As an employer, we made progress with our extensive staff training programmes and the decoupling of remuneration from appraisals. We replaced the appraisal interview with an ongoing dialogue between employees and their managers in which greater emphasis is placed on development. We recognise that people want to work for us due to our positioning as a socially engaged company.
It continues to be part of a.s.r.’s strategy to achieve growth organically and through selective acquisitions. In the recent years a.s.r. has been successful with multiple bolt-on value adding acquisitions. a.s.r. identifies opportunities for value-added bolt-on acquisitions and focuses on small to medium life-related businesses, non-life businesses and possibilities to expand its position in insurance distribution as well as selective asset management or other opportunities.
• Sustainable employability a.s.r. identifies several trends that lead to increased demand for sustainable employability from employers and employees. Employees’ work environments are changing. Technological developments are altering what is required of employees, labor contracts are shorter, retirement age is rising and labor is becoming less location dependent.
Operating environment | 2.1 The story of a.s.r. 21 2.1.3 Portfolio and execution of strategy
• Risk appetite: the level and type of risk a.s.r. is willing to bear in order to meet its strategic objectives.
• Number of employees through the Participation Desk: 70 in 2026
At the ‘MKB verzuimontzorgverzekering’ there is a permanent ‘ontzorgmanager’ who ís point of contact by absence during reintegration and has knowledge of all relevant legislation and regulations. The Employee is in control of his or her own reintegration.
‘Verduurzamings hypotheek’ a.s.r.’s ‘Verduurzamingshypotheek’ is designed to encourage its clients to install energy conservation measures in their homes. This helps to cut CO2 emissions while increasing comfort in the home and saves costs.
The Product Approval & Review Process (PARP) is one of the internal processes for assessing the relevance of products and services. The focus is on customers and their interests. The PARP is followed for new products and on a regular basis for reviews of existing products. It drives continuous improvement for example based on comments from customers and consultants and changes in legislation and regulations. The PARP is applicable to products that are actively offered, as well as inactive products and services which are also reviewed on a regular basis. In accordance with the Dutch Authority for the Financial Markets (AFM) assessment framework and in line with legislation and regulations a.s.r. has set up the PARP tests, which covers among other things, cost efficiency, usefulness, safety and comprehensibility.
Yes, fully No, not fully but the follow-up is clear to me
Employees receive support to work on their sustainable employability through amongst others career coaching, workshops, retraining, work placements and with starting up their own business.
Sustainable value creation | 3.3 Our role as a sustainable employer 42
‘De Andere Cao’ ‘De Andere Cao’ is a.s.r.’s own CLA, which took effect on 1 January 2018. Starting points of De Andere Cao are: self-management, a mature working relationship and increased job market value of staff. Freedom of choice is possible, but not obligatory, and the CLA starts from trust, not control.
The ESPP has an impact on equity through the adjustment in the treasury shares and retained earnings. Refer to chapter 6.5.12.4 Treasury shares for more information.
All investments managed by a.s.r. asset management (AVB) are screened against the SRI policy
• Exclusion criteria for countries and companies a.s.r. pursues a strict exclusion policy for controversial activities which it applies to all internally managed portfolios, both for its own account and for third parties. In 2019 this policy was expanded by tightening the policy on fossil fuels: the threshold for companies deriving revenues from coal mining and tar sands and oil shale was lowered from 30% to 20%. Companies deriving more than 50% of their revenue from coal-fired electricity production were also excluded. a.s.r. has divested the companies in its portfolios that meet these new criteria.
Rural real estate portfolio asbestos-safe a.s.r. seeks to minimise the presence of asbestos in its existing Dutch real estate investments. To achieve this, the entire portfolio of retail, office and residential properties has been made asbestos-safe. Some buildings in the rural real estate portfolio may still contain asbestos. a.s.r. has the ambition to make its rural real estate portfolio fully asbestos-safe by 2020. The goal for 2019 was that 75% of the rural portfolio would be declared as asbestos safe. In 2019, 84% of the portfolio was declared asbestos-safe.
In an Incident Register, financial institutions can record behaviour of (legal) persons that has been or could be detrimental to the financial institutions. If data are shared with organisations, companies or third parties outside of the European Economic Area (EEA), arrangements are made with them so that a.s.r. complies at all times with the rules applicable in the EEA.
a.s.r. continuously emphasises the importance of the a.s.r. code of conduct and underlying policies and rules, and invests in awareness-raising. In 2019, a.s.r. took various initiatives to further improve knowledge on integrity-related subjects. a.s.r. employees keep their knowledge up to date through compliance training, presentation and dialogue, but also, for example, through ‘gamification’ (on a voluntary basis). By answering relevant questions each day, employees can refresh their knowledge of the code of conduct. Training of employees includes the main compliance related topics, with a focus on conflict of interests (e.g. insider trading, outside business activities and incentives), code of conduct, CDD, privacy and risks related to intermediary distribution. In 2019, ethical dilemma sessions and workshops have been organised by Compliance to develop ethical awareness at employee, management, departmental and a.s.r. level, by engaging in ethical dialogue about daily dilemma’s from different perspectives. This ethical dilemma programme is also an integral part of the a.s.r. academy. In 2020 a.s.r. will further improve monitoring and awareness on insider trading, outside business activities and incentives.
ASR Schadeverzekering N.V. IFSR A Stable 23 August 2012 5.000% Tier 2 hybrid bond BBB- 16 September 2014 5.125% Tier 2 hybrid bond BBB- 29 September 2015 3.375% Tier 2 hybrid bond BBB- 1 May 2019 4.625% Tier 1 hybrid bond BB+ 18 July 2019 3.5.7 Political engagement a.s.r. takes part in open dialogues within politics and with its stakeholders. To this end, a.s.r. holds meetings with government bodies, financial institutions and socially relevant organisations on an ongoing basis in order to explore social issues. In view of the challenges that society as a whole is faced with, a.s.r. believes it is vital to cooperate – as partners, government bodies and institutions – and to identify sustainable solutions. a.s.r. engages itself in political lobbies as part of the democratic process and contributes its expertise and knowledge to support the government’s policy development. a.s.r. shares its insights to cooperate in regulatory and macroeconomic challenges. a.s.r. ensures that all public affairs, lobby and political network activities are performed in line with the Code of Conduct of the Dutch Association for Public
Business performance | 4.1 Group and segment performance 64 4.1 Group and segment performance 4.1.1 ASR Nederland N.V.
Market The non-life market consists of many insurers with similar products, especially in the retail market. The market has become more rational in P&C pricing. Consolidation has led to a decrease in the number of P&C insurers in the Dutch market. The top 3 P&C insurers have a market share of approximately 70%. Compared to last year, the impact of calamity damage was low. Large claims and storms can impact the bottom line performance. Over the past years, a.s.r. has built and strengthened a solid foundation for a successful and profitable P&C business.
De Amersfoortse introduced a new proposition; Zorg voor Ondernemers (health for entrepreneurs). This proposition is made for entrepreneurs, including self-employed persons without a disability insurance. The proposition aims to reduce the risk of (physical) ailments by providing coverage, services and help to support entrepreneurs in staying healthy and productive before – or as soon as – ailments appear. This proposition could also increase the interest in the broader range of product and services for sustainable employability, including disability insurance.
Outlook for 2020 The main focus will be further improving customer satisfaction through digitisation and robotisation, data management and operational excellence. Individual life will complete the planned migrations of VvAA and Loyalis to the SaaS platform. The individual life and pension departments will be integrated in 2020. Consolidation opportunities will be looked into seriously.
Strategy and achievements The focus of Ardanta continues to be undiminished capital generation and a further strengthening of its competitive position through cost leadership. Ardanta offers practical support to its customers and their relatives in overcoming personal losses and in practical matters relating to bereavement. Practical guidance consists of initiatives such as the
Outlook for 2020 In 2020, Asset Management will continue to serve its clients through a combination of asset management solutions and individual asset categories, such as fixed income, equities, mortgages and LDI. As part of a.s.r.’s ESG strategy, the focus will be placed on impact investing and further measuring the carbon footprint of the investment portfolio.
Market The solid growth of the Dutch economy and real estate market slowed down just slightly in 2019. The economic base remained steady, with substantial GDP growth, low unemployment and positive consumption growth. This resulted in good occupancy demand, higher occupancy rates and rental growths in most sectors. The looming nitrogen debate has made it more challenging to develop real estate. Market dynamics in the retail sector are more challenging, as well. Yields are still constricted due to the very low interest rates and the fierce competition for prime assets. The search for real estate yields continues and investors increasingly target secondary assets, locations and niche markets. Investment volumes are still well above historic averages.
Market The Dutch mortgage market is growing. Although the four major banks still hold dominant positions, insurers, smaller banks and institutional investors play an important role on the Dutch market. The product most chosen is a mortgage based on annuity instalments. Interest-only mortgages are still popular and represent nearly 30% of the new production. The Dutch Banking Federation (NVB) and the Dutch Association of Insurers started a campaign informing customers on the risks involved in this kind of product (residual debt). The duration of the interest term is moving towards an ever longer period. The most popular interest term is now 20 years fixed but also 30 years fixed is becoming more popular.
The additional distribution and services activities, combined with organic growth in the distribution businesses that were acquired in previous years, strengthened a.s.r.’s footprint in the distribution landscape. The portfolio of the activities of these distribution businesses showed steady growth compared with the corresponding period in the prior year.
a.s.r.’s footprint in the distribution landscape has given it forward integration into the insurance chain and has improved insights into intermediary and customer needs. a.s.r. believes this will be beneficial for aligning its product range more closely with customer needs and better connecting with the intermediary landscape.
Longevity risk Recent mortality tables (2018) issued by the Dutch Association of Actuaries (AG) indicate that the life expectancy of the Dutch population has not significantly improved. Nevertheless, it should not be ruled out that the life expectancy of a.s.r.’s policyholders could improve significantly compared to current mortality tables due to relatively sudden (medical and/or technological) developments in health care. Certain improvements could ultimately result in a lower solvability for a.s.r. Unexpected break-throughs could ultimately lead to a lower solvency position. Mitigating measures such as longevity reinsurance are continuously investigated from a risk management perspective.
As a leading Dutch insurer and long-term steward of its clients’ assets, a.s.r. regards the physical and transition impacts of climate change as strategically important to its business. This is a.s.r.’s first report detailing its approach to managing climate risks and opportunities in line with the recommendations set out by the TCFD.
• The graph on this page shows the average impact of the four climate change scenarios on the Solvency II ratio and the return on required capital (annualised) over 20 years, relative to the climate unaware outlook. On average, there is little difference between the impact of the climate scenarios on the Solvency II ratio.
The investment restrictions of client portfolios, including a.s.r.’s SRI criteria, are integrated into the portfolio management systems with real-time monitoring, including pre-trade compliance rules. Any breaches will be reported to the portfolio manager and the risk department, the latter being the second line of defense. Post-trade monitoring is done through daily portfolio screening of the compliance rules, including ESG criteria. Any findings are accounted for and reported to management.
Going forward, more work needs to be completed to be able to generate projections around return estimates, maintenance plans or hold-sell assessments, as well as on how to incorporate climate risk within a.s.r.’s acquisition process. This is planned for 2020, alongside developing a more structured governance to control climate risk within the business line.
The SB is responsible for overseeing the reporting process of ASR Nederland N.V.
ASR Vermogensbeheer N.V. and ASR Real Estate B.V. (formerly named: ASR Vastgoed Vermogensbeheer B.V.) are two AIFMD-licensed AIFMs. These entities have their own EBs.
The individual EB members attended (leadership) sessions on various topics in their capacity as board members and supervisory directorships in other organisations.
As of 1 February 2020, Annemiek van Melick is responsible for Finance, Risk & Performance Management, Group Balance Sheet Management, Group Asset Management and a.s.r. real estate.
Chris Figee was responsible for Finance, Risk & Performance Management, Group Balance Sheet Management, Group Asset Management and a.s.r. real estate.
Kick van der Pol 12-2008 05-2021 11 1949 M • • • • •
The outcome of the assessment was discussed by the members of the SB and the Company Secretary. The SB has an open, constructive and professional relationship with the EB. Dilemmas, in general or in specific files, are openly discussed both during meetings and during informal (one-on-one) contact. The EB feels and knows that it is supported by the SB in its relationship with the supervisory authorities. In terms of composition, the SB is positive about the changes in the past year and the result thereof in the dynamics. With the entry of the two new members, Gisella van Vollenhoven and Gerard van Olphen, diversity has increased. The current composition is assessed as good and multiform. However, a high degree of knowledge/experience with innovation and digitisation is relatively limited and therefore a point for attention.
Dutch Banking Code ASR Bank N.V. is subject to the Dutch Banking Code (latest version 1 January 2015). This Code, which was drafted by the Dutch Banking Association, contains principles for governance and governance oversight, risk management, audit and remuneration policy. ASR Bank N.V. is governed by this Code. Details of how ASR Bank N.V. complies with the Dutch Banking Code can be found in its annual report, which is available at www.asrnl.com.
The committee discussed and adopted the external auditor’s letter of engagement and the audit plan for 2019. The external auditors’ independence and additional fees were also reviewed each quarter. The management letter of the external auditor highlighting key internal control observations was discussed. Also, the audit results report of the external auditor was discussed. Special attention was given to the reported key audit matters: valuation of insurance contract liabilities including shadow accounting, fair value measurement of non-listed investments, Solvency II ratio and explanatory notes, unit-linked exposure, the reliability and continuity of electronic data processing and the acquisition of Loyalis. The A&RC approved the updated charters and annual plans for 2020 of the Actuarial and Risk Management Function and the Compliance Function. It advised the SB to approve the updated charter and the audit plan 2020 of the internal Audit Function; this advice was followed.
2 The commitment on pensions did not change in 2019. The increase in annual pension expenses is caused by a decrease in the interest rates. The calculation of annual pension expenditure is based on the total pension rights granted during the term of service at a.s.r. Further changes in the cost of pension benefits are mainly due to the impact of age, terms of service, gender and age differentiated disability, mortality and other actuarial assumptions. The pension costs include pensions based on maximum pensionable salary cap, compensation for the maximum pensionable salary cap (to be used for pensions at the employees’ discretion) amounting to € 285,000 (2018: € 259,000) in total, and VPL. The pension benefits, excluding compensation for the maximum pensionable salary cap, represent post-employment benefits.
The reference group of the other employees consists of the general market. The reference group for some positions within Group Asset Management and Real Estate, is Asset Management. To prevent the salary scales of the employees and the EB from diverging too much, partly due to the difference in reference groups, the salary scales of the EB are checked every 2 years against the reference group of the employees (the general market). If the differences become too substantial, this may be a reason to adjust the extent to which the maximum of the salary scales of the members of the EB is below the median. The remuneration ratio between the remuneration of the CEO and the median of the remuneration of the employees at a.s.r. will be less than 20.
Item 4. The stakeholders’ perspective The structure of the remuneration policy has been tested against the views of shareholders, customers, employees and society. A proposal to change the remuneration policy will be discussed with various stakeholders. The remuneration policy will take into account the views and interests of these various stakeholder groups as much as possible.
A group of Dutch organisations, a significant proportion of which have a strong CSR reputation, distinguished into comparable Dutch listed companies and Dutch financial institutions, including insurers.
Ziektekostenverzekeringen N.V. 3 The fees relate to the amounts received as a committee member of the Selection and Appointment Committee (€ 6,250) and the Remuneration
Committee (€ 3,125) and the Remuneration Committee (€ 4,375), and as a member of the SB of a.s.r. bank (€ 4,000). 6 The fees relate to the amounts received as a member of the Audit & Risk Committee (€ 10,000), and as a member of the SB of ASR Basis/
9 Annet Aris left the SB as of 22 May 2019. The remuneration figures for 2019 reflect a partial year as a member of the SB. The fees relate to the amounts received as a committee member of the Selection and Appointment Committee and the Remuneration Committee (€ 1,942), and as a member of the SB of ASR Basis/Aanvullende Ziektekostenverzekeringen N.V. (€ 1,553).
Attributable to: Non-controlling interests - 2 - Shareholders of the parent 881 366 - Holders of other equity instruments 60 59
Issue of other equity instruments - - - - - - - 207 - 207
Net (increase) / decrease in amounts due from and to credit institutions 2,195 542
Restatements of comparative figures are the result of changes in EU endorsed annual improvements to IFRS standards 2015-2017 cycle: IAS 12 amendment and changes in presentation.
Amendments to IAS 1 and IAS 8: Definition of Material The IASB issued amendments to IAS 1 and IAS 8: Definition of Material which are relevant to a.s.r. and are effective from 1 January 2020. The amendments ensure a consistent definition of materiality throughout the Conceptual Framework and the IFRSs, clarify the explanation of the definition of material and clarify the meaning of ‘primary users’ of financial statements. Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users (being the existing and potential investors, lenders and other creditors) make based on the a.s.r. financial information provided.
This category primarily includes: I. Financial instruments: unlisted fixed-interest preference shares and interest rate contracts; II. Financial instruments: loans and receivables (excluding mortgage loans)1; III. Other financial assets and liabilities1.
Financial assets available for sale Financial assets available for sale are financial assets that are not accounted for as financial assets at fair value through profit or loss, or as loans and receivables. On initial recognition, financial assets available for sale are measured at fair value (including transaction costs). They are subsequently measured at fair value, including any unrealised fair value changes in equity and impairments, taking into account any deferred tax liabilities. Financial assets available for sale include equities (ordinary and preference shares), bonds, other fixed-income securities, unit trusts, variable-income securities and interests in investment pools.
The shadow accounting policy is applied to certain types of insurance liabilities: • Insurance contracts with participation features; • Non-participating insurance contracts (including disability insurance contracts) if and to the extent that the IFRS LAT
Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held for sale. When a group of assets classified as held for sale represents a major line of business or geographical area the disposal group classifies as discontinued operations. Assets classified as held for sale (including assets of operations which are discontinued) are recorded at the lower of their carrying amount and their fair value, less the expected cost to sell the assets.
Q. Transaction date and settlement date All purchases and sales of financial instruments, which have to be settled in accordance with standard market conventions, are recognised at the transaction date, which is the date on which a.s.r. becomes party to the contractual stipulations of the instrument. Any purchases and sales other than those requiring delivery within the time frame established by regulations or market conventions are accounted for as forward transactions until the time of settlement. For details on these transactions, see accounting policy H ‘Derivatives’.
These interests are accounted for using the equity method as applied to associates. The interests are recognised in the financial statements from the date on which a.s.r. first obtains joint control until the date that this joint control ceases.
Discretionary interest on other equity instruments Discretionary interest on other equity instruments is recognised in equity upon payment. The related income tax on these equity instruments is recognised in the income statement.
Lease liabilities are included under borrowings and measured in accordance with accounting policy AA.
The segments are assessed on their operating result as defined in chapter 6.10.
Financial statements 2019 | 6.4 Group structure and segment information 172
With this acquisition, a.s.r. broadens and strengthens its market position in the field of disability insurance and enforces its leading role as a provider of overall solutions for sustainable employability. The Loyalis name and brand will continue to exist. The office of Loyalis will remain located in Heerlen. From there, Loyalis will continue to operate its disability business and continue its cooperation with APG for the purpose of knowledge sharing, product development and customer service. The life/pensions activities of Loyalis are expected to be integrated into those of a.s.r. in 2020.
Real estate equity funds ranging between 30% and 70% 1,727 1,677
In addition to the above variation margin obligations, there is also an initial margin obligation for central cleared derivatives which further reduces the risk of a.s.r. and its counterparties that they cannot fulfil their obligations.
The notional amounts of both receiver and payer swaps are included in the total notional amounts of foreign exchange contracts.
An amount of € 679 million (2018: € 606 million) of other assets is expected to be recovered less than or equal to one year after the balance sheet date.
Provision for unearned premiums as at 31 December 347 353 34 37
6.5.15.2 Post-employment benefits other than pensions The other post-employment benefits plans consist of personnel arrangements for financial products (such as mortgages and health insurance), which remain in place after retirement.
Financial statements 2019 | 6.5 Notes to the consolidated balance sheet 205
The increase is mainly due to the addition of the restructuring provision following the acquisition of Loyalis.
Financial statements 2019 | 6.6 Notes to the consolidated income statement 209 6.6.3 Realised gains and losses
Employees related to administrative activities and overhead are allocated to segment Holding and Other.
Financial statements 2019 | 6.7 Other notes 217 6.7.1.1 Financial assets and liabilities measured at fair value
The remuneration of the a.s.r. EB and SB members are described in chapter 5.3.
Given the recent closings, the initial accounting for the acquisitions is ongoing and as such the combined opening balance sheet presented below is provisional (i.e. the insurance liabilities, identifiable intangible assets and contingent liabilities, if any, have not yet been recognised in the initial opening balance sheet). In accordance with IFRS 3 business combinations, the final opening balance sheet will be drawn up within 12 months of the closing date. The provisional balance sheet is based on fair value and uses the following techniques and assumptions: • Financial assets and liabilities (including investments and loans and receivable) were remeasured to fair value at the closing date; • Liabilities arising from insurance contracts were remeasured to fair value as defined in IFRS.
Audit & Risk Committee The Audit & Risk Committee was established by the Supervisory Board to gain support, among other things, in the following matters: • Assessment of the risk appetite proposal and quarterly monitoring of the risk profile; • Assessment of the annual report, including the financial statements of a.s.r.; • The relationship with the independent external auditor, including the assessment of the quality and independence of the independent external auditor and the proposal by the Supervisory Board to the AGM to appoint the independent external auditor; • The performance of the audit function, compliance function, the AF and the risk management function; • Compliance with rules and regulations; and • The financial position.
The insurance risk increased as a result of the acquisition of Loyalis, the decrease of the interest rates, the termination of the mass lapse cover and refinement of the calculation of the health risk.
In 2018 the required capital for a mass lapse was reduced by the proceeds that are to be expected from a reinsurance arrangement (Mass Lapse Cover). At the end of 2019 the Mass Lapse Cover was terminated.
The default percentage (i.e. the percentage of mortgages which is in arrears for over three months) has decreased from 0.10% in December 2018 to 0.05% in December 2019. This drop is a consequence of the improved economic circumstances and of the organisation of preventive management, whereby the flow of short-term arrears to longer delays could be reduced.
Monitoring and reporting The output of the ORSA process is translated into day-to-day risk management and monitoring and reporting, both at group level and product line levels. At group level, the risk priorities are discussed on a quarterly basis in the BEC – Risk meeting. At the level of the product lines, risks are discussed in the BRC.
Preparatory Crisis Plan On 1 January 2019 new legislation entered into force that addresses the recovery and settlement of insurance companies (‘Wet herstel en afwikkeling van verzekeraars’ in Dutch). The objective is that insurance companies and supervisors are better prepared against a crisis and that insurance companies can recover from a crisis without government aid. a.s.r.is obliged to have a Preparatory Crisis Plan (‘Voorbereidend Crisisplan’ in Dutch) in place that has been approved by DNB. a.s.r.’s Preparatory Crisis Plan helps to be prepared and have the capacity to act in various forms of extreme financial stress. The Preparatory Crisis Plan describes and quantifies the measures that can be applied to live through a crisis situation. These measures are tested in the scenario analysis, in which the effects of each recovery measure on a.s.r.’s financial position (solvency and liquidity) are quantified. The required preparations for implementing the measures, their implementation time and effectiveness, potential obstacles, impact on policy holders and operational effects are also assessed. The main purpose of the Preparatory Crisis Plan is to increase the chances of successful early intervention in the event of a financial crisis situation and to further guarantee that the interest of policyholders and other stakeholders are protected.
Financial statements 2019 | 6.10 Operating result 273 6.10 Operating result a.s.r. manages its business primarily using operational key performance indicators (KPIs). The operating result is the KPI covering the overall profitability of the business. Furthermore, a.s.r. uses other operational measures such as the COR, the life operating expenses as well as the availability and creation of capital, based on the Solvency II standard formula, as key figures in business decision making (see chapter 6.9).
The operating result is managed and presented at the consolidated a.s.r. and at a segment level (see chapter 6.4.3) and is also the key profitability indicator at business line level. The operating result is an inclusive measure covering all result components that can be influenced by the regular business. As such the operating result is the single bottom line performance indicator covering the performance of the business.
As a result of the definition change during the second half of 2019, amortisation from positive and negative VOBA as well as other intangibles from earlier accounting periods need to be restated. To ensure consistency, the exclusion takes into account the other intangibles from earlier acquired business combinations in the D&S segment, VOBA from the acquisition of Amersfoortse Stad Rotterdam by AMEV in 2001 and the ‘negative’ VOBA resulting from the Generali Life books. Negative VOBA occurs when a part of the remeasurement of the acquired insurance liabilities comprises an a.s.r.specific step-up for cost of capital / risk margin, which is not considered part of the operating result.
For the implementation of IFRS 16 a.s.r. applied the modified retrospective method, meaning that the 2018 comparative figures in the 2019 financial statements are not restated. The application of this standard resulted in an increase in balance total of € 222 million per 1 January 2019 and does not have an impact on equity of the consolidated financial statements of a.s.r. per that date. Per 31 December 2018 a.s.r. reported € 17 million of operating lease commitments. The difference between the statutory amount and the consolidated amount stated is mainly due to the lease of the a.s.r. building that a.s.r. leases from a.s.r. leven.
6.11.3.18 Operating expenses The operating expenses of € 132 million (2018: € 111 million) are operating expenses relating to Holding activities. See chapter 6.6.8 for the total operating expenses of the group. Operating expenses also include depreciation of the right-ofuse assets owned by subsidiary of € 11 million, see chapter 6.11.3.3.
Supervisory Board Kick van der Pol Sonja Barendregt Cor van den Bos Herman Hintzen Gerard van Olphen Gisella van Vollenhoven
Explanation Operating Result is based on the profit before tax adjusted for investment related income for own account of an incidental nature and incidentals. Using Operating Result helps to maintain an appropriate materiality level giving more consideration to the users’ view of the scale of the financial position and operations rather than volatile circumstances. For ASR Nederland N.V. as a listed company, financial performance and thus Operating Result is a key metric for its stakeholders and therefore selected as basis for the calculation of materiality. In note 6.10 of the financial statements a reconciliation is provided from profit before tax to Operating Result.
We have also taken into account misstatements and/or possible misstatements that in our opinion are material for the users of the financial statements for qualitative reasons.
The valuation of the insurance contract liabilities and the related Liability Adequacy Test (LAT) is complex, highly judgmental and is based on assumptions that are subject to uncertainties regarding future outcomes.
Based on our audit procedures performed, we found management’s assessment that the financial consequences of the unit-linked exposure cannot be reliably measured or quantified at this point and therefore no provision is recognised in the 31 December 2019 balance sheet, sufficiently substantiated.
Based on the following procedures performed, we conclude that the other information: • Is consistent with the financial statements and does not contain material misstatements; • Contains the information as required by Part 9 of Book 2 and the remuneration report in accordance with Section 2:135b of the Dutch Civil Code.
35.2 The EB may resolve to make interim distributions, provided that it appears from interim accounts to be prepared in accordance with Section 2:105(4) of the Dutch Civil Code that the requirement referred to in Article 35.1 has been met and, if it concerns an interim distribution of profits, taking into account the order of priority described in Article 37.1.
36.2 Subject to Article 31.1, the General Meeting is authorised to resolve to make a distribution from the Company’s reserves.
Participating in number of engagement dialogues specific topics 13 12 NA
Energy consumption per m2 purchased and self produced 91 95 103
Pursuant to the options offered by Section 362, Book 2 of the Dutch Civil Code, a.s.r. has prepared its company financial statements in accordance with the same principles as those used for the consolidated financial statements. All amounts quoted in these financial statements are in euros and rounded to the nearest million, unless otherwise indicated. Calculations are made using unrounded figures. As a result rounding differences can occur.
In addition to the financial results, EY also reviewed the sustainability information in this annual report with ‘a limited level of assurance’ in accordance with Dutch law including Dutch Standard 3810 which is a specific Dutch Standard that is based on the International Standard on Assurance Engagements (ISAE) 3000. EY’s assurance report can be found in chapter 4.6 Assurance report of the independent auditor. The EB and senior executives are involved in seeking external assurance for the organisation’s sustainability information.
Internal FTE An employee on an employment contract of definite or indefinite duration with a.s.r. or one of its subsidiaries.
Principles for Responsible Investments The UNPRI is a framework for institutional investors. The principles, which were launched in April 2006, pertain to the integration of ESG aspects into investment policies. For more information, see unpri.org.
issues in protein supply chains FR Financial risk FRC Financial Risk Committee FRPM Finance, Risk & Performance Management FSCB Financial Services Complaints Board FTE Full-time equivalent GBC Green Building Certificates GDP Gross Domestic Product GDPR General Data Protection Regulation GHG Greenhouse gas GRC Governance Risk Compliance GRESB Global Real Estate Survey Benchmark GRI Global Reporting Initiative GRM Group Risk Management GWP Gross written premiums Hnpf The Dutch pension fund IAS International Accounting Standards IASB International Accounting Standards Board IBNR Incurred But Not Reported I-CERT Cybersecurity partnership between insurance companies ICSR International Corporate Social Responsibility IDD Insurance Distribution Directive IFRIC International Financial Reporting
102-50 Reporting period 1 January to 31 December 2019 102-51 Date of most recent report 27 maart 2018 102-52 Reporting cycle Annual 102-53 Contact point for questions regarding the report
Annexes | EU Directive: disclosure on non-financial information and diversity information 328