Ageas in Asia Filip Coremans CFO Ageas Asia (CRO Ageas as of 1 July 2014) Active in 12 countries in Europe & Asia Situation on 31 December 2013 Belgium - 75% Life € 4,101 mio Non-Life: € 1,855 mio UK – 100% Life: € 108 mio Non-Life: € 2,176 mio Luxembourg- 33% Life: € 2,252 mio France - 100% Life: € 351 mio Portugal - 51% Life: € 1,486 mio Non-Life: € 251 mio Hong Kong - 100 % Life: € 485 mio Turkey - 36% Non-Life: € 602 mio Italy - 25% Non-Life: € 211 mio * Inflow included non-consolidated partnerships @ 100% Ageas Club 26062014 China - 25% Life: € 6,397 mio India - 26% Life: € 108 mio Thailand Life – 31%: € 1,476 mio Non-Life– 15%: € 214 mio Malaysia - 31% Life: € 594 mio Non-Life: € 552 mio 1 Our Investments in Asia to date Total net invested capital of EUR 1.3 billion China (2001) – – Net investment of EUR 390m composed of EUR 397m investments and EUR-7m divestments Additional capital injections not excluded in next 3 years (2014-16) due to aggressive business plan and Greenfield Taiping e-Commerce Hong Kong (2007) – – – India (2008) – – – Net investment of EUR 34m Greenfield; funding requirements function of growth First profit recorded in 2012 Malaysia (2001) – Thailand (2004) – – Ageas Club 26062014 Net investment of EUR 686m composed of EUR 761m investments and EUR-74m dividends Self-supporting Dividend paying since 2013 Net investment of EUR 9m composed of EUR 62m investments, EUR -17m dividends and EUR-36m divestment Dividend-paying since 2010 – – Net investment of EUR 148m composed of EUR 203m investments, EUR-36m redemptions and EUR-18m dividends Self-supporting Entered dividend-paying mode in 2011 2 Zooming in on our Asian Insurance Activities Ageas Asia Region for 2013 Taiping Life (China) (24,9%) • • • • • • • • • • • • • Gross inflows: € 9.8 billion Technical Liabilities: € 28 billion Net Profit: € 142 million Staff: 33,640 – 418 Ageas staff Agents: +/- 167,000 Bank branches: +/- 32,000 IDBI Federal (India) (26%) • • • • • • • Gross inflows: € 108 million Technical Liabilities: € 322 million Net Profit: € 1.9 million Staff: 2,369 Agents: 9,664 Bank branches: 2,181 Market position: #16 (in terms of new business) Gross inflows: € 6.40 billion Technical Liabilities: € 17.94 billion Net Profit: € 26.5 million Staff: 25,648 Agents: 112,796 Bank branches: 27,847 Market position: #7 (in terms of total gross inflows) Ageas Insurance Company Asia (Hong Kong) (100%) • • • • • • Gross inflows: € 485 million Technical Liabilities: € 1.97 billion Net Profit: € 37.8 million Staff: 370 Agents: 2,715 Market position: #10 (in terms of new business) Muang Thai (Thailand) (31% Life, 15% Non-Life) Mayban Ageas (Malaysia) / eTiQa (30,95%) • Gross inflows: € 1.69 billion (Life: € 1.48b; Non-Life: € 214m) • Technical Liabilities (Life): € 3.55 billion • Net Profit: € 48.3 million • Staff : 2,988 • Agents: 27,513 • Bank branches: 1,190 • Market position: Life #2 (in terms of total gross inflows) Non-Life #5 (in terms total gross inflows) • Gross inflows: € 1.15 billion (Life: € 594m; Non-Life: € 552m) • Technical Liabilities (Life): € 4.13 billion • Net Profit: € 43.7 million • Staff: 2,265 • Agents: 14,266 • Bank branches: 423 • Market share: Life - #5 (in terms of new business) Non-Life - #2 (in terms of net premiums) Ageas Club 26062014 *Gross inflow and Funds under Management are at 100% 3 Active under many local brands with solid market positions Situation on 31 December 2013 Belgium # 1 Life 27% # 2 Non-Life 16% Distribution companies Partners UK UK - # 2 Motor 3.6 million Motor policies Largest Belgian Real Estate Group EUR 6.1 billion China # 7 Life > 100,000 agents Malaysia #2 Non-Life #5 Life #1 in Islamic insurance Portugal Portugal # 1 Life Italy Turkey * # 4 Non-Life Italy # 1 Bancassurance Non-Life Ageas Club 26062014 Malaysia India Thailand # 2 in Life (#1 New Business), # 5 in Non-Life 4 Partnerships are in our DNA In all our partnerships we strive to… “ … select the right partners understanding partner needs and whether we have the right solution is more productive in the short and long term Ageas Club 26062014 “ … focus on the strategic, not the tactical rationale we focus on alignment of core competencies “ … base cooperation on customer need, not short term product sales quick returns and inflated commissions are unstable. Creating the platform for a wider deeper relationship results in the partner having no reason to go elsewhere for their insurance needs “ … build on long term loyalty, not on financial return only a pure financial motivation will never result in long term partnership that is mutually rewarding. Ability to evolve and be flexible creates more value 5 Zooming in on our Asian Joint Venture Partners Taiping Life (China) (24,9%) • • China Taiping Group (CTG) is a Central Government Enterprise with strong relationships with the Ministry of Finance and the insurance regulator CIRC CTG’s principal unit is listed in Hong Kong with a market capitalisation of € 3,1 bn; this listed entity is the majority shareholder in TPL and TPAM Mayban Ageas (Malaysia) / eTiQa (30,95%) IDBI Federal (India) (26%) IDBI Bank • Government linked retail and corporate bank with a very strong nationwide brand and solid relationships with both RBI and IRDA • Midsize listed bank with 1.129 branches, € 40 billion balance sheet total and € 2,2 bn market capitalisation • Its corporate relationship portfolio is second-tonone in India Federal Bank • Small to midsize listed bank with 1.124 branches, € 10,2 bn balance sheet total and € 1,35 bn market capitalisation • Private, listed regional retail bank with dominant market position in South India/Kerala. Ageas Club 26062014 • • Maybank, top tier listed bank with over 400 branches, € 123 bn balance sheet total and over € 20 bn market capitalisation #1 bank in Malaysia with both top positions in retail and corporate banking and outspoken regional/international ambitions Muang Thai (Thailand) (30.87% Life, 14.87% Non-Life) • • • Kasikorn Bank, top tier listed bank with 1.001 branches, € 51 billion balance sheet total and € 10,7 billion market capitalisation Former Thai Farmer Bank, solid #3 retail bank with strong enterprise network. Lamsam family, a leading and very successful family with extensive business interests and connections 6 Evolution of Performance in Asia Ageas’s growth engine Evolution Net Profit – Ageas’s part (x Euro million) Evolution Gross Inflow (x Euro billion) 128.5 9.8 6.2 6.1 1.9 1.3 2008 59.1 68.1 4.1 3.3 1.1 93.5 90.6 7.9 2.9 2.4 1.9 8.6 2009 2010 Inflow at Ageas' Stake 2011 2012 Inflow at 100% 21.5 8.6 2008 136.6 142.3 142.3 2009 2013 2010 2011 2012 2013 (64.1) Reported net profit Net profit excluding Extraordinary Net Book Value per country (x Euro million) Technical Liabilities (x Euro million) 27,920 24,403 20,617 16,947 11,536 9,524 3,303 2008 3,959 2009 5,620 2010 FUM at Ageas' Stake Ageas Club 26062014 6,722 2011 7,935 2012 8,896 2013 FUM at 100% 7 Asia has become a significant contributor to Ageas’s results Net Profit Gross Inflow (@ Ageas stake) Asia 22% Asia 25% Belgium 38% Continental Europe 20% Shareholders' equity Hong Kong 27% Continental Europe 14% UK 3% Belgium 51% UK 15% UK 17% VANB Ageas Club 26062014 Continental Europe 12% Belgium 56% Hong Kong 10% Asia ex Hong Kong 11% Continental Europe 16% Belgium 48% UK 15% 8 Leading international Life insurers premium income (Asia, exl-Japan) #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12 #13 #14 (USDmn) 19,505 Premiums are shown on a 100% basis 14,862 8,336 7,227 7,164 5,688 4,456 4,350 4,243 2,815 2,804 2,189 1,247 Prudential (UK) China Zurich Hong Kong 1,056 AIA Allianz India Ageas Indonesia HSBC South Korea BNP Paribas Cardif Manulife Malaysia MetLife Philippines AXA Singapore Aviva Sun Life Taiw an Standard Life Thailand FWD Vietnam Source: Towers Watson Ageas Club 26062014 9 Significant growth potential Life insurance Penetration vs. Life Premium per capita (2012) Premium penetration (% of GDP) 18% 16% Taiwan 14% 12% South Korea 10% Hong Kong 8% Asia (ex Japan) 6% Western Europe 4% 2% Vietnam Philippines Indonesia 0% 5 Source: Swiss Re, Sigma Report, no. 3/2013 Ageas Club 26062014 Thailand India 25 Malaysia Singapore China 125 North America 625 3,125 Premium per capita (USD) (Log scale) 10 Building Asia Hans De Cuyper CFO AG Insurance (former CEO Maybank Ageas Holding) Hong Kong (2004-2007): the early days of Ageas in Asia • • Joined Ageas Group in 2004 for the opportunity to build insurance presence in Asia Insurance Management Division to create support functions for our partnerships • Product Management • Risk Management • Corporate Governance • Bancassurance Distribution • Direct Marketing • Investment Management and ALM • Through multiple enablers • Local visits and trainings • Drafting of manuals and guidelines • Study visits to Ageas’ established entities in Europe • Conferences • Participation in Risk Committees, Investment Committees, Audit Committees,…. Ageas Club 26062014 12 The chemistry of our success in Asia… • Build on trust • First support, then control • Strong cultural flexibility • Stay humble, let others glorify from your expertise • Active participation by top management in the Board • Continuously innovate your support • Local player Ageas Club 26062014 13 2007-2010: the creation of Etiqa in Malaysia Ageas, one of the largest providers of insurance in Europe entered into a joint venture with Maybank, the biggest financial services group in Malaysia to develop bancassurance in Malaysia Growing by leveraging on the strength of the two partners Maybank’s Strengths: • Malaysia’s largest financial services group Strong financial position • Offers an array of financial services ranging from retail banking, corporate banking, merchant banking, offshore banking, asset management etc. Ageas’ Strengths: • An international group, a leader in the fields of insurance, investment and bancassurance • Offers a broad range of financial services through various distribution channel Specifically, Ageas was brought into for their contribution mainly in 2 areas: • Developing bancassurance business, i.e. to bring successful bancassurance products into Malaysia • Transferring business know-how, technology and capabilities, both insurance-specific and general management Ageas Club 26062014 14 2010-2013: CEO of Etiqa Insurance & Takaful The brand implies changing the way Etiqa employees behave. “The Etiqa Way” was introduced….. The Brand Promise “Humanizing Insurance & Takaful” -Its about People not Policies Insurance and Takaful is about helping people, helping them to protect their assets, maintain their Lifestyle and build a better future. In everything we do, we keep things as simple as possible, we deliver on our promise and we place people over policies. That's how we humanize insurance and Takaful. In doing so, we act with professionalism, empathy, courage and integrity. We make a difference by doing it the Etiqa Way. Ageas Club 26062014 15 THANKS