Value-over-volume strategy delivers solid results for H1 2016

Financial results driven by strong operating performance

  • Operating result at € 292 million, up 4.3% (H1 2015: € 280 million), reflecting continuous strong underwriting results and the contribution from the acquired businesses since the second half of 2015.
  • Combined ratio including exceptional hail and water damage claims at 96.4%, ahead of targeted 97.0%. Excluding the hail and water damage claims, the combined ratio was 94.2%.
  • Net result down 3.9% to € 382 million (H1 2015: € 397 million), mostly due to exceptional realized gains on investments in H1 2015.
  • Operating ROE at 14.5%, above the medium-term target of up to 12%.

Capital position strengthened by higher operating result and investment returns

  • Increase in Solvency II ratio (standard model) to 191%[1] at 30 June (target >160%). The Solvency II ratio at the beginning of 2016 (day-one) stood at 180%[2]. The reported year-end 2015 midpoint estimate was 185%.
  • Organic capital generation in H1 2016 at € 159 million, representing 4.7% of required capital (SCR at day-one).
  • Solid solvency at operating units above thresholds. Cash remittance to Holding on track to achieve the targeted cash position (circa € 350 million) at year-end. At 30 June 2016, cash at the Holding amounted to € 181 million.
  • Financial leverage at 26.6% (target <30%).

Acquisitions drive increase in premium income and higher cost base in first half year

  • Total insurance premium income increased with 7.7% to € 2,667 million (H1 2015: € 2,476 million).
  • Slight increase in non-life premium income to € 1,396 million (H1 2015: € 1,375 million), due to increasing volumes in P&C and Disability.
  • Life premium income up 14.3% to € 1,338 million, driven by acquired businesses and large new contracts

(H1 2015: € 1,171 million).

  • Operating expenses up € 15 million to € 283 million (H1 2015: € 268 million), driven by additional cost base of the acquired companies. Cost reduction initiatives on track to meet the medium-term target.

Execution of strategy on track; disposals and selective acquisitions enhance focus on core insurance and asset management businesses

  • Successful completion of the IPO with a listing on Euronext Amsterdam on 10 June 2016.
  • Acquisition of BNG Vermogensbeheer completed and business renamed ASR Vermogensbeheer (AVB), adding third-party asset management capabilities and € 5 billion in assets under management.
  • Acquisition of SuperGarant and Corins (announced in July 2016) to strengthen non-life distribution underwriting expertise.
  • SOS International and real estate developments sold.
  • Further increase in Net Promoter Score (NPS) in the first half of 2016 from -13 to +1.

[1] The Solvency II ratio reported at year-end 2015 was net of the proposed 2015 full-year dividend, whereas the Solvency II ratio reported at 30 June 2016 is a gross figure.

[2] The available capital (at day-one) stood at € 6,076 million and the required capital at € 3,374 million.

Jos Baeten, CEO of a.s.r.: ‘I am pleased to report solid results for the first six months of 2016, particularly as this is our first time reporting after the successful IPO and listing on 10 June. I believe our financial performance, strong solvency position and organic capital generation underpin the equity story of a.s.r. We truly appreciate the trust and confidence that our existing and new shareholders have given us at IPO and we look forward to building a constructive dialogue with them and the broader investment community.

The increase in operating result is driven by a strong business performance. Our underwriting expertise and investment returns proved resilient and provided a solid basis for continued capital generation in the first half of this year. We have been able to absorb significant hail and water damage claims while maintaining the combined ratio ahead of target. Our solvency ratio, using the standard model, is robust at 191%. This enables us to continue to remain entrepreneurial and to pursue profitable growth.

Serving our customers’ needs, now and in the future, continues to be at the centre of all our actions. The recent change in ownership will not affect our continuing focus on customers. Our customers continue to give us higher scores in customer satisfaction surveys and our Net Promoter Score has moved into positive territory.

I believe that, with our business mix, financial discipline, underwriting expertise and focus on value-over-volume, we are well positioned to benefit from sound business opportunities in a challenging and competitive environment. We are on track to achieve our medium-term targets.’

a.s.r. key figures (amounts in € million unless stated per share or as percentage)

H1 2016

H1 2015


Operating result




Operating return on equity




Net result




Return on equity




Gross written premiums




Operating expenses




Combined ratio, Non-life




New business, Life (APE)







30 June 2016

31 Dec. 2015


Total equity




Total equity attributable to shareholders




Solvency II (standard model)


c. 185%


Financial leverage




Number of FTEs (internal)









H1 2016

H1 2015


Operating result per share




Basic earnings per share (on IFRS basis)





  • The operating result represents profit or loss before tax adjusted for (i) investment income of an incidental nature (including realized capital gains, impairment losses and realized and unrealized changes in value) and (ii) incidental items not relating to ordinary activities, e.g. as a result of changes in accounting policies, consulting fees for acquisitions, restructuring expenses, start-up costs and shareholder-related expenses.
  • The operating ROE is calculated by dividing the operating result before tax less interest on hybrid capital and taxes (tax rate: 25%) by the annual average of equity attributable to shareholders less the reserve for unrealized gains and losses and equity for real estate development.
  • The Solvency II figures are based on the standard model.
  • Earnings per share are based on 150 million issued and outstanding ordinary shares.
  • Excluding the employees of acquired and disposed businesses in the first half of 2016, the number of FTEs would have been at 3,430 FTEs at 30 June 2016, a 2% decrease since the beginning of this year (3,489 FTEs).