Jos Baeten, CEO of a.s.r.: ‘We are very pleased with the performance we have delivered since our IPO in June 2016, while the appreciation by our customers has increased at the same time. The discipline in the execution of our strategy has led us to achieve, and even exceed our medium-term financial targets.
The service to our customers has been a top priority to become the insurance company of choice in the Netherlands. This resulted in a further increase of the Net Promoter Score, for both customers and intermediaries. The appreciation is also reflected in our growth. In addition, I am pleased with an increase in the recognition as a socially responsible insurer.
In delivering on our financial targets the operating return on equity has been well above 12% throughout this period. The combined ratio has also shown a consistent and strong performance. Our cost savings of € 50 million are well on track, while solid increases in our operating results led to higher dividends. Our Solvency II, on a standard formula, has been comfortably within our entrepreneurial zone and has increased over time, allowing us to successfully pursuit organic and inorganic growth. Since our IPO, we have completed the acquisitions of distribution companies SuperGarant and Corins, asset manager First Investments and, in February this year, Generali Nederland. It demonstrates our ability to successfully execute our bolt-on acquisition strategy.
Our strong performance in recent years and the confidence we have in our strategic plans are the foundation of the ambitious targets we have set for the period 2019 – 2021.The targets are challenging in the Dutch market and reflect a delicate balance between managing for value and the pursuit of profitable growth.
Our plan to achieve these targets comprises three pillars. Firstly, we remain committed to adhering to our strict financial discipline. Value-over-volume will remain key in our decision-making and a disciplined approach to cost is key to maintaining our strong performance. Opportunities to consolidate in-market, particularly in the SME space, will continue to be considered, taking into account a minimum hurdle rate of 12% return on investment. And, maintaining a strong balance sheet with financial flexibility offers room to pursuit profitable growth. We will continue to allocate capital rationally. If there are no opportunities for profitable deployment of capital, we will consider returning capital to shareholders under certain defined conditions.
Secondly, we aim to optimise the value creation from existing businesses with the same rigour as we have demonstrated in recent years. We will continue to focus on meeting customer needs, excel in pricing, underwriting and claims handling, enhance our cost effectiveness and maintain a solid financial framework.
The final pillar in our plan is the pursuit of profitable growth in specifically: P&C, Disability, Asset Management, Pensions DC and consolidating Life portfolios.
In addition to our financial and business targets we are also introducing three non-financial targets to reflect our acknowledgement of the responsibilities that our position in wider society brings.’
The Capital Markets Day is broadcasted live today from 09.00h CET on the website www.asrnl.com. During this event Jos Baeten (CEO) will elaborate on a.s.r.’s pursuit of value over volume. Other presenters will be Chris Figee (CFO), Karin Bergstein (COO), Michel Verwoest (COO), Jack Julicher (CEO a.s.r. asset management), Dick Gort (CEO a.s.r. real estate), Philippe Wits (Chief Innovation Officer) and Patrick Klijnsmit (director of group accounting, reporting and control). All presentations will be available today from 07.00h CET on www.asrnl.com.
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Some of the statements in this document are not (historical) facts, but are ‘forward-looking statements’ ('Statements'). The Statements are based on our beliefs, assumptions and expectations of future performance, taking into account information that was available to ASR Nederland at the moment of drafting of the document. The Statements may be identified by words such as ‘expect’, ‘should’, ‘could’, ‘shall’ and similar expressions. The Statements may change as a result of possible events or factors.