ASR Nederland N : A.s.r. delivers strong result for 2021 driven by higher performance in all segments

Utrecht, 23 February 2022, 07.00am CET

a.s.r. delivers strong result for 2021 driven by higher performance in all segments

Strong financial performance, all financial targets achieved

• Operating result increased by 15.4% to € 1,021 million (2020: € 885 million), driven by higher performance in all segments.
• Operating result of the Non-life segment increased by € 84 million, to € 325 million (2020: € 241 million), mainly
  reflecting lower claims in Disability. Combined ratio is 91.8%1 (2020: 93.6%), or 94.9% excluding the impact of
  COVID-19 (2020: 94.3%). Claims from the floods in July amount to approximately € 20 million, in line with previously given guidance.
• Operating result of the Life segment increased by € 33 million, to € 763 million (2020: € 730 million), mainly as a result of a higher investment margin.
• Expense ratio of the Non-life segment (excluding Health) improved by 0.1%-point to 8.0%, whereas the operating expenses of the Life segment remained stable at 45 basis points of the basic Life provision. Operating expenses rose by 3.4% to € 725 million (2020: € 701 million), driven by organic growth and acquisitions.
• Operating return on equity is 16.3%, well above the '12-14%' target.
• Net IFRS result is € 942 million (2020: € 657 million). The increase is a consequence of higher operating result and higher indirect investment income due to revaluations as well as less negative non-recurring items.

Robust solvency and strong organic capital creation; dividend structurally higher

• Solvency II ratio (standard formula) as at 31 December 2021 stands at 196% (31 December 2020: 199%). This is after the deduction of the proposed dividend for 2021.
• Organic capital creation is € 594 million (2020: € 500 million), exceeding the target of € 500 million. The increase of € 94 million mainly reflects the strong performance of the various segments and the one-off positive effect of COVID-19.
• The proposed dividend for 2021 is € 2.42 per share, in line with the dividend policy and a pay-out ratio of 45% of the net operating result. This is an increase of 19% compared to € 2.04 last year. Taking into account the interim dividend of € 0.82 per share, the final dividend amounts to € 1.60 per share. From 2022 onwards, a.s.r. will apply a progressive dividend policy.
• Share buyback of € 75 million starting on 24 February 2022 and expected to be completed before 24 May 2022. The Solvency II ratio of 196% does not include the impact of the share buyback announced today.
• Unrestricted Tier 1 capital stands at € 6.1 billion, equal to 75% of the own funds.

High customer satisfaction, solid commercial results and committed employees

• Customer satisfaction remains high, driven by high employee engagement. At 49, the Net Promotor Score remains well above the medium-term target of 44.
• Gross written premiums in the Non-life segment rose by 13.2%, to € 4,124 million. The organic growth of Disability and P&C combined is 5.2%, which exceeds our target of 3-5%.
• Gross written premiums in the Life segment rose by 4.6% to € 1,893 million (2020: € 1,810 million). The 'Werknemers Pensioen' (DC) premiums rose by 37%.
• Mortgage origination rose by € 1.4 billion, to € 6.0 billion.
• Assets under management for third parties rose to € 28.0 billion (31 December 2020: € 24.3 billion). The increase is mainly due to growth in the ASR Mortgage funds.
• Responsible investment objectives have been achieved: the CO2 footprint of over 95% of the investment portfolio has been measured and impact investments amounted to € 2.5 billion on 31 December 2021 (target >€ 1.2 billion).

• P&C and Disability

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Chairman of the Executive Board and CEO Jos Baeten: '2021 was a good year in which we, together with all our colleagues, delivered a solid performance. We delivered a strong result, achieved our medium-term targets and maintained a consistently positive recognition from customers and intermediaries. The latter is for instance reflected in the annual performance benchmark from IG&H, where intermediaries rank a.s.r. as the number one insurer in Pension and Disability.

After almost two years, which have been dominated by COVID-19 in the Netherlands, I am pleased that it appears that we have seen the worst of the pandemic and that the COVID-19 restrictions can be scaled down. The measures taken have had considerable impact on our personal lives, business communities and society as a whole. I hope that, now the restrictions are being lifted, we can revert to the lives we were used to have before COVID-19, whereby we take the positive lessons of recent years into account. Such as working from home. This has contributed to higher productivity and higher customer satisfaction. In this 'new normal' we will, more than before COVID-19, aim to strike the right balance between working at the office and working from home.

Besides the COVID-19 situation, we have been confronted with severe storms and heavy rainfalls in the recent weeks. Similar to the floods last year, this also caused significant damages. Our experienced loss adjusters and claims handlers were immediately available and on-site during the events to help our customers quickly and smoothly. These are times when we, as an insurer, with the right services can actually deliver the added value customers may expect from us.

Despite the claims due to the floods in Limburg, our operating result rose by over 15%. All segments contributed to the substantial increase in the operating result. Thanks to these strong results we are able to increase the dividend by almost 20%. On balance, the impact of COVID-19 on the operating result was favourable, with the adverse impact on the Life segment and Disability being more than offset by lower claims in P&C.

a.s.r. will build on the successful strategy of 2019-2021 with new ambitious targets, focused on sustainable long-term value creation for all stakeholders. We see specific opportunities for profitable growth in P&C, Disability, Asset Management and Pensions DC. In addition to relatively stable development in the Life segment, we expect our fee-based businesses to continue to perform strongly and to achieve further growth. The capital that we expect to generate can be used to fund further organic growth, acquisitions, optimisation of the investment portfolio and dividend payments.

To further underline our position as a sustainable insurer, we recently joined the Net Zero Insurance Alliance (NZIA). In doing so we are committing ourselves to bring down the carbon footprint of our insurance commitments to net zero by 2050, in line with the same commitment in respect to our investment portfolio. In addition, we offer customers even more opportunities to contribute to a sustainable society, for example by opting for sustainable damage repair. With the sustainability mortgage, we enable homeowners to make their homes more energy-efficient, investments that are good for the climate and pay for themselves through an increase in the value of the home and lower energy costs. We aim to use our sustainable investment portfolio to make an active contribution to the energy transition. We have set ourselves the target of reducing the carbon footprint of our investments in 2030 by at least 65% compared to 2015. Our impact investment policy focuses on investments with a social return, with a view to boost our positive contribution to society. In 2024 we aim to have at least € 4.5 billion in impact investments on the balance sheet.

In implementing our strategy, we adhere closely to a strict financial discipline. Maintaining a strong balance sheet with financial flexibility offers scope for profitable growth. Building on the successful acquisitions of recent years, we will continue to actively pursue opportunities for acquisitions, particularly of small and medium-sized insurers, as well as the consolidation of life insurance portfolios. If there are no opportunities for profitable deployment of capital, we will, subject to conditions, return it to shareholders. As announced on our Investor Update, it is our intention to buyback own shares for an amount of at least € 100 million annually in the next three years. In addition, starting 2022, we introduce a progressive, slightly increasing dividend from the proposed level of € 2.42 per share for 2021.

To conclude, I would like to thank our shareholders, customers, intermediaries and employees for their continued support and trust in a.s.r.'

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Key figures

(in € million, unless per share or expressed as a percentage)		2021		2020		Delta (%)
Operating result1		1,021		885		15.4%
Operating return on equity2		16.3%		15.3%		1.0%-p
Net result for the year (on IFRS basis)		942		657		43.3%
Return on equity		15.3%		11.7%		3.6%-p
Gross written premiums		5,859		5,276		11.1%
Operating expenses		-725		-701		3.4%
Combined ratio P&C and Disability		91.8%		93.6%		-1.9%-p
Gross written premium P&C and Disability, annual organic growth		5.2%		4.6%		0.6%-p
New business (Life segment (APE))	151	124	21.8%
		31 December 2021		31 December 2020		Delta (%)
Total equity		7,385		6,313		17.0%
Total equity attributable to shareholders		6,363		5,309		19.8%
Solvency II ratio (standard formula)3 after dividend		196%		199%		-3%-p
Financial leverage		24.8%		28.3%		-3.5%-p
Liquidity position at holding level		525		502		4.6%
Number of FTEs (internal)		4,155		4,042		2.8%
		2021	2020		Delta (%)
Operating result per share4		5.36		4.52		18.6%
Dividend per share		2.42		2.04		18.6%
Number of shares issued and outstanding at end of period (m)		135.8		137.9		-1.5%
Weighted average number of issued and outstanding shares (m)		136.3		138.9		-1.9%

Explanatory notes to the table

1. Operating result is calculated by adjusting profit before tax for continuing operations reported in accordance with IFRS, as adjusted for the changes in accounting policies and for the following: i) investment related: investment income of an incidental nature (including capital gains and losses, impairments and fair value changes) on financial instruments for own account, net of applicable shadow accounting and net of additional provisions recognised for realised gains and losses on financial assets backing the insurance liabilities ('compensation of realised capital gains') impact; ii) incidental Items: 1. model- and methodological changes with a substantial impact; 2. results of non-core operations; and 3. other non-recurring or one-off items, which are not directly related to the core business and/or ongoing business of the Group, restructuring costs, regulatory costs not related to business activities, changes in the own pension arrangements and expenses related to M&A activities and start-ups.
2. The operating return on equity is calculated by dividing the operating result before tax after deduction of interest on hybrid assets and taxes (tax rate: 25%) by the annual average equity attributable to shareholders after deduction of the reserve for unrealised profits and losses and the equity for real estate development (operating activities in 'run-off').
3. Solvency II ratio is exclusive of financial institutions other than insurers.
4. The operating result per share is calculated by dividing the operating result before tax after deduction of interest on hybrid assets and taxes (tax rate: 25%) by the weighted average number of outstanding shares.

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Important dates 2022

Wednesday 23 March

Wednesday 25 May

Friday 27 May

Monday 30 May

Wednesday 1 June

Wednesday 24 August

Wednesday 31 August

Thursday 1 September

Monday 5 September

Publication Annual Report 2021

Annual General Meeting

Ex-dividend date

Dividend record date

Dividend payment date

Publication H1 2022 result and interim dividend

Ex-interim divided

Dividend record date

Dividend payment interim H1 2022

The figures in this press release have not been audited or reviewed by an external independent auditor.

Media Relations	Investor Relations
Leon Willems
T: [phone]	T: [phone]
E: [e-mail]	E: [e-mail]
www.asrnederland.nl	www.asrnl.com

Conference call for financial market parties (in English) at 11.00am. For more information, go to www.asrnl.com.

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About a.s.r.

ASR Nederland N.V. (a.s.r.) ranks among the top 3 insurers of the Netherlands. a.s.r. offers products and services in the fields of insurance, pensions and mortgages for consumers, self-employed persons and companies. In addition, a.s.r. is active as an asset manager for third parties. a.s.r. is listed on Euronext Amsterdam and is included in the AMX Index. For more information, please visit www.asrnl.com.

This press release contains inside information within the meaning of Article 7 of the Market abuse regulation (Regulation 596/2014).

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Financial group and business performance FY 2021

ASR Nederland N.V.

Key figures

(in € million, unless stated otherwise)		2021		2020
Operating result		1,021		885
- Non-life		325		241
- Life		763		730
- Asset Management		36		31
- Distribution and Services		28		25
- Holding and Other / Eliminations		-130		-143
Incidental items (not included in operating result)		188		-56
- Investment income		291		185
- Incidentals		-104		-241
Result before tax		1,209		829
- Non-life		357		261
- Life		981		747
- Asset Management		36		30
- Distribution and Services		10		-6
- Holding and Other / Eliminations		-175		-203
Income tax expense		-270		-172
Result for the year from continuing operations, after tax		939		657
Result for the year from discontinued operations, after tax		-		-2
Non-controlling interest		-3		-1
Result for the year attributable to holders of equity instruments		942		657
Organic capital creation (OCC)		594		500
Operating return on equity		16.3%		15.3%
Return on equity		15.3%		11.7%
Earnings per share
Operating result per share (€)		5.36		4.52
Dividend per share (€)		2.42		2.04
Basic earnings per share on IFRS basis (€)		6.56		4.38
Gross written premiums		5,859		5,276
- Non-life		4,124		3,643
- Life		1,893		1,810
- Eliminations		-157		-177

• n.m.: not meaningful.

Delta (%)

15.4%

34.9%

4.5%

14.2%

9.2%

8.9%

n.m.1

n.m.

n.m.

45.8%

37.1%

31.3%

18.1%

n.m.

13.7%

57.4%

42.8%

n.m.

n.m.

43.3%

18.8%

1.0%-p

3.6%-p

18.6%

18.6%

49.6%

11.1%

13.2%

4.6%

-11.2%

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