ASR Nederland N : A.s.r. sets new ambitious goals for 2022-2024. Focus on sustainable value creation for all stakeholders








Utrecht, 7 December 2021, 07:00

a.s.r. sets new ambitious goals for 2022-2024. Focus on sustainable value creation for all stakeholders

Today, a.s.r. will give an update on its strategy and new medium-term goals for 2022-2024 at a virtual meeting for investors and analysts. A key element in the strategy and the new (non- )financial targets is sustainable value creation for all stakeholders.

a.s.r. expects to realise the goals as have been set in 2018 to a significant extent this year. In the coming years, a.s.r. will build on the successful strategy of 2019-2021 with new ambitious financial and non-financial targets, which should contribute to a.s.r. being among the most sustainable insurers in Europe.

a.s.r.’s new financial targets for the coming period are:

  • Organic capital creation (OCC) cumulative € 1.7-1.8 billion in the period 2022-2024.
  • Introduction of progressive (‘slightly increasing’) dividend as from 2022, based on 2021 dividend of at least €2.40 per share; minimum 18% increase of the 2021 dividend compared to the 2020 dividend.
  • Share buyback programme1 (SBB) to be continued for three years for at least € 100 million per year.
  • Solvency II ratio (standard formula) comfortably above the management target of 160%.
  • Operating return on equity of 12-14%.

The new non-financial targets are:

  • 65% reduction in CO2 footprint2 of the investment portfolio, including the real estate investments and mortgage portfolio, by 2030.
  • At least € 4.5 billion impact investments on the balance sheet by 2024.
  • Net Promoter Score – relational (NPS-r) above market average in 2024.
  • Employee engagement3: >85%.
  • Reputation measurement sustainable insurer: >40%.

The new ‘business’ financial targets

  • Combined ratio of the Non-Life segment (excl. Health) of 93-95%.
  • Organic growth of gross written premiums of the Non-Life segment (excl. Heallth) of 3-5%.
  • Operating result of the Life segment at least € 700 million until 2024.
  • Operating costs of the Life segment between 40-50 basis points of basic Life provision.
  • Combined operating result of fee-based4 business units exceeds € 80 million by 2024.

a.s.r. CEO Jos Baeten: ‘We are very satisfied with the sustainable value creation we have achieved in recent years. Thanks to a disciplined execution of our strategy, we expect to be able to achieve and possibly even exceed our medium-term goals. Our strong balance sheet enables us to successfully realise organic growth and expand through

  1. Provided Solvency II ratio (SF) > 175%, value-creating M&A transactions are prioritised
  2. Base year 2015
  3. Annual survey by Denison
  4. Asset Management and Distribution & Services

Publication of the presentation on 7 December 2021 at 07:00 CET. Webcast (in English) of the presentations at 10:00 CET. See for more information: www.asrnederland.nl.

targeted acquisitions. Customer and intermediary satisfaction have both improved further, as has employee engagement. In addition, we are taking active steps to contribute to a more sustainable society, for example through our impact investments as well as through a.s.r. Vitality with which we encourage daily exercises and a healthy lifestyle. We are pleased with the recognition we have received for this. It fits our ambition to be one of the most sustainable insurers in Europe.

Our strong performance in recent years and our confidence in our strategy form the basis for both the ambitious financial and non-financial targets for the 2022-2024 period. For the years ahead we will tighten the current successful strategy, but it is rather an evolution as opposed to a revolution.

We see specific opportunities for profitable growth in Non-life, Disability, Asset Management and Pension DC. We have stepped up the target for the combined ratio to 93-95%, and expect to achieve an annual 3-5% growth in the premiums for Non-life and Disability. In the Life segment, we forecast a stable operating result in excess of € 700 million for the coming years, in which we have factored in the effect of the gradual runoff of the Individual Life portfolio. In addition, we expect our fee-based business to continue to perform strongly and to achieve more than € 80 million operating result in 2024.

The target for organic capital creation shows a clear increase. For the 2022-2024 period we expect to create € 1.7 – 1.8 billion organic capital. We can use this capital to fund further organic growth, acquisitions, optimisation of the investment portfolio and, of course, dividend payments. In this context, we will be introducing a progressive dividend with effect from next year. This will be based on the dividend for 2021, with the intention that it will increase slightly from that level in accordance with the dividend policy. The 2021 dividend will amount to at least € 2.40 per share, an increase of at least 18% compared to 2020. This is thanks to the strong performance of our businesses, driven partly by developments arising from Covid-19, which drives the operating result for 2021 significantly higher than last year.

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 with 2015. a.s.r. is a member of the Net Zero Asset Managers initiative and aims to create a low carbon investment portfolio in order to help meet targets set by the Paris Climate Agreement. Our impact investment policy focuses on investments with a social return, with a view to boosting our positive contribution to society. In 2024 we aim to have at least € 4.5 billion in impact investments on the balance sheet. To further underline our role as a sustainable insurer, we have recently joined the Net Zero Insurance Alliance (NZIA), committing ourselves in so doing to bring the carbon footprint of our insurance commitments down to net zero by 2050.

These goals are challenging in the Dutch market and strike a good balance between sustainable value creation and profitable growth.

In implementing our strategy, we adhere closely to a strict financial discipline in which value over volume is a key principle. A focus on cost and upholding financial solidity is essential for a continuation of our strong performance. Maintaining a strong balance sheet with financial flexibility offers scope for profitable growth. We will continue to invest capital responsibly. 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 a profitable deployment of capital, we will, subject to conditions, return it to shareholders.’

The Investor Update will be broadcast live today from 10:00 CET on the website www.asrnederland.nl.

During the broadcast, CEO Jos Baeten will discuss a.s.r.’s intention to generate sustainable value for all stakeholders in more detail. Also presenting will be Ingrid de Swart (COO/CTO) and Ewout Hollegien (CFO). All the presentations will be available today from 07:00 CET on: www.asrnederland.nl.

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Media relations

Investor relations

Jordi van Baardewijk

T: +31 (0)6 51 26 63 59

T: +31 (0)30 – 257 8600

E: jordi.van.baardewijk@asr.nl

E: ir@asr.nl

www.asrnederland.nl

www.asrnl.com

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About a.s.r.

ASR Nederland N.V. (a.s.r.) ranks among the top 3 insurers in the Netherlands. a.s.r. offers products and services in the fields of insurance, pensions and mortgages for consumers and SMEs. 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 AEX Index. For more information, please visit www.asrnederland.nl.

This press release contains price-sensitive information and thus inside information within the meaning of Article 7 of the Market Abuse Directive.

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Disclaimer

Cautionary note regarding forward-looking statements

The terms of this disclaimer (‘Disclaimer’) apply to this document of ASR Nederland N.V. and all ASR Nederland N.V.’s legal vehicles and businesses (‘ASR Nederland’). Please read this Disclaimer carefully.

Some of the statements in this document are not (historical) facts, but are ‘forward-looking statements’ (‘Statements’). The Statements are based on our beliefs, assumptions and expectations of future performance, taking into account information that was available to ASR Nederland at the moment of drafting of the document. The Statements may be identified by words such as ‘expect’, ‘should’, ‘could’, ‘shall’ and similar expressions. The Statements may change as a result of possible events or factors.

ASR Nederland warns that the Statements could entail certain risks and uncertainties, so that the actual results, business, financial condition, results of operations, liquidity, investments, share price and prospects of ASR Nederland may differ materially from the Statements.

The actual results of ASR Nederland may differ from the Statements because of: (1) changes in general economic conditions; (2) changes in the conditions in the markets in which ASR Nederland is engaged; (3) changes in the performance of financial markets in general; (4) changes in the sales of insurance and/or other financial products; (5) the behaviour of customers, suppliers, investors, shareholders or competitors; (6) changes in the relationships with principal intermediaries or partnerships or termination of relationships with principal intermediaries or partnerships; (7) the unavailability and/or unaffordability of reinsurance; (8) deteriorations in the financial soundness of customers, suppliers or financial institutions, countries/states and/or other counterparties; (9) technological developments;

  1. changes in the implementation or execution of ICT systems or outsourcing; (11) changes in the availability of, or costs associated with, sources of liquidity; (12) consequences of a potential (partial) termination of the European currency: the euro or the European Union; (13) changes in the frequency or severity of insured loss events; (14) catastrophes or terrorist-related events; (15) changes affecting mortality or morbidity levels or trends or changes in longevity; (16) changes in laws or regulations and/or changes in the interpretation thereof, including without limitation Solvency II, IFRS and taxes; (17) changes in the policies of governments and/or regulatory or supervisory authorities; (18) changes in ownership that could affect the future availability of net operating loss, net capital or built-in loss; (19) changes in conclusions with regard to accounting assumptions or methodologies; (20) adverse developments in legal and other proceedings and/or investigations or sanctions taken by supervisory authorities; (21) risks related to mergers, acquisitions, or divestments (22) other financial risks such as currency movements, interest rate fluctuations, liquidity, or credit risks and
  1. the other risks and uncertainties detailed in the Risk Factors section contained in recent public disclosures made by ASR Nederland.

The foregoing list of factors and developments is not exhaustive. Any Statements made by or on behalf of ASR Nederland only refer to the date of drafting of the document, except as required by applicable law. ASR Nederland disclaims any obligation to update or revise and publish any expectations, based on new information or otherwise. Neither ASR Nederland nor any of its directors, officers, employees give any statement, warranty or prediction on the anticipated results as included in the document. The Statements in this document represent, in each case, only one of multiple possible scenarios and should not be viewed as the most likely or standard scenario.

All figures in this document are unaudited. Small differences may be included in the tables as a consequence of rounding.

ASR Nederland has taken all reasonable care in the reliability and accurateness of this document. Nevertheless, information contained in this document may be incomplete or incorrect. ASR Nederland does not accept liability for any damages resulting from this document in case the information in this press release is incorrect or incomplete.

This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities.

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Disclaimer

ASR Nederland NV published this content on 07 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 December 2021 06:01:01 UTC.

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Sales 2021 5 735 M
6 461 M
4 872 M
Net income 2021 838 M
944 M
712 M
Net Debt 2021

P/E ratio 2021 6,45x
Yield 2021 5,78%
Capitalization 5 128 M
5 784 M
4 357 M
Capi. / Sales 2021 0,89x
Capi. / Sales 2022 0,88x
Nbr of Employees 4 365
Free-Float 94,2%

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