advertisement

Investor Day 2012 - Improvements in Financial Disclosures

40 %
60 %
advertisement
Information about Investor Day 2012 - Improvements in Financial Disclosures
Investor Relations

Published on March 4, 2014

Author: Ageas

Source: slideshare.net

Description

Christophe Boizard on the upcoming improvements in financial disclosures
advertisement

Ageas Upcoming improvements in financial disclosures Christophe Boizard CFO Ageas INVESTOR DAY 2012

Introduction Ageas track record in key areas of reporting Evolving financial disclosures at Ageas Margin analysis Inflow / FuM proportional Investment portfolio Shareholders’ equity Triangles on cost of claims – Non-Life Conclusions

Introduction Ageas has achieved a lot in the past 3 years  Clarify Ageas’s structure with focus on valuation of General Account  Full quarterly reporting  Improved disclosures on  legacy issues  net cash position  shareholders’ equity  investment portfolio 2010 2009  Improved disclosure  Improved disclosures on on Insurance activities Insurance activities with  investment portfolio implementation of  solvency segment reporting:  operating performance  Detailed disclosures on SE-sovereigns     2011 2012  Shortening quarterly reporting deadlines  Dedicated call on EV report Belgium CEU UK Asia Coming from a strong banking culture, Ageas has put a lot of effort in adapting its reporting to reach market standard in terms of pure insurance reporting Investor Day 24&25 September 2012 - Andaz Liverpool Street London 2

Introduction Situation today Context: general underperformance of insurance industry over the past 15 years  economic uncertainty & market volatility (low interest rate environment etc.)  complex accounting with black box effect  seemingly unconnected disclosures & reporting  perception of poor management & lack of strategic coherence  poor & insufficient reporting  increased assistance needed to understand link between operating performance, risk & capital generation  Study by CFO Forum Investor Relations Working Group to better understand the reasons & identify possible solutions  Survey of fund manager perceptions of the insurance sector  Supplemented with investors / buy-side analysts questionnaire on financial reporting Investor Day 24&25 September 2012 - Andaz Liverpool Street London 3

Introduction Key findings CFO forum study 19 April 2012  Macro issues are key concern but financial reporting next in line  Reporting problems mostly linked to life business  Life: a long search for consistent & relevant metrics  IFRS earnings - important because determining dividend - limited visibility as to key drivers of profitability - inconsistencies across the sector  EV / Value mgmt - complexity - inconsistency in calculation & assumptions - specific interest in VANB & relation to capital efficiency  Cash/Free capital - impact Solvency II - minimal information on interaction assets/liabilities - free surplus generation of life business (part of MCEV report)  Non-Life  Less perceived major issue but significant room for improvement remains Investor Day 24&25 September 2012 - Andaz Liverpool Street London 4

Introduction Results of study for CFO Forum 19 April 2012  Areas of reporting that should be key priorities 5 4 3 2 1 0 Group IFRS segment disclosures Cash / free capital Embedded value disclosures reporting Investor Day 24&25 September 2012 - Andaz Liverpool Street London New business metrics (such as IRRs and payback periods) Solvency disclosures Life IFRS 'sources of earnings' or 'margin analysis' 5

Introduction Ageas track record in key areas of reporting Evolving financial disclosures at Ageas Margin analysis Inflow / FuM proportional Investment portfolio Shareholders’ equity Triangles on cost of claims – Non-Life Conclusions

Ageas’s track record on identified key areas of reporting (1/6)  insurance segments & General Account 5  inflow per product line  balance sheet 4  P&L 3  combined ratio  equity / solvency 2  details on legacy items 1 0 Group IFRS segment disclosures Cash / free capital Embedded value disclosures reporting Investor Day 24&25 September 2012 - Andaz Liverpool Street London New business metrics (such as IRRs and payback periods) Solvency disclosures Life IFRS 'sources of earnings' or 'margin analysis' 7

Ageas’s track record on identified key areas of reporting (2/6) 5 4  cash position  discretionary capital General Account  excess capital per segment 3 2 1 0 Group IFRS segment disclosures Cash / free capital Embedded value disclosures reporting Free capital disclosure crippled by unstabilized solvency regulation Investor Day 24&25 September 2012 - Andaz Liverpool Street London New business metrics (such as IRRs and payback periods) Solvency disclosures Life IFRS 'sources of earnings' or 'margin analysis' 8

Ageas’s track record on identified key areas of reporting (3/6)  FY embedded value report  dedicated call for analysts & investors with Risk Officer 5 4 3 2 1 0 Group IFRS segment disclosures Cash / free capital Embedded value disclosures reporting New business metrics (such as IRRs and payback periods) Solvency disclosures Life IFRS 'sources of earnings' or 'margin analysis' No stable definition despite CFO forum efforts Investor Day 24&25 September 2012 - Andaz Liverpool Street London 9

Ageas’s track record on identified key areas of reporting (4/6) 5 4  FY VANB disclosure 3 2 1 0 Group IFRS segment disclosures Cash / free capital Embedded value disclosures reporting Investor Day 24&25 September 2012 - Andaz Liverpool Street London New business metrics (such as IRRs and payback periods) Solvency disclosures Life IFRS 'sources of earnings' or 'margin analysis' 10

Ageas’s track record on the identified areas of reporting (5/6)  solvency ratio, regulatory capital & excess capital per segment  calculation regulatory capital based on rules Belgian regulator/IFRS  reconciliation equity & regulatory capital on consolidated basis 5 4 3 2 1 0 Group IFRS segment disclosures Cash / free capital Embedded value disclosures reporting Investor Day 24&25 September 2012 - Andaz Liverpool Street London New business metrics (such as IRRs and payback periods) Solvency disclosures Life IFRS 'sources of earnings' or 'margin analysis' 11

Ageas’s track record on identified key areas of reporting (6/6)  as from FY 2012  giving a sneak pre-view 5 NOW 4 3 2 1 0 Group IFRS segment disclosures Cash / free capital Embedded value disclosures reporting Investor Day 24&25 September 2012 - Andaz Liverpool Street London New business metrics (such as IRRs and payback periods) Solvency disclosures Life IFRS 'sources of earnings' or 'margin analysis' 12

Introduction Ageas track record in key areas of reporting Evolving financial disclosures at Ageas Margin analysis Inflow / FuM proportional Investment portfolio Shareholders’ equity Triangles on cost of claims – Non-Life Conclusions

Margin analysis Life Insurance (1/3) More detailed reporting as of FY 2012, sneak preview Income Statement - Life in EUR million Gross inflow Life 6M 12 3,427.8 6M 11 3,790.7 Change (9.6%) Q2 12 1,793.6 Q2 11 1,725.7 Change 3.9% Q1 12 1,634.2 Operating margin Non-allocated other income and expenses Result before taxation Income tax expenses Non-controlling interests Net result attributable to shareholders 276.3 50.9 389.5 ( 122.7 ) 61.4 205.4 77.5 ( 23.1 ) 89.0 ( 20.9 ) 16.6 51.5 * * * * * * 106.5 26.2 163.2 ( 59.4 ) 23.8 80.0 ( 52.8 ) ( 61.2 ) ( 97.1 ) 18.9 ( 23.9 ) ( 54.3 ) * * * * * * 169.8 24.7 226.3 ( 63.3 ) 37.6 125.4 Income Statement - Life in EUR million Gross inflow Life Guaranteed 6M 12 2,943.3 Risk result Investment result Expense & other result 132.4 203.9 ( 91.6 ) Operating margin 244.7 Key Performance Indicators - Life in EUR million Risk margin Investment margin Expense & other margin Operating margin Technical reserves (in EUR million) Guaranteed 6M 12 0.50% 0.76% (0.34%) 0.92% 54,387 Guaranteed Unit - Linked Unit - Linked 6M 11 6M 12 6M 11 2,680.2 484.5 1,110.4 119.5 16.4 ( 91.3 ) 7.0 0.3 24.3 5.1 (0.0) 27.8 44.6 31.6 ADDITIONAL 32.9 Guaranteed Unit - Linked Unit - Linked 6M 11 6M 12 6M 11 0.46% 0.12% 0.05% 0.06% 0.01% (0.00%) (0.35%) 0.42% 0.27% 0.17% 52,775 Investor Day 24&25 September 2012 - Andaz Liverpool Street London 0.55% 11,462 0.32% 20,242 14

Margin analysis Non-Life Insurance (2/3) More detailed reporting as of FY 2012, sneak preview ADDITIONAL Income Statement - Non-Life in EUR million Gross written premiums Non-Life Net earned premiums Operating margin Result before taxation Income tax expenses Non-controlling interests Net result attributable to shareholders Income Statement - Non-Life in EUR million Gross written premiums Non-Life Net earned premiums Net underwriting result Investment result Other result Operating margin Key Performance Indicators - Non-Life in EUR million Net combined ratio Net claims ratio Net claims ratio Current Year Net claims ratio Prior Year Net expense ratio Net underwriting ratio Investment ratio Other margin Operating margin Reserves ratio Non-Life reserves (in EUR m) 6M 12 2,276.6 2,022.8 154.2 174.5 ( 52.5 ) ( 32.6 ) 89.5 6M 11 2,123.3 1,631.7 69.5 81.7 ( 23.3 ) ( 10.4 ) 48.0 Change 7.2% 24.0% 121.8% 113.7% 125.6% 214.5% 86.3% Q2 12 1,090.0 1,033.8 118.4 124.0 ( 38.4 ) ( 22.4 ) 63.2 Q2 11 1,021.6 847.9 44.7 42.2 ( 13.2 ) ( 5.8 ) 23.2 Accident & Health 6M 12 422.6 382.0 24.5 26.4 0.6 51.6 Accident & Health 6M 11 423.6 373.6 16.3 14.3 ( 2.6 ) 28.1 Accident & Health 6M 12 93.6% 69.2% Accident & Health 6M 11 95.6% 71.4% 78.6% (9.3%) 24.3% 6.4% 6.9% 0.2% 13.5% 258.6% 1,975.5 Motor Motor Fire 6M 12 1,107.5 987.6 34.9 46.8 13.5 95.2 6M 11 972.8 689.2 9.2 30.3 5.5 45.0 6M 12 544.1 490.5 ( 14.6 ) 15.0 0.6 1.0 Motor Motor Fire 6M 12 96.5% 71.1% 6M 11 98.7% 71.2% 6M 12 103.0% 61.7% 6M 11 105.4% 62.8% 6M 12 105.9% 62.0% 6M 11 102.5% 60.3% 80.3% (8.9%) 73.2% (2.1%) 74.6% (3.3%) 69.9% (8.2%) 64.0% (1.2%) 62.7% (0.7%) 64.7% (4.4%) 24.2% 4.4% 3.8% (0.7%) 7.5% 251.0% 1,875.3 25.4% 3.5% 4.7% 1.4% 9.6% 148.2% 2,928.2 27.4% 1.3% 4.4% 0.8% 6.5% 170.8% 2,353.7 41.3% (3.0%) 3.1% 0.1% 0.2% 82.2% 806.1 42.7% (5.4%) 2.6% 0.1% (2.7%) 93.0% 775.3 43.8% (5.9%) 9.7% 0.1% 3.9% 270.9% 881.7 42.2% (2.5%) 7.3% 0.4% 5.1% 272.6% 828.4 Investor Day 24&25 September 2012 - Andaz Liverpool Street London Change 6.7% 21.9% 165.0% 194.1% 191.5% 289.8% 171.9% Q1 12 1,186.7 989.0 35.8 50.5 ( 14.2 ) ( 10.1 ) 26.3 Fire Other lines Other lines 6M 11 538.7 416.9 ( 22.7 ) 11.0 0.3 ( 11.4 ) 6M 12 202.4 162.7 ( 9.5 ) 15.7 0.2 6.4 6M 11 188.2 152.0 ( 3.9 ) 11.0 0.6 7.8 ADDITIONAL Fire Other lines Other lines 15

Margin analysis Life & Non-Life Insurance (3/3) Major changes as of FY 2012 vs. current reporting  For consolidated companies only Per segment - Total Insurance - Belgium - UK - CEU - Asia  Abolishment of technical result & towards focus on operating margin only Life  Per product family - Guaranteed - Unit-linked Additional disclosures - Risk result - Investment result - Expense & other result Investor Day 24&25 September 2012 - Andaz Liverpool Street London Non-Life - Accident & Health - Motor - Fire - Other insurance - Net earned premium - Net Underwriting result - Investment result - Other result - CY / PY Claims ratio - Reserves ratio 16

Introduction Ageas track record in key areas of reporting Evolving financial disclosures at Ageas Margin analysis Inflow / FuM proportional Investment portfolio Shareholders’ equity Triangles on cost of claims – Non-Life Conclusions

Inflow reporting Strive for a better link between top line & bottom line performance In EUR mio  Consolidated & Non-consolidated @ 100% Belgium UK CEU Asia Total Ageas Life Life Life Life Life Non-Life Non-Life Non-Life Non-Life Non-Life 10,815 + 20% 8,992 2,981 2,449 + 23% + 10% 3,259 898 3,982 3,582 3,236 940 + 43% 2,361 22 6M 11 6M 12 1,481 1,016 1,140 994 1,102 6M 11 6M 12 6,543 326 2,111 + 12% 2,642 7,834 402 537 2,910 231 38 1,250 1,574 6M 11 6M 12 3,580 Investor Day 24&25 September 2012 - Andaz Liverpool Street London 6M 11 6M 12 6M 11 6M 12 18

Inflow reporting Proportional presentation improves link with bottom line view In EUR mio  Consolidated & Non-consolidated @ ageas share Belgium 75% UK 100% Tesco Underwriting + 13% 50% Belgium UK CEU Asia Total Ageas CEU Consolidated Portugal France Luxembourg (FY 11) Germany Italy Non-consolidated Turkey Luxembourg (FY 12) 51% 100% 50% 100% 25% Life Life Life Life Life 5,734 Non-Life Non-Life Non-Life Non-Life Non-Life 5,079 1,925 1,669 36% 33% + 10% 2,687 2,444 Asia Consolidated Hong Kong Non-consolidated Malaysia Thailand China India 705 674 + 24% 100% 31% 31%/15% + 13% 837 815 1,771 909 6M 12 817 38 22 6M 11 981 6M 11 6M 12 Investor Day 24&25 September 2012 - Andaz Liverpool Street London 885 90 1,982 25% 26% + 8% 947 200 727 685 890 6M 11 6M 12 6M 11 3,410 3,809 1,215 111 91 1,104 6M 12 6M 11 6M 12 19

Funds under Management reporting Strive for a better link between top line & bottom line performance In EUR bn  Consolidated & Non-consolidated @ 100% + 18% Belgium UK CEU Asia Total Ageas Life Life Life Life Life Non-Life Non-Life Non-Life Non-Life Non-Life 121 8 102 7 + 3% 52 54 3 3 113 + 51% 95 41 1 + 12% 27 49 1 50 21 40 + 13% 0 FY 11 6M 12 2 3 2 3 FY 11 6M 12 26 0 23 1 20 22 FY 11 6M 12 0 FY 11 Investor Day 24&25 September 2012 - Andaz Liverpool Street London 6M 12 FY 11 6M 12 20

“Funds under Management” renamed into “Technical reserves” Proportional presentation improves link with bottom line view In EUR bn  Consolidated & Non-consolidated @ ageas share Belgium 75% UK 100% Tesco Underwriting + 15% 70 50% Belgium UK CEU Asia Total Ageas CEU Consolidated Portugal France Luxembourg (FY 11) Germany Italy Non-consolidated Turkey Luxembourg (FY 12) 51% 100% 50% 100% 25% 36% 33% Life Life Life Life Life 5 Non-Life Non-Life Non-Life Non-Life Non-Life 61 4 + 3% 39 40 2 2 65 Asia Consolidated Hong Kong Non-consolidated Malaysia Thailand China India 56 + 53% 20 100% 37 0 38 13 + 12% 0 31% 20 + 15% 31%/15% 25% 26% 2 0 FY 11 6M 12 2 2 FY 11 6M 12 Investor Day 24&25 September 2012 - Andaz Liverpool Street London 0 FY 11 7 0 7 13 2 7 6M 12 0 7 FY 11 6M 12 FY 11 6M 12 21

Introduction Ageas track record in key areas of reporting Evolving financial disclosures at Ageas Margin analysis Inflow / FuM proportional Investment portfolio Shareholders’ equity Triangles on cost of claims – Non-Life Conclusions

More complete disclosure on investment portfolio Reporting on new asset classes as of FY 2012 EUR mio as you know it what it will be like as of FY 2012 ... ADDITIONAL + further breakdown of loans 63.4 59.4 Real Estate Equity Securities 4.5 4.3 1.8 21.4 68.7 65.2 2.1 2.4 1.6 3.7 3.4 Cash and cash equivalents Loans 22.8 Structured credit instruments Corporate bonds 31.4 33.6 FY 11 6M 12 Sovereign bonds Investor Day 24&25 September 2012 - Andaz Liverpool Street London FY 11 6M 12 23

Introduction Ageas track record in key areas of reporting Evolving financial disclosures at Ageas Margin analysis Inflow / FuM proportional Investment portfolio Shareholders’ equity Triangles on cost of claims – Non-Life Conclusions

Shareholders’ equity Insurance equity volatile by movements in unrealized gains & losses In EUR bn ADDITIONAL: split between Insurance, General Account & UG/L 8.8 8.6 9.4 8.9 8.4 8.0 6.8 1.6 UG/L 0.4 9.9 7.6 3.3 3.2 3.1 3.2 2.8 2.7 3.2 0.5 1.2 0.8 4.5 4.7 7.6 1.1 1.0 1.4 5.0 5.2 5.2 2.0 2.3 2.4 3M 09 4.4 6M 09 9M 09 FY 09 3M 10 6M 10 9M 10 General Account Investor Day 24&25 September 2012 - Andaz Liverpool Street London 5.5 FY 10 7.8 8.8 1.7 1.7 1.8 1.0 1.2 0.7 0.3 5.5 5.4 (0.3) 4.8 8.1 8.3 6M 11 5.3 5.5 5.6 5.9 9M 11 FY 11 3M 12 6M 12 (0.1) 3M 11 0.5 UG/L Insurance 25

Introduction Ageas track record in key areas of reporting Evolving financial disclosures at Ageas Margin analysis Inflow / FuM proportional Investment portfolio Shareholders’ equity Triangles on cost of claims – Non-Life Conclusions

Loss reserve developments Additional reporting on segments, based on accident year as of FY 2012  One consolidated Loss reserve development table already disclosed in Annual Report (note 7.12), driven by IFRS requirements, based on “book year” convention.  Additional online yearly reporting based on “accident years” at segment level & consolidated view ADDITIONAL Segment X Run-off table (2011) Accident Year as at 31 December All material figures quoted are undiscounted Cumulative payments at: 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 1 2002 2003 82.3 1 64.3 238.6 288.5 328.8 360.0 387.9 41 7.1 436.7 454.3 2004 2005 2006 2007 2008 2009 2010 2011 1 55.4 75.6 1 53.8 224.1 277.0 31 8.0 353.1 387.4 41 .2 1 432.6 79.2 1 60.3 232.0 285.5 330.5 373.0 402.7 428.5 83.8 1 67.9 241 .8 299.2 352.6 390.7 424.5 95.5 1 88.0 271 .8 338.7 387.9 430.4 1 07.9 21 6.7 31 2.8 377.0 432.4 1 .2 21 237.9 332.6 406.3 1 27.3 258.9 361 .7 1 58.5 31 6.6 721 .4 685.8 680.2 658.8 654.9 657.1 635.3 625.7 621 .8 754.8 723.0 699.0 688.2 693.7 668.6 658.1 656.4 792.6 750.5 736.1 744.0 71 6.8 704.1 700.4 822.7 797.9 803.1 774.9 761 .8 756.5 880.5 884.0 853.7 842.4 832.3 940.1 896.5 894.2 880.0 963.3 939.7 933.4 1 ,060.8 1 ,033.1 Cost of Claims (cumulative payments + outstanding reserves: 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 1 Gross Outstanding Claims Reserves 757.1 673.8 663.2 662.1 609.9 641 .1 645.7 624.7 61 5.5 61 .5 1 157.1 189.2 228.0 276.0 326.1 400.0 473.8 571.7 716.5 from initial claims versus re-estimated reserves 145.6 accounted for this year 4.0 Claims w ith regard to w orkers' compensation and health care Total claim s in the statem ent of financial position (Note 28) 99.7 3.9 98.4 1.7 92.1 3.7 66.2 5.3 48.2 10.1 60.0 14.2 29.9 6.3 1 ,068.4 913.0 27.6 27.7 (including IBNR& Prov for costs) Redundancy/deficiency Investor Day 24&25 September 2012 - Andaz Liverpool Street London 1,145.3 2,839.1 27

Introduction Ageas track record in key areas of reporting Evolving financial disclosures at Ageas Margin analysis Inflow / FuM proportional Investment portfolio Shareholders’ equity Triangles on cost of claims – Non-Life Conclusions

Conclusions  Continuous improvements since 2009, reflecting Ageas’s new business profile & corresponding to Insurance market practices  Additional info will be released to further improve financial disclosures in order to help financial markets better understand Ageas’s business model  Future and further enhancement will be studied going forward in line with industry evolution of practices & regulation (Solvency II, IFRS phase 2,...) Investor Day 24&25 September 2012 - Andaz Liverpool Street London 29

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’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 Day 24&25 September 2012 - Andaz Liverpool Street London 30

Add a comment

Related presentations

Gage-Cannon Investor Services

Gage-Cannon Investor Services

November 10, 2014

Gage-Cannon helps ventures accelerate organic growth or obtain equity funding, and...

Mavenir Analyst Day

Foro MAB Sevilla 13 de noviembre de 2014

ING Q3 2014 Earnings Report

ING Q3 2014 Earnings Report

November 5, 2014

Analyst presentation third quarter 2014 results. ING posts 3Q14 underlying net pro...

Related pages

Investor Day 2012 - Improvements in Financial Disclosures ...

1. Ageas Upcoming improvements in financial disclosures Christophe Boizard CFO Ageas INVESTOR DAY 2012 ; 2.
Read more

Investor Day 2012 - Improvements in Financial Disclosures ...

Investor day; Analyst coverage ... Investor Day 2012 - Improvements in Financial Disclosures. Investor Day 2012 - Improvements in Financial Disclosures ...
Read more

Ageas Upcoming improvements in financial disclosures

Ageas - Upcoming improvements in financial disclosures Christophe Boizard CFO Ageas INVESTOR DAY 2012
Read more

Financial Disclosures | LinkedIn

Financial Disclosures Articles, experts, jobs, and more: get all the professional insights you need on LinkedIn
Read more

Disclosures | LinkedIn

View 82882 Disclosures posts, presentations, experts, and more. Get the professional knowledge you need on LinkedIn. ... Financial Services. See more.
Read more

Press Release March 2012 - Financial Stability Board

these leading practice disclosures to the FSB in 2012. ... by investors, financial ... improvements in the quality of disclosures as indicated ...
Read more

Annual improvements — 2012-2014 cycle - IAS Plus

Annual improvements — 2012 ... IFRS 10/IAS 28 — Sales or contributions of assets between an investor and its ... IFRS 7 Financial Instruments: Disclosures
Read more

IFRS - Annual Improvements cycle 2012-2014

Projects Work plan for IFRS Annual Improvements Annual Improvements cycle 2012 ... published for comment for 90 days; ... to condensed interim financial ...
Read more

Individual investors and financial disclosure ☆

Using detailed data of individual investors, ... investors prefer better financial disclosures as ... 2012. How do individual investors ...
Read more