ASR Nederland (ASRNL) CMD 2024 summary

Strategic Priorities and Business Outlook

• Focus on profitable organic growth, disciplined capital allocation, and integration of Aegon Nederland to strengthen market leadership in the Netherlands, with bolt-on M&A as a growth lever in selected segments.

• Organic growth targeted in P&C, disability, pensions (especially DC and annuities), and fee-based businesses, with further efficiencies in individual life and expansion in asset management and mortgages.

• Continued cost discipline, value-over-volume approach, and maintaining a strong, flexible financial framework underpin the strategy, with a 12% ROI hurdle for M&A.

• ESG leadership reinforced with new targets for customer satisfaction, employee engagement, gender diversity, CO2 reduction, impact investments, and brand reputation.

• Integration milestones for Aegon Nederland are on track, with most segments completed by end-2024 and full integration and brand transition targeted by 2026.

Financial Guidance and Capital Deployment

• Raised OCC target to €1.35 billion for 2026, with Solvency II ratio maintained safely above 160% and a projected uplift of ~40 percentage points from integration and divestments.

• Combined ratio target set at 92%-94% with 3%-5% business growth, and operating ROE to exceed 12%.

• Pension DC AUM expected to grow by €8 billion by 2026, with €1.8 billion in annuities and €8 billion in pension buyouts targeted by 2027, all at a minimum 12% IRR.

• Fee-based business operational profit target set at €140 million by 2026, with high single-digit growth expected.

• OCC uplift expected from cost synergies, pension buy-outs, and re-risking the investment portfolio, with new OCC methodology improving alignment with free cash flow.

Shareholder Returns and Capital Management

• Dividend policy extended with mid- to high-single-digit growth through 2026, normalization expected post-2026, and €525 million share buyback planned (€125m in 2024, €175m in 2025, €225m in 2026).

• Total capital return expected to exceed €2.5 billion over the next three years, with payout ratio of OCC between 70%-75% in 2026.

• Excess capital above target solvency will be considered for further M&A or returned to shareholders if not deployed efficiently.

• OCC methodology updated for greater alignment with free cash flow and segmental disclosure, enhancing transparency.

• Resumption of supplementary capital distribution enabled by strong OCC and balance sheet.