Employee benefits can be broken down as follows: Post-employment benefits pensions (chapter 6.17.1) 3,087 2,405 Post-employment benefits other than pensions (chapter 6.17.1) 29 15 Post-employment benefit obligation 3,116 2,420
193a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
The costs of post-employment and other long-term employee benefits are as follows: Post-employment benefits pensions -48 -108 Post-employment benefits other than pensions -18 -1
The costs relate to all members of the a.s.r. post-employment benefit plan and included the other income as a result of the amendments to the post-employment benefit plans amounting to € 78 million (2013: € 27 million).
6.17.1 Pension and other post-employment benefits A number of defined benefit post-employment benefit plans for its employees and former employees exist. All employees are formally employed by ASR Nederland N.V. The a.s.r. post-employment benefit plans are based on an average-salary pension. All employees who commenced service after 1 January 2006 are included in one post-employment benefit plan (‘Basic plan’). All other employees remain active within the existing plan at the date of first employment. Previous plans for former employees are also still active. The methods and techniques used to calculate the defined benefit obligations are based on IAS 19 requirements and calculated by an independent actuary.
The post-employment benefit plans for a.s.r.’s employees have been insured by ASR Levensverzekering N.V. since 2008.
194a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
Included in income statement Current service cost, contributions by employer 34 39 - 1
The change in other assumptions amounts to € 163 million (2013: € 107 million) due to a change in indexation percentage former employees.
195a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
Future mortgage interest (in connection with grantable discounts) - - 2.8% 3.5%
In 2014, the discount rate methodology has changes and is based on the IBoxx € Corporates AA 10+ curve. All other methods used for determining the DBO and assumptions are consistent with those applied in 2013.
The sensitivity of the above actuarial assumptions to feasible possible changes at the reporting date to one of the relevant actuarial assumptions whilst other assumption remain constant, would have affected the defined benefit obligation by the amounts shown below: Pension plans Other post-employment benefits
196a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
For the non-qualifying assets backing the post-employment benefit plans, a.s.r. has drawn up general guidelines for asset mix based on criteria such as geographical location and ratings. To ensure the investment guidelines remains in line with the conditions of post-employment benefit obligations, a.s.r. regularly performs Asset Liability Management (ALM) studies. Transactions in the non-qualifying assets are done within the guidelines. As the post-employment benefit plans are a liability on group level, the underlying insurance and market risks are in scope of a.s.r.’s risk policies. (see chapter 6.3). The overall interest-rate risk of the group is managed using interest-rate swaps and swaptions (see chapter 6.3.4.1). These swaps and swaptions have not been allocated directly to the post-employment benefit obligations; neither are they included as part of the fair value of the non-qualifying assets managed by the group company.
Under IFRS, assets managed by insurance companies that form part of the group do not qualify as qualifying assets. Investment income from these assets has therefore not been included in the above figures. Actual investment returns for 2014 amounted to € 101 million (2013: € 100 million). These returns have been recognized in investment income (chapter 6.24).
6.17.2 Other long-term employee benefits Other long-term employee benefits consist of the employer’s share of liabilities arising from longservice benefits. The table below shows the changes in these liabilities
197a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
The timing of the outflow of resources related to these provisions is uncertain because of the unpredictability of the outcome and the time required for the settlement of disputes.
An amount of € 18 million of the provisions falls due within one year (2013: € 15 million).
As at year-end 2014, borrowings comprised loans having the following terms to maturity: Falling due within 1 year 27 50 Falling due between 1 and 5 years 65 21 Falling due after 5 years 25 27
Debts to policyholders, agents and intermediaries 909 458 Debts to reinsurers 12 19
The average interest-rate payable for the cash collateral received in 2014 is 0.09% (EONIA) (2013: 0.09%). There are no specific terms and conditions, because these depend on the development of the value of the underlying instrument.
Other liabilities can be broken down as follows: Deferred income 252 318 Accrued interest 87 114 Other liabilities 262 317 Short-term employee benefits 58 63 Trade payables 135 206 Tax payable 255 354
There is no difference between the carrying value of other liabilities and their fair value (see chapter 6.6.2).
199a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
The table below shows the composition of gross insurance premiums: Non-life insurance contracts – gross earned premiums 2,355 2,393
Individual Non-recurring premiums written 4 4 Periodic premiums written 329 375 Individual total 333 379
200a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
6.24 Investment income 6.24.1 Total investment income The table below shows a breakdown of investment income per category: Interest income 1,185 1,244 Dividend and other investment income 232 240
The effective interest method has been applied to an amount of € 904 million of the interest income from financial assets not classified at fair value through profit and loss (2013: € 920 million).
Dividend and other investment income per category can be broken down as follows: Dividend on equities 39 43 Rentals from investment property 133 138 Other investment income 60 59
6.24.3 Fair value gains and losses Fair value gains and losses per category can be broken down as follows: Realized gains and losses on derivatives 512 380 Unrealized gains and losses on derivatives 2,483 -1,335 Financial assets at fair value through profit and loss 28 -21 Other fair value gains and losses -3 1 Additions to Insurance liabilities due to shadow accounting (chapter 6.16) -2,487 1,323
Net insurance claims and benefits can be summarized as follows: Total Non-life and Life 2014 2013
Insurance claims and benefits -5,214 -5,122 Insurance claims and benefits recovered from reinsurers 100 110
203a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
Amortization of VOBA (chapter 6.7) -19 -19 Insurance claims and benefits -3,463 -3,199
Net insurance claims and benefits, Life -3,455 -3,185 6.28 Operating expenses
Cost of external staff -64 -59 Consultancy costs and fees -74 -75 Marketing, advertising and public relations expenses -8 -21 Technology and system costs -47 -40 Amortization of software (chapter 6.7) -1 -1 Depreciation of property, plant and equipment (chapter 6.9) -9 -9 Other operating expenses -36 -34 Total other operating expenses -239 -239
Operating expenses continued to fall in 2014 despite investments in strategic projects and increased expenses related to the privatization of a.s.r.
The distribution of a.s.r.’s workforce was as follows at 31 December: Non-life 1,154 1,151
As a result of continuing cost-cutting programmes, the total work force decreased by 2% to 4,085 FTE (2013: 4,164 FTE). The ‘total work force’ consists of the number of internal and external FTEs. The number of internal FTE decreased by 7% to 3,513 FTE (2013: 3,789 FTE) and the number of external FTE increased to 572 FTE (2013: 375 FTE). The increase in the number of external FTE can be contributed to the start of several strategic projects in 2014.
In the presentation of the a.s.r.’s workforce per segment employees related to administrative expenses and overheads are allocated to segment Other.
Acquisition costs can be broken down as follows: Commission fees -386 -424 Amortization of deferred acquisition costs (chapter 6.8) -27 -31
In 2014 an additional amortization has been recognized of € 93 million relating to the Amersfoortse Stad Rotterdam unit linked portfolio (see also chapter 6.7).
Changes in impairments of investments available for sale can be broken down as follows: Reversal of collateralized debt obligations 30 18 Reversal of impairments on bonds 11 35
205a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
The table below is a breakdown of the interest expense: Interest on employee benefits -92 -96 Interest on derivatives -179 -214 Interest owed to banks -10 -11 Interest owed to customers -13 -11 Interest on borrowings -3 -4 Other interest expenses -18 -21
The table below shows a reconciliation of the expected income tax expense with the actual income tax expense. The expected income tax expense is determined by applying the tax rate in the Netherlands to the profit before tax in 2014, this rate was 25.0% (2013: 25.0%). The enacted tax rate for 2015 will be 25.0%.
Effects of: Tax-exempt interest 6 5 Tax-exempt dividends 4 8 Tax-exempt capital gains 15 5 Changes in impairments -5 -16 Adjustments for taxes due on previous financial years 7 4 Other effects -3 -
The group regularly enters into transactions with related parties during the conduct of its business. These transactions mainly involve loans, deposits, commissions and reinsurance contracts, and are conducted on terms equivalent to those that prevail in arm’s length transactions.
The table below shows the financial scope of a.s.r.’s related party transactions: • associates; • joint ventures (and real estate development joint ventures); • other related parties.
In addition to the dividend paid and the discretionary interest to holders of equity instruments amounting to € 99 million (2013: € 88 million) and € 108 million (2013: € 44 million) respectively a.s.r. incurred expenses on behalf of NLFI amounting to € 5 million (2013: € 4 million) for strategic expenses related to the privatization.
These mortgage loans held by the members of the Executive Board have been issued based on current employee conditions. The normal employee conditions include limits and thresholds to the amounts that qualify for a personnel interest-rate discount. For mortgage loans greater than € 340 thousand arm’s length conditions apply. The insurance contracts held by the members of the Executive Board are subject to the normal employee condition.
Total 6.35.2 Remuneration of current and former executive directors The remuneration of current and former executive directors is in accordance with the 2014 remuneration policy. This policy was approved by the shareholder.
In accordance with the remuneration law ‘Wet aansprakelijkheidsbeperking DNB en AFM en bonusverbod staatsgesteunde ondernemingen’, issued by the Dutch government, no variable remuneration has been disbursed to the executive directors for the 2014 a.s.r. financial year. The deferred variable remuneration for 2010 has been disbursed to executive directors and former executive directors entitled to this remuneration in accordance with remuneration law and the variable remuneration policy valid in 2010 as disclosed in the 2010 annual report. J.P.M. Baeten, being the only remaining executive director at year end, also falling under the 2010 variable remuneration policy has refrained from any disbursement of long-term variable remuneration.
1 The amount as a committee member also includes remuneration for services as supervisory director of ASR Bank
The remuneration can be broken down as follows: Amounts for 2014 in Euros x 1,000
2 The pension benefits include pensions and VPL. In 2014 a one-off VPL benefit is disbursed to all employees being the compensation for the maximized fiscal accrual rate in pension schemes of 1,9% as of 1 January 2014. In 2014, no additional charges were made and no additional pension benefits have been granted to the executive directors. The changes in the cost of pension benefits are mainly the result of the impact of age, years of service, gender and age differentiated disability, mortality and other actuarial assumptions as well as interestrate developments.
209a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
Provisions are formed for such occurrences if, in management’s opinion and after consultation with its legal advisers, a.s.r. is likely to have to make payments and the payable amount can be estimated with sufficient reliability. The costs of the compensation scheme for unit-linked insurance contracts have been fully recognized in the financial statements based on management’s best knowledge of current facts, actions, claims, complaints and events. Provisions are recognized in the liabilities arising from insurance contracts and legal provisions (see chapter 6.16).
a.s.r. has issued guarantees to third parties for a total amount of € 364 million (2013: € 437 million) for real estate development projects and the acquisition of property. Those guarantees were issued by principals for the execution of projects for the benefit of clients.
No later than 3 months 1 1 Later than 3 months and no later than 1 year 3 4 Later than 1 year and no later than 5 years 6 7 Later than 5 years - -
Lease payments 6 6 6.37.4 Expected future rental income The table below breaks down the expected future rental income on investment property lease as at 31 December: No later than 1 year 110 107 Later than 1 year and no later than 5 years 279 260 Later than 5 years 131 122 6.38 General information
ASR Nederland N.V. and its group companies (‘a.s.r.’ or ‘the group’) have a total of 3,513 FTE’s internal employees (2013: 3,789) and is a leading insurance company in the Netherlands. In 2014 a.s.r. sold insurance products under the following labels: a.s.r, De Amersfoortse, Europeesche Verzekeringen, Ditzo and Ardanta.
The financial statements for 2014 were approved by the Supervisory Board on 2 April 2015 and will be presented to the Annual General Meeting of Shareholders for adoption. The Executive Board released the financial statements for publication on 16 April 2015.
For notes to equity interests in associates and joint ventures, see chapter 6.11. The list of equity interests which are required under Sections 379 and 414, Book 2 of the Netherlands Civil Code has been filed with the Trade Register of the Chamber of Commerce in Utrecht.
212a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
Subsidiaries, joint ventures and associates 6.40.3.2 3,831 3,652 Loans to group companies 6.40.3.3 75 122 Loans and receivables 6.40.3.4 27 29 Receivables from group companies 6.40.3.5 2,710 2,283 Deferred tax assets 6.40.3.6 124 22 Other assets 21 3 Cash and cash equivalents 6.40.3.7 5 5 Total assets 6,793 6,116
Profit for the year 6.40.3.8 381 281 Total equity attributable to shareholders 2,346 2,518
213a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
Investments in group companies are carried at net asset value, in accordance with the accounting policies used in a.s.r.’s consolidated financial statements. The share of profit of group companies is reported in conformity with the accounting policies used in a.s.r.’s consolidated financial statements.
Additions to capital 69 153 Share of profit 410 296 Dividend received -356 -697
Change in DPF component -2 -2 Other changes - -1 6.40.3.3 Loans to group companies
6.40.3.5 Receivables from group companies Receivables from group companies includes the receivable with respect to non-qualifying plan assets (see chapter 6.17) administered by ASR Levensverzekering N.V. amounting to € 2,510 million (2013: € 2,031 million). This included the separate account to fund future inflation indexation amounting to € 292 million as at 31 December 2014. The remaining portion of the receivables from group companies is payable on demand.
6.40.3.6 Deferred tax assets The deferred tax assets relate primarily to employee benefits (including the asset resulting from the insurance contracts which is administered by ASR Levensverzekering N.V.) amounting to € 157 million (2013: € 42 million) off set by the equalization reserve of € 30 million (2013: € 18 million).
Result carried over from previous financial year - - - - 228 -228 - - Change in reserves required by law - - - - - - - - Profit carried over from previous financial year - - - - - - - - Discretionary interest on other equity instruments - - - - -44 - -44 - -44 Issue of other equity instruments - - - - - - - - Cost of issue of other equity instruments - - - - - - - - Change in reserves required by law - - - - - - - - Tax relating to interest on other equity instruments - - - - 11 - 11 - 11
The statutory reserve relates to the revaluation of investments in group companies. In 2014 no expected claims for additional benefits under insurance contracts with DPF are included in the Other reserves (2013: € 2 million). For a breakdown of the Share capital, see chapter 6.15.1.
Total employee benefits 3,123 2,426 6.40.3.10 Provisions The table below shows movements in provisions: Additional provisions 24 24 Utilized in course of year -31 -23
Debts to group companies - 135 Deposits due to group companies 29 47
The debts to group companies contain short term debts which are immediately collectable and deposits due to group companies with an interest-rate ranging between 1.6% and 1.7%. The maturities of the deposits range between 6 and 12 months.
6.40.3.13 Due to banks In 2014 due to banks contains € 250 million, with a maturity of 1 year and an interest-rate of 1-month Euribor + 0.6%.
216a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
Total other liabilities 331 425 6.40.3.15 Auditor’s fees Auditor’s fees are paid to auditors by the company, its group companies and other consolidated companies. The fees paid for the years 2014 and 2013 can be broken down as follows: • fees for audit engagements: these include fees paid for the audit of the consolidated and company financial statements, quarterly reports and other reports; • fees for non-audit services: these include fees for support and advisory services provided during acquisitions.
Joint and several liability ASR Nederland N.V. forms a fiscal unity for corporate income tax and VAT with nearly all of its subsidiaries. The company and its subsidiaries that form part of the fiscal unity are jointly and severally liable for taxation payable by the fiscal entity.
A statement of joint and several liability under section 403, Book 2 of the Netherlands Civil Code has been issued by ASR Nederland N.V. for the companies identified in chapter 6.39 List of principal group companies and associates.
Commitments to group companies ASR Nederland N.V. has committed to a capital increase of ASR Bank N.V. amounting to € 34 million for the period until 2017. The amount will be paid in tranches when required by ASR Bank N.V. depending on its required solvency. As a consequence of the growing business, a capital tranche amounting to € 5.8 million has been made in 2014.
217a.s.r. 2014 annual report 2014 consolidated financial statements ASR Nederland N.V.
In our opinion: • The consolidated financial statements give a true and fair view of the financial position of
The consolidated financial statements comprise: • the consolidated balance sheet as at 31 December 2014; • the consolidated income statement for the year then ended; • the consolidated statement of comprehensive income, changes in equity and cash flows for the year then ended; and • the notes comprising a summary of the significant accounting policies and other explanatory information.
Basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the ‘Our responsibilities for the audit of the financial statements’ section of our report.
We are independent of ASR Nederland N.V. in accordance with the ‘Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten’ (ViO) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA).
Based on our professional judgment we determined the materiality for the financial statements as a whole at € 30 million. The materiality is determined with reference to a benchmark of total equity (1%), which is essential for determining the solvency of the Company. Due to the long-term insurance
Audits of group entities, which also have own statutory reporting requirements, were based on statutory audit materiality which is lower than the materiality used for the financial statements of the Company as a whole.
We agreed with the Supervisory Board that misstatements in excess of € 1.5 million, which are identified during the audit, would be reported to them, as well as smaller misstatements that in our view must be reported on qualitative grounds.
Our key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements. We have communicated the key audit matters to the Supervisory Board. The key audit matters are not a comprehensive reflection of all matters discussed.
These matters were addressed in the context of our audit on the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.
Sensitivities in the calculation of the liabilities arising from insurance contracts and related impairment of Value of Business Acquired (VOBA) The calculation of the liabilities arising from insurance contracts and the related VOBA is complex and highly judgmental and is based on assumptions which are affected by (future) economic and political conditions. The assumptions used relate to risks regarding mortality, longevity, catastrophe, lapse and expense. Also the cost compensation for unit-linked insurance contracts impacts the valuation of the liabilities arising from insurance contracts and the related VOBA. Furthermore, the valuation of the liabilities arising from insurance contracts is affected by government regulations, in particular regarding the claim allocations to the Company from workers’ compensations insurance (WGA-ER) and healthcare insurance.
Our audit included, amongst others, comprehensive testing of the Company’s procedures regarding the determination of the assumptions and data used for the impairment testing, based on market
We found that the assumptions used and related estimates resulted in a cautious valuation of liabilities arising from insurance contracts and the related VOBA.
Sensitivities in the calculation of the solvency ratio For the calculation of the solvency ratios as disclosed in note 6.4.1.2 the surplus from the liability adequacy test (test margin) and the surplus of the investment property value (the difference between the book value and the fair value) are important inputs. The surplus from the liability adequacy test is especially sensitive for changes in interest rates and cost parameters as disclosed in note 6.3.4. The surplus of the investment property value is especially sensitive to market developments.
Our audit procedures include challenging the underlying assumptions used by the Executive Board for the liability adequacy test, making use of market observable data such as interest rates and publications of the Dutch Central Bank. We assessed the outcome of the liability adequacy test with the internal actuaries and the external (certifying) actuaries, making use of our own actuarial experts. As part of our audit we tested the internal procedures regarding the valuation of the investment property portfolio and assessed whether the fair value of investment property was based on valuation reports of independent professional property appraisers. We furthermore focused on the adequacy of disclosure on investment property and assumptions in note 6.6.3 of the financial statements.
We found that the solvency ratios are calculated adequately and substantiated by the surplus in both the Liability adequacy test and the investment property value.
Our audit has been performed with a high, but not absolute, level of assurance, which means we may not have detected all errors and fraud.
• Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Executive Board.
Executive Board, to the extent we can assess, has been prepared in accordance with Part 9 of Book 2 of the Netherlands Civil Code, and whether the information as required under Part 9 of Book 2 of the Netherlands Civil Code has been annexed.
Engagement We were appointed before 2008 for the first time as auditor of ASR Nederland N.V. and operated as auditor since then. We were re-appointed by the General Meeting of Shareholders as auditor of ASR Nederland N.V. on 17 April 2014 regarding the audit for year 2014. Due to regulations we will ultimately rotate after the audit of book year 2015.
a.s.r.’s accounting policy in 2014 was to capitalize commission fees for Non-life and Life insurance contracts and to amortize it over the period over which the relevant premiums are realized. The deferred acquisition costs (DAC) capitalized as at 31 December 2014 amounted to € 213 million. As per 1 January 2014 the capitalized acquisition costs amounted to € 241 million of which €28 million was amortized in 2014.
With effect from 1 January 2015, all costs incurred to acquire insurance contracts (acquisition costs), will be charged directly to the income statement. This voluntary change in accounting policy is effected as it will provide the users of the financial statements with more meaningful information, considering the effects of the changes in legislation enacted in recent years. This change in accounting policy will enhance the ability to understand a.s.r.’s financial position taking into account industry trends and cost-benefit considerations and furthermore retaining consistency in the accounting policy for a.s.r.’s Non-life and Life segment.
The change in accounting policy will be applied with retrospective effect in the 2015 annual report. The change in accounting policy will result in a decrease of total equity as at 31 December 2014 of € 160 million after tax (€ 53 million) to € 2,867 million. The profit for the year 2014 increases by € 21 million to € 402 million.
ASR Dutch Prime Retail Fund and ASR Dutch Core Residential Fund.
7.3 Other equity interests For notes to equity interests in associates and joint ventures see chapter 6.11.
226a.s.r. 2014 annual report Other information 3. The AGM shall determine annually, either on the recommendation of the Executive Board and subject to the approval of the Supervisory Board or on its own initiative, which part of the profit is to be retained or distributed.
5. The AGM shall have the right, either on the recommendation of the Executive Board and subject to the approval of the Supervisory Board or on its own initiative, to distribute an interim dividend subject to the conditions set out under paragraph 1 above as evidenced by an interim statement of assets and liabilities referred to in Section 105(4), Book 2 of the Netherlands Civil Code.
6. No profit shall be distributed to the Company in respect of shares held by the Company in its own capital.
8. Dividends shall be released for payment on a date determined by the Executive Board; this date shall not fall any later than on the fifth working day following the date of the dividend resolution. If the matter involves the distribution of an interim dividend, this day shall not fall any later than on the tenth working day following the date of the dividend resolution.
Derivative A financial instrument with all three of the following characteristics: (a) its value changes in response to the change in a specified interest-rate, financial instrument price,commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the ‘underlying’); (b) it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and
Goodwill An asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Net Promoter Score Is a management tool that can be used to gauge the loyalty of a firm’s customer relationships.
If an insurer is part of a group, it may apply parts of the Code at either group or consolidated level. a.s.r. has opted for application of the Code’s principles at consolidated level. ASR Bank N.V. reports on its compliance with the Dutch Banking Code in a separate report.
Compliance with this principle is enshrined in the Supervisory Board’s regulations and profile. The regulations stipulate that the Supervisory Board should be composed in such a way as to enable the proper performance of its duties. The Supervisory Board has drafted a profile detailing its size and composition, taking account of the company’s nature and business, and of the expertise, experience and independence called for in its members. The Supervisory Board aims for diversity in its membership as to age and gender, among others aspects. Once a year, the Supervisory Board evaluates its profile in order to learn lessons for its composition, practices and competencies. When candidates are nominated for appointment or re-appointment, the requirements regarding the composition and competencies of the Supervisory Board are considered in light of the profile.
The Supervisory Board has four members. In view of the company’s nature and business and the desired experience and expertise, the Supervisory Board deems four members a suitable number to enable the proper performance of its duties and those of its committees. The Supervisory Board underwent an external assessment in 2014 (see 2.1.10).
2.1.3 The Supervisory Board members shall have thorough knowledge of the insurer’s rule in society and of the interests of all its stakeholders, and shall carefully consider the interests of the insurer’s stakeholders, such as customers, shareholders and employees.
Shortly after their appointment, Supervisory Board members follow a tailored induction programme to introduce them to a.s.r and their role as Supervisory Board members. The programme focuses on a.s.r.’s role in society, including the interests of customers, intermediaries, employees and the shareholder.
The Supervisory Board explicitly considers the interests of the various stakeholders in any issue it deals with. In order to gain a good understanding of these interests, the Supervisory Board conducted several interviews with the shareholder, the regulators and the Works Council in 2014.
Members are nominated for their potential contribution in terms of knowledge, experience and skills in one or more areas, in accordance with the Supervisory Board’s needs at that time.
At least once a year, the Supervisory Board discusses its own performance and that of its individual members, and the conclusions to be drawn from this. The desired profile, composition and competencies of the Supervisory Board are discussed once a year.
2.1.5 As part of the process to fill the vacancy of chair of the Supervisory Board, an individual profile shall be drawn up focusing on the insurer’s requirements in terms of expertise and experience in relation to the financial sector, and knowledge of the socio-economic and political culture, and the social environment of the insurer’s main markets.
2.1.6 The availability and accessibility of each member of the Supervisory Board, the chair in particular, shall be such as to enable the proper performance of their duties as Supervisory Board members and Supervisory Board committee members.
Members’ availability may be deduced from their attendance at meetings. As disclosed in this Annual Report, each meeting in 2014 was attended by all members of the Supervisory Board. Outside meetings, members may be contacted (individually) and are available for discussion and consultation. A number of non-routine conference calls were scheduled in 2014, which required the members of the Supervisory Board to make themselves available outside meetings.
2.1.7 Members of the Supervisory Board shall each be paid an appropriate fee proportionate to the time required to perform their duties. The size of the fee shall be independent of the insurer’s results.
In 2014, three CE sessions were organized for the members of the Supervisory Board. These sessions covered developments in the contracted care market, consumer behaviour in various stages of the value chain and emotional capital. Members can use the annual self-assessment to indicate whether they require additional training and education in specific topics, which is then organized within the CE framework.
2.2.2 Members of the Audit & Risk Committee shall be subject to specific requirements concerning competence and experience. Some members of the risk management committee need to possess in-depth knowledge of the financial and technical aspects of risk management or have the experience needed to make a thorough risk assessment, and some members of the audit committee shall possess in-depth knowledge of financial reporting, internal control and auditing or have the experience needed to exercise thorough supervision of these matters.
2014 annual report Other information 3. Executive Board 3.1 Composition and expertise 3.1.1 The Executive Board shall be composed in such a way as to enable the proper performance of its duties. Complementarity, joint management and diversity are key to the proper performance of the Executive Board’s duties.
The duties and responsibilities of the Executive Board members and the experience and competencies they are expected to possess are described in detail in a.s.r.’s Articles of Association, the Executive Board’s regulations and the Board members’ job profiles. Management is conducted collectively. Complementarity and diversity are taken into account when filling Board vacancies.
3.1.2 Each member of the Executive Board shall possess in-depth knowledge of the financial sector in general and the insurance industry in particular, of the insurer’s role in society and of the interests of all stakeholders. Each member shall also be highly knowledgeable, capable of analyzing and deciding on the main aspects of the insurer’s overall strategy and forming a considered and independent opinion of the risk exposures.
This principle is enshrined in the job profiles for the Executive Board members and is assessed by the Supervisory Board (and/or its Selection, Appointment & Remuneration Committee) whenever vacancies in the Executive Board are being filled. Executive Board members are further subject to a suitability check conducted by the Dutch Central Bank (DNB), to ensure that the composition of the Executive Board is adequate to the proper discharge of its duties.
For new Executive Board members, a tailored induction programme is put together, providing a detailed introduction to a.s.r.’s role in society, its stakeholders and their interests, and the overall strategy. To keep members’ skills up to date, a continuing education programme has been set up (see 3.1.3). The performance of the Executive Board is periodically assessed by the Supervisory Board.
The members of the Executive Board have varying backgrounds and expertise in the insurance industry and the financial sector (see their abbreviated CVs on www.asrnl.com and on page 85 of this report).
3.1.3 The chair of the Executive Board shall ensure that a programme of continuing education is in place, aimed at maintaining and, where necessary, enhancing members’ skills and expertise The programme shall at least cover relevant developments in the following areas: the insurer, the financial sector, corporate governance in general and that of the financial sector in particular, the duty of care towards customers, integrity, risk management, financial reporting and audits.
In 2014, the members of the Executive Board attended various CE sessions as a group. These sessions focused mainly on acquiring knowledge of new distribution and business models, including their practical applicability to the insurance business. Executive Board members also took individual training courses as part of the CE programme.
The Supervisory Board’s regulations stipulate that it will periodically assess the performance of the Executive Board members by ascertaining whether they continue to satisfy the suitability requirements imposed by DNB. All Executive Board members attended the CE sessions. The suitability requirements were covered in the target-setting meetings and performance appraisals conducted with the Executive Board members.
3.1.6 Taking account of the risk appetite approved by the Supervisory Board, the Executive Board shall carefully balance the insurer’s commercial interests and the risks to be taken.
3.1.7 The Executive Board shall charge one of its members with the duty to prepare the Executive Board’s decisions in respect of risk management. This member shall be involved, in a timely manner, in the preparation of decisions that may be material to the insurer’s risk profile, particularly if such decisions might cause the risk appetite approved by the Supervisory Board to be departed from. In the performance of the risk management function, the focus should also be on the importance of financial stability and the possible impact of systemic risks on the institution’s risk profile.
a.s.r.’s Executive Board is responsible for the management of a.s.r and its affiliated companies. This responsibility includes the achievement of targets for a.s.r. as a whole, the strategy and associated risk profile, developments in financial performance and any social aspects of doing business that
238a.s.r. 2014 annual report Other information are relevant to a.s.r. The Executive Board is responsible, in particular, for carefully balancing the commercial interests and the risk appetite. Carefully balancing all interests of stakeholders is common practice at a.s.r. and, as such, has been included in the Executive Board’s regulations and the internal Code of Conduct.
a.s.r. offers financial continuity and enables people to take well-considered risks in achieving their ambitions. a.s.r believes that for its services to be perceived as valuable, it must know what people consider important. Customers should be able to insure themselves in the way that is most appropriate to their situation, preferences and possibilities. Hence a.s.r. chooses to be a socially responsible insurer.
a.s.r. put this ambition and these principles into practice in 2014 by embedding the sustainability policy for the Product Approval & Review Process (PARP) firmly in its procedures for product reviews and for developing new propositions and adjusting existing ones. This allows a.s.r. to develop appropriate, fair and transparent propositions that truly add value for customers. a.s.r. also implemented a new customer information system that helps employees from different business lines to develop a complete picture of a customer, which can be used to fine-tune customer services.
Via the Customer Complaints department, a.s.r. also implements and assures issues that are important to its customers. This allows a.s.r. to be open to complaints, learn from them and strengthen ties with customers. The Executive Board is involved in the handling of complaints addressed to it and provides substantive input. In its complaints handling, a.s.r. aims for communication that is personal, engaged and written in plain language.
a.s.r.’s core values (i.e. personal, accountable and individual and authentic) are shared throughout the organization and employees are encouraged to act upon them – amongst each other and towards customers – by helping by taking action and avoiding waste. The Executive Board uses periodic performance reports to monitor customer treatment within the different a.s.r. business lines.
3.2.3 The members of the Executive Board shall fulfil their duties carefully, expertly and with integrity, while complying with all applicable laws, regulations, rules and codes of conduct. The members of the Executive Board shall each sign a moral and ethical declaration, a model of which is included in the notes to this Code. Insurers are free to add to this model to suit their own needs.
From its mission, a.s.r. has derived three core values that serve as a ‘moral backbone’: to be authentic,
239a.s.r. 2014 annual report Other information to show a personal touch in contacts with others, and to be accountable for our own conduct and for honouring commitments. These core values are included in the declaration the Executive Board and senior management signed in 2011. The declaration has been posted on www.asrnl.com.
2014 annual report Other information 4. Risk management 4.1 The Executive Board, and within the Executive Board primarily the chair, shall be responsible for the adoption, implementation, monitoring and any necessary adjustments of the insurer’s general risk management policy. The Executive Board shall submit a proposal for the risk appetite to the Supervisory Board at least once a year. Any material changes to the risk appetite proposed in the intervening period shall also be subject to the Supervisory Board’s approval.
The Executive Board bears collective responsibility for the management of the business, and hence for its overall risk management policy; final responsibility rests with the chair of the Executive Board. A division of duties was introduced within the Executive Board, under which the responsibility for risk management has been assigned to the CFO. The preparation of risk management policy decisions is one of the CFO’s duties. Functional responsibility for the risk management has been assigned to the Chief Risk Officer (CRO). In the line, the CRO reports to the CFO. There is also an independent line of reporting from the CRO to the Audit & Risk Committee.
The Supervisory Board exercises periodic supervision over a.s.r.’s risk management. One of the topics discussed in a.s.r.’s Audit & Risk Committee is the risk profile. This discussion is based on financial and non-financial risk reports, and is aimed at monitoring whether the risk profile is in line with the risk appetite. The Supervisory Board’s decision-making is prepared by the Audit & Risk Committee. Nevertheless, the Supervisory Board as a whole remains responsible for its decisions, even the ones prepared by a committee. This principle is enshrined in the regulations of both the Supervisory Board and the Audit & Risk Committee.
4.3 The Supervisory Board shall periodically assess, at a strategic level, whether the overall business operations are in line with the insurer’s risk appetite. The Executive Board shall provide the Supervisory Board with the information needed to perform this assessment in such a manner as to enable the latter to form a considered opinion.
The Executive Board is responsible for managing a.s.r.’s risk priorities and is provided with a quarterly status update. It also receives the key findings of the Financial Risk Committee and the Non-Financial Risk Committee on a quarterly basis. The Executive Board is presented with additional reports if developments requiring its attention take place between scheduled reporting dates. a.s.r. conducts at least annually its own risk and solvency assessment (ORSA) at both group and legal entity level. The ORSA is a process that measures the impact of adverse external developments or internally identified risks and threats to a.s.r.’s solvency position. Various strategic risks are transposed into scenarios that simulate the impact of the occurrence of these risks on the balance sheet and the solvency position. The Executive Board defines actions in order to mitigate the impact of the potential risks modelled in the various scenarios.
By segregating policy-making, policy implementation and compliance monitoring duties, a large measure of independence is achieved in risk management and risk management monitoring. a.s.r. has structured this segregation of duties in accordance with the principle of the three lines of defence. The first line of defence is responsible for identifying and managing risks to the business. The second line of defence is responsible for monitoring risk management and encouraging integrated, effective risk management procedures for the first line of defence. The third line of defence, formed by Audit, is responsible for an independent assessment of the effectiveness of the risk management system, the internal control structure and the adequacy of governance.
4.5 Each insurer shall have a product approval process in place. The Executive Board shall be responsible for setting up and ensuring the effectiveness of the product approval process. Products going through an insurer’s product approval process shall only be marketed or distributed after careful consideration of the risks by the insurer’s risk management function and after a careful assessment of other relevant aspects, such as the duty of care towards customers. Internal audit shall, on the basis of an annual risk assessment, conduct an audit to determine whether the design, existence and operation of this process are effective and report its findings to the Executive Board and the risk management or other relevant committee of the Supervisory Board.
Treating customers fairly is central to every step of the process, and Risk Management and Compliance have each been given special responsibility. No product can be launched without the approval of these two corporate functions. The PARP process is further subject to an annual audit by the Audit Department, and safeguards have been put in place to ensure that recommendations made by Audit are implemented. The process is also evaluated by the PARP Board.
2014 annual report Other information 5. Audit 5.1 The Executive Board shall ensure that the management of risks connected with the insurer’s business is systematically monitored.
5.4 A periodic exchange of information shall take place between the internal audit function, the independent external auditor and the Supervisory Board’s risk management or audit committee. This exchange of information shall also cover the risk assessment and audit plans of the internal audit function and the independent external auditor.
Audit has periodic consultations with DNB to discuss the risk assessment, findings and audit plan. The department also takes the initiative to organize a ‘tripartite consultation’ with DNB and the independent external auditor at least once a year. In 2014, one tripartite consultation was held.
Governance Code, the Governance Principles for Insurers and the Dutch Banking Code, as well as to the
• Risk Management reviews the financial targets of a.s.r. and the individual targets of identified staff for their compatibility with a.s.r.’s risk profile on an annual basis (financial risk management). This department forms an opinion as to whether the agreed targets meet the organizational risk profile.
• The appraisal and remuneration criteria need to comply with the provisions stipulated in various national and international rules and regulations1.
• The policy needs to be transparent and its structure and methods should be applicable to all layers of management and to employees subject to the collective bargaining agreement.
• A balance needs to be struck between trust in the intrinsic motivation of managers on the one hand and agreement on clear objectives and assessment of the performance on these objectives, and linking it to remuneration, on the other.
Human Resources reports, on an annual basis, to the SAR Committee and the Supervisory Board on the highest variable pay, the exit packages granted and the most salient issues regarding pay and benefits. a.s.r. offers no retention or joining packages. In this context, it should be noted that, as stated in 6.1.1, variable pay has been eliminated with effect from 1 July 20143.
With effect from 1 July 2014, variable pay has been eliminated; employees are now entitled to fixed pay only. The only employees still qualifying for a target-related pay component of up to 20% are a small group of 139 sales employess who come under the a.s.r. collectively agreed job classification and pay structure for sales employees.
Up to and including 30 June 2014, employees were entitled to fixed and variable pay. For this purpose, the Supervisory Board approved the senior management’s individual target scores as proposed by the Executive Board, as well as the scores on the financial results and customer satisfaction aspects. Together, the scores for these three components determined the scale of the variable remuneration to be awarded. The Executive Board discusses the level of variable pay and checks it against the ‘normal distribution’.
The Supervisory Board is responsible for the Executive Board members’ annual performance appraisal and assessment. The Supervisory Board is also explicitly responsible for overseeing the assessment and remuneration of the control functions. The Executive Board conducts an annual assessment of the overall performance of all senior managers accountable to them and reports its findings to the Supervisory Board. The Supervisory Board ascertains whether the assessments comply with the adopted remuneration policy. In this context, it should be noted that, as stated in 6.1.1, variable pay has been eliminated with effect from 1 July 20144. As a result, variable pay was adopted for the first half of 2014 only.
a.s.r.’s remuneration policy starts from the principle that the average level of total pay and benefits should be just below the median of that of the peer group. A comparison with the peer group is made to determine the competitiveness of the Executive Board’s total pay and benefits. The peer group comprises Dutch financial institutions and Dutch non-financial, medium-sized companies, both private and public. The SAR Committee periodically assesses whether the composition of the peer group remains adequate or should be revised. At least once every three years, a market comparison (remuneration benchmark) is performed by an external consultancy to check whether the remuneration of the Executive Board needs to be reviewed. The benchmark was last performed in 2014. The current remuneration of the Executive Board is far below the median of the peer group, which is reinforced by the prohibition of the payment of variable remuneration to Board members according to the Dutch Act on limitation of liability for DNB and AFM and the bonus prohibition for state-aided enterprises. The collectively agreed pay increase of 0.75% that was awarded to employees was also awarded to the members of the Executive Board.
247a.s.r. 2014 annual report Other information 6.3.4 Shares awarded to an Executive Board member for no consideration shall always be held for a period of five years or until termination of the employment contract if this is shorter. Options shall not be exercised within the first three years of having been awarded.
Given that variable pay has been eliminated with effect from 1 July 2014, the following applies to the first half of 2014 only6. All a.s.r.’s employees are entitled to a fixed and a variable pay component. One-third of the variable component depends on the achievement of individual targets set for a calendar year and two-thirds on the company’s performance, as measured by the financial results (1/3) and customer satisfaction (1/3). This excludes employees in so-called control functions (Audit, Risk, Compliance and the Director of Human Resources). To safeguard the independence of employees in these positions, their variable pay does not depend on commercial results. Their variable pay only depends on the individual results component. At the beginning of each calendar year, employees and their managers agree on individual targets that need to be achieved during that year. These are recorded in an assessment and individual target form. The employee and their manager evaluate the progress made on these targets at least once a year. The targets need to reflect a clear focus on the long-term, sustainable interests of all stakeholders.
6.4.2 Each insurer shall cap the ratio between fixed and variable pay at a level suitable to their business. The variable pay of an Executive Board member shall not exceed 100% of their fixed income.
Variable pay has been eliminated at a.s.r. with effect from 1 July 2014; employees are now entitled to fixed pay only. The only employees still qualifying for variable pay are a small group of sales employees positions come under the a.s.r. CBA job classification and pay structure for front-office positions. Up to and including 30 June 2014, employees were entitled to fixed and variable pay8, which was capped at 60% for senior management, 40% for higher management and 18% for back-office and front-office staff. In accordance with the Dutch Act on the limitation of liability for DNB and AFM and the bonus prohibition for state-aided enterprises, the members of the Executive Board of a.s.r. are not awarded any variable pay as long as a.s.r. falls under the scope of the Act.
Variable pay is set each year on the basis of the scores on three components (i.e. an individual component, an entity-level component and a group component) in which context the performance on financial targets and customer satisfaction is measured (with the exception of control functions as mentioned in 6.4.1). This means that 40% to 60% of variable pay depends on non-financial criteria. The performance criteria provide no incentives for irresponsible risk-taking.
The company has the power to reclaim all or part of any variable pay awarded on the basis of incorrect information about the achievement of targets or the occurrence of circumstances that were a precondition for the variable pay to be awarded. Such proceedings may also be instituted by the Supervisory Board on behalf of a.s.r. Compliance will indicate whether there are grounds for invoking the claw-back clause, which is a part of the conditions of employment for the Executive Board and has been formalized in the assessment letter.
The insurer shall have a procedure in place for assuring timely identification and implementation of new rules and regulations and review this procedure on an annual basis. The following corporate functions should be involved in the procedure as a minimum: the Executive Board, the Internal Supervisor, Risk Management, Compliance, Internal Audit and the Actuarial function.
Based on their own professional expertise, the functions involved (Audit, Risk Management, Compliance, Legal, Finance, Human Resources, Actuarial and Accounting, Reporting & Control) identify applicable rules and regulations relevant to a.s.r. Such information is obtained from newsletters, the internet and other media, memberships of industry and trade associations, such as the Dutch Association of Insurers, the Dutch Banking Association, the Dutch Fund and Asset Management Association, and from expert external service providers such as law firms and the independent external auditor. The set of duties (or Charter) of each of these functions includes the duty to inform stakeholders within a.s.r. of new rules and regulations in a timely manner, to give advice where needed and to monitor implementation (Compliance). Secondly, periodic communications about proposed and current rules and regulations are distributed throughout a.s.r. Finally, Compliance publishes a biannual list for the benefit of senior management and the Executive and Supervisory Boards detailing all the existing and new rules and regulations pertaining to supervision relevant to a.s.r.
Global Reporting Initiative-index The Annual Report is based on the G3.1 guidelines for sustainability reporting of the Global Reporting Initiative (GRI). The GRI uses application levels to specify the extent to which its reporting principles and guidelines have been applied. a.s.r’s sustainability report has been prepared according to level B of the G3.1 guidelines.
The GRI-index table shown below specifies where the reader can find GRI disclosures in the Annual Report.
Location of disclosure 1. Strategy and Analysis 1.1 Statement from the most senior decisionmaker of the organization.
Fully Chapter 2.4 2. Organizational Profile 2.1 Name of the organization. Fully ASR Nederland N.V. Chapter 6.38 2.2 Primarily brands, products, and/or services. Fully Chapter 1.1 Chapter 1.5 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.
Fully Chapter 6.5.1 2.4 Location of organization’s headquarters. Fully Chapter 1.1 2.5 Number of countries where the organizations operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.
Fully Chapter 1.1 2.6 Nature of ownership and legal form. Fully Chapter 5.1.4 Chapter 6.15.1 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
Fully Chapter 5.1.4 2.10 Awards received in the reporting period. Fully Chapter 1.3
3.2 Date of most recent previous report. Fully 1 April 2014 3.3 Reporting cycle (annual, biennial, etc.). Fully Annual 3.4 Contact point for questions regarding the report or its contents.
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.
Fully Chapter 6.2.1 Chapter 6.2.2 Chapter 6.2.3 3.10 Explanation of the effect of any restatement of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurements methods).
Location of disclosure 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
Fully Chapter 6.2.1 3.12 Table identifying the location of the Standard Disclosures in the report.
Fully Chapter 5.1.3 Executive Board regulations www.asrnl.com Governance Principles (Appendix 1)
Fully Chapter 5.1.1 Chapter 5.1.2 Chapter 5.1.3 Governance Principles (Appendix 1)
Fully Chapter 5.1.1 Chapter 5.1.3 Governance Principles (Appendix 1) Supervisory Board regulations www.asrnl.com 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.
Location of disclosure 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.
Fully Page 275 4.15 Basis for identification and selection of stakeholders with whom to engage.
Fully a.s.r.’s Customer Due Diligence policy applies to all business lines. The goal of this policy is to manage any integrity risks associated with the service provision. The CDD policy rests on four pillars, i.e.: 1) client acceptance; 2) client identification and verification; 3) monitoring and review of clients, accounts and transactions; and 4) risk management.
In the CDD process, the client base is divided into various risk categories based on risks associated with the client in question and risks associated with the products or services. The various risk categories are governed by different acceptance procedures.
FS4 Process(es) for improving staff competency to implement the environmental and social policies and procedures as applied to business lines.
FS5 Interactions with clients/investees/business partners regarding environmental and social risks and opportunities.
Indirect economic impacts Fully Chapter 1.4 Chapter 3.1.1 Chapter 3.1.3 Chapter 3.1.4 Chapter 3.1.5
Emissions, effluents and waste Fully Chapter 3.1.4 Page 281, 282 and 283
Fully a.s.r. wants to serve its customers in the best way possible. The a.s.r. strategy has returned to the core of what insurance is all about: helping people by taking action. In the market, this mission translates into a prudent and responsible image and community involvement campaigns for all three brands.
The Proposition Approval & Review Process (PARP) is designed to monitor the development and management of both active and inactive products. The a.s.r., De Amersfoortse, Ditzo, De Europeesche Verzekeringen and Ardanta brands seek to be in control of their product development and product management. They also set great store by meeting statutory and self-imposed standards (voluntary codes). a.s.r. offers high-quality propositions that clearly meet business and consumer needs and match the values of a.s.r. brands at the same time.
Fully Chapter 1.3 (Page 17) Chapter 3.1.3 Chapter 3.1.4 Chapter 3.1.5
FS9 Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures.
FS10 Percentage and number of companies held in the institution’s portfolio with which the reporting organization has interacted on environmental or social issues.
FS11 Percentage of assets subject to positive and negative environmental screening.
FS12 Voting policy/policies applied to environmental or social issues for shares over which the reporting organization holds the right to vote shares or advises on voting.
EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change.
EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
Not Given that ASR Nederland N.V. is based exclusively in the Netherlands, this indicator is not applicable.
EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
Fully Surface area of land (owned or managed by a.s.r.) in, or adjacent to, protected areas: 5,018.60 hectares.
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.
EN27 Percentage of products sold and their packaging materials that are reclaimed by category.
EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.
Fully Chapter 3.1.4 EN3, EN8, EN16, EN22 Chapter 3.1.3 and report entitled Socially Responsible Investments (SRI), Detail Criteria for Positive Screening www.asrnl.com), Part 2 (environment domain)
Fully Only the selection system has an option that is not available to part-time employees: back-office employees working fewer than 1,976 hours per year cannot work 52 or 104 hours more or less on an annual basis. Employees on a one-year contract do not qualify for parental leave.
LA15 Return to work and retention rates after parental leave, by gender.
LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.
Fully Workforce representation is vested in the Safety, Health, Welfare and Environment Committee of the Works Council, of which seven members represent the Works Council and two represent Human Resources, as well as in the occupational health and safety advisory groups in Utrecht/Amersfoort, and at Europeesche Verzekeringen and Ardanta (12 employees). This brings the total number of employees sitting on formal joint management-worker health and safety committees to 21. As a result, the interests of everyone working at a.s.r. are being looked after.
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and gender.
Fully The absenteeism rate for 2014 was 3.3%. The absenteeism frequency rate was 1.0. The in-house emergency services responded to 27 incidents, none of which were workrelated. Our occupational and safety board reported 32 incidents of occupational disability. There were no workrelated fatalities.
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
Fully a.s.r. offers an absenteeism course for managers and HR officers. a.s.r. has engaged Arboned, an occupational health and safety service, to assist with risk assessment and evaluation.
Fully In the context of sustainable employability, several initiatives, courses and training budgets were being offered on 1 January 2015 with a view to continuous employability. Chapter 3.1.2
Fully 100%: all employees are educated about performance and career development during target-setting, progress and performance appraisal interviews with their managers.
LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.
HR1COMM Percentage and total number of significant investment agreements and contract that include clauses incorporating human rights concerns, or that have undergone human rights screening.
HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.
Fully No training is provided with regard to aspects of human rights.
HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.
SO1 (G3.1) Percentage of operations with implemented local community engagement, impact assessments, and development programs.
FS13 Access points in low-populated or economically disadvantaged areas by type.
FS14 Initiatives to improve access to financial services for disadvantaged people.
Partially Ditzo’s responsive website is suitable for viewing on smartphones and tablets. The website adjusts automatically to screen orientation and to screen size. The same principle is used for other a.s.r. websites as well. In addition, the guidelines of the Accessible Websites Hallmark (Waarmerk drempelvrij.nl) form a basis for continuous website improvements.
Partially Failure to observe these rules of conduct will be considered as a serious breach of the trust that the employer has in the employee, and will lead to disciplinary action. Compliance produces quarterly reports and ad-hoc reports that are discussed by the Executive Board and the Audit Committee.
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.
Fully As part of PARP, products are tested for their cost effectiveness, usefulness, safety and reliability. Based on these criteria, we create sustainable value for our customers. These criteria are assessed throughout a product’s lifecycle.
PR2 Total number of incidents of noncompliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.
PR4 Total number of incidents of noncompliance with regulations and voluntary codes concerning products and service information and labeling by type of outcomes.
Fully The review of products showed on several occasions that there is room for improvement in information provision. These findings have been followed up.
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
Fully a.s.r. has a checklist for marketing communications (subject to annual updates). This list specifies applicable laws and regulations, and voluntary codes. Additionally, we have the commissions and personal data guide. All communications are reviewed for their compatibility with the applicable regulations and voluntary codes on a multidisciplinary level.
PR7 Total number of incidents of noncompliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.
PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.
Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: • Has positions in governance bodies; • Participates in projects or committees; • Provides substantive funding beyond routine membership dues; or • Views membership as strategic.
For details on the additional positions of the members of the Executive Board and the Supervisory Board, see chapter 5.1.3.
Advisory Council for Financial Services Management, Amsterdam University of Applied Sciences • Member – Wytzejan de Jong, Managing Director of a.s.r. bank • Member of Education & Professional Development Committee – Frank Romijn, Managing Director of occupational disability business
Centre for Insurance Statistics • Committee member – Frank Romijn, Managing Director of occupational disability business Keerpunt Hilversum, a company for reintegration • Member of the Supervisory Board – Frank Romijn, Managing Director of occupational disability business
The Personal Injury Council • Chair – Robert van der Schaaf, Managing Director of non-life business Schadegarant/Glasgarant (Association of car and windshield damage repair companies) • Board Member – Robert van der Schaaf, Managing Director of non-life business
IIR • Member of the Advisory Board – Wytzejan de Jong, Managing Director of a.s.r. bank SKYDOO • Member of the Board – Wytzejan de Jong, Managing Director of a.s.r. bank FSM Academy Amsterdam • Member Advisory Board – Wytzejan de Jong, Managing Director of a.s.r. bank a.s.r. property fund • Member Advisory Board – Fleur Rieter, Managing Director of pension business a.s.r. Fonds Sicav • Chair of the Board of Directors – Fleur Rieter, Managing Director of pension business Netspar • Member of Foundation Board – Fleur Rieter, Managing Director of pension business Foundation Sustainable Micropensions of developing countries • Member – Fleur Rieter, Managing Director of pension business Brand New Day • Chair of the Supervisory Board – Fleur Rieter, Managing Director of pension business The Royal Actuarial Association • Member of the recommendation commission – Fleur Rieter, Managing Director of pension business
VU University Amsterdam • Lecturer – Patrick Klijnsmit – Director of Accounting, Reporting & Control
Dutch Association of Institutional Property Investors (IVBN) • Chair – Dick Gort, Managing Director of real estate business
Dutch Green Building Council (DGBC) • Founding partner Association of Dutch Property Developers (NEPROM) • Sustainability Committee Dutch Green Building Council (DGBC) • Co-founder
Memberships: MVO Nederland (Dutch CSR Council) – Partner in Large Enterprises Network Dutch Fund and Asset Management Association (DUFAS) Dutch Association of Investors for Sustainable Development (VBDO) Dutch Banking Association (NVB) European Association for Investors in Non-listed Real Estate Vehicles (INREV)
Approaches to stakeholder engagement, including frequency of engagement by type and stakeholder group and key topics and concerns that have been raised through engagement, and how the organization has responded to those key topics and concerns, including through its reporting.
Shareholder (NLFI) Formal meeting Inform AGM, EGM of quarterly financial results
Consult about the need and options for consolidation, including the process involving VIVAT/REAAL and attracting private investors; a joint steering group of representatives of the Executive Board of a.s.r. and NLFI management reported to this consultative body
Seven consultative sessions with trade unions about the a.s.r. CBAs; five sessions about the industry-wide CBA
Regularly provide information about developments at a.s.r. and discuss specific issues
Provide information about annual results for 2013 26 February 2014 In subsequent publications, meetings and sessions
Provide information about interim results for 2014 20 August 2014 In subsequent publications, meetings and sessions
Bond investors Roadshow Place a hybrid bond 18, 19 and 22 September 2014
Specialists in health and income protection business scheduled follow-up sessions and awarded course certificates; advisers are also asked to attend refresher courses
In dialogue with advisers who have claims settlement authority, educate intermediaries about developments in claims, changes in mandates and communication, and share actual claims information with each other
Intermediaries Amersfoortse Pension Programme, knowledge and networking sessions -Offer knowledge and advisory support to pension advisers -Inform pension advisers of the status of the conversion of a.s.r. and De Amersfoortse, and our approach to the raising of the statutory retirement age to 67 -Have pension advisers connect with colleagues
Intermediaries Pension programme master classes on affordability and AFM's take on the pension advice
Customers Offer letter Werknemers- pensioen (De Amersfoortse’s new employee pension proposition)
Improve the readability and retrievability of the information provision to customers
City/Province Lobbying, liaising Promote sustainability in Rijnsweerd area, clarify role of a.s.r.
Swift Similar to the house sparrow, the number of breeding pairs of the swift (Apodidae) in the Netherlands has dropped significantly. In the Netherlands, the swift has not yet made it onto the Red List of threatened species. Swifts preferably also make their nests in buildings. a.s.r. contributes to conserving the species by fitting 20 nest boxes to the facade of is headquarters. The nest boxes will have been fitted by the end of 2015.
Bats Bats (Chiroptera) are protected in the Netherlands. The a.s.r. headquarters are built on bat foraging territory. In 2013, approximately 23 bat shelters were installed. At the end of 2014, a.s.r.’s ecology expert established that various shelters were being used by bats. The facade of the new building is not suitable for bat nests. For this reason, a.s.r. will install a number of nest boxes units on the grounds before the end of 2015.
In addition, a.s.r. wants to promote biodiversity by maintaining the gardens to a high standard so that native plants have a greater chance of survival. In designing the garden, a muddy layer of soil was added to attract amphibians. A number of willows (Salix) have been planted as well. Composting stations have been created using the branches of this fast-growing type of tree. By taking these initiatives, a.s.r. hopes to contribute to the conservation of the grass snake (Natrix natrix), a rare species that is on the Red List of threatened species.
What follows is an overview of waste flows that a.s.r. collects and processes.
Paper and cardboard All collected cardboard and archives were recycled in the paper industry. The archives were collected as confidential paper and confidentially destroyed. After destruction, this paper was used as a highgrade base material in the paper industry.
Glass All glass was collected and recycled into new glass. Recycling one tonne of glass offers a saving of 1.4 tonnes in base materials.
Contracts of definite duration 108 104 212 Contracts of indefinite duration 1,295 2,134 3,429