• The operating result rose from € 155 million in 2014 to € 169 million in 2015 due to an increase in earnings from both the occupational disability and health insurance businesses. In the P&C business, developments in earnings were adversely affected by the summer storms in 2015. Despite this, the combined ratio in the Non-life segment remained practically unchanged at 95.0%.
• The Fair Insurance Guide awarded a.s.r. the highest score for its sustainable investment policy in 2015. a.s.r. excelled in the areas of arms and bonuses in particular (score of 10), followed by labour rights, human rights, health care and industry (score of 9).
De Amersfoortse combined occupational disability and health insurance in a single policy De Amersfoortse has offered the Doorgaanverzekering health insurance policy since November 2015. This policy combines comprehensive occupational disability insurance for business owners with a free-choice health insurance policy, additional coverage for the business owner’s family, such as childcare, domestic help, caregivers or cancer counselling, and the support of a personal health insurance expert, who can answer questions and make arrangements for the policyholder. The Doorgaanverzekering policy is available to both existing and new customers.
Highest MoneyView rating awarded to a.s.r. legal assistance insurance The a.s.r. legal assistance insurance policy was awarded the highest possible rating in terms of ‘Pricing’ in a survey conducted by MoneyView. A total of 43 legal assistance insurance policies were subjected to review.
On the move The labour market is a dynamic landscape: flexible employment and use of new technologies make huge demands of the adaptability of organizations and their people. In order to stay in touch, both organizations and employees need to invest in their development, motivation, engagement and vitality. It is crucial to be ‘on the move’.
De Andere Tour By putting on De Andere Tour (The Other Tour), the a.s.r. pension business demonstrated that you can be over 60 and very fit. The highlight of the campaign was that 42 over-60s completed all 21 stages of the Tour de France in duos on special a.s.r. tandems. De Andere Tour was a resounding success. Not only did it increase a.s.r.’s brand awareness as a pension insurer by 140%, but it also contributed to raising our profile as a company that ‘helps by taking action’.
Historically, underwriting and claims management skills have resulted in a strong combined ratio. In an effort to achieve a competitive claims ratio, a.s.r. intends to further invest in senior insurance specialists and to build and expand their underwriting skills and expertise.
De Amersfoortse and Ditzo labels) both through 5,500 intermediaries. The majority of a.s.r.’s insurance products are distributed via the intermediary channel. In addition, a.s.r. has successfully introduced its online challenger brand, Ditzo.
1.5.6 Value creation in 2015 a.s.r.’s mission is to help customers and focus on their interests. It allows them to insure risks they cannot or will not bear themselves and by helping them reach their financial goals. Customers can rest assured that their risk cover and the funds they entrust to a.s.r. are in the safe hands of an insurer that avoids waste, listens to them and puts itself in their shoes.
Karin Bergstein studied medical biology at Utrecht University (Master in 1991) and in 1998 earned an MBA from Nyenrode University and the University of Rochester in the United States. She started her career at ING Bank in 1991, where she held various positions until 2010. Her last position was that of Director of Products & Processes, which gained her a seat on the Executive Board of ING Bank Nederland. Prior to that she served as CEO of ING Car Lease International from 2003 until 2009.
26a.s.r. 2015 annual report a.s.r. at a glance 1.6.2 Members of the Supervisory Board
One of the topics the Executive Board discussed in 2015 was employee engagement based on the engagement score.
• Economy The disability insurance market is highly dependent on economic developments and changes in legislation. Although the market for disability has been declining in the period 2012–2014, it is expected that the disability market will follow the economic recovery in 2015. Growth in clients and premiums is expected to accelerate as a result of economic recovery and fewer bankruptcies, corresponding with higher employment levels and higher wages. Traditionally, the disability market has followed economic developments with a lag time of one or two years. Therefore, it is expected that the disability market will show marginal growth, independently of the effect of the BeZaVa legislation.
The combined ratio remained at a good level (94.8% for 2014 and 95.0% for 2015); as a result, the operating result in the Nonlife segment rose from € 155 million in 2014 to € 169 million in 2015. In the occupational disability business, the combined ratio improved due to active claims management in both the individual and Group occupational disability businesses. Earnings from the health insurance business improved as a result of equalization effects and lower costs. In the P&C business, operating result was affected by the summer storms of 2015.
• Travel and Leisure a.s.r. offers travel insurance policies for retail clients and is a market leader in the travel and leisure market in the Netherlands.
Travel and leisure insurance is sold under the brands Europeesche Verzekeringen and a.s.r. via the same channels as a.s.r.-branded P&C products, Europeesche Verzekeringen is also sold by travel agents. In 2015, travel and leisure had a total GWP of € 85 million and a retentionrate of 80%. The retention ratio, calculated as the number of customers in the current period who were also customers in the prior period divided by the total number of customers in the prior period, for travel & leisure only relates to € 34 million of GWP, as that the remainder of travel & leisure business has a duration of less than one year.
• Regular operating expenses were up 15% in 2015, mainly due to an increase in the cost base as a result of the strategic acquisitions.
The individual life market consists of term life and annuities with no other products actively offered. The market is dominated by large market participants with small market participants active but in declining numbers (from 45 small market participants in 2010 to 36 in 2014). Many insurers have decided to close new business for most or all individual life products, focusing on customer services and retaining AuM. There is a possibility that the Dutch individual life insurance industry will consolidate.
The Dutch pension system consists of four pillars: (a) a mandatory state pension scheme (Pillar 1), (b) employer-based pension schemes (Pillar 2), (c) voluntary pension facilities with fiscal benefits (Pillar 3) and (d) voluntary pension facilities without fiscal benefits (Pillar 4). Within the Pensions product line, a.s.r. primarily offers DB (also referred to as ‘traditional’) and DC (also referred to as ‘unit linked’) products that qualify as Pillar 2. DB products, which provide guaranteed benefits, are mainly split between general account and separate account products and consist of contracts with single or recurring premiums. Some of these products contain the option of profitsharing based on an investment return or technical profit.
a.s.r. also provides various insurance supplementary options as part of its insurance products, including bereavement benefits and disability protection.
In 2015, the remaining in-force policies accounted for 42% of individual life’s GWP. As at 31 December 2015, the remaining in-force policies accounted for 37% of the technical reserves of the individual life service book.
Strategy a.s.r. aims to continue its track record of adapting to evolving market circumstances in the life market. a.s.r. believes that it has developed a well balanced portfolio, combining a profitable service book (individual life book and funeral insurance) with a modest Group life book. a.s.r. strives to benefit from a simplified, partially outsourced, scalable IT infrastructure that is designed to provide an efficient, low cost operating platform. a.s.r. aims to continue benefiting from its outsourcing efforts, which enabled a.s.r. to reduce operating expenses per policy and to build a sound and variable cost structure. By servicing customers effectively, a.s.r. believes that it is able to limit unnatural lapses and to maintain and optimise the predictability of its service book. a.s.r. aims to continue leveraging its cost advantage through selectively acquiring blocks of business, creating economies of scale which should result in lower administrative costs per policy and benefiting from excellent liability driven asset management skills.
Bank saving products with tax advantages, also referred to as bank annuities (banksparen), were introduced in the Netherlands in 2008. Bank annuities are primarily used for mortgage- and pension-related savings. Until 2008, taxadvantaged saving was only possible through an insurance policy. Since the adoption of new legislation in 2008, bank annuities have the same fiscal benefits as insured savings products but do not have a life insurance component. Each year there are approximately € 20 billion of ‘free’ assets available of which € 2-4 billion will be used to purchase annuity / bank savings product. The net growth of bank savings is estimated at around € 1 billion annually.
Products The main categories of products offered by a.s.r. Bank include the following: • Immediate annuities a.s.r. Bank’s immediate annuities are fiscal savings products in which a lump sum is invested in order to provide the customer with fixed payments per month, quarter, half-year or year. The lump sum is the result of a pension savings scheme that grants tax deduction, provided that the savings are paid into a fund that can only be withdrawn as an annuity. The payments that the customer receives are taxed against progressive Dutch personal income tax rates with a maximum of 52%; • Deferred annuities a.s.r. Bank’s deferred annuities are fiscal savings products for pension savings schemes. The Dutch government grants tax deduction for the savings, provided that savings are ultimately paid into a fund which can only be withdrawn as an annuity. Tax deduction in the Netherlands is only allowed if, without additional savings, the pension income would be less than 70% of the current income; • Savings products a.s.r. Bank offers savings accounts with a variable interest rate, and term deposits with a term of one to ten years and a fixed interest rate; and
Profile The Distribution and Services segment includes the activities related to distribution of insurance contracts and intermediary services and is carried out by PoliService B.V., VKG and Boval.
In 2015 a.s.r. committed to a sale process for the disposal of SOS International which was completed on 25 January 2016. The business of SOS International primarily relates to providing 24/7 worldwide travel assistance. At 31 December 2015, SOS International was classified as discontinued operations.
6 This segment comprises the holding activities of ASR Nederland N.V. and the activities of ASR Deelnemingen N.V. Certain holding-related expenses are recognized in this segment too.
Profit/(loss) before taxes -67 -40 Income tax expense 52 13 Profit/(loss) for the period attributable to holders of equity instruments -15 -27
The loss before tax rose by € 27 million, from € -40 million in 2014 to € -67 million in 2015 due to lower realized capital gains and incidental items chiefly relating to a.s.r.’s own pension scheme and an increase in the operating result.
In the fixed-income portfolio, more focus was placed on less liquid assets such as corporates and mortgages. The exposure to non-financials, for instance, saw a 30% rise to € 5.0 billion and the mortgage portfolio rose by 18% to € 6.5 billion. Of the increase in the mortgage portfolio, 80% was attributable to state-guaranteed mortgages and mortgages with a loanto -foreclosure value of less than 75%. Given that the losses were limited to less than 1 basis point, the mortgage portfolio qualifies as high-grade. Overall, the exposure to bonds issued by non-financials was virtually unchanged in the year under review, hovering around € 4.9 billion. Derivative exposures fell by 41% to nearly € 1.8 billion, one of the reasons being the substitution of derivatives by government bonds. a.s.r. maintained its stringent hedging policy for interest rate sensitivities over the past year.
The internal minimum Solvency I ratio for a.s.r. as formulated in the risk appetite statement is 200%. The table below shows the capital position of a.s.r. at the dates specified based on Solvency I: The development of the Solvency I ratio (Solvency I) shows that a.s.r.’s capital position continued to improve in 2015. The € 591 million increase in Solvency I capital to € 5,575 million was mainly attributable to profit for 2015 and the newly contracted Tier 2 subordinated loan. The Solvency I ratio climbed from 285% at year-end 2014 to 305% at year-end 2015.
Risk management in 2015 a.s.r. manages the risk profile of a.s.r. group, its associates and its business lines in order to ensure that the risk profile remains within the risk appetite and the underlying risk tolerances and risk limits. The risk appetite is defined for financial and nonfinancial risks, and describes the level of risk that a.s.r. is willing to accept. The risk appetite statements were updated by the Executive Board and endorsed by the Supervisory Board in 2015. The risk profile is discussed in the risk committees on a quarterly basis. The non-financial risk profile is shared with the Non-Financial Risk Committee (NFRC) and the financial risk profile is shared with the Financial Risk Committee (FRC). The integrated risk profile is shared with the Group Risk Committee. In case of breaches, the committees are mandated to decide on corrective actions. This is how the risk governance structure ensures that the risk profile is monitored effectively and timely action is taken where needed.
A robust solvency position takes precedence over profit, premium income and direct investment income. The FRC assesses the solvency position and the financial risk profile on a monthly basis. Action is taken where appropriate to ensure that the financial risk profile stays within the parameters that have been defined in the a.s.r. risk appetite. At year-end 2015, a.s.r. had sufficient capital to meet the limits defined in the a.s.r. risk appetite.
The insurance market is changing. Shrinking customer demand, changes in customer behaviours and in distribution channels, lack of public trust in insurers, the current economic climate (low interest rates), regulatory changes and technological developments demand more from us as an organization. In addition, the current market is characterized by fierce competition and growing cost awareness. These pressures can manifest themselves in an increase in non-life policy cancellations, loss of retention in the life business, a drop in sales of new insurance contracts and limited scalability of departments.
Treating Customers Fairly (TCF) Each quarter, the Supervisory Board considered the theme of Treating Customers Fairly on the basis of various reports, including the a.s.r. TCF Dashboard, which provides insight into developments and results with respect to TCF and of the best practices shared and lessons learned in this regard across the organization. The Supervisory Board has found that a.s.r. goes to great lengths to deliver a good TCF performance.
The multi-year budget 2016-2020, the investment plan and the risk priorities for 2016 were discussed at length at the end of the reporting year, after which the multi-year budget was adopted by the Supervisory Board.
The Chair of the Committee gave an account of the issues discussed to the Supervisory Board and submitted written reports to the Supervisory Board in a timely manner.
8. In principle, guaranteed variable remuneration will not be awarded unless in accordance with Section 1:124 of the Dutch Financial Supervision Act (WFT).
10. Variable remuneration is determined by indicators relating to both customer satisfaction and to financial and risk indicators used to assess the performance of the business.
91a.s.r. 2015 annual report Report of the Supervisory Board 4.6 Closing remark from the Supervisory Board
Due to the retrospective treatment the comparative figures for 2014 and 2013 have been restated accordingly (see chapter 5.2.1 for a more detailed description of the changes and the effects on the consolidated financial statements and for an explanation of the inclusion of the 2013 comparative figures).
Discontinued operations Profit (loss) from discontinued operations net of tax 5.36 -26 -5 -1
(p e n si o n o b lig at io n )
1 Profit before tax includes results from continuing operations of € 780 million (2014: € 534 million; 2013: € 317 million) as well as results from discontinued operations of € -33 million (after tax € -26 million), for 2014 € -5 million (after tax € -5 million), for 2014 € -1 million
Investment property and property for own use a.s.r.’s accounting policy until and including 2014 was to recognize investment property and property held for own use at using the cost model (cost less accumulated depreciation and impairments, if any). With effect from 1 January 2015, all investment property and property held for own use were measured using the fair value model. This voluntary change in accounting policy is effected as it provides the users of the financial statements with more meaningful information as the fair value model is used in the DNB Regulatory Solvency and Solvency II methodology and to enhance comparability with peers. This change in accounting policy will enhance the ability to understand a.s.r.’s financial position taking into account industry trends.
Furthermore, in line with IFRS accounting requirements, the income statement and statement of comprehensive income have been restated for all operations that are classified as discontinued operations as at 31 December 2015. As a consequence, the restated prior year income statement and statement of comprehensive income are not entirely comparable to the prior year audited financial statements. In contrast, the balance sheet and cash flow information for the comparative periods 2013 and 2014 have neither been restated nor re-measured, in accordance with IFRS accounting requirements. (see also chapter 5.36 for further detail regarding the discontinued operations).
Discontinued operations Profit (loss) from discontinued operations net of tax - - -5 -5
D. Intangible assets Intangible assets are carried at cost, less any accumulated amortization and impairment losses. The residual value and the estimated useful life of intangible assets are assessed on each balance sheet date and adjusted where applicable.
Trade and other receivables Trade and other receivables are receivables arising from a.s.r.’s normal business operations.
Reserve for unrealized gains and losses This reserve consists of: • unrealized gains and losses from financial assets available for sale net of tax and taking account of adjustments due to shadow accounting (see accounting policy J); • The share of unrealized gains and losses of associates and joint ventures held by a.s.r. (see accounting policy V); • unrealized gains and losses on the effective portion of cash flow hedges net of tax (see accounting policy I); • unrealized change in value of property for own use (see
Risk governance • a.s.r. has a risk governance framework in place, which comprises the duties and the responsibilities of the risk management organization and the risk committee structure; • Risk committees monitor a.s.r.’s risk profile and decide upon measures for mitigating risk exposures; • Risk Management is based upon the principles as formulated in Group Risk Management policies to ensure a uniform risk management process throughout the organization. These policies describe how to identify, monitor, report and manage risks.
Solvency II • In January 2015 the European Commission published the
The Enterprise Risk Management (ERM) framework describes our risk management system. The Enterprise Risk Management framework provides reasonable assurance that our strategic objectives can be achieved and our obligations towards our stakeholders can be met. The a.s.r. Enterprise Risk Management framework is based on the COSO (Committee of Sponsoring Organizations of the Treadway Commission) ERM model. The framework comprises the following risk management elements.
9 ASR Nederland N.V. has a minimum Solvency I-ratio of 200%.
Interest-rate (incl UFR) -1% 14% 34% 30% Interest-rate (incl UFR) +1% -8% -23% -29% Interest-rate (excl UFR) -1% -95% -59% -17% Interest-rate (excl UFR) +1% 49% 27% -1%
Sensitivity of regulatory solvency (Solvency I) excluding UFR to interest-rate changes.
5.3.4.5 Spread risk Spread risk arises from the sensitivity of the value of assets and liabilities to changes in the level of credit spreads on the relevant risk-free interest rates.
Corporates Structured entities 31 December 31 December 31 December 31 December 31 December 31 December
The following table shows the contractual cash flows of assets and liabilities (excluding investments on behalf of policyholders and insurance contracts on behalf of policyholders). For liabilities arising from insurance contracts, expected lapses and mortality risk are taken into account. Profit sharing cashflow of insurance contracts is not taken into account, as well as equities, property and swaptions. Compared to 2015 the cash flow of the liabilities in the last bucket increased due to the acquisition of De Eendragt and Axent, while the impact on the assets was offset by the reduction of the duration of the assets.
For social as well as commercial reasons, and in line with most competitors, a.s.r. has set the Basic Health premium level for 2015 below its actuarial cost price. A provision of € 39 million has been established to reflect this.
The adequacy of these provisions are reviewed at each reporting date using appropriate current principles.
In recent years, measures have been taken to improve profitability and to reduce risk. Examples are: premium increases, stricter acceptance criteria, shorter claims filing terms and making use of the claims reassessment arrangement between the Dutch Association of insurers and social security institute UWV. Effects are being monitored closely and assessed to be effective. New legislation, in force as January 1 2017, will invoke market-wide changes to the product design, pricing and conditions, thereby creating both additional market opportunities and creating additional risks for a.s.r.
Underwriting policies describe the types of risks and the extent of risk a.s.r. is willing to accept. Policyholders may be subjected to medical screening for individual life insurance.
5.3.6.3 Post-employment benefits Post-employment benefits are sensitive to several risks, which together form the risk that the liabilities exceed the assets of a defined benefit pension plan. To fulfil the obligation to finance the pension plan, ASR Nederland N.V. has insured the postemployment benefit plans for a.s.r.’s employees primarily with ASR Levensverzekering N.V., an insurance company within the a.s.r. group. As a result of the acquisition in 2015 there are a number of new pension plans which are mainly insured with other insurance companies.
Strategic risk is defined as the risk that a.s.r. will not reach its strategic objectives, because risk considerations are not or incorrectly addressed in decision-making processes, incorrect implementation of decisions and/or failure to respond adequately to market developments. Since a.s.r. wants to remain a solid, trusted and profitable insurance company in the Dutch insurance market, which is continuously under pressure, it is extremely important to identify strategic issues and opportunities and to take the appropriate actions.
In line with its objective to optimize capital position on an ongoing basis, a.s.r. issued a € 500 million Tier 2 bond transaction (see chapter 5.15). The issuance enabled a.s.r. to benefit from advantageous market circumstances further improving the quality of its hybrid capital. Proceeds from the new issue were used to fund acquisitions and create additional capital and liquidity buffer at a.s.r. group level. The terms of this transaction fully meet the requirements as stated in the new Solvency II regulation and illustrate the continuous optimization of a.s.r. in this area.
The operating results of the segments are assessed on the basis of the segment’s income statements.
Change in provision for unearned premiums 16 - - - - - - 16
Profit attributable to holders of equity instruments 169 555 8 -4 -15 -113 1 601
Share of profit/(loss) of associates and joint ventures - 14 - - 1 - - 15
Level 1 Level 2 Level 3 Total fair value Total carrying value
Investments on behalf of policyholders: Investment property (chapter 5.11.2) - - 240 240
Investments on behalf of policyholders: investment property 240 DCF 20,957,570 mean 8.7% -5% - 13 25
5.7 Intangible assets Intangible assets can be broken down as follows: Value Of Business Acquired (VOBA) 118 132 244 Other intangible assets 4 4 6
The significant inputs are the net initial yield and market rental value. These inputs are verified with the following market observable data: • Market rent per sq.m. for renewals and their respective reletting rates; • Reviewed rent per sq.m.; • Investment transaction of comparable objects.
Fixed-interest securities 17,178 2,157 19,335 Loans and receivables 8,794 - 8,794
Notional amounts do not reflect the potential gain or loss on a derivative transaction. a.s.r.’s counterparty risk is limited to the positive net fair value of the OTC contracts.
The actuarial gains and losses related to the post-employment pension plans amount to € -467 million (2014: € -634 million; 2013: € -107 million). See chapter 5.1.3 for a summary of the movements in the defined benefit obligation through equity amounting to € 220 million (2014: € -704 million; 2013: € 156 million).
In 2014, a.s.r. issued a combination of capital market transactions in order to further optimize the capital position. The implementation of the capital optimization consists of the following: • Issue of hybrid Tier 2 instruments 5% Fixed to Fixed
ASR Levensverzekering N.V., an insurance company and a group entity, is the insurer of the majority of the post-employment benefit plan. As this company holds the separated investments that are meant to cover the employee benefit obligation, they do not qualify as plan assets in accordance with IAS 19 and are therefore included in financial assets.
A number of defined benefit post-employment benefit plans for its employees and former employees exist. The majority of employees are formally employed by ASR Nederland N.V. A limited amount of employees are employed by other group companies.
The benefits under these plans are dependent on factors such as years of service and compensation. Pension obligations are determined using mortality tables, the rate of employee turnover, wage drift and economic assumptions for factors such as inflation, and the discount rate. The post-employment benefit plans for a.s.r.’s employees have been insured by ASR Levensverzekering N.V. since 2008.
Discount rate (1% movement) -475 627 Indexation employees (1% movement) 16 -8 Indexation former employees (1% movement) 427 -310 Future salary growth (1% movement) 4 -3 Future pension growth (1% movement) 434 -332 Future mortality (1 year movement) -108 108
5.18 Provisions The table below shows movements in provisions: Additional foreseen amounts 43 48 45 Reversal of unused amounts -2 -4 Usages in course of year -17 -41 -40
5.19 Borrowings As at year-end 2015, borrowings comprised loans having the following terms to maturity: Falling due within 1 year 21 27 50 Falling due between 1 and 5 years 24 65 21 Falling due after 5 years 10 25 27
Total impairments in investments 14 7 32 5.30 Interest expense The table below is a breakdown of the interest expense: Interest on employee benefits -61 -92 -96 Interest on derivatives -150 -179 -214 Interest owed to banks -9 -10 -11 Interest owed to customers -14 -13 -11 Interest on subordinated liabilities -7 - Interest on borrowings -2 -3 -4 Other interest expenses - -18 -21
Goodwill is recognized as the difference between the consideration paid and the fair value of the net assets and liabilities upon acquisition date (see chapter 5.7). In accordance with the applicable reporting standards, the final acquisition balance sheet will be drawn up within 12 months of the acquisition. No significant differences compared with the provisional balance sheet are expected.
Cash and cash equivalents as at 31 December 3 5.37 Contingent liabilities and assets 5.37.1 Claims and disputes
The loans to group companies consist primarily of deposits with group companies of € 20 million with an average interest rate of 2.1% (2014: € 29 million; 2013: € 47 million) repayable within one year, no loans with a maturity term within 3 years (2014: nil; 2013: € 29 million) and loans of € 14 million (2014: € 46 million; 2013: € 46 million) with a maturity term longer than 3 years and an average interest rate of 4.3% (2014: 5.6%; 2013: 5.6%).
Lease commitments For the table with the breakdown of the commitments for noncancellable operating leases, see chapter 5.37.
The consolidated financial statements comprise: 1 the consolidated balance sheet as at 31 December 2015; 2 the following consolidated statements for the year then ended: the income statement, the statements of comprehensive income, changes in equity and cash flows; and 3 the notes comprising a summary of the significant accounting policies and other explanatory information.
Based on our professional judgment we determined the materiality for the financial statements as a whole at EUR 30 million (2014: EUR 30 million). The materiality is determined with reference to a benchmark of total equity (approximately 2015: 1%; 2014: 1%), which bases is essential for determining the financial position of the Company. Due to the long-term insurance liabilities and the related solvency requirements we consider total equity the most suitable metric for the financial position of the Company. We have also taken into account misstatements and/or possible misstatements that in our opinion are material for qualitative reasons for the users of the financial statements.
The assumptions require significant Executive Board’s judgment. The company has comprehensive procedures and internal controls in place to determine the value of the Liabilities arising from insurance contracts and the related LAT (see notes 5.2.2.J, 5.3.6 and 5.16). The Test margin, as an outcome of the LAT, is taken into account for the calculation of the available solvency (see note 5.4.2). In line with laws and regulation, the discount rate used for the LAT includes the Ultimate Forward Rate (UFR). As disclosed in note 5.4.2 the UFR has a significant impact on the LAT and the available solvency of the company
The five sustainable priorities defined by a.s.r. and the related icons are: Insurance Offering continuity and security to customers. a.s.r. wants to provide sustainable insurance products, engages in continuous process improvements and simplifies its product offering.
Planet • 12% reduction in carbon emissions from 2014 • Sustainable renovation by re-using materials, recycling building rubble and making the area surrounding the office building more sustainable • Sustainable mobility policy encouraging the use of public and alternative transport, and tightening of lease policy • Reduction in electricity, natural gas and water consumption • More charging stations for electric and hybrid cars
Engagement score of 53.5% in February 2015 4 People Engagement Customer centricity Customer centricity score: 8.0 Customer centricity score in 2015: 7.8 5 Investments Energy efficiency of property portfolio
The products and services a.s.r. offers meet the needs of the customers; in addition to being subject to an in-house review (PARP), they are also assessed by consumers and employers or a selection of customers. Market surveys, social media, customer behaviour surveys and customer panels are just some of the instruments a.s.r. uses to identify about its customers’ needs.
De Amersfoortse launches occupational disability policy 2.5 and flexible occupational disability insurance Targeting self-employed persons, De Amersfoortse has launched AOV 2.5, an occupational disability policy paying benefits for two or five years. There are 800,000 self-employed persons in the Netherlands; three-quarters of them have no occupational disability insurance. De Amersfoortse’s new policy targets them in particular by paying benefits for two or five years, depending on the choice made when taking out the policy. AOV 2.5 is designed to encourage self-employed persons suffering from an occupational disability to return to work by providing job counselling and retraining or refresher courses. The target group are self-employed persons who cannot afford or do not want to take out comprehensive occupational disability insurance to age 67, but do want some coverage.
Besides the standard offering of required or role or job-related courses and development opportunities, each employee can take courses of their own choosing to increase their sustainable employability and innovative drive. This is designed to make them more versatile in the labour market. a.s.r. has also undertaken various initiatives that support employees in their further development and career, whether at a.s.r. or elsewhere. These initiatives are described below.
One of the follow-up actions of the employee survey is the new Talent Development Programme, which was launched in 2015. 384 employees and managers in Scale 9 and up who were identified in the employee survey as driving forces (255), prospective top talents (97) and top talents (32) were invited to take part. The programme, which spans a year, is made up of modules that can be taken by the participants during the year. The modules centre around themes such as retaining, engaging, inspiring, developing and strengthening. A second Talent Development Programme for employees in Scales 2 to 8 will be started in 2016. 230 employees were invited to take part, 160 of whom qualify as driving forces, 46 as prospective top talents and 24 as top talents.
As part of its talent development drive, a.s.r. offers a trainee programme. Between six and twelve trainees take on various projects within a single business line over the span of 18 months. This will allow the trainees, who are universityeducated, to build up targeted knowledge and experience. Trainees are hired specifically for a business line or discipline. Two traineeships per year have started since July 2015. Five trainees started in the first half of 2015 and the hiring process for new trainees was kicked off at the end of 2015.
The a.s.r. gym in Utrecht was outfitted with Artis Renew equipment in September 2015. This Technogym equipment is used to generate energy during people’s work-outs, which is then reused. The a.s.r. gym is one of the first green sports locations in the world.
To illustrate, the choice of lease car has been limited to cars with a maximum emission of 104 g/km and a mobility budget has been introduced as an alternative to a lease car. In addition, HR, Business Support and Procurement completed the review of options for making the current lease policy more sustainable. This review produced a list of measures that will be fleshed out further in 2016. The carpool scheme is regularly brought to the employees’ attention and staff working in the Utrecht office are not permitted to park in the office car park if they live within 12 kilometres’ cycling distance. a.s.r. also facilitated the purchase of an economical bus pass in 2015. There are also a number of other schemes to encourage bicycle use, including the Rijnsweerd bike hire scheme, an a.s.r. e-bike with charging points in the bike shed, changing rooms, showers and lockers, and a mobile bicycle repairman.
7.6.2 Foundations and funds a.s.r. is committed to conserving cultural and social heritage, which is why it is involved in a number of nation-wide and local foundations. The local ties mostly stem from the past presence of an a.s.r. division in a city or town: • De Amersfoortse social and cultural fund For years now, De Amersfoortse has had a social and cultural fund by the name of A Fund. The objective of this foundation is to promote social and cultural activities in general and in the greater Amersfoort area in particular.
• Stichting Ambachtsheerlijkheid Cromstrijen Ambachtsheerlijkheid Cromstrijen is a country estate in the Province of Zuid-Holland that dates back to 1492. The foundation’s mission is to preserve the cultural and social heritage of the estate, for instance through a unique set of archives.
• UN Principles for Sustainable Insurance (PSI) a.s.r. signed the PSI of the UNEP FI in August 2013. By adhering to these principles, a.s.r. demonstrates its belief in the need to integrate sustainability into its insurance operations. The objective of these principles is to reduce sustainability risks, develop innovative solutions and improve the operating performance of businesses in terms of social, economic and environmental aspects. Globally, 85 insurance companies have signed these principles (benchmark date: July 2015). The report is posted on: www.unepfi.org.
In this sustainability report (chapter 7), a.s.r. seeks to present a transparent picture of its activities and objectives in the field of sustainability. This report also contributes to raising awareness of sustainability within a.s.r.
Independent assurance report on selected sustainability KPIs To: the general meeting of shareholders and Board of Management of ASR Nederland N.V.
Business Process Outsourcing (BPO) BPO involves the contracting of a knowledge-intensive process to a third-party service provider. The key differences between BPO and ‘standard’ outsourcing are that BPO entails the outsourcing of the entire process and that the process in question is characterized by in-depth technical expertise.