2 The emission is only at our own operations (excluding Scope 3 GHG protocol).
a.s.r. applies a multi-brand distribution strategy to deliver products and services via its customers’ channel of choice. a.s.r.’s key distribution channels are the intermediary channel (independent advisors) and the direct channel, as well as online. For many years now, the intermediary channel has proven invaluable and a.s.r. believes that this channel provides customers with the opportunity to seek appropriate advice and to select the products that suit them best.
In the Non-life segment, a.s.r. strives to achieve an overall combined ratio (‘COR’) of below 98%, and below 97% for 2016 and 2017.
2.4.2 Stakeholders a.s.r. is engaged in a dialogue with all its stakeholders on the priorities, objectives and further policy-making of its sustainability policy to guarantee the success of its strategy. To achieve this, in addition to maintaining internal contacts, a.s.r. maintains close contact with a broad group of external stakeholders, including customers, suppliers, financial market players, government bodies and NGOs (see Appendix H, Additional information, for a detailed list of stakeholders and the contact frequency based on a.s.r.’s stakeholder model).
Complaints compass a.s.r. is affiliated with the Dutch Consumer Association’s Complaints Compass. In 2016, consumers awarded a.s.r. an average score of 8.2 for resolving complaints.
On the Move Café Last year saw the opening of the On the Move Café, a live meeting place where everything revolves around career development and sustainable employability. Last year a.s.r. organized 11 On the Move Cafés. Themes addressed included personal branding, the labour market for people over 50, developments in the IT&C market and selfemployment.
New redundancy plan: The Other Plan Prior to a restructuring operation, a.s.r. consults the relevant employee representation body (Works Council). Once this process is completed, the company implements the restructuring. The employment implications are covered in the redundancy plan that has been agreed with the trade unions. Under the redundancy plan 2016 (The Other Plan), the counselling process starts from the date that an employee becomes redundant. An employee receives guidance over a period of six months (26 weeks); during this period, which is meant to help them find a new job, the employee is exempted.
In 2016, a.s.r. entered into a partnership with engagement specialist RobecoSAM on the engagement by influencing front. In consultation with RobecoSAM, a.s.r. has selected a number of companies and is seeking to engage with at least seven of these companies each calendar year. In 2016, a.s.r. participated in 12 engagement dialogues.
The voting accountability report provides a semiannual review of how a.s.r. exercised its voting rights at shareholder meetings. The full report for 2016 is available on a.s.r.’s website.
Procurement a.s.r. wants to ensure that international human rights are respected throughout the production process of the goods and services that are purchased. These sustainability aspects are assessed in all new contracts and contract renewals.
In 2016, all three funds improved their score compared the scores for 2015: • ASR Dutch Core Residential Fund (ASR DCRF) – Green
Projects to increase financial self-reliance a.s.r. is committed to helping people become financially self-reliant, which is why it initiates projects that help them make financial choices. Projects in the areas of literacy and numeracy, financial literacy and accounting help people stay out of financial trouble.
Basis for our conclusion We have performed our review on the Sustainability Information in accordance with Dutch law, including Dutch Standard 3810N ‘Assurance engagements relating to sustainability reports’. The Dutch 3810N is a subject specific standard under the International Standard on Assurance Engagements (ISAE) 3000 ‘Assurance Engagements Other Than Audits or Reviews of Historical Financial Information’. Our responsibilities under this standard are described in more detail in the section ‘Our responsibilities for the review of the Sustainability Information’.
Customers We exist by the grace of our customers. This is top of mind for us in everything we do. That is why we place enormous focus on customer-related issues, also in our internal meetings and sessions and in our internal communications. We use various reports, including the TCF Dashboard, complaint reports and the NPS, to gain an understanding of developments in TCF and our performance on that front on a very regular basis. We also devote a great deal of attention to knowledge dissemination by sharing and discussing best practices. At the same time, we continuously review our products and processes to align them to the changing interests and needs of our customers. In the AFM’s Customer Central Dashboard conducted among all insurers and banks, a.s.r. scored 4.2 for 2015/2016 (on a 5-point scale).
A key objective of a.s.r.’s HR policy is to strike the right balance between trust in the intrinsic motivation of all a.s.r. employees on the one hand and agreements on clear targets and the assessment of employee performance on the other. The Executive Board firmly believes that we can only be a sustainable and socially relevant insurance company if we attract the right people with the right motivation, and do not place financial incentives above all else. As part of this, the Executive Board is pleased with the social plan ‘The Other Plan’. The Other Plan has a new structure and content, and focuses on development and employability.
On 15 April 2016, the Dutch Consumers Association organized a demonstration on the ground in front of the entrance to the head office on Archimedeslaan for policyholders with a Waerdye policy. a.s.r. has taken measures to steer this action in a positive direction for both customers and employees. a.s.r. continues to state that it wishes to enter into a dialogue with its customers and will continue with its customer mobilization.
This segment consists of (a) motor (including bodywork and motor vehicle liability), (b) fire (including property damage, natural forces and engineering, (c) transport
a.s.r. was the second largest insurance provider with a market share of 11.0% in motor, the fourth largest provider with a market share of 9.0% in fire, the eighth largest provider with a market share of 4.4% in transport and the third largest provider with a market share of 6.5% in other P&C insurance (including liability, travel and leisure) in the Netherlands in 2015 as measured by GWP.
Maintain strong position with focus on the combined ratio a.s.r. aims to achieve the targeted combined ratio in the range of 93-95 disputing on economic circumstances through its disability product line. On the disability insurance front, a.s.r. plans to capitalize on its unique integrated approach of utilizing a dedicated multidisciplinary team of professionals and by maintaining focus on the enhancement and further development of pricing and underwriting, which a.s.r. believes are key drivers for sustainable value creation. a.s.r. believes that it can achieve this through: (i) optimization of pricing and focusing on cost efficiency; (ii) expanding skills and expertise related to claims management and reintegration (both supported by inhouse medical advisors and specialists in the field); and (iii) data analysis. a.s.r. also intends to pursue and enhance its strict performance management framework of authorized agents.
a.s.r. has launched the ‘Pechvogelhulp’ product for Ditzo customers. The ‘Pechvogelhulp’ is an additional service for all customers who have the Ditzo basic health insurance in 2017. The service covers additional costs resulting from an accident in the Netherlands not covered by basic or supplementary health insurance to a maximum of € 10,000.
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 to benefit from its outsourcing efforts, which enable the company 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 can limit unnatural lapses and maintain and optimize 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 that should result in lower administrative costs per policy and benefiting from excellent liability-driven asset management skills.
General The Life segment comprises three product lines: (i) DB and DC products for employers, (ii) traditional and unit-linked life insurance for individuals, as well as (iii) funeral insurance which a.s.r. refers to as its pension, individual life and funeral product lines.
General a.s.r. is one of the four largest providers of pension insurance products in the Netherlands measured by GWP with a market share of 14% in 2015. a.s.r. offers pension insurance products under the brands a.s.r. and De Amersfoortse and has an IORP in a joint venture with Brand New Day Premiepensioeninstelling N.V. The current customer base of the business line Pensions comprises 20,000 companies and 460,000 participants.
• Mortgage-related endowments a.s.r.’s savings mortgage-related life insurance products are traditional individual savings plans with recurring or single premium payments and benefits based on a guaranteed interest rate and non-guaranteed profitsharing. These policies are sold in combination with mortgage loans; • Traditional savings life insurance a.s.r.’s life insurance products are traditional individual savings plans with recurring or single premium payments and benefits based on a guaranteed interest rate and non-guaranteed profit-sharing; and
The operating result increased by € 62 million to € 599 million from € 537 million (+11.5%): • In the Non-life segment, the operating result decreased by € 33 million, while the combined ratio remained strong at 95.6%, exceeding the target of <97.0%. The decline in operating result in 2016 was largely due to lower direct investment income and a lower contribution from the equalization system in the Health business in 2016. The P&C business performed well, including the absorption of the hail and water damage claims earlier (impact of € -25 million) in 2016; • The increase in the operating result of € 110 million in the Life segment was due to the positive contributions from acquisitions and a higher investment-related result on swaptions. The increased release of the realized gains reserve compensated for lower direct investment income; • The non-insurance activities incurred an operating loss of € 88 million. This is a decline of € 15 million compared with 2015; this was due mainly to the Tier 2 subordinated debt of € 500 million raised in September 2015, which led to higher interest expenses of € 17 million. Acquisitions contributed to an increase in operating result (€ 8 million) in the Distribution and Services segment.
Solvency ratio in 2016 This can be explained by the analysis of change as shown in the graph below.
Profit/(loss) for the year attributable to holders of equity instruments 143 169 -15.4%
Operating expenses amounted to € 63 million (2015: € 87 million). This decline was mainly due to higher incidental costs in 2015. These costs related to M&A expenses and the preparations for a.s.r.’s IPO. Excluding these effects, operating expenses related to ordinary activities declined by € 8 million to € 48 million, mainly due to lower current net service costs for a.s.r.’s own pension scheme (€ 6 million).
Subsequently, a.s.r. solidified its three lines of defence model further incorporated this in the execution of tasks and key functions. This is visible in the improvement and extension of the actuarial function. The actuarial function has significantly matured: responsibilities have been delineated and the governance with respect to the actuarial function has been further defined.
Pressure on margins and sales in a changing market The insurance market is changing as mentioned in chapter 2.1 (SWOT) and chapter 2.2.
a.s.r. is continually alert to the risk that a scenario with major impact on capital and solvency could develop in Europe.
In 2016, interest rates decreased to historically low levels, which proves that financial markets are still highly volatile. Because of these circumstances, a.s.r. adjusted its market risk policy to reduce the interest rate sensitivity of the SCR ratio.
11 ASR Nederland N.V.’s technical provisions are at all times sufficient according to IFRS LAT.
Positioning and structure of the compliance function The compliance function is a centralized function and, together with Investigation, is part of the Integrity department. The Integrity department is headed by a director who is appointed as the a.s.r. Compliance Officer for both a.s.r. and the supervised entities. The compliance function is considered a key function. The CEO has the ultimate responsibility for the compliance function. The a.s.r. Compliance Officer is appointed, at the Executive Board’s suggestion, by the Audit & Risk Committee, which is part of the Supervisory Board.
The compliance function, as part of the second line of defence, is responsible for: • Encouraging compliance with relevant rules and regulations, ethical standards and the internal standards
Intro d uctio n 4.1 Corporate Governance a.s.r. is a public company with limited liability under Dutch Law. The company has a two-tier board system; with a Supervisory Board and an Executive Board. a.s.r. has been listed on Euronext Amsterdam since 10 June 2016. Prior to its listing, a.s.r. applied the ‘mitigated two-tier regime (gemitigeerd structuurregime). The full two-tier regime (volledige structuurregime) has applied to a.s.r. since the listing. The main consequence of application of the mandatory full two-tier regime lies in the authority to appoint and dismiss members of the Executive Board, which has now shifted from the General Meeting of Shareholders to the Supervisory Board.
Kick van der Pol (1949) is a Dutch national and serves as Chairman of the Board of Directors of Ortec Finance and Chairman of the Board of the Federation of Dutch Pension Funds. He is also a member of the DNB’s Bank Council and a member of the Supervisory Board of the Holding Nationale Goede Doelen Loterijen N.V. In the past, Kick van der Pol served as Vice-Chairman of the Executive Board of Eureko/Achmea and as Chairman of the Executive Board of Interpolis.
Key features of the remuneration system Until 1 July 2014, the income of senior management, higher management and the CBA population (backoffice and front-office) consisted of a fixed and a variable component. The Executive Board has received no variable remuneration since financial year 2011 based on Sections 1:128 and 1:129 of the Dutch Financial Supervision Act (Wft) and the corresponding transitional provisions. Following the collective bargaining negotiations with the trade unions, the variable remuneration for the CBA population was converted as of 1 July 2014 into a salary increase and a fixed supplement. The conversion was also implemented pro rata for a.s.r. as a whole, including higher and senior management. From 1 July 2014 onwards, the income of all salary groups including identified staff has consisted only of a fixed salary, with the exception of 115 front-office staff. This group has a fixed pay component and a target-related pay award of up to 20%.
Identified staff Variable remuneration awarded to identified staff before 1 July 2014 will be paid in instalments over the next few years. Identified staff are conditionally awarded a material share (i.e. 50%) of their variable pay in the form of cash and non-cash instruments. The conditional variable pay is deferred for three years; a reappraisal is performed at the end of the three-year period, after which the cash component is paid out. The non-cash component is subject to an additional retention period of two years. Some of the unconditional variable pay is paid out in cash immediately. The non-cash component of the unconditional variable pay is also retained for two years.
Severance pay No severance pay, either fixed or variable, may be awarded to an employee in the following cases: • In the event that the employment relationship is terminated early at the employee’s own initiative, except where this is due to serious culpable conduct or neglect on the part of the company; • In the event of serious culpable conduct or neglect in the performance of his or her role by the employee.
No employee may receive total variable remuneration that exceeds 20% of his or her total fixed annual remuneration. This ratio is also referred to as the ‘20% bonus cap’.
The Contemporary Employee Representation Committee is a committee of the Works Council. The Committee’s mission is to explore whether the current employee representation model is future-proof and appropriate to the business a.s.r. aspires to be. It became clear in 2016 that a new model would be more appropriate to a.s.r. The draft model, which has now also been discussed with the executive, is designed to contribute to the quality and the unifying nature of the employee representation body. Increasing and improving the involvement of the staff base in employee representation is a key priority in this regard. And members of the employee representation body are expected to maintain a healthy balance between their regular duties and their activities as members of the Works Council. The goal is to present the final new model in 2017 and to start applying it as soon as a new Works Council takes office (2018-2021).
Notes to consolidated income statement 191 5.6.1 Gross insurance premiums 191 5.6.2 Investment income 192 5.6.3 Realized gains and losses 193 5.6.4 Fair value gains and losses 193 5.6.5 Fee and commission income 194 5.6.6 Other income 194 5.6.7 Net insurance claims and benefits 194 5.6.8 Operating expenses 195 5.6.10 Interest expense 196 5.6.11 Other expenses 196 5.6.12 Income tax expense 197
ASR Nederland N.V. (a.s.r.) is a leading insurance company in the Netherlands. a.s.r sells insurance products under the following labels: a.s.r., De Amersfoortse, Ardanta, Europeesche Verzekeringen and Ditzo. a.s.r. has a total of 3,461 internal FTE’s (31 December 2015: 3,650).
Total other comprehensive income for the year, after tax -248 116
Unrealized gains and losses include shadow accounting adjustments (see accounting policy I, chapter 5.3.5). For more detailed information on the unrealized gains and losses, see chapter 5.5.8.2.
5.3.3 Changes in EU endorsed published IFRS Standards and Interpretations effective in 2016
The following changes in the EU-endorsed IFRS standards and IFRIC interpretations are effective from 1 January 2016: • Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and Amortization; • Amendments to IFRS 11: Accounting for Acquisitions of Interests in Joint Operations; • Amendments to IAS 16 and IAS 41: Bearer Plants; • Amendments to IAS 27: Equity Method in Separate Financial Statements; • Amendments to IAS 1: Disclosure Initiative; • Amendments to IFRS 10, IFRS 12 and IAS 28: Investments Entities – Applying the Consolidation Exception; • Annual improvements to IFRSs 2012-2014 cycle: a collection of non-urgent amendments to IFRSs, in response to issues.
IFRS 15 Revenue from Contracts with Customers This standard becomes effective as of 1 January 2018, subject to endorsement by the EU. IFRS 15 provides more specific guidance on recognizing revenue other than insurance contracts and financial instruments. The implementation of IFRS 15, if and when endorsed by the EU, is not expected to have a significant impact on the consolidated financial statements of a.s.r.
III. Other non-financial assets and liabilities For other non-financial assets and liabilities where the fair value is disclosed these fair values are based on observable market inputs, primarily being the price paid to acquire the asset or received to assume the liability on initial recognition, assuming that the transactions have taken place on an arm’s length basis. Valuation techniques using present value calculations are applied using current interest rates where the payment terms are longer than one year.
With respect to financial assets available for sale, realized gains or losses comprise: • The proceeds from the sale or disposal of an asset or liability less the amortized cost of the asset or liability sold; • Impairments previously recognized (except for equity instruments); • Hedge accounting adjustments.
Insurance activities Insurance entities are entities that accept the transfer of insurance risks from policyholders. The Non-life segment consists of non-life insurance entities and their subsidiaries. These non-life insurance entities offer non-life insurance contracts. The Life segment comprises the life insurance entity and their subsidiaries. These life insurance entities offer financial products such as life insurance contracts and life insurance contracts on behalf of policyholders. The Non-life and Life segments have different levels of profitability and growth opportunities, as well as a different outlook and risk profile. See chapter 5.7.6 for a list of principal group companies and associates in the relevant segments.
The operating result represents profit or loss before tax adjusted for (i) investment income of an incidental nature (including realized capital gains, impairment losses and realized and unrealized changes in value) and (ii) incidental items not relating to ordinary activities, e.g. as a result of changes in accounting policies, consulting fees for acquisitions, restructuring expenses, start-up costs and shareholder-related expenses.
Financial Statements 2016 | 5.4 Group structure and segment information 157
De Eendragt Pensioen N.V. Within the one-year window, the final acquisition balance of De Eendragt Pensioen N.V. was established in 2016. Due to a recalculation of the technical provisions the effect on the Life balance sheet 2015 was an increase of € 19 million on the line Liabilities arising from insurance contracts and Insurance claims and benefits decreased by € 6 million (with impact on income statement). An additional € 19 million of goodwill was recognized on the balance sheet 2015 of ASR Nederland N.V. In 2016 the comparative figures of 2015 have been adjusted accordingly (see chapter 5.3.2). De Eendragt Pensioen N.V. was merged with ASR Levensverzekering N.V. and ceased to exit.
Value of Business Acquired (VOBA) VOBA mainly relates to the acquisition of Amersfoortse Stad Rotterdam. At year-end 2016, the remaining amortization period of VOBA is 14 years and the average amortization for the next 5 years will be € 10 million per year.
For more detailed information about the fair value valuation of the financial assets and derivatives, please refer to chapter 5.7.1.
Deferred taxes are formed for differences between the carrying amount of assets and liabilities and their tax base at the enacted tax rate, taking into account tax-exempt components. The enacted and current tax rate of 25.0% (2015: 25.0%) is applied when calculating deferred tax.
Hybrid Tier 1 instrument 10% fixed interest 187 187 Annually with effect from 26 October 2010
The liabilities arising from life insurance contracts have increased as a result of changes in the shadow accounting through equity (€ 268 million; 2015: € -713 million) and shadow accounting through income (€ 809 million; 2015: € -1,179 million) due to interest rate developments which increase the fair value of the investments and the derivatives. For the realized gains and losses of the investments in fixed interest securities and the realized gains and losses on derivatives, we refer to chapter 5.6.3 and 5.6.4.
Changes in the composition of the group in 2015 relate to the acquisition of Axent Nabestaanden Zorg N.V. and De Eendragt Pensioen N.V.
The majority of employees are formally employed by ASR Nederland N.V. A limited amount of employees are employed by other group companies.
Included in income statement Current service cost, contributions by employer 38 44
Remeasurement of liabilities included in OCI Discount rate change 397 -301
Financial Statements 2016 | 5.5 Notes to the consolidated balance sheet 186
The table below provides an overview of total gross earned non-life insurance premiums. For further details on the individual business lines, see the segment information in chapter 5.4.
Adjustments for taxes due on previous financial years amounting to € 2 million (2015: € 36 million). The amount of € 36 million in 2015 is mainly related to foreign withholding taxes and a release of a provision relating to income derived from investments on behalf of policyholders to which the participation exemption was applied.
Later than 1 year and no later than 5 years 205 186
Risk management process The risk management process explains the central steps for the implementation of the risk strategy. Through five steps the risks within the company can be effectively managed. These steps include: 1) identify risks; 2) measure risks; 3) manage risks; 4) monitor and report on risks; and 5) evaluate the risk profile and risk management framework.
The risk appetite represents the level of risk a.s.r. is willing to take for the realization of its strategic goals, with a sound balance between risk and return. Risk appetite is defined at both group level and at legal entity level for financial and non-financial risks. Risk tolerances, limits and targets are set for all risk appetite statements. Objectives of the risk appetite are: • To serve as an important steering instrument on a daily basis: a pragmatic approach at both group-, legal entity- and business unit level. This helps to develop a vision with respect to risk, which is used in the day-to-day decision-making process; • To link the risk appetite to the strategic pillars, in order to indicate a.s.r.’s willingness to take risks.
Business Risk Committees The business lines manage and control their risk profile through the Business Risk Committees. The Business Risk Committees monitor that the risk profile of the business line stays within the risk appetite, limits and targets, as formulated by the Executive Board. The Business Risk Committee reports to the Financial Risk Committee and the Non-Financial Risk Committee. The Chairman of the Business Risk Committee is the Managing Director of the business line.
The aim of the information security policy is to take measures to ensure that the requirements for the availability, reliability and confidential use of systems and data are met. • Information availability refers to the degree to which the information is at hand as soon as the organization needs it, meaning, for instance, that the information should be retrievable on demand and that it can be consulted and used at the right time; • Information reliability refers to the degree of the accuracy and completeness of computer-processed data, given the uses they are intended for; • ‘Confidential use’ refers to the degree to which the information is available to authorized persons only and the degree to which it is not available to unauthorized persons.
Lapse risk Lapse risk is the risk of losses (or adverse changes in the best estimate of the liabilities) due to an unanticipated (higher or lower) rate of policy lapses, terminations, changes to paid-up status (cessation of premium payment) and surrenders. The effect of the lapse risk is equal to the highest result of a permanent increase in lapse rates of 50%, a permanent decrease in lapse rates of 50% or a mass lapse event (70% of insurance policies in collective pension funds or 40% of the remaining insurance policies). The mass lapse event is only applied to portfolios where this leads to a higher best estimate.
For the non-life portfolio, the provision at year-end 2016 can be broken down as follows under Solvency II: Non-life - Solvency II technical provision
Volatility Adjustment Measured as the impact of a 10 bps decrease in the Volatility Adjustment.
The sensitivities to interest rates did not change much compared to the previous years. The sensitivity of profit is limited due to shadow accounting. A small impact on profit is due to put options. The sensitivity of total equity to spread remained limited due to the mitigating effect of shadow accounting. The sensitivity slightly increased due to the lower interest rates.
An interest rate risk policy is in place for the Group as well as for the registered insurance companies. All interest rate-sensitive balance sheet items are in scope, including the employee benefit obligations of the Group. In principle, the sensitivity of the solvency ratio to interest rates is minimized. In addition, the exposure to interest rate risk for various term buckets is subject to maximum amounts.
Composition Equity Portfolio The fair value of equities and similar investments at year-end 2016 was € 2,215 million (2015: € 2,803 million). The decrease in 2016 was a result selling shares due to de-risking. Part of the downside risk of the equities is hedged. A portfolio of put options with an underlying value of € 16 million is in place.
The policy of a.s.r. is primarily to hedge the currency risks of these insurance liabilities and related fixed-income investments. a.s.r. has currency risk to insurance product in American dollars (USD), Australian dollars (AUD) and South African Rand (ZAR). The policy of a.s.r. is primarily to hedge currency risks these insurance liabilities and of the fixedincome investments. However, certain currency exposures are permitted from a tactical perspective within a specific risk budget. The currency risk of equities is generally not hedged.
Assets in scope of spread risk are, by definition, not in scope of counterparty default risk. The tables include all bond, fixed income funds, preference shares and loans subject to spread risk according to our risk models.
Due to a new cession-retrocession agreement in 2016, the remaining savings-linked mortgage loans is reduced to only 2% of the portfolio. The credit rating of the counterparty is shown below.
a.s.r. recognizes different levels of liquidity management. Short-term liquidity, or daily cash management, covers the day-to-day cash requirements under normal business conditions and targets funding liquidity risk. Long-term liquidity management considers business conditions in which market liquidity risk materialises. Stress liquidity management looks at the ability to respond to a potential crisis situation as a result of a market event and an a.s.r.-specific event. Unexpected cash outflows could occur as result of lapses in the insurance portfolio, savings withdrawals or cash variation margin payments related to the ISDA/CSA agreements of derivatives. a.s.r. monitors its liquidity risk scenarios via different risk reporting and monitoring processes including daily cash management reports, cash flow forecasts and stress scenario liquidity reports.
Critical processes and activities and the tools necessary to use for these processes, are identified during the Business Impact Analysis. This includes the resources required to establish similar activities at a remote location. The factors that can threaten the availability of those tools necessary for the critical processes are identified in the Threat Analysis.
Each business line has their own crisis team led by the director of the management team. The continuity of activities and the recovery systems supporting critical activities are regularly tested and crisis teams are trained annually. The objective of the training is to give the teams insights into how they function during emergencies and to help them perform their duties more effectively during those situations. The training also sets out to clarify the roles, duties and responsibilities of the crisis teams.
Investment obligations and guarantees ASR Nederland N.V. has issued guarantees to third parties for a total amount of € 271 million (2015: € 314 million) for real estate development projects.
We performed for the remaining entities, amongst others, analytical procedures to corroborate our assessment that there are no significant risks of material misstatement.
Audit Committee in 2016 and have provided status updates, progress reports and key findings from our audit process on a regular basis, including the key audit matters.
Key audit matters are those matters that, in our professional judgement, 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.
ASR Nederland N.V. invests in various asset classes, of which 69% is carried at fair value in the balance sheet. Fair value measurement can be subjective, and more so for areas of the market reliant on model based valuation or with weak liquidity. Valuation techniques for real estate, private equity investments and for non-listed bonds, equities and derivatives involve setting various assumptions regarding pricing factors. The use of different valuation techniques and assumptions could produce significantly different estimates of fair value. Associated risk management disclosure is complex and dependent on high quality data. Specific areas of focus include the valuation of fair value Level 2 assets, and Level 3 assets where valuation techniques are applied in which unobservable inputs are used. The company has comprehensive procedures and internal controls in place to determine the valuation of the investments.
As part of our audit procedures we assessed the changes in the IT-infrastructure and have tested the reliability and continuity of electronic data processing within the scope of the audit of the financial statements. For that purpose we have included IT-auditors in our team. Our procedures included testing of controls with regards to business and IT-processes relevant for financial reporting.
Responsibilities of management and the supervisory board for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, management is responsible for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.
Digital alternative A tool that can be used in digital form to replace paperbased communication with the intermediary channel or the consumer.
Ditzo campaign With the ‘Insurance with a Smiley’ campaign, Ditzo has positioned itself as a customer-friendly insurer with a focus on service and a fast, accessible and personal approach via WhatsApp. In the autumn of 2015, Ditzo started a campaign to encourage customers to report claims via WhatsApp. Ditzo continued this initiative into 2016 with various other campaigns.
Ch. 2.1 Profile / Organizational structure / Insurance activities Ch. 2.1 Profile / Organizational structure / Non-insurance activities Ch. 2.3 Strategy / Brand and distribution strategy a.s.r. has a checklist for marketing communications (subject to annual updates). This list specifies applicable laws and regulations, and voluntary codes. Additionally, there are guidelines in place for how to handle commissions and personal data. All communications are reviewed for their compatibility with the applicable regulations and voluntary codes on a multidisciplinary level.
GRI Standard Disclosure Location of disclosure, url(s) and/or information 102-11 Precautionary Principle or approach
Increase in median annual total compensation: 1.005% Increase in annual total compensation for highest-paid individual: 1.015%
Effluents and Waste 2016 306-1 Water discharge by quality and destination
308-2 Negative environmental impacts in the supply chain and actions taken
Supplier Social Assessment 2016 414-1 New suppliers that were screened using social criteria
The following product and service information is required by the organization’s procedures for product and service information and labelling.