EUR 20 mio to EUR 27 mio
driven by better technical performance
Combined ratio fell by 5% to 96.8% (vs.101.5% in 2010)
Operating costs -3% explained by early retirement provision in Portugal last year
Net result Turkey (AKSigorta) : EUR 4 mio (5m contribution)
2320 February 2012 I
Net loss of EUR 64 mio (vs. EUR 94 mio positive) 2011 net loss included EUR 155 mio net non-recurring charges
Hong Kong: Significant impact from goodwill impairment; net profit down on a comparable basis due to strong sales
Non-consolidated partnerships: EUR 32 mio (vs. EUR 54 mio), impacted by equity impairments following financial market turmoil and Thai floods. Adjusted for impairments, the result evolved positively
Life net loss at EUR 72 mio (vs. EUR 85 mio) Hong Kong : EUR -84 mio vs. EUR 50 mio;
EUR 99 mio goodwill impairment due to impact of low interest rate environment on financial situation of AICA
Underlying result decreased due to new business strain and exchange rate impact
Non-consolidated partnerships : EUR 24 mio vs. EUR 45 mio;
2011 result includes EUR 56 mio equity impairments (vs. EUR 14 mio in 2010) and EUR 13 mio capital gain realized to restructuring Chinese activities
Underlying result evolved positively
Regional costs : slightly up to EUR 12 mio vs EUR 10 mio
Non-Life net profit at EUR 8 mio (vs. EUR 9 mio) Impact from floods in Thailand (EUR 3.5 mio), partly offset by tax
recoveries in Malaysia
10/03/2010
EUR mio FY 11 FY 10
Gross inflow* 6,157 6,094
Operating costs 39 38
Technical result 16 9
Operating margin 19 50
Profit before tax* (62) 95
Net profit after tax & non-controlling interests* (64) 94
Life FUM (EUR bn)** 1.6 1.4
AsiaNet profit down due to impairments on equities & goodwill
* Including Inflow (100%) & Profit (Ageas share) from partnerships respectively**** Including partnerships, FUM increased to EUR 18.5 bn
2420 February 2012 I
Investment portfolio fairly stableSituation as per 31 December 2011
Investment portfolio* (EUR 59.3 bn) Fixed Income
Slight shift from government to corporate bonds
90% portfolio rated A or higher, 95% investment grade
Gross unrealized gains at EUR 0.6 bn vs. EUR 50 mioloss end 2010
Unrealized Gain Sovereigns at EUR 159 miofollowing impairments on Greek bonds
Unrealized Gain Corporates at EUR 432 mio
Equities
Down to EUR 1.8 bn (vs. EUR 2.3 bn end 2010) following sales, impairments and lower fair value
Gross unrealized gains/losses nearly breakeven
Real Estate
Gross unrealized gains up to EUR 1.2 bn
Sovereign bonds53%
Real Estate7%
Equities3%
Corporate bonds
36%
Structured Credit Inst1%
Gross unrealized gains on total investment
portfolio of EUR 1.8 bn end 2011
(vs. EUR 1.0 bn end 2010)
In EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets which are valued at amortized costs
2520 February 2012 I
Germany : 1.6 2.8
Sovereign bond portfolio of EUR 31.5 bnSituation as per 31 December 2011 vs. 2010
In EUR bn
Sovereigns mainly at AFS; Belgium EUR 4.4 bn & Portugal EUR 0.5 bn at HTM
In 2011, investments mainly made in Belgian, French & Dutch sovereigns
Divestments of Southern European and German sovereigns
Quality of portfolio: 96% is investment grade out of which 94% is rated A of higher
Belgium: 14.2 10.0
France: 4.5 4.2
The Netherlands: 1.8 1.3
SE sovereigns :3.9 7.9
Sovereign bond portfolio* 2011 (EUR 31.5 bn) Sovereign bond portfolio 2010 (EUR 32.3 bn)
* All assets at fair value except the ‘Held to Maturity’ assets which are valued at amortized costs
Portugal 1.0Greece 0.4
Spain 0.9
Italy 1.6Austria 2.4Ireland 0.4
Others 2.7Spain 1.6
Italy 3.6
Greece 1.2
Portugal 1.5
Austria 2.6
Ireland 0.5
Others 3.0
2620 February 2012 I
General AccountNegative net result driven by EUR 215 mio legacy related charges
Net loss of EUR 265 mio driven by legacy issues
RPN(I) liability at EUR 190 mio EUR 260 mio positive impact on 12M fair value RPN(I) liability,
driven by decreased market price CASHES (from 50% to 35%)
Negative quarterly impact of EUR 45 mio
Equity value RPI at EUR 779 mio Ageas’s share IFRS net result EUR 197 mio negative, including
goodwill impairment
Hedge reserves & realised gains on sold swaps lead to a EUR 43 mio for Ageas), accounted through equity
Call option BNP Paribas shares valued at EUR 395 mio Down EUR 214 mio vs. FY 10, mainly due to lower BNP
Paribas share price (EUR 30.35 vs. EUR 47.68)
Fortis Tier 1 Debt Securities valued at EUR 794 mio EUR 121 mio total negative FY 11 impact
EUR 159 mio loss partly compensated by EUR 10 mio interest income and EUR 28 mio deferred tax asset
Non-recurring tax settlement of EUR 56 mio
Other items Operating expenses at EUR 55 mio (down EUR 221 mio); 2010
included EUR 203 mio non-cash charge related to MCS
EUR 7 mio gain on restructuring of Chinese activities
EUR 30 mio positive result on Fortis Lux Vie & Cardif
EUR mio FY 11 FY 10
Net interest income 26 (16)Capital gains (115) (416)Result of associates (196) 127Change in impairments & provisions (10) 1Total expenses (55) (261)Profit before tax (353) (563)Net profit after tax & non-controlling interests (265) (168)
Balance sheet items FY 11 FY 10
RPI 779 933Call option BNP Paribas 395 609RPN(I) (190) (465)Tier 1 794 -Net cash/deposits 688 2,210
EUR 260 mio RPN(I) EUR -197 mio RPIEUR -214 mio Call optionEUR -121 mio Tier 1EUR 56 mio tax settlement
EUR -215 miolegacy issues
2720 February 2012 I
57
(265)(168)
(327)
(121)
154
421
(405)
203
56
FY 10 MCS
Conversion
DTA Fortis
Brussels
BNPP call
option
RPN(I) RPI Tier 1 Tax
settlement
Expenses &
Other
Tax FY 11
Snapshot General Account Roll forward Net Profit 2011 vs. 2010 : volatility remains
RPN(I) evolution: volatility in valuation EUR 424 mio; in interest charge EUR (3) mio Tier 1 Debt Securities: combined impact of fair valuation charge end 2011 (EUR (159) mio), minus deferred tax income
(EUR 28 mio) and interest income (EUR 10 mio) Tax benefit relates to a favorable evolution in The Netherlands which has led to a settlement of EUR 56 mio
Non-recurring items 2010
in EUR mio
2820 February 2012 I
8,4228,247
7,477
7,760
(313)
(230)(197)
(36)(265)
175
89291
FY 10
restatem
ent*
FY 10 res
tated
Net resu
lt Ins
uranc
e
Net resu
lt Gene
ral Acc
ount
Change
unrealize
d gain
s
Divide
nd
Buy-ba
ckReva
luation p
ut-op
tion
Foreign
exch
ange &
Othe
r
FY 11
FY 10 FY 10 restated FY 11EUR 3.19 EUR 3.26 EUR 3.23
Shareholders’ equity / share
Shareholders’ equity per share up thanks to buy-back Improved unrealized gains on investment portfolio
In EUR mio
2920 February 2012 I
Total available capital
IFRS Solvency remains solid & well above required minimumHigher requirements in Asia & UK; Belgium down on negative result
Required Regulatory minimum
Solvency Ratio
Actual / Min Actual / Min Actual / Min Actual / Min Actual / Min Actual Actual / MinBelgium United Continental Asia Insurance General Ageas
Kingdom Europe Account
End December 2011
FY 11 174% 234% 172% 292% 207% 237%
Insurance General AgeasExcess capital Account
EUR 3.9 bn EUR 1.1 bn EUR 5.0 bn
3.9
2.30.9 1.0 1.3
7.1
3.6
1.1
3.6
0.40.6
0.4
8.6
7.5
3020 February 2012 I
Net cash position General Account at EUR 0.6 bn end 11Expected to double in Q1 12 as result of agreement with Fortis Bank/ BNP P
FY 11 evolutions:Net cash of EUR 1.5 bn down mainly due to acquisition Tier 1 debt securities (EUR 1.0 bn), acquisition AKSigorta (EUR 0.2 bn) and Castle Cover, share buy-back program (EUR 0.2 bn) and dividend payments (EUR 0.1bn).Q4 11 evolutions:Decrease net cash mainly due to share buy-back program (EUR 0.2 bn)
Ageas, Fortis Bank & BNP P reached an agreement on a partial settlement of the RPN(I) and full call of the Tier 1 Debt securities with positive impact on Q1 12 net cash position of EUR 0.7 bn
in EUR mio FY 11 FY 10 FY 11 FY 10Assets LiabilitiesCash & Deposits at banks 0.9 2.7 ST (EMTN) 0.3 0.5Tier 1 debt securities 0.8 0.0Due from Fortis Bank & AG Ins 1.7 1.7 NITSH I, II & Hybrone 1.7 1.7Claim ABN AMRO bank 2.4 2.4 Provision Dutch State 2.4 2.4Assets held for sale 0.2 0.0 Liabilities held for sale 0.1 0.0Other 0.5 0.7 Other 0.3 0.5
RPN(I) 0.2 0.6Royal Park Investments 0.8 0.9 FRESH 1.3 1.3Call option on BNP Paribas shares 0.4 0.6 Written put option AG shares 0.7 0.7Loan to operating companies 0.4 0.5 Net equity 0.9 1.8 *
Balance sheet total 7.9 9.5 7.9 9.5* restated from EUR 2.5 bn
3120 February 2012 I
Inflows : Non-Life significantly up in line with strategy; Lower Life inflows impacted by the market
Net result : Negative but underlying resilient and driven by a good Non-Life performance
Strategy : Streamlining continued; selective expansion & strengthening of the businesses
Legacies : Important progress made
Dividend : Commitment to dividend policy and more
Conclusions
3220 February 2012 I
Confirm & further improve operational performance
Review/ Rethink strategic assetallocation
Make further progress on unwindinglegacy issues
Disciplined capital management
Prepare for regulatory changes
Ageas’s operational priorities 2012
SELECTEDTOPICS
Insurance Activities
Investment portfolio
General account
General Information
34
44
50
57
3520 February 2012 I
Ageas grows selectively its insurance portfolioA view on our latest acquisitions and partnerships
Partnership with Sabanci Holding: 50/50 partners, increasing from each 31% stake, 33% on 31/12/11
# 3 position in Non-Life with 8% market share Distribution supported by 15 y-exclusive distribution
agreement with Akbank Inflows 2011: EUR 486 mio (EUR 177 mio since August 11)
Merger of Fortis Luxembourg Vie and Cardif Lux International 2010 FuM > EUR 12 bn (pro forma) Shareholder structure new entity: Ageas 33.33%, BGL BNP Paribas
33.33% & BNP Paribas Cardif 33.34% Distribution supported by 10-y bancassurance agreement with BGL Establishes new entity as clear n°2 in the FOS market Transaction closed December 2011
Intermediary selling Personal lines products to the aged 50 and over
2010 revenues: GBP 22 mio Part of Ageas UK’s multi-distribution strategy,
increasing its # customer to +/- 8 mio Consolidating Ageas n°2 position in the over 50s
segment
3620 February 2012 I
381 366
3,101 2,868
587243
1,0501,031
5,1194,508
FY 10 FY 11
456 462
513 541
487 524135 144
1,591 1,671
FY 10 FY 11
(12%)
Life In EUR mio
Non-LifeIn EUR mio
Unit-Linked
Savings
Traditional
Other
Fire
Accident & Health
Motor
+5%
Group Life
BelgiumContinued lower inflows in Life, while Non-Life inflows confirm positive trend
Individual Life YTD down to EUR 3.5 bn vs. EUR 4.1 bn in 2010, due to
lower sales in Unit-Linked and savings products Bank channel at EUR 2.7 bn YTD, well below last year’s
levels (EUR 3.2 bn) due to competition from banking products Broker channel at EUR 0.8 bn YTD, -6%, similar trends bank
channel
Group Life At EUR 1.0 bn YTD, -2%, due to timing differences
Funds under Management Up 2% to EUR 49.1 bn vs. end 2010 Limited lapses and successful renewals Non-unit linked funds up 4% to EUR 43.2 bn, UL funds down
to EUR 5.9 bn, -11%
Property and Casualty (Fire, Motor & others) Inflows up 5%, all product lines contributing well, especially
Fire (+8%) and Motor (+6%) Growth driven by a combination of tariff increases and
portfolio growth
Accident & Health Health stable; new production & medical indexation impact
offset by exceptional Disability premium in 2010
3720 February 2012 I
Combined ratio AG Insurance FY 06 – FY 11
Belgium, combined ratio improved on last yearStrong technical performance in Motor
Expense ratioClaims ratio
61.6% 63.6% 64.9% 66.3% 71.0% 66.5%
37.4% 36.7% 35.9% 36.8%36.4%
36.8%
99.0% 100.3% 100.8% 103.1% 107.4% 103.3%
2006 2007 2008 2009 2010 2011
Strong Motor and Health performance Excluding Workmen's Compensation, Combined Ratio at
99.9% YTD vs.104.2%
Motor segment further improved to 94.2% YTD (Q4 11 at 92.1%) from favourable frequency evolution
Fire combined ratio at 109.9% YTD
Solid claims result in Health Care (combined ratio at 94.9%)
Workmen’s Compensation remains high at 132.2%; Q4 11 at 147.2%. Weak performance still related to a high number of deceased and permanent disability claims.
Action plan includes tariff increases & pruning Non-Life implements new tariff increases as of 1st January 2012,
including a Natural Catastrophe tariff increase representing a premium growth of 6% in the Fire portfolio on annual basis
Motor : review of material damage offer implemented as from January 2011 is paying off
Workmen's Compensation: on going corrective measures including a new tariff structure and pruning of portfolio
3820 February 2012 I
83.1% 79.8% 76.7% 76.5% 83.4% 81.8%
23.6% 23.2% 21.6% 22.6%21.9% 23.8%
106.7% 103.0% 98.3% 99.1%105.3% 105.6%
2006 2007 2008 2009 2010 2011
52.8% 57.0% 59.8% 62.1% 65.8% 60.5%
43.1% 42.2% 42.0% 42.6% 42.3%41.9%
95.9% 99.2% 101.8% 104.7% 108.1% 102.4%
2006 2007 2008 2009 2010 2011
55.7% 56.9%70.3% 68.5% 71.0%
58.9%
37.8% 36.9%
36.4% 36.3% 35.7%35.3%
93.5% 93.8%
106.7% 104.8% 106.7%94.2%
2006 2007 2008 2009 2010 2011
48.4% 56.8% 50.7% 60.5%75.5%
63.0%
46.9%45.5%
45.8%47.1%
47.2%46.9%
95.3%102.3%
96.5%107.6%
122.7%109.9%
2006 2007 2008 2009 2010 2011
Property & Casualty
Belgium – Combined ratio by product
Motor Fire
10/03/2010 I page 38
Expense ratio
Claims ratio
Accident & Health
Expense ratio
Claims ratio
3920 February 2012 I
1,179
1,983
1,207
2,03551
28
FY 10 FY 11
67 70
6561,280
295
455
162
178
1,179
1,983
FY 10 FY 11
Motor
United KingdomInflow levels substantially increased
Non-Life
Life
Other
Property
Accident & Health
+68%
+69%
Total In EUR mio
Non-LifeIn EUR mio
* including other income
Life Successful roll out of its proposition across the IFA
market (8% market share)
Launch of new distribution partnerships
190,000 customers, up 70,000 vs. 2010
Non-Life Up 68%, driven by successful launch of Tesco
Underwriting partnership & organic growth in both Commercial and Personal lines
Within Personal lines, Household +25%; Private car and Travel slightly up (excl. Tesco)
Commercial lines +23%, growth resulting fromexpanding product range via brokers
Partnership with Tesco Bank started underwriting as of mid October 2010; Inflows of EUR 755 mio & 1.56 miocustomers
Other Insurance (including Retail) YTD total income of EUR 272 mio up 51%;
Acquisition Castle Cover late March 2011 will further strengthen Retail capability & add together with KFIS an extra 1 mio customers
4020 February 2012 I
UK, continued improvement confirmedContinental Europe and Asia remain below 100%
Expense ratioClaims ratio
Combined ratio UK FY 06 – FY 11UK : continued positive impact from corrective measures Improved overall combined ratio at 99.9% including Tesco
Underwriting
Motor : Selected tariff increases in 2010 in line with underlying risk led to an improved combined ratio (98.7% vs. 106.2% at FY 10)
Household : Combined ratio at 96.7% (vs. 114.4% 2010)
Travel : Combined ratio for FY 11 (110.9%) improved from FY10 (121.9%) due to management actions over the last 12 months and Volcanic ash event in 2010
Continental Europe: 96.8% vs. 101.5% Portugal : Combined ratio at 93.0% vs 95.7%
Italy : First impact of implemented corrective measures noticeable
Asia : 102.0% vs. 95.4% impacted By Thai floods
70.2%79.7% 73.1% 80.4% 81.5% 74.6%
28.2%27.7%
28.8%27.7% 28.0%
25.3%
98.4%107.4%
101.9%108.1% 109.5%
99.9%
2006 2007 2008 2009 2010 2011
4120 February 2012 I
72.5% 80.2% 80.4% 74.0%
28.7%27.8% 28.3%
25.4%
101.2% 108.0% 108.7%99.4%
2008 2009 2010 2011
78.8% 88.9% 82.9% 79.2%
24.0%22.8%
23.3% 19.5%
102.8%111.7% 106.2%
98.7%
2008 2009 2010 2011
81.1% 83.5%97.9% 87.7%
30.5% 26.2%24.0%
23.2%
111.6% 109.7%121.9%
110.9%
2008 2009 2010 2011
60.0% 61.2%77.4%
61.4%
39.9% 38.0%38.2%
35.3%
99.9% 99.2%115.6%
96.7%
2008 2009 2010 2011
United Kingdom – Combined ratio by product
10/03/2010 I page 41
Expense ratio
Claims ratio
Expense ratio
Claims ratio
Property & Casualty
Motor Fire
Accident & Health
4220 February 2012 I
238 266
10319662
9240
75444
630
FY 10 FY 11
261 226
1,293
355
1,820
1,529
117
110
3,490
2,219
FY 10 FY 11
+42%
Accident & Health
Motor
Unit-LinkedSavingsTraditional
Group
(-38%)
OtherFire
Life In EUR mio
Non-LifeIn EUR mio
Continental EuropeInflows & performance impacted by adverse evolution financial markets
Life Portugal, -38% : Difficult economic environment continues,
inflow evolution in line with Portuguese market. Q4 inflow slightly up on Q3. Remains domestic market leader based on FuM with 25% share
Luxembourg, -37% : in a market that globally came down by some 50%, related to less appetite for FOS (Freedom of Services) product
France, -23% : decrease due to disappearance distribution network Fortis Banque France & worsening market. In line with market trends
Unit-linked business sales EUR 1.5 bn, Savings products at EUR 0.4 bn
Funds under Management Scope-on-scope at EUR 13.7 bn vs. EUR 15.2 bn end 2010
and excluding Luxembourg due to deconsolidation
Down on a like-for-like basis following impact volatile financial markets and portfolio refocus towards Unit-Linked business
Non-Life GWP up 42% year-to-date, thanks to first time inclusion
Turkey (EUR 177 mio)
Portugal : +3% thanks to strong performance Healthcare (Médis), in a stagnating market amidst economic uncertainty
Italy : slightly up on last year, with focus on profitability of the portfolio
4320 February 2012 I 43** MAT: Marine Aviation & Transport
AsiaOutstanding commercial performance, slightly up on 2010
Life Hong Kong, +5%, Strong growth of 17% in new business
following improved productivity in agency channel and growth in emerging IFA channel.
China, -4%, Because of new banca regulations and monetary tightening last year’s single premium campaign was not repeated this year. Good persistency resulted in strongly increased renewal premiums, compensating for the shortfall in single premiums. Regular premium up 30% vs 2010.
Malaysia, -13%, Lower single premiums in wake of monetary tightening. Regular premiums up +4%
Thailand, +27%, Continued strong growth in both bank and agency channel
India, -11%, New business down in line with market following regulatory changes. Renewals up 23%
Funds under Management Hong Kong : EUR 1.6 bn, +12% vs. end 10 Incl. partnerships (at 100%): EUR 20.0 bn, +18% vs. end 10
Non-Life Malaysia, +18%, driven by Motor and Corporate MAT** lines Thailand, +16%, across all lines and distribution channels
5,082 4,925
249 320227 287
20 18
FY 10 FY 11
331 365
185242
FY 10 FY 11
(0%)
Non-Motor*
Motor
SavingsGroup
Traditional
* Non-motor includes Fire, MAT, Accident & Health and other lines
Life
Non-LifeIn EUR mio
In EUR mio5,578 5,550
+18%516
607
Unit-Linked
Insurance Activities
Investment portfolio
General account
General Information
34
44
50
57
4520 February 2012 I
Investment portfolio fairly stableSituation as per 31 December 2011
Investment portfolio* (EUR 59.3 bn) Fixed Income
Slight shift from government to corporate bonds
90% portfolio rated A or higher, 95% investment grade
Gross unrealized gains amounted to EUR 0.6 bn vs. EUR 50 mio loss end 2010
Unrealized Gain Sovereigns at EUR 159 miofollowing impairments on Greek bonds
Unrealized Gain Corporates at EUR 432 mio
Equities
Down to EUR 1.8 bn (vs. EUR 2.3 bn end 2010) following sales, impairments and lower fair value
Gross unrealized gains/losses nearly breakeven
Real Estate
Gross unrealized gains up to EUR 1.2 bn
Sovereign bonds53%
Real Estate7%
Equities3%
Corporate bonds
36%
Structured Credit Inst1%
Gross unrealized gains on total investment
portfolio of EUR 1.8 bn end 2011
(vs. EUR 1.0 bn end 2010)
in EUR bn
* All assets at fair value except the ‘Held to Maturity’ assets which are valued at amortized costs
4620 February 2012 I
Germany : 1.6 2.8
Sovereign bond portfolio of EUR 31.5 bnSituation as per 31 December 2011 vs. 2010
In EUR bn
Sovereigns mainly at AFS; Belgium EUR 4.4 bn & Portugal EUR 0.5 bn at HTM
In 2011, investments mainly made in Belgian, French & Dutch sovereigns
Divestments of Southern European and German sovereigns
Quality of portfolio: 96% is investment grade out of which 94% is rated A of higher
Belgium: 14.2 10.0
France: 4.5 4.2
The Netherlands: 1.8 1.3
SE sovereigns :3.9 7.9
Sovereign bond portfolio* 2011 (EUR 31.5 bn) Sovereign bond portfolio 2010 (EUR 32.3 bn)
* All assets at fair value except the ‘Held to Maturity’ assets which are valued at amortized costs
Portugal 1.0Greece 0.4
Spain 0.9
Italy 1.6Austria 2.4Ireland 0.4
Others 2.7Spain 1.6
Italy 3.6
Greece 1.2
Portugal 1.5
Austria 2.6
Ireland 0.5
Others 3.0
4720 February 2012 I
3.2
6.2
2.6 2.5
1.4
1.4
1.31.2
0.7
2.1
0.90.7
0.6
(0.9)(0.2)
1.41.2
1.3
FY 09 FY 10 H1 11 FY 11Impairment Greece Italy Spain Portugal
Exposure on Southern European sovereigns further reducedExposure down to EUR 3.9 bn at fair value and before non-controlling interests
At amortized cost
Exposure on S-E sovereigns after impairmentsand non-controlling interests at EUR 3.0 bn
Additional PIGS reduction in 2011 of EUR 3.1 bn, mainly Italian & Spanish sovereigns (EUR 1.7 bn)
Exposure on S-E sovereigns after impairments at fair value
Before non-controlling interests: EUR 3.9 bn
After non-controlling interests: EUR 2.5 bn
Gross impairment on Greek sovereigns of EUR 1,313 mio based on fair value end 11 on entire portfolio
FY 11 net impact of EUR 627 mio (after profit sharing, tax and non-controlling interests)
Q4 11 net impact of EUR 125 mio
Net of impairments, Greek bonds held at 23% of historical/amortized cost.
12.9
5.56.1
In EUR bn at amortized cost
3.0
4820 February 2012 I
Government related
Corporate bond portfolio of EUR 21.3 bn; Equities at EUR 1.8 bnSituation as per 31 December 2011
In EUR bn
Gross unrealized gains of EUR 0.4 bn end of December 11 vs. EUR 0.5 bn end of December 10
Quality of the corporate bond portfolio remains very high with 95% investment grade out of which 83% is rated A or higher.
Banking / Other financials : 88% single A or higher; 61% rated AA or higher; no single position > EUR 0.3 bn
Hybrid securities: EUR 0.6 bn down EUR 0.1 bn, >90% with Tier-1 or Tier-2 status
BankingOther corporates
Other financials
Corporate bond portfolio* (EUR 21.3 bn) Equity portfolio (EUR 1.8 bn)
Equity funds
Equities
Mixed funds & others
Real Estate funds
0.2
0.7
0.1
0.8
Equity investments at fair value down to EUR 1.8 vs. EUR 2.3 bn end 10 due to divestments, impairments and lower fair value of equities
Unrealized gains/loss breakeven vs. EUR 140 miounrealized gains end 10
Net impairment charge of EUR 182 mio following declining equity markets
* All assets at fair value except the ‘Held to Maturity’ assets which are valued at amortized costs
6.2
8.4
1.8
4.9
4920 February 2012 I
Real estate portfolio of EUR 4.3 bn*Situation as per 31 December 2011
10/03/2010 I page 49
In EUR bn
Real Estate Development0.5
Car Parks1.1
Investment Offices
1.5
Investment Retail1.0
Investments for own use EUR 1.5 bn Investment property at EUR 2.8 bn Gross unrealized gains end 11 up to EUR 1.2 bn (not
reflected in net equity)- For own use : EUR 0.5 bn- Investment property : EUR 0.7 bn
Real Estate exposure mainly in Belgium
InvestmentWarehouses
0.2
* At amortized cost
Insurance Activities
Investment portfolio
General account
General Information
34
44
50
57
5120 February 2012 I
361 395
609
FY 10 9M 11 FY 11
Balance sheet valueIn EUR mio
Net result impactIn EUR mio
Valuation Call option BNP Paribas shares at 31 December 2011Value down mainly due to lower BNP Paribas share price
-1.1%-6.8%Dividend yield +1%
+2.8% +3.75% Dividend yield -1%
-23.6%-24.6%Implied volatility -5%
+24.5%+25.8%Implied volatility +5%
FY 119M 11Sensitivities
Valuation
EUR 66.672
5.29%
33%
EUR 47.69
FY 10
Strike price/share
Dividend yield
Volatility
BNP share price
Model parameters(Black & Scholes)
EUR 66.672
8.76%
49%
EUR 30.05
9M 11
EUR 66.672
5.98%
49%
EUR 30.35
FY11
(248)
(214)
(271)
FY 10 9M 11 FY
5220 February 2012 I
Balance sheet value
Detailed sensitivity analysis
EUR 103 mio decrease RPN(I) liabilityPrice CASHES from 35% 25%
EUR 99 mio increase RPN(I) liabilityPrice CASHES from 35% 45%
FY11Sensitivities
(127)(164)
(66)
(465)
(145)
(399)
(18)(26)
(190)
FY 10 9M 11 FY 11
50.2%
290 bps
46%
4.7%
EUR 1.71
FY 10
33.2%
685 bps
69%
6.1%
EUR 1.31
9M 11
35.4%Price CASHES (% of par)
757 bpsDiscount rate on top of risk free rate
57%Ageas’s Implied Share price volatility
6.7%Ageas’s Dividend yield
EUR 1.20Ageas’s Share price
FY 11Assumptions
320275
(149)
FY 10 9M 11 FY 11
In EUR mio
In EUR mio
Valuation RPN(I) as at 31 December 2011Fair valuation liability down on lower market price CASHES
Guarantee Belgian State Value RPN(i)
See AFS FY 2011
Net result impact
Valuation
5320 February 2012 I
(197)
(140)
131
FY 10 9M 11 FY 11
4.6 4.8
2.61.6
7.26.2
4.6
1.2
6.0
FY 10 9M11 FY 11
Ageas’s equity Value Net book value assets RPI*In EUR bn
In EUR bn
In EUR bn In EUR bn
Principal & interest collections In EUR mio
Outstanding debt - IFRS
Fair value - IFRS
Valuation items Royal Park Investments as at 31 December 2011Equity value down on lower marked-to-market value
Net result impact – part AgeasIn EUR mio
Commercial paper Other Senior + Super Senior
* Net book value = Economic recovery value as of 31 December 31 under B-GAAP 2010 minus Redemptions until December 31, 2011
6.4
6.0
7.0
FY 10 9M 11 FY 11
9191,208
169
112
1,709
1,031
1,540
1561,364
FY 10 9M 11 FY 11
9.18.9
10.0
FY 10 9M 11 FY 11
850
779
933
FY 10 9M 11 FY 11
Net result impact
Principal collections Interest collections
5420 February 2012 I
Overview of main characteristics HybridsSituation as per 31 December 2011
Ageas
35.42
Coupon served by FBB, trigger ACSM
linked to Ageasdividend
<0.5% Dividend
YES
NO
YES
Undated exchange strike 23.94 mandatory
35.91
BE0933899800
3,0003m EUR +200
CASHES*
EUR mio
AgeasfinluxFresh
Ageas HybridFinancingHybrone
Ageas HybridFinancing
Nitsh I
Ageas HybridFinancing
Nitsh IIDirect issue FBB,
2004
% 3m EUR + 135 5.125% 8.25% 8% 4.625%Amount 1,250 500 USD 750 625 1,000
ISIN XS0147484074 XS0257650019 XS0346793713 XS0362491291 BE0119806116
Call dateUndated exchange
strike 31.50mandatory 47.25
Jun/2016 Step up to 3M Euribor +200
Aug/2013 No step up
Jun/2013No step up
Oct/2014 Step up to 3M Euribor+170
ACSM YES YES YES YES YES
Dividend pusher YES YES YES YES YES
Dividend stopper NO YES YES YES YES
Trigger < 0.5% dividend trigger Liabilities > asset Liabilities > asset Liabilities > asset YES <8% CAD
Other500
on lent to AG Insurance
USD 750on lent to FBB
250 on lent toAG Insurance; 375 on lent to
FBB
No stock settlement feature as for Direct
issue FBB 2001
Market Price(31/12/11) 32.50 48.50 64.92 66.56 59.00
Fortis Bank (now BNP Paribas)
* On 31 January 2012 BNPP announced that 63% of the holders have tendered CASHES for purchase by BNPP @ purchase price of 47.5% of the principal amount of the CASHES.
5520 February 2012 I
General AccountLegal proceedings & investigations managed in interest of shareholders (1)
Appeal filed before the “College van Beroepvoor het bedrijfsleven” at The Hague; proceedings ongoing
AFM : fine imposed on 05/02/10 in relation to price sensitive info in June 08
The NetherlandsAdministrative proceedings
Appeal to be filed before the “College van Beroep voor het bedrijfsleven”
AFM: 2nd fine imposed on 19/08/10 in relation to price sensitive information in Sep 07
Proceedings ongoing FSMA re communication in second quarter 2008
Belgium
Investigation ongoingBelgiumCriminal investigation
Report filed in November 2011 At request of Deminor re transactions Sep/Oct 2008
BelgiumExpert investigations
Report filed in June 2010 VEB started legal proceedings to establish
mismanagement by Fortis; awaiting judgement
At request of VEB/ESG re 2007-2008 The Netherlands
Situation on 20 February 2012
5620 February 2012 I
Awaiting judgment MCS-holders contesting validity of conversion
Brussels, BelgiumFinancial instruments
Court decision 08/12/09 on competence and provisional measures; proceedings ongoing
Suspended, awaiting outcome of criminal investigation
Modrikamen, re Sep/Oct 2008 transactions
Deminor, re alleged miscommunication
Brussels, BelgiumCivil lawsuits
Judgement in favour of Ageas; appeal filed by Stichting FortisEffect
Proceedings against Ageas, former directors/executives and banks
Proceedings initiated in July 2011
Stichting FortisEffect, re sale of Dutch activities against Dutch State and Ageas
VEB re alleged miscommunication 2007-08
Dutch state re Oct 2008 transaction; claims for EUR 210 mio & EUR 674 mio
Amsterdam,The Netherlands
Judgment 15 February 2012 in favour of plaintiffs; Ageas will appeal
Proceedings initiated in July 2011 against Ageas and two financial institutions
Mr.Bos, re alleged miscommunication May – June 2008
Stichting Investor Claims Against Fortis re alleged miscommunication 2007 - 08
Utrecht,The Netherlands
Against ABN AMRO and Dutch State; proceedings ongoing
Against FCC, ABN AMRO and Dutch State; proceedings ongoing
Claim of EUR 2 bn re MCS Claim for reimbursement of EUR 362.5
mio
Amsterdam,The NetherlandsInitiated by Ageas
General AccountLegal proceedings & investigations managed in interest of shareholders (2)Situation on 20 February 2012
Insurance Activities
Investment portfolio
General account
General Information
34
44
50
57
5820 February 2012 I
Ratings
10/03/2010 I page 58
* Ageas has requested in early 2009 that this rating should be withdrawn. Ageas no longer participates in Moody's credit rating process.
S&P MOODY'S FITCH FITCH
Operating entitiesAG Insurance (Belgium)
Insurance Financial Strength A2 A+ A-Outlook negative stable stableLast change 19/12/11 20/04/11 29/11/11
Millenniumbcp Ageas (Portugal)Insurance Financial Strength BBB- BBOutlook negative negativeLast change 25/11/11 17/01/12
Holdingsageas SA/NV and ageas N.V.
Long-term Baa3 / P-3 BBB+ / F2 BBB- / A-3Outlook negative stable stableLast change 19/12/11 20/04/11 25/10/11
5920 February 2012 I
Total number of outstanding shares
Total Issued Shares 2,623,380,817
Shares not entitled to dividend and voting right 342,404,219
1. TREASURY SHARES Share buy-back untill 31/12/2011 175,163,656FRESH 39,682,540Other treasury shares 2,244,740
2. CASHES 125,313,283
Outstanding Shares entitled to dividend and voting right on 31/12/2011 2,280,976,598
Post 31/12/2011 events :
Agreement with BNPP: conversion of 63% of the outstanding CASHES into shares (63% of 125,313,283) 78,874,241
Share buy-back program finalized (Number of shares bought back after 31/12/2011) 17,004,435
Outstanding Shares entitled to dividend and voting right on 20/02/2012 2,342,846,404
* On 25th of January 2012 Ageas finalised the share buy-back programme : 192,168,091 shares bought back in total Ageas’s Board has decided to propose the cancellation of the bought back shares at the next shareholders’ meetings The Board will ask, as usual, for the renewed authorization from the shareholders to purchase up to 10% of its remaining outstanding shares.
6020 February 2012 I
Financial Calendar 2012
30 April Ex-dividend date – Start dividend election period
25 AprilAnnual shareholders’meeting - Brussels
20 FebruaryAnnual results 2011
26 April Annual shareholders’meeting - Utrecht
14 May 3M 2012 results
31 May Payment 2010 dividend
21 May End of dividend election period
6 August 6M 2012 results
7 November 9M 2012 results
14 MarchEmbedded Value & Annual Report 2011
24 & 25 SeptemberInvestor Relations Day - London
6120 February 2012 I
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’score 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 thedates indicated, nor does it purport to be indicative of the results of operations or financial condition that may be achieved in the future.
6220 February 2012 I
Investor Relations
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Investor Relations