- Robust performance despite turbulent financial markets and impact of compensation payments for unit-linked insurance contracts, due to lower costs and capital gains from the ASR Dutch Prime Retail Fund
- Net result from Life business down to € 135 million (2010: € 276 million), influenced by drop in return on investments and impact of compensation payments for unit-linked insurance contracts
- Net result from Non-life business up to € 145 million (2010: € 104 million), due in part to increase in premium income and drop in operating expenses
- Improvement in Non-life combined ratio to 98.9% (2010: 100.3%), largely attributable to cost reductions, lower claims and pricing adjustments
- Return on equity at 9% (2010: 17%)
- ASR to pay € 71 million (40%) in dividend on ordinary shares
Premium income down due to preference for return over growth
- Gross insurance premiums down to € 4,511 million (2010: € 4,738 million), primarily due to cautious approach in single premium market
Solvency ratio improved to 230% (2010: 221%)
- DNB solvency ratio up 9%-points
- If solvency is calculated at three-month average yield curve, temporarily permitted by DNB, solvency would have increased by 29%-points at year-end 2011
- Reduction in market risk sensitivity of solvency, thanks to robust risk management
Increased cost efficiency
- Operating expenses down 6%, dropping to € 633 million (2010: € 672 million), due to ongoing focus on efficiency
- Cost-premium ratio in insurance business improved to 11.8% (2010: 12.7%)
- Total workforce down to 4,631 FTE, a decrease of 6% (2010: 4,929 FTE)
Customer interests first
- In 2011, more than 900,000 customers with 1.1 million unit-linked contracts were informed regarding possible compensation payments. These payments have since been deposited directly into their policies or paid out. In total circa € 300 million
- More than 80% of these customers have now received a letter offering them an alternative to their current unit-linked contracts
- Brand New Day and ASR launched a joint Institution for Occupational Retirement Provision (IORP)
- The number of health insurance policies sold increased by110,000 inQ4 2011, primarily due to the success of the Ditzo marketing campaign
Jos Baeten, CEO of ASR:'Our first priority is giving customers peace of mind. The turmoil in the financial markets means that maintaining our financial robustness has once again been leading. Our strong solvency position of 230%, the net result of € 212 million and our intention of paying € 71 million in dividend, demonstrate that our approach in this has been successful, despite the continuing turbulence in the financial markets. Operationally, the result improved due to lower costs and lower total claims. The net result decreased compared to last year, mainly due to lower investment income and the impact of compensation payments for unit-linked contracts. We compensated unit-linked policyholders by depositing a payment for previous costs into their policies; we also offered them alternatives to their current contracts. We were successful in reducing our cost base, particularly in the insurance business. The continuing decline of the Life business confirms that the focus on efficiency will continue to be a priority in the years ahead. In 2011, we again invested in our processes, new products and distribution channels. The focus on cost control and cost cutting is part of our day-to-day operations. In these difficult financial markets, we have taken measures to mitigate risks in the interests of our solvency. The choice for financial robustness has led to the further streamlining of ASR's risk profile. Conversely, it may potentially result in a lower return on investments in the future. Late in 2011, we successfully introduced the ASR Dutch Prime Retail Fund to the market, and we also saw success in the health insurance market where the number of insured individuals grew by110,000. In2012, we will launch our new marketing strategy 'Bewust ASR' ('More Aware. ASR'). This will highlight that ASR is on its way to becoming a 'different kind of insurer'. Overall, we are generally pleased with our performance in2011 inthe current difficult market.'
Gross insurance premiums
New Life production (APE)
Combined ratio non-life
Cost-premium ratio insurance business
Buffer capital ratio (IFRS)
Return on equity3
Total workforce in FTE4
¹ Net result attributable to holders of equity instruments.
² Total equity including a net revaluation of the property portfolio of €863 million at 31 December 2011 and €1,042 million at 31 December 2010.
3 Return on equity is calculated as net result attributable to shareholders divided by average total equity (IFRS) attributable to shareholders.
4 The Total workforce includes both internal and external employees, but does not include temporary employees hired for the purpose of handling the compensation issue.