avatar ASR Nederland N.V. Finance, Insurance, And Real Estate
  • Location: UTRECHT 
  • Founded: 1971-04-11
  • Website:

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    Annual Report 2016


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    a.s.r. Archimedeslaan 10 P.O. Box 2072 3500 HB Utrecht www.asrnl.com


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    3 2016 Introduction Annual Report Strategic Report Contents Management report Financial report 1 Introduction 5 5 Financial Statements 2016 119 1.1 Notes to the reader 6 5.1 Introduction 121 1.2 a.s.r. at a glance 8 5.2 Consolidated financial statements 123 1.3 Message from the Chairman 11 5.3 Accounting policies 130 Business Report 1.4 Investor relations 13 5.4 Group structure and segment information 150 1.5 Highlights 2016 16 5.5 Notes to consolidated balance sheet 162 5.6 Notes to the consolidated income statement 191 5.7 Other notes 198 2 Strategic Report 19 5.8 5.9 5.10 Risk management Capital management Company financial statements 211 248 251 2.1 About a.s.r. 20 2.2 Key trends 23 2.3 Strategy 25 6 Governance Report 2.4 Value creation 33 2.5 Sustainability 38 Other information 259 2.6 Assurance report of the independent auditor 6.1 Report on the audit of the financial on the sustainability information 56 statements 2016 included in the Annual Report 260 6.2 Provisions of the Articles of Association regarding profit appropriation 266 3 Business Report 3.1 Themes in 2016 59 60 7 Financial Statements 2016 3.2 Business environment 64 Report of Stichting Continuïteit 3.3 Business segments 69 ASR Nederland 268 3.4 Group and segment financial performance 82 3.5 Risk management and Compliance 93 3.6 Executive Board In Control Statement 98 Appendices 269 Appendix A – Glossary 270 Appendix B – List of acronyms 276 4 Governance Report 99 Appendix C – Standards, convenants and memberships Appendix D – External recognition 277 280 4.1 Corporate governance 100 Appendix E – Additional insurance information 282 4.2 Supervisory Board report 109 Appendix F – Additional employee information 286 4.3 Remuneration report 113 Appendix G – Additional environmental information 291 Other 4.4 Employee representation 117 Appendix H – Additional information 294 Appendix I – GRI Content Index 296


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    Introduction Strategic Report Business Report Governance Report Financial Statements 2016 Other 4 This page has intentionally been left blank.


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    Introduction Strategic Report Business Report Governance Report Annual Financial Financial Statements Statements 20162016 Other Other information 5 13 16 Investor relations Highlights 2016 1.4 1.5 6 8 11Message from the Chairman Introduction Notes to the reader At a glance 1 1.1 1.2 1.3


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    Introduction | 1.1 Notes to the reader 6 1.1 Notes to the reader Introduction Introduction The consolidated financial statements are presented in In this report ASR Nederland N.V. (hereinafter referred euro (€), this being the functional currency of a.s.r. and all to as ‘a.s.r.’ or ‘the Group’) gives an account of its 2016 its entities. All amounts quoted in the tables contained in financial performance, provides a transparent overview of these financial statements are in millions of euros, unless its strategy, businesses, risk management and governance otherwise indicated. Strategic Report (activities and objectives). a.s.r. also uses this report to describe the interrelationships between its strategy and As of 1 January 2016, Solvency II regulations came into governance and the social and economic context in which force. The Solvency II regime comprises requirements it operates. The Annual Report comprises the following for insurance companies. The new regime is meant to four chapters: harmonize the European insurance market, increase the • Strategic Report; protection of policyholders and improve risk awareness • Business Report; in both the governance and management of insurance • Governance Report; companies. Solvency II sets sophisticated solvency • Financial Statements. requirements and forms an integral part of the risk Completed by Other information and the Report of management of insurance companies. Business Report ‘Stichting Continuïteit’. The Solvency II figures presented in this report are based on the standard formula. In addition to the information This year, a.s.r. has taken another step towards integrated disclosed in this report a.s.r. also publishes a Solvency and reporting. In this Annual Report, a.s.r. discloses and explains Financial Condition Report (SFCR). its material financial and non-financial performance, its strategy and governance, relevant external developments a.s.r. has integrated the material sustainability issues into and the risks and opportunities a.s.r. faces. this report as from 2016. The sustainability information contained in this Annual Report has been prepared in The online version of the Annual Report contains links accordance with the Sustainability Reporting Standards, between the chapters of this report. You can find more CORE option, of the Global Reporting Initiative (GRI). Governance Report information on a.s.r. on its website asrnl.com. The GRI Content Index outlines the indicators on which Scope of disclosures a.s.r. reports and shows where these indicators can be This report is intended for a.s.r.’s stakeholders. The found in the Annual Report. The table also includes financial information in this Annual Report is consolidated additional information that has not been included in the for a.s.r. and all its subsidiaries. The quantitative and Annual Report itself. For the GRI Standards Content Index qualitative information that is provided pertains to a.s.r. as please see page 296. a whole, except where it is stated that information applies to one specific entity, business line or division. Van Kampen Reporting process Groep (VKG), Dutch ID (Felisson and Boval), PoliService, Relevant topics for this report were selected based Financial Statements 2016 SuperGarant and Corins (total assets approximately on a materiality survey among internal and external € 213 million (0.37% of total assets)) are excluded from stakeholders using the GRI Standards indicators, in reporting on social and environmental aspects. which the materiality of items is ranked according to the importance that stakeholders attach to them. For more Presentation of information information, please see Appendix H. a.s.r.’s consolidated financial statements have been prepared in accordance with International Financial The information contained in the management report is Reporting Standards (IFRS) – including the International based on extensive reports from our business lines and the Accounting Standards (IAS) and Interpretations – as outcomes of qualitative and quantitative questionnaires adopted by the European Union (EU), and with the and reviews. All disclosures have been reviewed by the financial reporting requirements included in section 391, business lines and corporate departments. Publication Title 9, Book 2 of the Dutch Civil Code and the of the Annual Report is subject to the approval of the Dutch Code of Conduct for Insurers issued by the Dutch Executive Board and the Supervisory Board. Other Association of Insurers. Auditor’s scope and level of assurance Pursuant to the options offered by Section 362, Book 2 The consolidated financial statements have been audited of the Dutch Civil Code, a.s.r. has prepared its company by our external auditor, Ernst & Young Accountants LLP financial statements in accordance with the same principles (EY). The audit report of EY can be found on page 260. as those used for the consolidated financial statements. In addition to the Financial Statements, EY has reviewed


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    Introduction | 1.1 Notes to the reader 7 the sustainability information in this Annual Report Introduction with a limited level of assurance. The objective is to provide a statement as to whether the information in this Annual Report is presented in accordance with the GRI Sustainability Reporting Standards, the Guidance Note on Sustainability Reporting of the Dutch Accounting Standards Board (Raad voor de Jaarverslaggeving) and a.s.r.’s internal reporting criteria. EY has conducted the assurance review in accordance with Dutch law including the Dutch Auditing Standards. Strategic Report This requires that EY complies with prevailing ethical requirements, which are available for consultation on nba.nl. EY’s assurance report can be found on page 56. For a download of this report or more information, please visit us at asrnl.com/investor-relations or asrnederland.nl/ investor-relations or contact us at ir@asr.nl. Business Report Governance Report Financial Statements 2016 Other


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    Introduction | 1.2 At a glance 8 1.2 At a glance Introduction a.s.r. is the Dutch insurance company for all types of insurance. Via the brands a.s.r., De Amersfoortse and Ditzo as well as niche brands such as Europeesche Verzekeringen and Ardanta, a.s.r. offers a wide range of financial products covering P&C (Property Strategic Report & Casualty), occupational disability and health insurance (non-life), individual life, group and individual pensions and funeral expenses insurance (life). It also offers asset management services, banking services and distribution services to intermediaries. History a.s.r.’s roots go back to 1720 with the foundation of ‘N.V. Maatschappij van Business Report since Assurantie, Discontering en Beleening der Stad Rotterdam anno 1720’, which – on 21 June 1720 – became the first listed insurance company in the 1720 Netherlands. The company in its present form was created in 2000 through the acquisition of ASR Verzekeringsgroep by Fortis. In October 2005, the brands AMEV, Stad Rotterdam and Woudsend Verzekeringen were replaced by Fortis ASR. In the same month, the name of the insurance group was changed to Fortis Verzekeringen Nederland. In 2008, a.s.r. was nationalized after the collapse of Fortis. In March 2009 the new name ASR Nederland was introduced. a.s.r. has been listed on Euronext Amsterdam since 10 June 2016. For more information about the history of a.s.r., please see: asrnl.com. Governance Report Head office Number of employees (FTEs) Utrecht The Netherlands 3,461 Financial Statements 2016 Core values Credit ratings S&P I am helpful Rating Outlook I think ahead ASR Nederland N.V. BBB+ Stable I act decisively ASR Schadeverzekering N.V. A Stable ASR Levensverzekering N.V. A Stable Other


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    Introduction | 1.2 At a glance 9 Corporate Governance Introduction Structure Supervisory Board a.s.r. has a two-tier board consisting of an Executive Board Executive Board and a Supervisory Board. Strategic Report Gross written premiums Breakdown of premium income (in € millions) (in %) € 4,328 55% 45% Life Non-life Business Report a.s.r.’s license to operate depends on its ability to help people. a.s.r. is convinced that meeting the terms of that license will ensure a sound future for the company. Society expects an insurer to be useful, to handle the assets it is entrusted with and deal responsibly with the environment in which it operates. a.s.r. interprets the terms of this license to operate as ‘Helping by taking action’. a.s.r. based this on the professionalism of its people. Governance Report a.s.r. thus meets customer demand for: • sharing risks; • accumulating assets for the future. With its professional expertise, a.s.r. can bundle risks and capital and thus make this accessible and affordable for individuals and companies. a.s.r. takes responsibility for doing this in a sustainable manner. Financial Statements 2016 Strategic principles Meeting customers’ needs Cost effectiveness Excellence in pricing, Cash-generating underwriting and claims business model handling Other


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    Introduction | 1.2 At a glance 10 Operating return on equity1 Combined ratio1 Solvency II Introduction (in %) (in %) (in %) 14.4 14.1 95.0 95.6 180 189 2015 2016 2015 2016 Day-one 2016 2016 Strategic Report Employee engagement Gender diversity at the top (in %) (in %) 65.0 2016 2015 53.5 Executive Board 25% 25% Supervisory Board 25% 25% Higher and senior management 23% 24.5% Business Report 2015 2016 Carbon emissions2 Transparency benchmark (in tonnes of CO2) (ranking) 7,000 7,401 2015 136 Governance Report 2016 2015 20163 60 Customer Centricity Dashboard Net Promoter Score4 (AFM) 4.2 Financial Statements 2016 3.4 -5.0 2015 4.6 2016 2015 2016 Other 1 The figures for 2015 have been restated due to retroactive adjustments to the provisions related to acquisitions (one year window) and immaterial adjustments related to the accounting for a.s.r.’s employee benefits. 2 The emission is only at our own operations (excluding Scope 3 GHG protocol). 3 In 2016, the absolute carbon footprint was up as a result of the relocation of Europeesche Verzekeringen, which resulted in an increase in headcount of 528 FTEs in Utrecht. 4 Concerns average over Q4 2015 and 2016.


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    Introduction | 1.3 Message from the Chairman 11 1.3 Message from the Chairman Introduction a.s.r. is in a sound position and we can look back on a also seeing increasing demand for defined contribution successful 2016. This is reflected in our solid financial products at the expense of defined benefit products. performance and in the various positive developments in our business. We closed 2016 with a robust Solvency II ratio Our other business lines present opportunities and also of 189% based on the standard formula, which makes us show positive developments. a.s.r. Bank is showing growth Strategic Report one of the most solid insurers in the Netherlands. in the mortgage portfolio. Gross written premiums in the occupational disability business has risen in the past year Our operating result was also strong and showed an and a.s.r. is still firmly in a market leadership position. The increase of 11.5% to € 599 million in 2016. And thanks to new BEZAVA law will create new growth opportunities in our strict cost discipline, we managed to reduce our cost the medium term. levels by € 6 million. In this we have already successfully absorbed the additional costs from the acquired Where asset management is concerned, a.s.r. has businesses. shown that sound returns can be achieved with socially responsible investments. Our expertise in this area is now During the past year we continued to focus on offering also being offered as fiduciary asset management under Business Report easy-to-understand and transparent products and services the label a.s.r. de nederlandse vermogensbeheerders. that meet the needs and requirements of our customers as In December, we welcomed the first major client with an well as the intermediary channel. Judging from last year’s initial mandate for an investment portfolio of € 1.7 billion. sharp increase in our Net Promoter Score, a tool used to gauge the loyalty of our customers and intermediaries, a.s.r. has also operated a real estate investment we have once again made strides in this area. A keen eye management business for many years. In addition to for our customers, combined with our specialist expertise, running its existing residential and prime retail funds, a.s.r. is meant to raise our services to a level that will also REIM also established an office fund worth € 400 million in encourage others to choose a.s.r. 2016; this fund is open to institutional investors. Governance Report Committed people are providing our excellent service. Our ‘value over volume’ strategy is based on value Our employees have shown huge commitment to a.s.r. creation, and in this process we focus on long-term and in the past year. This was also reflected in the increase in medium-term objectives. a.s.r. is on track to achieve its our annual engagement score to 65% from 53.5%. Every objectives. To this end, one of our focal points is optimizing day, our people make a difference for our customers and our business portfolio. In this context, 2016 saw a number intermediaries, and that makes us proud. of acquisitions, the sale of two business units and the streamlining of our existing business. We sharpened our focus on our insurance expertise a number of years ago. This includes calculating the right The Dutch insurance market is saturated. In addition to premium for the right risk, underwriting the right risks organic growth, consolidation is one of the options we Financial Statements 2016 and handling claims correctly. Last year, this resulted in a have focused on over the past few years. a.s.r. will keep combined ratio for the Non-life segment of 95.6%, with all an eye out for such opportunities in the market. When product lines staying below 100%. considering possible acquisitions, a.s.r. has made it its priority to only choose partners that help strengthen our The individual life market has been contracting on a strategy, add value and meet the risk criteria we apply to structural basis for quite some time. Volumes at a.s.r. are potential acquisitions. We do not acquire companies just largely in line with developments in the market. The a.s.r. for the sake of acquiring them. life portfolio is also contracting and, if lapses and early surrenders remain stable, will be about half its current We successfully acquired a number of companies in size in a decade’s time. Thanks in part to the acquisitions 2016. These include BNG Vermogensbeheer, Corins and of AXENT, NIVO and De Eendracht, we nevertheless SuperGarant. Every one of these companies adds value to managed to maintain our volumes in 2016. our business. Other The pension market clearly shows more promise. The IPO in June 2016 was a major milestone for a.s.r. With a Developments are subject to political choices, but the fact corporate history that starts in 1720, this marked the fourth is that there is a need for a more differentiated offering in time that a.s.r. or one of its legal predecessors was listed the pension market. That is why, in 2016, a.s.r. launched on the stock exchange. While the IPO did not change our Het nederlandse pensioenfonds, a general pension fund, strategy, it did bring us support for our existing strategy which welcomed its first customers right off the bat. We are from a broad international shareholder base, in addition to


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    Introduction | 1.3 Message from the Chairman 12 the NLFI. I would like to take this opportunity to thank Introduction our shareholders for the trust they have placed in a.s.r. We have made our shareholders a fair dividend proposal of € 187 million, well above the guidance of € 175 million we have given at the time of the IPO. In summary: things are looking good for a.s.r. We want to maintain a strong financial framework, supported by a responsible risk policy, a robust Solvency II position and a sound investment policy. But we also need to be open to change and be able to adapt at any time. After all, as Strategic Report far as we are concerned, financial reliability, combined with innovation of our products and focus on the needs of our customers and intermediaries, supplemented by the utilization of opportunities in the market, are prerequisites for a solid future. Jos Baeten Chairman of the Executive Board Business Report Governance Report 1 3 4 2 1 Jos Baeten Financial Statements 2016 2 Karin Bergstein 3 Chris Figee 4 Michel Verwoest Other


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    Introduction | 1.4 Investor relations 13 1.4 Investor relations Introduction a.s.r. sets great store in a strong relationship with the 54.5 million shares (36.3% of the 150 million issued and investment community in the broadest sense and sets outstanding shares) in the market at the introduction price high standards with respect to transparent communication of € 19.50 per share. The shares are listed on Euronext and fair disclosure. a.s.r. strives to provide relevant insight Amsterdam (symbol ASRNL) and have been included in the into its activities via selected financial and non-financial AMX index (Amsterdam Midcap Index) since 19 September Strategic Report disclosures. 2016. The aim of a.s.r.’s investor relations programme is to On 31 December 2016, NLFI held 63.7% of a.s.r. shares. seek active engagement with existing and potential NLFI, acting on behalf of the Dutch State, intends to sell shareholders and debt investors to build enduring its entire position in a.s.r. in due course. relationships based on constructive dialogue. To that end, a.s.r. regularly updates the markets on its financial Sell down performance, the progress it makes in the execution of its NLFI will make reasonable efforts to conduct sales of strategy and any other relevant developments, via press a.s.r. shares in an orderly manner, to minimize any possible releases, webcasts, conference calls and other means. negative impact on the share price. On 13 January 2017, Business Report a.s.r.’s executive management team also hosts one-on-one NLFI disposed of 20.4 million shares (13.6% of the total and small group investor meetings during (international) outstanding shares), reducing its position in a.s.r. to 50.1%. roadshows or in-house, and also attends broker-organized a.s.r. participated in the sale and repurchased 3.0 million investor conferences. shares. The repurchase is in line with a.s.r.’s strategy of using its capital to take advantage of value-creating a.s.r. aims to provide all relevant information that could opportunities and to return capital to its shareholders in an help investors to make well-informed investment decisions. efficient manner. a.s.r. will make every effort to ensure that the information it discloses is accurate, complete and provided in a timely Major shareholders fashion. Please refer to the corporate website Dutch law requires shareholders to report their holdings Governance Report for a.s.r.’s policy on fair disclosure and bilateral dialogue. in Dutch listed companies to the Dutch Authority for the If you have any further questions regarding a.s.r.’s investor Financial Markets (‘AFM’), when these holdings exceed 3% relations activities or about the company itself, please of the total outstanding share capital (and at certain higher contact the investor relations team at ir@asr.nl. thresholds). According to the AFM register, the following shareholders had a position in a.s.r. of more than 3% as at Initial public offering 31 December 2016: NLFI 63.7% (reported on 14 June 2016) a.s.r. once again became a listed company following an and Silver Point Capital L.P. 3.67% (reported on 10 June Initial Public Offering (IPO) on 10 June 2016. Stichting 2016). The stated percentages are the interests reported Administratiekantoor Beheer Financiële Instellingen by the relevant shareholders to the AFM on the indicated (NLFI), which is acting on behalf of the Dutch State, placed dates. Financial Statements 2016 Shareholders database % Shares In Issue 7% Geographical 1% NLFI 50% 7% Netherlands 57% a.s.r. share buyback 2% United States 17% Institutional investors 47% 12% United Kingdom 12% Retail investors 1% 57% Continental EU 7% 47% 50% Other 7% 17% Other 2% Company estimates Company estimates per February 2017 per February 2017


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    Introduction | 1.4 Investor relations 14 Share price performance Introduction The introduction price of a.s.r. at IPO was € 19.50. At 30 December 2016 the closing price was € 22.60, representing a share price performance of 15.9% (annualized 25.4%). Share price ASRNL at 31 December Last Price in € ASR Nederland N.V. 31 December 2016 AEX Strategic Report 23 Stoxx Europe 600 Insurance 22 10 June 2016 21 20 19 18 17 Business Report 16 06-2016 07-2016 08-2016 09-2016 10-2016 11-2016 12-2016 Share price performance¹ Introduction price as at 10 June 2016 € 19.50 Highest closing price (in 2016) € 22.65 Governance Report Lowest closing price (in 2016) € 17.14 Closing price as at 31 December 2016 € 22.60 Market cap as at 31 December € 3,390 million Average daily volume 223,479² 1 Source: Euronext Amsterdam. 2 2016, as from 13/06/2016 (excluding listing day). Financial Statements 2016 Dividend a cash target of € 350 million at the holding company. a.s.r. strives to pay a dividend that creates sustainable long term value for its shareholders. a.s.r. aims to operate at a Solvency II ratio above a management threshold level. This management threshold Over 2016, a.s.r. proposes to pay a dividend of level is currently defined as above 160% of the SCR. In € 187 million. This dividend is higher than the previously general, a.s.r. would not expect to pay a cash dividend if communicated € 175 million and is underpinned by a.s.r.’s the Group level Solvency II ratio falls below 140%. strong financial performance over 2016. It is also in line with the dividend policy that became effective on 1 January 2017. From 2017, a.s.r. has a dividend policy with a pay-out ratio of 45% to 55% of the net operating result attributable to shareholders (i.e. net of hybrid costs). To support its ability to pay out cash dividends, a.s.r. maintains Other


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    15 Dividend history Introduction Dividend (in € million) DPS¹ 2014 139 0.93 2015 170 1.13 2016 187 1.27 1 Restated 2015 and 2014 to 150 million shares. On 13 January 2017, a.s.r. purchased 3.0 million shares in a share buyback as part of the sell down by NLFI. These shares are held as treasury stock and are not eligible for dividend. Strategic Report Important dates 2017 22 February 2017 Full year 2016 results 31 May 2017 Q1 trading update 31 May 2017 Annual General Meeting 2 June Shares quote ex-dividend 5 June Record date 7 June Dividend payment over 2016 30 August Interim 2017 results Business Report 29 November Q3 trading update Governance Report Financial Statements 2016 Other


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    Introduction | 1.5 Highlights 2016 16 1.5 Highlights 2016 Introduction 22 January a.s.r. acquires BNG Vermogensbeheer Strategic Report from BNG Bank 26 January a.s.r. sells SOS International to CED 1 April Business Report Relocation Europeesche Verzekeringen 7 April a.s.r. sells real estate development business to Meijer Realty Partners Governance Report 13 May Intention to proceed with Initial Public Offering 6 June BeZaVa launched successfully Financial Statements 2016 10 June a.s.r. IPO on Euronext Amsterdam 29 June Official opening of the renovated office Other 4 July a.s.r. acquires SuperGarant


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    Introduction | 1.5 Highlights 2016 17 18 July Introduction a.s.r. acquires Corins 29 July AstraZeneca transfers pension plan to a.s.r Strategic Report 28 September The final of the first edition of the a.s.r. scholen challenge 30 September a.s.r. successfully launches Business Report Het nederlandse pensioenfonds and announces the first 4 October customer 2.4 million AXENT funeral policies successfully transferred to Ardanta 24 October Governance Report a.s.r. signs Ethical Manifest to help customers with late payments to find a solution 3 November a.s.r. Asset Management kicks off as third party asset manager Financial Statements 2016 17 November The Fair Insurance Guide awards a.s.r. the highest score for its sustainable investment policy 6 December a.s.r. Real Estate Management acquires offices portfolio of Railway NS Basisfonds Other Stationslocaties C.V. and 8 December aims to start an Office fund in 2017 Province of Noord- Brabant awards a.s.r. Asset Management mandate worth € 1.7 billion


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    Introduction Strategic Report Business Report Governance Report Financial Statements 2016 Other 18 This page has intentionally been left blank.


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    19 2 Introduction Strategic Report Strategic Report 2.1 2.4 About a.s.r. 20 Value creation 33 Business Report 2.1.1 Mission 20 2.4.1 Material aspects 33 2.1.2 Vision and ambition 21 2.4.2 Stakeholders 34 2.1.3 Core values 21 2.4.3 Value creation model 36 2.1.4 SWOT 22 2.2 2.5 Sustainability 38 Key trends 23 Governance Report 2.5.1 Insurance 39 2.5.2 People 43 2.3 2.5.3 2.5.4 2.5.5 Investments Environment Society 47 51 54 Strategy 25 2.3.1 a.s.r.’s strategy 25 2.6 Financial Statements 2016 2.3.2 Innovation 28 2.3.3 Brand and distribution strategy 29 Assurance report of the 2.3.4 Tax strategy 31 independent auditor on the 2.3.5 Sustainability strategy 31 Sustainability information 56 Other


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    Strategic Report | 2.1 About a.s.r. 20 2.1 About a.s.r. Introduction a.s.r. 2.1.1 Mission a.s.r. is the Dutch insurance company for all types of a.s.r.’s overall mission is to offer transparent insurance insurance1. Via the brands a.s.r., De Amersfoortse solutions as a trusted and reliable partner for its customers Strategic Report and Ditzo and specialist brands such as Europeesche while creating sustainable value for its stakeholders. Verzekeringen and Ardanta, a.s.r. continues to provide As part of its mission, a.s.r. has identified the following key P&C, occupational disability and health insurance (non- roles that it intends to play: life) and pensions, individual life and funeral expenses • An insurer for customers insurance (life), as well as on distribution. a.s.r. also offers a.s.r. is deeply rooted in Dutch society and is committed specific banking, mortgage and investment products and to understanding its customers’ needs. It aims to offer asset management services. a.s.r. operates exclusively its customers peace of mind by offering insurance and in the Dutch market, except for its servicing of a small wealth accumulation products designed to secure its Belgian funeral insurance portfolio, which is recognized as customers’ financial stability and to protect customers a business line of ASR Levensverzekering N.V. from risks they are unwilling or unable to bear Business Report themselves. Having generated € 4,328 million in gross written a.s.r. considers its customers’ trust essential to its premiums (GWP) in 2016. a.s.r. is one of the larger business and values the strength of independent insurance companies in the Netherlands. advice, which is reflected in the strong position of a.s.r. in the intermediary channel. a.s.r. is confident that it can live up to its position as ‘insurer • A financial institution of choice’ for its customers by placing their interests a.s.r. aims to be a financially reliable and stable at the centre of its business. This is something that our institution with a solvency position strong enough to employees work towards on a daily basis. Our employees fulfil its long term obligations and commitments to are the face of a.s.r. services and determine the quality of all its stakeholders. a.s.r. believes that a solid financial Governance Report the services we provide. position will enable it to meet both its short- and longterm obligations to customers and shareholders. a.s.r. has its registered office in the Netherlands. Its main a.s.r. believes that its ‘value over volume’ philosophy will office is located at Archimedeslaan 10 in Utrecht. a.s.r. help secure long-term value creation. also has an office in Enschede and a small number of • A people-focused employer distribution entities in various locations in the Netherlands. a.s.r. aims to employ highly skilled employees, and to attract and retain talented individuals. a.s.r. strives to offer its employees a stimulating and inspiring work Structure environment and enable them to develop, broaden and expand their skills. As a people-focused employer, a.s.r. Financial Statements 2016 a.s.r.’s operations have been divided into six operating aims to offer a highly adaptable and flexible structure. segments. These segments are the Non-life segment and • A member of society Life segment for all insurance activities. The non-insurance a.s.r. feels responsible to society at large, and also activities are presented as four separate segments: to vulnerable groups. a.s.r. applies its views on social Banking and Asset Management, Distribution and responsibility in its HR policy (e.g. by employing (partly) Services, Holding and Other and Real Estate Development. disabled young people), its investment policy, its working environment (The New World of Work) and its See pages 150 and 209 of the 2016 consolidated financial environmental policy. statements for a.s.r.’s structure and a list of principal group companies and associates in the relevant segments. Other 1 a.s.r. de nederlandse verzekerings maatschappij voor al uw verzekeringen.


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    Strategic Report | 2.1 About a.s.r. 21 2.1.2 Vision and ambition Introduction In the coming years, a.s.r. aims to continue to develop into a company that is increasingly recognized by customers as one that meet the terms of its licence to operate through ‘helping by taking action’. Customers will recognize this in the positive experience they have with a.s.r., in all its aspects. a.s.r. is able to empathize with the needs of its customers and deliver its products and services in a clear and transparent manner. a.s.r. helps people to share risks and accumulate capital for later in life. Our customer Strategic Report experience score will increase over the next three years. This customer experience will convince existing customers that they want to remain a.s.r. customers for the long term and expand their product package. At the same time new customers will come to a.s.r. on the basis of the warm recommendations from customers and financial advisers. a.s.r. considers providing top-quality service as a major factor in its current and future success. 2.1.3 Core values Business Report I am helpful a.s.r. employees empathize with the needs of their customers, plus they listen and they show interest. They truly represent a.s.r., both internally and externally. Customers feel the help we provide in the risks they have covered. We help them to avoid risks and resolve issues if these risks arise. They can rely on our ability to accumulate Governance Report sound capital for the future, which we strive to do in a way that will benefit generations to come. I think ahead We are committed to looking for new solutions and making sure that our customers can carry on, that our employees continue to develop, that our shareholders continue to be satisfied and that a.s.r. continues to play its role in society. For instance, we combine our professional skills with new developments in technology and healthcare, on this front. Financial Statements 2016 We dare to think differently and to go against the flow if necessary. I act decisively We are committed and know how to act. We take a practical approach. We do this in a personal way and always based on our professional expertise. Other


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    Strategic Report | 2.1 About a.s.r. 22 2.1.4 SWOT Introduction Strengths Weaknesses • Strong solvency position supported by high-quality • Presence only in the Dutch insurance market, capital which as a whole is contracting and highly • Track record of attractive return on equity, capital competitive and cash generation • Impact of declining life book on long-term cost Strategic Report • Diversified and resilient Dutch insurer with leadership effectiveness in attractive market segments • The contraction of the individual Life book • Differentiated distribution, underpinned by highly reputable brands • Excellence in pricing, underwriting and claims handling • Proven cost-reduction capability and continuous focus on operational efficiency • Profitable LDI Asset Management platform with strong track record Business Report • Skilled, experienced management focused on execution and delivery • Ability to integrate quickly (AXENT and BNG) Opportunities Threats • Sustainable business enhancement via fiduciary • Prolonged low interest rate environment and/or asset management in combination with capital light financial markets turmoil Governance Report • Capital light life products (e.g. Defined Contribution • New and/or changing legislation governing (DC) pension products) insurance products or unit-linked policies • Further development of Distribution and Services • Fierce competition in Dutch market segment • Further reduction of the solidarity principle • Increasing demand for sustainable, transparent and and increased attention to individual solutions, simple products possibly compensated by mandatory solutions for • Increase in multi-channel approach taken by uninsurable groups customers • Changed consumer behaviour, with declining and • Developing services to differentiate ourselves changing need for insurance products as a result (expertise, inspection and damage repair) of technological developments Financial Statements 2016 • Possibilities in individual and collective asset • Move from retail to wholesale purchase of accumulation markets and in the non-life and insurance products occupational disability insurance markets • Move from entrepreneurship to de facto • Consolidation potential in the ‘closed’ book for life implementation of publicly established and funeral insurance regulations • In view of the current technological revolution, the insurance business model is liable to be disrupted and shaken to the core Other


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    Strategic Report | 2.2 Key trends 23 2.2 Key trends Introduction The coming years are set to bring developments that may GWP, but do lead to a rise in assets under management. have a major impact on the insurance sector. These include In addition, there is the individual life market, which will technological, economic and social developments, as inevitably continue to contract by about 7% to 10% per well as aspects such as consumer behaviour, politics and year, and the P&C and occupational disability market, supervision will also play a key role. which – after having bottomed out – now has new scope Strategic Report for a limited increase in volumes. The Dutch insurance market is saturated. Looking at the volumes of gross written premiums (GWP), we can see a The volumes of a.s.r.’s gross written premiums – steady long-term trend of contraction in the individual exclusive of acquisitions – are roughly in line with market life market. The market for group life/pensions, which has developments. The a.s.r. life portfolio is contracting and, also declined in recent years, seems to be being replaced if lapses and early surrenders continue at the current rate, by non-insurance/asset management solutions. The P&C will only be about half its current size in a decade’s time. and occupational disability markets have undergone Although the group pension portfolio has contracted as cyclical contraction, the reason being a fall in the insured well, it generates adequate alternatives. Volumes in the interest of P&C, due to factors such as consumers driving P&C and occupational disability businesses have fallen Business Report smaller cars, linked to a higher deductibles and a decrease over the past few years. That said, a.s.r.’s market share has in insurance penetration in the individual occupational remained stable or increased. These markets have recently disability/self employed market as a result of reduced recorded volume increases. financial strength. The share of the different distribution channels in total Besides these – occasionally cyclical – trends, we see premium income (excluding of Health) has been relatively a pension market with growth potential, particularly in stable over recent years, particularly where the P&C solutions that do not necessarily result in an increase in business was concerned. Governance Report Distribution channels Life/P&C/Income protection based on premium income 2010 2011 2012 2013 2014 Intermediaries and other distribution channels 77% 79% 77% 75% 73% Online 23% 21% 23% 25% 27% Source: Verzekerd van cijfers 2016, excluding of Health. The information of 2015 is not available yet. Distribution channels P&C based on premium income Financial Statements 2016 2010 2011 2012 2013 2014 2015 Intermediaries and other distribution channels 78% 80% 79% 79% 80% 80% Online 22% 20% 21% 21% 20% 20% Source: Verzekerd van cijfers 2016, excluding of Health. Distribution Trends and disruptions in the medium The share of distribution via third parties/intermediaries term at GWP level continues to be high. What is clear is that, Traditionally, a.s.r. has provided insurance services that traditionally, the ‘stickiness’ of customers via intermediaries offer customers certainty in unexpected situations is much greater than that of online customers. The and cover for risks they are unwilling or unable to bear types of third parties/advisers are changing, as are themselves. In view of the current technological revolution, Other their business models: the market is moving away from the insurance business model is liable to be disrupted. traditional captive advisers towards underwriting agents, While recent technological developments have mainly specialists, aggregators, all of whom have a (relatively) impacted the various distribution models, the underwriting strong online presence. The share of online origination in column of the value chain now seems to be vulnerable, for total origination is on the rise. instance due to technological and social changes.


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    Strategic Report | 2.2 Key trends 24 Effects of innovation Social developments Introduction There are more developments that might also affect Developments in society promote the development of the business model of traditional insurers, such as the new products and services and/or affect the procedures application of deep and machine learning. And the focus followed by insurance companies. Different themes play a of reinsurers on bearing risk is shifting to focusing on role in this respect. optimizing/providing capital under the Solvency II regime. Fewer employees spend their entire working life with the Various technological innovations, mainly driven by the same employer. Jobs are continually being created and exponential growth in the development and adaptation of evolve or disappear over time. This process also involves these technologies, have a great impact on the scope and many job switches, including from flexible to permanent structure of insurance services. Especially if and when these employment, from having an employer to being self- Strategic Report technologies such as artificial intelligence, blockchain and employed and vice versa. Over the past few years, we have robotics converge. This reinforces but also enables the seen the development of a trend towards fewer permanent social developments in cooperation and sharing between employees, more employees on flexible contracts and individuals and customers. Digital players with strong more self-employed persons. platforms such as Google, Facebook, Amazon, Booking. com, as well as Apple and Microsoft is on the rise. These Economic developments players are strongly positioned through their access to We are living in times with persistently low interest rates customers and data to invest and develop in financial and inflation rates. Low growth in Europe may also trigger technology (fintech) pie and insur-tec. further European consolidation. Increased volatility, for instance due to the enormous uncertainty about Business Report As a result of these technological developments, the balance sheets of – southern European – financial customers are being offered new services that give easier institutions and Brexit, will lead to a number of uncertain access, increases transparency, speed and offer more years. Power is shifting towards China, which is poised for relevance. Smartphones and tablets are increasingly being global expansion. used as customer interfaces. As a result it makes their lives easier and more pleasant. Big data is generating a lot of Consumer behaviour is shifting from owning items information that can be used for a range of purposes such to sharing them. The role of traditional players in the as (i) better customization for tailor made solutions to meet energy and telecommunications markets is changing and customer requirements, (ii) pricing risks, (iii) improving companies such as Philips are changing course, in this case retention rates, (iv) generating leads, (v) detecting fraud. from lighting to medical equipment. Thought patterns are Governance Report The Internet of Things, where multiple devices are shifting from ‘trust in institutions’ to ‘trust in the masses’, constantly online and are sending or receiving relevant e.g. TripAdvisor. Conversely, we are seeing a strong information, improves prevention, thereby also changing trend towards individualization in terms of behaviour in the insured interest. society: ‘why should I pay for the risk incurred by someone The health related technology ensures a longer healthy else?’ This development is being intensified by so-called life. Predictability of people’s health is increasing, thanks usage-based insurance (UBI), which allows for drastic in part to wearables, which give customers (and insurance differentiation that might lead to further individualization. companies, where possible) more information that helps This is putting pressure on the solidarity principle, them move from cure to prevention. potentially resulting in ‘uninsurable risks’ at the peripheries of society. Financial Statements 2016 Through blockchain, a control system that exchanges and verifies data, multiple computers control the ledger of the Politics and supervision transaction(s). This system then eradicates the need for There is a trend towards more regulation and government human intervention and multiple third parties to check the interference, and a need to strengthen the role of reliability of a transaction... regulators. Consumer protection is leading and risk mitigation is broadly supported by politicians and All these developments especially when they are regulatory bodies. There is increasing pressure from a combined and work together, can be viewed as regulatory perspective. We are seeing an additional shift opportunities for the insurance sector and customers. from principle-based to rule-based. This is illustrated Commercially speaking, more efficient processes result in by the emergence of Solvency II and other future lower costs for handling and logistics, customer service accounting standards (e.g. IFRS 17). In addition, there are and sales can be geared better to customers and more more European rules on the way (comparable to what is options can be created for prevention. This results in a happening in the banking sector), which will diminish the Other shift in insured interest. Overall this leads will lead to more role of national legislatures. transparency for customers and citizens and more ways for them to assess their own risk appetite and find ways of controlling it. As a society as a result this will increase healthcare, safety (e.g. in traffic) and significantly raise the overall level of comfort and prosperity.


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    Strategic Report | 2.3 Strategy 25 2.3 Strategy Introduction 2.3.1 a.s.r.’s strategy Four principles of strategy Strategic Report Meeting customers’ needs Stable cash flows A and value-generating businesses Excellence in pricing underwriting and claims handling Business Report Our principles drive Robust and value in our business B predictable back portfolio books Cost effectiveness Business C enhancement opportunities Governance Report Cash-generating business model a.s.r.’s strategy is to focus on ‘value over The Executive Board uses the product approval and review volume’. process to discuss cross-functional proposals for new products and improvements to existing products. Meeting customers’ needs Financial Statements 2016 a.s.r. offers its customers simple, transparent a.s.r. applies a multi-brand distribution strategy to deliver products that aim to fulfil their needs. a.s.r. employees products and services via its customers’ channel of choice. are driven to help customers whenever possible, and a.s.r.’s key distribution channels are the intermediary communicate with them in clear and easy-to-understand channel (independent advisors) and the direct channel, language. a.s.r. focuses on retail customers, self-employed as well as online. For many years now, the intermediary individuals and small and medium-sized enterprises channel has proven invaluable and a.s.r. believes that this (SMEs). channel provides customers with the opportunity to seek appropriate advice and to select the products that suit a.s.r. strives continuously to improve its services to them best. customers and the intermediaries that advise them. Customer and intermediary satisfaction levels are closely Through the enhanced decentralization of distribution, monitored through the measurement of closed loop product marketing and IT, a.s.r. aims to further simplify feedback, such as the Net Promoter Score (NPS). The its organizational structure, so it can remain agile and Other Executive Board is responsible for the performance related responsive to changes in market trends and customer to customer and intermediary satisfaction and customer behaviour and needs. services. a.s.r. stays in close contact with its customers and monitors any changes in customers’ needs.


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    Strategic Report | 2.3 Strategy 26 Excellence in pricing, underwriting and Cash-generating business model Introduction claims handling a.s.r.’s objective is to post robust, high-quality a.s.r. maintains a disciplined pricing strategy, based on earnings and achieve strong capital generation backed by deep knowledge of customer behaviour. a.s.r., continues to a solid financial framework. This will enable a.s.r. to deliver build on its experience and skills related to pricing, on its promises, to provide customers with the financial underwriting and claims handling, as the company believes protection they expect and to secure the payment of these are key drivers in the creation of sustainable value. attractive dividends in the interest of our shareholders and debt investors. Due consideration of a.s.r.’s risk appetite a.s.r. applies these capabilities in all of its insurance is a key factor in executive and senior management products, in both the Non-life segment and the Life decisions. a.s.r. intends to maintain its capacity to segment. Insurance products in the Non-life segment distribute dividend in the coming years through strong Strategic Report include P&C, occupational disability and health insurance. capital generation, while maintaining a robust solvency The Life segment include individual (term) life insurance, position and retaining an adequate level of cash. pensions and funeral insurance. a.s.r. has a conservative risk profile and has set minimum a.s.r.’s insurance expertise has resulted in a strong solvency levels designed to absorb potential losses and to combined ratio in the Non-life segment for many years. maintain financial robustness while optimizing its capital To further enhance its competitiveness, a.s.r. continues to position within the parameters set by the regulator. invest in hiring senior insurance specialists and expanding For further details on the strategy of the individual its underwriting capabilities and expertise. business lines, see chapter 3.3. Business Report Cost effectiveness Cost competitiveness is a key factor for commercial success, as well as bottom-line performance. Cost awareness has been embedded throughout the organization and its daily operations and has become an integral part of a.s.r.’s culture. a.s.r. continuously focuses on costs and aims to lower its operating expenses over the coming years. End-to-end Governance Report responsibility in the various business segments, fewer management layers and decentralization of certain functions, such as distribution, product marketing and IT, are instrumental in maintaining cost effectiveness. Furthermore, a.s.r. has successfully made parts of its cost base more flexible. In order to achieve this goal, a.s.r. outsources certain activities to third parties with the required expertise, enabling the company to achieve cost benefits or efficiencies of scale. Examples of this are Financial Statements 2016 software-as-a-service (SaaS) solutions in Individual Life, Pensions and Health; IT outsourcing (ITO) for Individual Life and business process outsourcing (BPO) for part of the portfolio for Individual Life and Pensions. a.s.r. does not outsource any of its activities that it considers essential to its insurance operations and that give a.s.r. its unique competitive position. These include pricing, underwriting, asset management and claims management (including medical advisors and personal injury claims) services. a.s.r. will also continue to work on simplifying and rationalizing its existing product portfolio, particularly in the Life and Pensions businesses. a.s.r. seeks to minimize Other the number of back-office systems in all its business lines.


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    Strategic Report | 2.3 Strategy 27 Execution of strategy: optimizing our portfolio Introduction High Current profit contribution Low High Stable cash flow and value generating Business enhancement opportunities business, with relative growth potential Distribution and services Disability Pension DC, IORP, APF Long term growth prospects within market context P&C Fiduciary and 3rd party Strategic Report asset management Health a.s.r. Bank Funeral Business Report Pensions DB Individual life Real estate SOS international development Low Robust and predictable back books Divestments Governance Report a.s.r. carefully reviews its business portfolio on an ongoing underwriting and pricing discipline, in combination with basis. For each of its activities, it considers both their excellent claims handling for our customers. a.s.r. strives contribution to profits and their future growth outlook. for selective growth in this segment. Maintaining our leadership position in the intermediary distribution channel a.s.r.’s business portfolio is key to this ambition. Non-life insurance offers a.s.r. The four strategic principles, as described on page 25, relative organic growth potential. are the value drivers in a.s.r.’s business portfolio. a.s.r. is a diversified insurer with leading positions in attractive market The funeral insurance business generates value for a.s.r.’s Financial Statements 2016 segments. On an ongoing basis, a.s.r. carefully reviews its stakeholders, although organic growth is limited. a.s.r.’s business portfolios for their contribution to profits, as well as cost-efficient platform in the funeral insurance business their future growth outlook. a.s.r. is disciplined in deploying puts the company in a strong competitive position. capital in areas where its skills and expertise provide good Furthermore, the funeral insurance business carries value in products and services for its customers, while mortality risks that strongly diversifies with longevity achieving attractive returns for shareholders. risk in a.s.r.’s pension businesses. These benefits are demonstrated in a.s.r.’s acquisition of AXENT and the a.s.r. classifies its activities in four categories: I) activities acquisition of the NIVO portfolio. Given the long duration that provide stable cash flows and generates value, of the funeral businesses, a.s.r. will benefit from these with relatively strong growth potential; II) businesses advantages for a long time to come/long into the future. that represent robust and predictable back books and contribute to current profits; III) activities that offer business Robust and predictable back books enhancement opportunities, typically capital light, and the This category represents large Life books that have been Other final category; IV) activities that are non-core and which will build up over many years and are major contributors to ultimately be divested. a.s.r.’s profit. Stable cash flow and value-generating business, with relative growth potential In Non-life, a.s.r.’s focus is on maintaining profitable


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    Strategic Report | 2.3 Strategy 28 These businesses offer limited or no growth potential 2.3.2 Innovation Introduction and these books will decline over time. a.s.r. focuses on safeguarding the value of the service books. a.s.r. is doing Over the past few years, a.s.r. has transformed into a this by either lowering its cost base or making it more number of independently operating business lines with variable, providing high customer service to prevent more integrated service departments. This has made our unnatural lapses and protecting the investment yield operations more agile. Management is focused more on by hedging the interest rate sensitivity. To make its cost the market and on subject matter expertise in such areas as base in Individual life more variable, a.s.r. is migrating the underwriting and pricing, as well as in asset management. seven Individual life portfolios to a Software as a Solution (SaaS) platform managed by an external provider. This In addition, a.s.r. has invested specifically in distribution migration is on track we expect to complete this process activities to get closer to its customers. Strategic Report by the end of 2018. Upon completion, this will give a.s.r. This proximity to customers not only offers a better the foundation it needs to become a consolidator in the understanding of customer requirements and competitors’ market. actions, but also creates an opportunity to experiment more seriously with new propositions Business enhancement opportunities a.s.r. sees growth opportunities in fee business and capital- a.s.r. will continue on this path in operational terms. light business. Not only will this allow a.s.r. to respond more quickly to These include capital-light pension propositions such normal changes and developments, it will also enable as Defined Contribution pensions, Institutions for a.s.r. to scale back more easily in the event of certain Occupational Retirement Provision (IORP) and General developments (further regulation, individualization and Business Report pension funds (APF). a.s.r. has developed and launched technological advances) if it were to ascertain that it no competitive propositions in each of these pension longer qualifies as the best risk bearer/owner for a certain solutions. section of the market. No matter what, a.s.r. is committed to professionalism, agility and entrepreneurial spirit. Distribution and Services is fee business and also a growth opportunity. a.s.r. acquired four specialist distribution Looking at developments in society, the environment, companies over the past two years and our focus is now on technology and healthcare, the company will need to unlocking the earnings potential that a.s.r. envisages for strengthen the organization’s innovative drive. To stay each of these companies. In asset management, a.s.r. aims successful in the future, a.s.r. will have to become a more to expand its activities in third-party asset management. adaptive and innovative organization. For both the short Governance Report To that end, it acquired the asset management activities of and the long term, this will require a combination of new BNG, adding skills and approximately five billion euro in and existing executive drive (efficiency and incremental Assets under Management, which generates fee income. innovation driven by the online channel) and a newly- developed exploratory drive (transformational innovation). Divestitures Over the past year, a.s.r. has focused intensely on Managing the business portfolio is not just about acquiring innovation, which led to the definition of three levels of businesses and integrating those businesses in the a.s.r. innovation: organization. It is as much about divesting businesses that are either strategically no longer core or that Level 1 optimization: continuous learning and underperform on a structural basis. In 2016, a.s.r. divested improvement of products and processes, whether or not Financial Statements 2016 SOS international, terminated its real estate development combined with digitization (more mobile access to every business and divested a large portion of its real estate step in the chain). This requires continuous focus and development projects. leadership. Level 2 transformation (horizon: 2-5 years): game changers that will transform the existing underwriting models: general pension fund, IORP, Pay how you drive. Level 3 disruption (5+ years): truly transformational disruptive models that enable entirely new players to suddenly conquer a share of the market or tap a new market. These models cannot (almost by definition) be defined at this time, but examples can already be seen in Other other sectors in industry. a.s.r. initiated an InnovationLab for the development of new ideas.


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    Strategic Report | 2.3 Strategy 29 Strategic targets Introduction Financial performance Financial targets for 2016 Operating return on equity (ROE) 14.1% a.s.r. seeks to generate an ROE of up to 12% per year in the medium term. For the long term, a.s.r. aims to achieve an operating ROE of above 10% on average. Cost savings On target a.s.r.’s aim is to reduce operating expenses by an aggregate € 50 million in the medium term. Strategic Report Dividend € 187 million For 2016, a.s.r. intends to distribute a dividend of € 175 million, which is to be paid in 2017. This dividend is discretionary and not based on the dividend policy a.s.r. will apply from 2017 onwards. In 2016, a.s.r. announced a dividend policy for 2017. Going forward, the annual dividend will be based 45% on a pay-out ratio of 45% to 55% of net operating result attributable to shareholders (i.e. net of hybrid costs). a.s.r. applies a boundary condition based on its Solvency II position. a.s.r. does not plan to pay a cash dividend if the Solvency II ratio were to fall below 140%. Combined ratio 95.6% In the Non-life segment, a.s.r. strives to achieve an overall combined ratio (‘COR’) of below 98%, and Business Report below 97% for 2016 and 2017. Solvency/capital 189% a.s.r. aims to maintain a Solvency II ratio – based on the Standard formula – of above 160%. Single A Additionally, a.s.r. wants to attain a single A (S&P) ‘Financial Strength Rating’ for its insurance 25.2% subsidiaries and a financial leverage of below 30%. Please see for the non-financial targets chapter 2.5. Governance Report 2.3.3 Brand and distribution strategy In order to position itself effectively in different customer a.s.r. uses a multi-brand model that is designed to target segments of the Dutch insurance market, a.s.r. uses a different market segments and comprises three core hybrid, multi-brand distribution strategy and offers its brands: a.s.r., De Amersfoortse and Ditzo, as well as two products to approximately 1.48 million households (directly niche brands: Europeesche Verzekeringen and Ardanta. through the a.s.r., De Amersfoortse and Ditzo labels and through over 5,500 intermediaries). The majority Financial Statements 2016 of a.s.r.’s insurance products are distributed via the intermediary channel. Ditzo is a.s.r.’s online brand. Multi-brand model Brand Type Products Distribution Coverage Platform a.s.r. Generalist Individual life, Pensions, Advisors and Nationwide asr.nl P&C, Banking specialists De Amersfoortse Generalist Income protection, Advisors Nationwide amersfoortse.nl Pensions and Health Ditzo Specialist P&C and Health Online Nationwide ditzo.nl Europeesche Verzekeringen Specialist Travel and Leisure Multi-channel Nationwide europeesche.nl Other Ardanta Specialist Funeral Multi-channel Nationwide ardanta.nl


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    Strategic Report | 2.3 Strategy 30 a.s.r.’s current brands and distribution strategy includes: Introduction a.s.r. Under the a.s.r. brand, a.s.r. offers products for P&C (all customers segments), pensions (DB products for the commercial market), individual life (term life and annuity) and banking products (mortgages, savings and investments) for retail clients. The a.s.r. branded products are distributed via the intermediary channel (e.g. P&C, mortgages and DB pension products), as well as online (e.g. term life, savings and individual annuity). In addition, mandated brokers, aggregators and service providers can sell a.s.r.’s products under their own brand names. The a.s.r. brand targets retail and commercial (primarily Strategic Report SME) customers. De Amersfoortse Under De Amersfoortse brand, a.s.r. offers occupational disability, health and DC pension insurance, mainly aimed at the commercial market. De Amersfoortse products and services are sold exclusively through intermediaries. Ditzo Business Report Ditzo is a.s.r.’s online brand, focusing on P&C and health products for retail clients. Ditzo has established a customer base of over 77,116 P&C and 132,184 health insurance customers in 2016. Ditzo-branded products are sold online via its own websites and aggregator websites. Europeesche Verzekeringen Under the Europeesche Verzekeringen brand, a.s.r. sells travel and leisure insurance. Europeesche Verzekeringen insurance policies are sold through the intermediary channel, including through specialist partners, such as tour operators, sports federations and Governance Report online channels. The Europeesche Verzekeringen brand primarily targets retail customers. Ardanta Ardanta is a.s.r.’s funeral insurance brand. Most of Ardanta’s funeral insurance policies have historically been sold via the intermediary channel. Currently, Ardanta utilizes a multi-channel distribution strategy by offering its products through intermediaries, direct sales and online. The Ardanta brand targets retail customers. With the acquisition of NIVO, a.s.r. now has an additional funeral label. Financial Statements 2016 Other


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    Strategic Report | 2.3 Strategy 31 2.3.4 Tax strategy Covenant in January 2013. This covenant formalizes how Introduction a.s.r. and the Dutch Tax & Customs Administration will treat Tax policy each other: with mutual trust and an open and transparent a.s.r.’s tax policy contributes to the achievement of its attitude. By signing the covenant, a.s.r. has undertaken to corporate strategy, in which a.s.r. presents itself as a develop and maintain a system of internal and external sustainable, socially responsible insurer. This ties in with controls, the goal being to prepare and file acceptable tax the idea of fair-sharing, by which each member of society returns (for more information, see chapter 5.6.12). contributes to maintaining the society they live in and helps it advance. 2.3.5 Sustainability strategy a.s.r.’s tax policy Strategic Report a.s.r. wants to be a socially responsible taxpayer that bases As part of its corporate social responsibility (CSR), a.s.r. its actions on professional tax compliance practices. a.s.r. takes ownership of the effects of its operations on people does not push its limits when it comes to tax planning. and the planet. a.s.r. sees opportunities for new products, services and processes in issues relating to people and the The tax policy leads to: planet; these opportunities will benefit both society and • Further professionalization of the business practices by a.s.r. (profit). embedding tax issues; • An increase in tax awareness within the organization; In its business operations, a.s.r. deliberately focuses on • Manageability of tax risks and new tax opportunities; long-term value creation according to the triple bottom • Communication with stakeholders about a.s.r.’s tax risk line principle of People, Planet and Profit. To this end, a.s.r. Business Report appetite. engages in a continuous dialogue with its stakeholders, increasingly qualifying CSR as one of its core values. Tax covenant The Executive Board of a.s.r. and the Dutch Tax & Customs a.s.r. has divided the dimensions of People, Planet and Administration signed the Horizontal Supervision Profit into the following five focus areas: Five focus areas of People, Planet and Profit Insurance Governance Report Offering continuity and security to customers. a.s.r. wants to provide sustainable insurance products; it engages in continuous process improvements and simplifies its product offering. People Employees are encouraged to make the most of their potential. By connecting with customers, the business and HR, each employee becomes an a.s.r. ambassador, both within and outside the company. Investments Financial Statements 2016 a.s.r. takes ownership by taking into account ethical and sustainability criteria in its investment policy. Aspects reviewed by a.s.r. include human rights, working conditions, corruption and environmental issues. Environment a.s.r. is committed to conserving nature and the environment by reducing its environmental footprint to a minimum. a.s.r. is efficient in its consumption of water, energy and other resources. a.s.r. is committed to waste reduction, lowering carbon emissions and mobility. Society Helping people by taking action. Sustainability also includes being involved in the community. a.s.r. invests in a wide range of community initiatives, for instance by undertaking aid campaigns and projects. Other


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    Strategic Report | 2.3 Strategy 32 In all its choices and activities, a.s.r. asks itself whether they • Contributing to the conservation of cultural and social Introduction meet its defined CSR criteria, which we have formulated as heritage. follows: What does CSR entail in insurance? • Giving high priority to sustainable financial robustness. • Offering products and services that meet customer requirements; • Regularly identifying customer requirements through market research, social media, customer-driven surveys and customer panels; Strategic Report • Performing internal and external review of products and services. What does CSR entail in the people dimension? • Providing a broad range of training and development opportunities; • Encouraging the vitality of employees; • Offering a healthy work/life balance. What does CSR entail in investing? Business Report • Ensuring that all investments meet the SRI policy; • Ensuring that all businesses in which a.s.r. invests meet national and international conventions in the fields of human rights and labour laws, and environmental regulations; • Ensuring that investments in sovereign debt are made only in countries that have an adequate score in the Freedom in the World Annual Report and the Corruption Perceptions Index. Governance Report What does CSR entail in the environment dimension? • Being efficient with water, energy and resources by avoiding waste and improving a.s.r.’s environmental performance; • Placing focus on waste management, making mobility more sustainable, reducing energy consumption and reducing carbon emissions; • Encouraging employees to adopt sustainable conduct outside of working hours too; • Increasing sustainable production and conduct by our Financial Statements 2016 suppliers. What does the focus area CSR in the society dimension entail? • Demonstrating added value based on independent surveys conducted by the government, public interest organizations and academia in the areas of transparency and investing; • Reporting based on the guidelines of the Global Reporting Initiative (GRI); • Engaging in a dialogue with internal and external stakeholders; • Communicating transparently with stakeholders, for Other instance about policy conditions, via press releases and the Executive Board Report; • Mobilizing employees to volunteer their time for social projects; • Launching projects within the scope of financial self- reliance;


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    Strategic Report | 2.4 Value creation 33 2.4 Value creation Introduction To ensure that we create value in the long term, we need Priorities to have and maintain a good understanding of relevant After coordination with the portfolioholder in the Executive material aspects. In 2016, a.s.r. updated its list of material Board (the CEO), the final list of material aspects was sent aspects and in the process combined this list with to the stakeholders in the form of a survey. supporting KPIs from the Corporate Social Responsibility In the survey, respondents were asked to specify what they Strategic Report (CSR) focus areas. felt were the most material aspects for a.s.r. The results were subsequently assessed during the stakeholder dialogue. The material aspects were then submitted to 2.4.1 Material aspects upper management so they could define their impact. To continue to generate value as an organization and The overall results were visualised in the materiality matrix, execute our strategy, these material aspects will also have which combines the relevance for stakeholders and for to be reflected in our business practices and management. a.s.r. was combined. The aspects in the top right-hand In 2016, a.s.r. determined its material aspects and priorities corner were defined as material; qualitative notes on these in collaboration with Dutch non-profit CSR organization aspects have been included in this report. Business Report MVO Nederland. Management approach to material Materiality aspects The final list of material aspects was put together based on: The sustainability steering group bears final responsibility • Stakeholder contacts on the basis of the stakeholder for the further implementation of the material aspects. model; After identification of the material aspects, they were • The Report of the Executive Board for 2015; linked to the KPIs (see chapter 2.5). This process • Desk research by MVO Nederland; revealed that a number of these aspects had already • The GRI Guidelines; been incorporated into the KPIs and some had been • Trends and developments in society. incorporated in a.s.r.’s day-to-day business practices. Governance Report Determination of material aspects All information relating to policy, strategy and related indicators are related to a.s.r.’s own organization unless indicated otherwise in the report. Financial Statements 2016 Other


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    Strategic Report | 2.4 Value creation 34 Materiality matrix Introduction Relevance for stakeholders High A G J H I B M C N L Strategic Report D K O Q R E P F S Low Business Report Low High Impact on a.s.r. Finance1 Investments A Compliance with rules and regulations L Socially responsible investment policy B Financial performance M Non-discrimination C Solvency D Managing risks People E Preventing ICT losses N Health and safe work environment O Employee satisfaction Governance Report Society P Sustainable employee mobility F Contributing to financial education and self-reliance Q Equal pay for men and women Insurance Environment G Customer satisfaction and service offering R Assessing suppliers for CSR performance H Transparent product and service descriptions S Focus on climate change I Offering socially responsible products J Customer privacy K Encouraging innovation Financial Statements 2016 2.4.2 Stakeholders a.s.r. is engaged in a dialogue with all its stakeholders of external stakeholders, including customers, suppliers, on the priorities, objectives and further policy-making financial market players, government bodies and NGOs of its sustainability policy to guarantee the success of its (see Appendix H, Additional information, for a detailed list strategy. To achieve this, in addition to maintaining internal of stakeholders and the contact frequency based on a.s.r.’s contacts, a.s.r. maintains close contact with a broad group stakeholder model). Other 1 See chapter 5 Financial statements 2016.


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    Strategic Report | 2.4 Value creation 35 Introduction Strategic Report Angelique Laskewitz – Dutch Association of Investors Don Gerritsen – PRI for Sustainable Development (VBDO) Stakeholder segment – Public interest groups – NGO Stakeholder segment – Public interest groups – NGO a.s.r. subscribed to the Principles for Responsible ‘a.s.r. occupies a leading position in the area of Investment (PRI) in 2011. By doing so, it clearly undertook sustainability by giving active and deliberate follow-up to a to integrate sustainability indicators into its investment sustainable investment policy that ties in with the insurer’s strategy. To put this in practice, a.s.r. weighs environmental, Business Report long-term focus.’ social and governance indicators in its investment decisions. a.s.r. continues to develop in the area of sustainable investment, for instance by intensifying the dialogue with businesses in which it invests. We wholeheartedly encourage this and are looking forward to our ongoing cooperation. Governance Report Harry Filon – Sustainable recovery Stakeholder segment – Suppliers – Primary process Financial Statements 2016 ‘a.s.r. is an insurance company that is making a concerted effort to advance sustainability and Corporate Social Responsibility, but it is also still finding its footing as far as Petra Overhand – Reinaerde these themes are concerned. This is only natural given that Stakeholder segment – Public interest groups sustainability is not a fixed goal, but a continuous journey. The great thing is that a.s.r. is not only seeing things from ‘The partnership between a.s.r. and Reinaerde brings its own perspective, but is also seeking the opinion of unison, enthusiasm and inspiration for both employees its stakeholders, for instance by organising stakeholder and patrons of Reinaerde and a.s.r. employees. I heard an dialogues. a.s.r. is aware of its chain responsibility. In a.s.r. employee say after a day of picking apples and pears the event of a claim, an insurer should be committed to at ‘t Burgje in Odijk with Reinaerde people: ‘This was the engaging sustainable businesses to make repairs in a most fun team-building event ever!‘ sustainable manner. On the fire and water damage front, a.s.r. plays a pioneering role as the initiator and chair of the Other Sustainable Recovery quality mark. It would be wonderful if this were to become a portfolio-wide exercise in the future, for instance by broadening it to vehicle damage. Stakeholders and a.s.r. have joined hands on the path towards sustainability.’


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    Strategic Report | 2.4 Value creation 36 Internal and external stakeholders Introduction Customers Shareholders Suppliers Politics / Government Media Strategic Report Regulators Intermediaries Public and non-governmental Internal organization organizations and sector associations Financial (international) market players Business Report Stakeholder dialogue advisers and through online platforms. Thanks to the In 2016, a.s.r. expanded its stakeholder model to stakeholder dialogue, a.s.r. is now fully aware of the wishes include a central stakeholder dialogue, in which relevant and requirements of its customers, which translates into a stakeholders met at a.s.r. to engage in a dialogue on product portfolio that ties in with what people need. material aspects. a.s.r. uses the returns its generated and premium income to pay customer claims and offer attractive pay and benefits 2.4.3 Value creation model to its employees. We share the profits with investors in accordance with our dividend policy. We contribute to a Governance Report a.s.r.’s value chain starts with capital generated from better society by encouraging financial self-reliance and shareholders that have invested in a.s.r. and from awareness by developing activities in collaboration with premiums, savings and fees paid by customers. The various public interest groups. And we also have a focus on majority of its capital is used for activities that are the planet through the aim to care for the environment. expected to yield returns. To create sound financial cover for risks and positive investment income, a.s.r. The table on page 37 gives a more detailed description of encourages innovation and continuous development of the value realized for each CSR focus area. the knowledge and expertise of its employees. Products are distributed through partnerships with independent Financial Statements 2016 Other


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    Strategic Report | 2.4 Value creation 37 Value creation model Introduction Output 2016 Outcomes Inputs Business model (organization level) (at social level) Financial capital • Contribution to the • Financial cover • Investors: equity economic stability for risks incurred and loan capital of the Netherlands by customers: • Banks: borrowings Mission and hence to Solvency II ratio • Customers: To offer transparent securing a financial • Investment income premiums savings insurance products to future, e.g. by for customers Strategic Report and fees customers while creating paying tax sustainable and stable value for stakeholders: • an insurer for customers • a stable financial institution • Insurance product Manufactured capital • Manageability • a people-focused portfolio • Office buildings of risks at social, employer • Investment product and furnishings commercial and • a member of society portfolio • ICT infrastructure consumer level Strategy a.s.r.’s strategy is based on four principles: • Motivated Intellectual capital • In-depth knowledge employees with Business Report • Knowledge and • meeting customers’ need • excellence in pricing, and experience the knowledge and training per underwriting and • Learning, innovative innovation drive discipline claims organization required to develop • Employee • cost effectiveness • Flexible and mobile new and improved development policy • cash-generating business workforce products and • Innovation model processes • Sustainable participants in Core values • Sustainable the internal and Human capital • I am helpful employability/ external labour • Employees • I think ahead On the move market Governance Report • I act decisively • Strong and vibrant employees • Product portfolio that ties in with the Social capital Insurance activities • Customer need in society • Contacts with Non-life satisfaction • Stakeholder stakeholders Life • Tenant satisfaction dialogue • a.s.r. Foundation Non-insurance activities Banking and Asset Management, • Reduction in carbon Distribution and Services, Financial Statements 2016 emissions at head Natural capital Holding and Other, office and in the • Care for the • Raw materials and Real Estate Development use of fossil fuels environment energy • More sustainable • Climate-neutral • Land ownership purchasing of business practices 1 products and services Other 1 The emission is only at our own operations (excluding Scope 3 GHG protocol).


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    Strategic Report | 2.5 Sustainability 38 2.5 Sustainability Introduction a.s.r. seeks to be a leader in sustainable business practices group. The steering group meets multiple times a year in the financial sector and takes into account sustainability to formulate a comprehensive vision and apply this vision wherever possible. For its Corporate Social Responsibility to the respective focus areas of each of its members. The (CSR) policy. a.s.r. defined five focus areas (see page 31). steering group also monitors the status of the CSR-related a.s.r. engages in dialogue with its stakeholders on the KPIs it has set; monitoring takes place within the specified Strategic Report principles and objectives of the sustainability policy. parameters. The steering group has a CSR project group with representatives of the directors specified above. This Governance project group draws up quarterly reports on the defined Within the Executive Board, the CEO bears ultimate CSR-related KPIs to the steering group, which assesses responsibility for a.s.r.’s CSR policy. The Director of results achieved based on these reports and provides Corporate Communications coordinates the performance guidance with respect to targets or action where needed. of the policy together with a CSR steering group, whose Each focus area has a CSR working group that debates members are a secretary, the directors of the departments relevant subject matters and fleshes out (sub)activities. Human Resources, Group Asset Management and Real A Communications working group supervises the required Estate Investment Management. Since 2016, the Directors communication drive to put CSR on the agenda both Business Report of P&C and Pensions also have a seat on this steering within and outside the organization. Non-financial targets Targets KPIs Results a.s.r. is regarded as sustainable • a.s.r. is 100% compliant with its own a.s.r. seeks to play a prominent role in sustainable Dutch investor in 2020. a.s.r. socially responsible investing policy with business practices in the financial sector. encourages and promotes a a specific focus on the integration of • In November, the Fair Insurance Guide (FIG) sustainable investment policy. commercial asset management services. published its fifth report on the sustainability • a.s.r. is ranked in the top 3 • Active engagement dialogues: at least policies of the Dutch insurance sector Governance Report of relevant sustainability seven engagement projects per year. (eerlijkeverzekeringswijzer.nl). Of the ten largest indices. • a.s.r. publishes a list of excluded life insurance companies in the Netherlands, companies (based on controversial a.s.r. is ranked first in the FIG in terms of activities, not conduct) and countries sustainable investment policy. a.s.r. scored a (full list with exclusions); these lists 10 out of 10 for its policies on armaments, health are updated twice and once a year and human rights. respectively. • The implementation of the SRI policy is assessed by the FIG via specific case studies. In February, the FIG published a study on fur and exotic Financial Statements 2016 leather, in which the entire insurance sector was criticized for a lack of policy and policy implementation. • In July, the FIG conducted a second case study on transparency and accountability, in which a.s.r. was referred to as one of the positive exceptions within the Dutch insurance sector. • In June, a.s.r. was included in the report ‘Stop Explosive Investments’ published by PAX. This report assesses financial institutions for their involvement in cluster munitions. a.s.r. was inducted in the Hall of Fame for the third consecutive year. Other


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    Strategic Report | 2.5 Sustainability 39 Targets KPIs Results Introduction a.s.r. qualifies as sustainable • Absenteeism due to illness rate: no a.s.r. has started a project to modernize the employer in 2020. higher than 3.3% pay-and-benefits package in collaboration with the • a.s.r. will develop a new • Sickness frequency: 1 Works Council. pay-and-benefits package • 50% of vacancies filled by internal together with HR and the candidates. Works Council; this package will substantiate a.s.r.’s status as sustainable employer. a.s.r. is regarded as sustainable • An NPS of +11 at group level in 2016. The sustainability vision is discussed and will be Strategic Report Dutch insurer in 2020. • Funding of at least ten start-ups in 2016 fleshed out in collaboration with the business lines. • In 2016, a.s.r. will develop through De Amersfoortse’s Doorgaan.nl a definition of ‘sustainable crowdfunding platform. insurance’ for each business • Six branded content publications that line that is appropriate to are socially relevant. 500,000 hits. that business line. • Ten initiatives that lead to a reduction in paper output in 2017, e.g. by developing online initiatives or simplifying the product offering. Business Report a.s.r. qualifies as sustainable • Reducing the carbon footprint of the a.s.r. balances its CO2 emissions through Trees for company in terms of the a.s.r. head office at Archimedeslaan 10 All by planting trees in Bolivia. environment and is 100% by 2% in 2016, compared with 2015. carbon-neutral by 2020. 2 • Achieving savings of at least 5% on fossil • Achieving a measurable fuel consumption (carbon emissions) improvement towards related to employee mobility in 2016, carbon-neutrality in 2016. compared with 2015. • Adding a sustainability annex to contracts and achieving compliance with this annex for at least 60% of suppliers. Governance Report Key Performance Indicators (KPIs) 2016 In 2016, a.s.r. translated its sustainability strategy into goals and metrics for each of the five priorities. a.s.r. seeks to achieve its sustainability targets by measuring the KPIs periodically and adjusting them where needed based on the measured parameters. This chapter describes the Financial Statements 2016 results achieved in terms of these KPIs in 2016 for each of these priorities and their interrelationships with the material aspects, the a.s.r. mission and a.s.r.’s strategy principles. 2.5.1 Insurance a.s.r. is confident that it can justify its licence to operate by thinking in terms of customer interests and customer perception. a.s.r.’s products and services are at the basis of this licence to operate. Clarity, simplicity, efficient business processes and a robust financial position are essential in Other this context. 1 See materiality matrix on page 34. 2 The emission is only at our own opertions (excluding Scope 3 GHG protocol).


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    Strategic Report | 2.5 Sustainability 40 KPIs Insurance Introduction Strategic KPIs Targets Results Material aspects1 Mission principle Risks 1. NPS at group Achieve Customer An insurer that Meeting Unhappy customers might level a score of satisfaction and customers can customer terminate their relationship +11 Service (G) count on needs with a.s.r. and generate negative media attention, creating the risk of loss of reputation Strategic Report 2. Socially 6 Customer An insurer that Meeting Inadequate matching of relevant publications satisfaction and customers can customer content to customer needs branded 500,000 hits Service (G) count on needs content publications 3. Launching At least 10 Offering socially Make a Meeting Products that do not initiatives to responsible contribution to customer sufficiently meet social reduce paper products (I) society needs standards and values risk output in 2017 falling short of customer needs, leading to unhappy Business Report customers 4. Funding via At least 10 Customer An insurer that Meeting Risk of loss of reputation Doorgaan.nl start-ups satisfaction and customers can customer if the platform is used by Service (G) count on needs unethical businesses Offering socially responsible products (I) Governance Report 1. NPS at group level a.s.r. measures its NPS because customer appreciation and Occupational Disability did not manage to meet their is a key priority in its strategy. In 2016, all product lines product line-specific targets. As a result, a.s.r. did not meet used product line-specific targets, which is designed to the NPS of +11 at group level (See Appendix E for more result in an NPS of +11 at group level. P&C, Pensions and information on the NPS). Ditzo all met their specific targets. Health, Life, Banking Concern a.s.r. total Financial Statements 2016 Trend NPS NPS 20 10 0 -10 -20 -30 Other -40 2014 2015 2016


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    Strategic Report | 2.5 Sustainability 41 2. Six socially relevant branded content Internal reviews Introduction publications • Product Approval & Review Process (PARP): In 2016 a.s.r. achieved the increase in scope and To offer products and services that meet the right engagement for its labels by simplifying and providing criteria, new and existing products are tested every six access to relevant content for prospects, customers and weeks in the PARP Committee (see chapter 5.8.3.2). In advisers via branded content publications such as: 2016, seven new propositions, 22 product adjustments • Infographics and videos with prevention pointers; and 20 reviews of existing products were submitted to • School challenge for primary schools in the Utrecht the PARP Committee for approval. area. • Net Promoter Score (NPS) A tool to measure how customers rate services. 3. Launching at least ten initiatives to reduce • Customer journeys Strategic Report paper output in 2017 In order to identify potential improvements and a.s.r. met this target. As a part of this drive, the company implement these improvements, a.s.r. will engage in a launched a number of initiatives in 2016 to refer customers dialogue with customers about their experience with to the right contact channel immediately to reduce paper the labels a.s.r., De Amersfoortse and Ardanta. output. These initiatives included: • An email database that records email addresses and External reviews opt-ins from all business lines in a central location; • Customer Centricity Dashboard • Thanks to a newly initiated change to the IT system in This survey of all Dutch insurance companies and 2017 call centre agents will be able to save a calling banks, conducted by the Dutch financial markets customer’s email address and their opt-ins; regulator (AFM) benchmarks the extent to which Dutch Business Report • Banners and contact forms promote digital financial institutions focus on customer interests in their communications and allow customers to enter their products, services and processes. a.s.r. achieved a score email address and opt-ins; of 4.2 out of 5 on the Customer Centricity Dashboard • P&C has phased out redundant/obsolete products and for 2015/2016. letters; • Customer-Oriented Insurance Quality Mark • At De Amersfoortse Health, the group of customers This is a quality mark for providing easy-to-understand who still receive paper correspondence was information to customers, offering insurance policies encouraged to switch to online correspondence. that are appropriate and providing the best possible services. a.s.r., De Amersfoortse, Ditzo and Europeesche 4. Funding via Doorgaan.nl Verzekeringen managed to retain the quality mark. In Governance Report The objectives of the Doorgaan.nl crowd-funding platform, the theme study Complaints, a.s.r. finished third in the i.e. to fund at least 10 start-ups, were also met. top six of large insurance companies. Ardanta does not have the quality mark, but used customer journeys to Key figures build on various initiatives to provide its customers with appropriate levels of service. 2016 2015 Amount funded € 409,128 € 763,200 See Appendix E for more information on consumer and Average investment € 183 € 199 intermediary research. % of funded projects 44% 55% Total number of projects Complaints management Financial Statements 2016 funded since creation 60 47 The Complaints Management team monitors the Number of likes 14,000 13,000 implementation of the complaints policy and manages Number of visitors 180,934 355,594 the Complaints department accordingly. Complaints handling is decentralized. The key objectives of complaints Total funding since creation: € 1,878,418, of which co- management are as follows: funded by De Amersfoortse: € 205,195. • a.s.r. is open to complaints, which is why it is easy for customers to file a complaint; Transparent product and product descriptions • a.s.r. communicates clearly on its views and regarding a.s.r. works continuously to improve its processes to help the resolution of the complaint; customers, for instance by making information accessible • a.s.r. wants to learn from its mistakes, which is why and easy-to-understand. In this context, a.s.r. uses the customers are welcome to file complaints. results of various internal and external reviews of its intermediary channels and consumers. These reviews have Customer journey Other been implemented at all a.s.r. labels and business lines. a.s.r. organised a Complaints customer journey in 2016. The recommendations were translated into improvement actions through workshops and a telephone coach.


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    Strategic Report | 2.5 Sustainability 42 Customer Centricity Dashboard Introduction – Complaints Management by Insurers module In the report on the survey conducted by the Dutch Insurance Review Agency for the AFM, a.s.r. scored a 4.5 out of 5. This was a 0.3-point improvement on the previous survey. As a result a.s.r. is now the third-ranked Dutch insurer. Complaints compass a.s.r. is affiliated with the Dutch Consumer Association’s Complaints Compass. In 2016, consumers awarded a.s.r. an Strategic Report average score of 8.2 for resolving complaints. Learning and improving In 2016, a.s.r. actively solicited feedback from customers on complaints handling. This led to a higher response rate. a.s.r. uses this feedback and follow up on it. Handled complaints Business Report 2016 2015 Upheld 3,564 4,865 Rejected 2,755 3,100 44% 56% Governance Report Financial Statements 2016 Other


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    Strategic Report | 2.5 Sustainability 43 2.5.2 People Introduction Having an expert, qualified and healthy workforce is a captivating the right people, offering them extensive key factor in a.s.r. success in achieving its objectives. scope for training and development, and facilitating a That is why a.s.r. is committed to attracting, retaining and healthy work/life balance. KPIs People Strategic KPIs Targets Results Material aspects Mission principle Risks Strategic Report 5. Absenteeism No more Healthy and Make a - Without sustainable rate than 3.3% inspiring work contribution to employability, a.s.r. might environment (N) society not be able to provide the envisaged services, 6. Sickness 1 Healthy and Make a - thereby creating unhappy frequency inspiring work contribution to customers environment (N) society 7. Filling At least Sustainable Make a - vacancies 50% employability contribution to by internal (P) society Business Report candidates 5. and 6. Absenteeism and sickness frequency 7. 50% of vacancies filled by internal candidates Absenteeism and sickness frequency are indicators of the Starting from the same number of vacancies (300), the vitality of our employees and hence of our organization. goal was to fill half of these vacancies (150) with internal The absenteeism tracking system measuring daily candidates. absenteeism and absenteeism rate in accordance with CBS In this context, a.s.r. invests in the personal agility of its Governance Report standards, which differ from the a.s.r. standards. Social and employees and encourages them to take charge of their Medical Teams are in regular contact with the occupational own sustainable employability in the labour market. health & safety service, the management and HR about It turned out that most of the vacancies were available in the absenteeism and sickness frequency levels per team, specific disciplines requiring specialist college or university department and business line. education. As a result, a.s.r. did not have enough internal candidates to meet this KPI in the full. At employee level, line managers take on the role of case managers in the event of absenteeism; they are in Vacancies filled charge. This is how a.s.r. seeks to reduce its absenteeism 2016¹ 2015 rate. Employees who are on long-term sick leave or Financial Statements 2016 are frequently absent receive support from HR’s own Internal candidates 100 123 absenteeism officers. External candidates 254 227 Over the past few years, a.s.r. has launched various 1 61% of total vacancies were filled by man and 39% by women. initiatives to reduce the absenteeism rate and the level of sickness frequency. For details on these initiatives, see later In order to place as many internal candidates as possible, on in this chapter. career coaches and recruiters work in close collaboration to match supply and demand. Together with management, All things considered, the KPI for the sickness frequency the entire a.s.r. population is reviewed in order to map out was met, but the absenteeism rate was still too high to the capabilities and ambitions of employees and to make achieve the KPI. the best possible use of any developments. The annual review helps to reveal people’s individual capabilities and Results for 2016 ambitions. Other 2016 2015 Finally, a.s.r. has various career coaches of its own to Absenteeism rate 3.7% 3.5% provide guidance to employees who need help with Sickness frequency 0.9 1.0 development issues or sustainable employability.


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    Strategic Report | 2.5 Sustainability 44 Employee engagement non-compliance with the code of conduct is considered Introduction The engagement scan is an important indicator of a serious breach of the trust the employer has in the how employees perceive a.s.r. as an employer. This is employee and will lead to disciplinary measures. a prerequisite for being an insurer that is trusted by its To limit the risk of a.s.r. hiring persons who may cause customers. The results of the scan are used to boost physical, financial or reputational harm to a.s.r., its employee engagement. customers or other business relations, everyone working at or for a.s.r., including suppliers and brokers, is expected to The engagement score rose by 11.5 percentage point in undergo integrity screening in advance. 2016 for the following reasons: • Employees take more pride in a.s.r. and its reputation; Diversity • Employees have more faith in the company; a.s.r. is committed to offering people from vulnerable Strategic Report • Employees give a higher rating to their development groups in society a place within its organization. options within a.s.r.; • Employees are more motivated to contribute to a.s.r.’s Dutch Participation Act success. a.s.r.’s policy is designed to hire a specified number of people with an occupational impairment, culminating in at Engagement score least 70 jobs of 25.5 hours per week (approx. 45 FTEs) by 2026. To achieve this, a.s.r. has set up a Participation Desk. 2016 2015 The mission of which is to place low-skilled people with an Response rate 78.9% 82.6% occupational impairment in specific jobs. In 2016, a.s.r. had Engaged 65.0% 53.5% 12 employees with an occupational impairment (9 young Nearly engaged 27.1% 33.6% Business Report people through the Participation Desk and three other people elsewhere at a.s.r.). a.s.r. Code of Conduct The a.s.r. Code of Conduct (asrnl.com) describes what a.s.r. In the event of equal suitability, highly skilled people with stands for as a business and what conduct and behaviour an occupational impairment are preferred. In 2017, 24 jobs it expects from its employees. The purpose is to help must be available to employees governed by the Dutch protect the company’s reputation through impeccable, Participation Act. professional conduct. The conduct should be in line with its principles. Breakdown male and female Governance Report The code is given to all a.s.r. employees and is a part of Breakdown in management positions their employment contract. In 2016, the code was updated 2016 2015 and approved by the Executive Board after consulting with Female Male Female Male the Works Council. Up to and including All employees and anyone who regularly performs work pay scale 9 52.4% 47.6% 54.2% 45.8% for a.s.r. must take an oath or a solemn affirmation. This Pay scale 10 29.1% 70.9% 28.4% 71.6% demonstrates that the employee accepts the a.s.r. Code Pay scale 11 30.7% 69.3% 28.0% 72.0% of Conduct and complies with the same. The aim is to Pay scale 12 20.7% 79.3% 22.7% 77.3% maintain and promote confidence in the financial sector Pay scale 13+ 23.0% 77.0% 24.5% 75.5% Financial Statements 2016 and its role in society. Executive Board 25.0% 75.0% 25.0% 75.0% Supervisory Board 25.0% 75.0% 33.0% 67.0% Unethical conduct and fraud Fraud, including corruption and unethical conduct, undermines public trust in a.s.r. and in the financial sector as a whole. a.s.r. attaches great value to its integrity and good reputation as a financial services provider, and is committed to preventing fraud and unethical conduct. a.s.r. actively looks to prevent, detect and investigate fraud and/or unethical conduct, and to address it in a uniform and adequate manner. a.s.r.’s fraud prevention policy is based on the sector-wide policy that financial institutions use to fight fraud. This policy promotes compliance with Other relevant laws, regulations, ethical standards and any related internal procedures. a.s.r. has in place an incident policy and desk for reporting incidents and data leaks. Under the whistleblower procedure, a.s.r. employees can report instances of malpractice (or suspected malpractice) freely and without feeling threatened. Violation of or


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    Strategic Report | 2.5 Sustainability 45 Breakdown of workforce by gender and age Introduction 2016 2015 Male Female Male Female 16-20 1 1 1 1 21-25 40 36 31 34 26-30 117 148 109 125 31-35 200 169 200 178 36-40 234 219 252 221 41-45 290 208 324 220 46-50 365 219 373 219 Strategic Report 51-55 337 179 356 187 56-60 325 102 311 91 61-65 141 33 113 29 >65 1 - - - Subtotal 2,051 1,314 2,070 1,305 Total 3,365 3,375 Sustainable employability and will be submitted for approval. After this approval has Business Report In order to also enable employees to participate in the been granted, a.s.r. will implement the policy. labour market for as long and as actively as possible, they need to be motivated and have the right skills and training Training and development background. a.s.r. creates opportunities that enable each In addition to an extensive range of job-related employee to increase their chances on the labour market. development courses, a.s.r. has developed various In this process, employees can seek the guidance of career initiatives that support employees in their further coaches and an extensive range of workshops and courses. development. In 2016, 295 employees received sustainable employability counselling and 112 availed themselves of mobility services Courses taken in 2016 Governance Report (redundancies). The Other Plan will be kicked off in 2017 and, as part of Mobility Concrete, a.s.r. wants at least 10% of all employees to make use of counselling and/or take Duration of course one or more sustainable employability workshops every - Male 31,88 hours year. - Female 31,12 hours Number of employees 2,006 Health and vitality - Male 1,221 a.s.r. is committed to the health and vitality of its - Female 785 employees, for instance via its occupational health & safety policy and its focus on the importance of mental On the Move Financial Statements 2016 and physical health, the provision of sports facilities and This project offers support to colleagues who want to take online and other courses on time management and the charge of their own future in terms of talent development prevention of work-related stress. or sustainable employability, or because they are made redundant. By helping our employees to develop, we Through The New World of Work and the provision of increase their agility and their chances on the labour convenience services, a.s.r. tries to contribute to a healthy market, which also helps to prevent them from becoming work/life balance for its employees. redundant (in the longer term). In 2016, the following a.s.r. put extra focus on health and vitality in 2016 through number of the employees applied to qualify for On the initiatives such as the national stair-climbing week, the Move: week of work-related stress and (anti)bullying week. • 948 employees took a sustainable employability workshop; In May 2016, ArboNed, a.s.r.’s occupational health & safety • 286 employees took part in an individual counselling service, performed a Risk Inventory & Evaluation (RI&E) project; Other in the areas of safety, health and welfare. a.s.r. amended • 112 employees received guidance after having been the Occupational Health & Safety Policy 2016-2020 on the declared redundant. basis of the outcome of the RI&E. The recent amendments to the Dutch Occupational Health & Safety Act were also added in this process. The Occupational Health & Safety Policy 2016-2020 was discussed with the Works Council


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    Strategic Report | 2.5 Sustainability 46 On the Move Café Review Introduction Last year saw the opening of the On the Move Café, a live During the annual employee review, a.s.r. draws up meeting place where everything revolves around career an inventory of its employee base by discussing the development and sustainable employability. Last year performance and potential of all managers and employees, a.s.r. organized 11 On the Move Cafés. Themes addressed and entering them in a matrix. The results serve as input for included personal branding, the labour market for people strategic staffing, development programmes, succession over 50, developments in the IT&C market and self- planning, mobility and recruitment. employment. Development programmes Strategic Report Four development programmes in 2016 Programme Pay scales Invited in 2016 Right person, right place All 338 Professional Development Programme PDP 2 to 8 229 Talent Development Programme TDP 9 to 12 295 Management Development Programme MDP 13 to 15 42 All development programmes consist of modules, span a This narrows down the group of potential candidates, so Business Report year and focus on themes such as captivating, developing, that a.s.r. engages only with candidates who are actually inspiring and strengthening. The modus operandi ranges suitable for a role. a.s.r. is also making more and more use from workshops, peer reviews, mentoring, individual of social media to showcase vacancies and what is like to courses, management lunches and group assignments work at a.s.r. a.s.r. employees are given priority to retain to participation in social projects. Delegates decide for knowledge and experience for the organization and to themselves what they sign up. Participation is voluntary, increase people’s internal agility. but not without obligation. Pay and benefits Trainee programme Based on the outcome of the survey of pay and benefits a.s.r. offers a trainee programme in which trainees spend (the preference scan) in October 2015, a.s.r. initiated the Governance Report 18 months at a business unit, during which they are project to modernize its pay-and-benefits package in 2016. involved in four different projects. This allows the trainees, a.s.r. asked the Works Council what criteria should be the who are university-educated, to build up targeted pay-and-benefits package meet to qualify as sustainable knowledge and experience. Trainees are hired specifically and future-proof. These are: freedom of choice, fewer for a business line or discipline. After the traineeship, rules, transparency and clarity, sustainability, focus on the trainee is offered a job. Five trainees started in 2015 development/growth, simplicity, mature employment and in 2016, six trainees were taken on in April and ten in relationship and competitiveness. November. New redundancy plan: The Other Plan Leadership development Prior to a restructuring operation, a.s.r. consults the Financial Statements 2016 In 2016 a.s.r. set up a leadership development programme relevant employee representation body (Works Council). which will be kicked off in 2017. Once this process is completed, the company implements the restructuring. The employment implications are Dutch Financial Supervision Act (Wft) covered in the redundancy plan that has been agreed On 1 January 2017, a set group of front-office staff are with the trade unions. Under the redundancy plan 2016 required to meet the requirements of the new professional (The Other Plan), the counselling process starts from the competence framework of the Dutch Financial Supervision date that an employee becomes redundant. An employee Act. This means that they need to have earned professional receives guidance over a period of six months (26 weeks); qualifications and must be able to demonstrate that they during this period, which is meant to help them find a new are taking continuing education courses. In November job, the employee is exempted. 2016, 187 employees were Wft-certified and two employees holding a role governed by the Wft were not The redundancy plan 2015 was in force for 2016. In 2017 Wft-certified. One of these two people will leave the and 2018, The Other Plan will be different in terms of Other organization; while the second has signed up for On the both design and scope; it will focus on development and Move. sustainable employability. A (potential) restructuring will be divided into three stages: Recruitment and selection • My Plan, stage 1: expectation of (potential) redundancy; To attract the right people in the market, a.s.r. is making • My Plan, stage 2: after notice of redundancy; use of aptitude and ability tests in its recruitment process. • My Plan, stage 3: from the time of redundancy.


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    Strategic Report | 2.5 Sustainability 47 2.5.3 Investments Introduction Sustainable investments external client portfolios, covering internally managed as The a.s.r. SRI policy describes the ethical and sustainability well as externally managed assets. The full a.s.r. SRI policy criteria that apply to a.s.r. investments for internal and is available on asrnl.com. KPIs Investments Strategic KPIs Targets Results Material aspects Mission principle Risks Strategic Report 8. Compliance 100% Socially Make a Meeting If a.s.r. does not invest in a with own CSR responsible contribution customer socially responsible manner, policy with investment to society needs investments may not match specific focus policy (L) the values and standards of on integration our policyholders, creating of commercial the risk of loss or reputation asset management 9. Active At least 7 Socially Make a Meeting engagement responsible contribution customer Business Report dialogues investment to society needs policy (L) 10. Publication of 2 publications Socially Make a Meeting list of excluded for companies responsible contribution customer companies and and investment to society needs countries 1 publication policy (L) for countries 11. Tenant At least 7.0 Customer An insurer that Meeting Unhappy customers might Governance Report satisfaction satisfaction customers can customer terminate their relationship rating 1 and Service count on needs with a.s.r. and generate (G) negative media attention, creating the risk of loss of reputation 12. National Start review Offering An insurer that Meeting Products that do not property socially customers can customer sufficiently meet social portfolio responsible count on needs standards and values create Financial Statements 2016 asbestos-safe products (I) a risk of falling short of by 2020 customer needs, leading to unhappy customers 8. 100% compliance with own CSR policy, of transition towards harmonization. We introduced the including (after integration) commercial asset a.s.r. sustainability policy, while the old sustainability policy management for asset management (based on Sustainalytics scores) We safeguarded full compliance of our SRI policy a was also applied. The exclusion criteria for countries and three-step process in 2016: internal teams (Investment companies have been set up through pre-trade and post- departments), compliance process (Risk) and an trade compliance. Sustainalytics performs ex-post audits of independent audit by an external party (Forum Ethibel). asset management funds; the outcomes are published on Other On the asset management portfolios front, 2016 was a year asset management’s corporate website. 1 The definition of the calculation of the tenants satisfaction of offices in 2016 is equal to the tenants satisfaction definition of stores. Therefore, the tenant satisfaction has a different value compared to 2015.


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    Strategic Report | 2.5 Sustainability 48 9. Active engagement dialogues: at least In addition, Forum Ethibel (forumethibel.org) carries out Introduction seven engagement projects per calendar year an independent audit and certification of SRI principles in a.s.r. uses three forms of engagement: a.s.r.’s investment portfolio and the engagement process • Monitoring; on a semi-annual basis. • Influencing; • Public engagement. ESG Integration for best-in-class investments Best-in-class investing is part of the a.s.r. selection In 2016, a.s.r. entered into a partnership with engagement process for companies based on ESG best practices specialist RobecoSAM on the engagement by influencing and products. a.s.r. favours companies that deliver an front. In consultation with RobecoSAM, a.s.r. has selected above-average performance in the area of ESG policy a number of companies and is seeking to engage with at and implementation. Based on VigeoEiris research, they Strategic Report least seven of these companies each calendar year. In 2016, are classified as pioneering, best-in-class and sustainable a.s.r. participated in 12 engagement dialogues. companies using a relative, sector-based ranking for six domains of analysis: Human Resources, Environment, 10. Publication of list of excluded companies Market Ethics, Good Governance, Social Impact and and countries Human Rights. A detailed description of these criteria has a.s.r. wants to increase the transparency of its CSR policy been posted on asrnl.com. and its implementation. In 2016, a.s.r. started to publish lists of excluded companies (based on controversial Engagement activities) and countries on its corporate website (asrnl. For a.s.r., there are three types of engagement: com). In 2016, we started publishing a list of the companies • Engagement for the purposes of influencing: This Business Report we are engaging with, including the criteria and status. type of engagement is used with companies who have been identified as acting in conflict with the Sustainable investing at a.s.r. UN Global Compact Principles governing human The a.s.r. SRI policy has been integrated into the rights, labour rights or the environment. Since 2016 investment practice by way of: a.s.r. has published the list of companies, the reasons for engaging with them and the current status on its Exclusion criteria for countries and companies corporate website. This information is updated twice a a.s.r. pursues a strict exclusion policy based on year parallel to the a.s.r. SRI screening cycle; controversial activities that we apply to internally managed • Engagement for the purposes of monitoring: During portfolios, both for countries and companies. This policy 2016, a.s.r. frequently raised the issue of sustainability Governance Report covers producers of controversial or offensive armaments, with various companies in its investment portfolio, for nuclear energy (if more than 50% of a company’s revenues), instance to discuss executive remuneration, but also gambling and tobacco. In 2016, a.s.r. analyzed and with suppliers to review and enhance their ESG criteria, identified climate-related risks for its investment portfolio, and with clients or consultants to improve a.s.r.’s SRI such as stranded assets and changing business models policy and implementation. a.s.r. was also invited as a in the mining and energy sectors. As a first step, a.s.r. stakeholder to elaborate on its views and requirements expanded its exclusion policy for companies to include in the area of sustainability reporting for an external severe environmental breaches or the generation of party; 30% or more from their direct revenues from coal. a.s.r. • Public engagement: In 2016, a.s.r. actively participated also requires businesses to comply with international in a broad dialogue to create an International Financial Statements 2016 conventions on human rights and labour rights, and Corporate Social Responsibility (ISCR) sector covenant, applies criteria related to gender equality, freedom of together with peers, the public sector and various union, exclusion of child labour, indigenous people’s social institutions. a.s.r. became a signatory and rights, etc. By the end of 2016, 186 of the screened took part in a work stream of the Dutch Sustainable companies had been excluded due to their involvement Developments Goals (SDG) Call for Action, which in human rights violations (3), labour rights violations (3), aims to accelerate the implementation of SDGs in the environmental violations (6), armaments (68), tobacco Dutch financial sector. a.s.r. hosted the 20th anniversary (15), gambling (31), coal (55) and nuclear energy-related of the Dutch Association of Investors for Sustainable activities (5). With regard to investments in sovereign debt, Development (VBDO) which focused on the theme a.s.r. has excluded 81 countries that are poor performers of Impact Investing. a.s.r. gave its commitment as a in the annual report of Freedom in the World or have a low sponsor for the SAA Masterclass series on climate risks. ranking on the Corruption Perceptions Index. In addition, a.s.r. provided input for academic research, questionnaires and publications regarding various Other Sreening process sustainability issues, such as natural capital or impact VigeoEiris (vigeo-eiris.com), an independent agency investing. accredited by Arista, screens companies using the a.s.r. SRI policy as a basis. The Arista Standard sets the rules Impact investing for assessing evidence of transparency and verifiability of In the investment process, a.s.r. pays special attention to the processes involved in Responsible Investing research. impact investing. Through these investments, a.s.r. makes


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    Strategic Report | 2.5 Sustainability 49 a sustainable contribution to society, for instance through • International Convention on the Eliminations of All Introduction waste recycling, renewable energy (solar and wind), social Forms of Racial Discrimination (1965); enterprises or contributing to health improvements. In • International Covenant on Civil and Political Rights 2016, a.s.r. committed € 5 million to Social Impact Ventures (1966); (socialimpactventures.nl) and provided € 30 million in • International Covenant on Economic, Social and funding for the Dutch SME market via private loans/bonds. Cultural Rights (1966); By the end of 2016, our exposure to non-listed impact • Convention on the Elimination of All Forms of investments stood at slightly more than € 57 million. a.s.r. Discrimination against Women (1979); also invested in listed vehicles, such as green bonds, that • Convention Against Torture and Other Cruel, Inhuman address specific environmental or societal needs. or Degrading Treatment or Punishment (1984); • Convention on the Rights of the Child (1989). Strategic Report Voting policy International Convention on the Protection of the Rights A shareholders’ right to vote is essential for the proper of; functioning of a corporate governance system. We • All Migrant Workers and Members of Their Families exercised this right whenever relevant. a.s.r.’s voting (1990). policy (asrnl.com) has been developed in accordance with the Dutch Corporate Governance Code and a.s.r.’s SRI Procurement policy. This policy is applicable to all internally managed a.s.r. wants to ensure that international human rights are listed equities. In 2016, a.s.r. voted at nearly 93% of the respected throughout the production process of the goods shareholder meetings held by equity investments. and services that are purchased. These sustainability aspects are assessed in all new contracts and contract Business Report The voting accountability report provides a semi- renewals. annual review of how a.s.r. exercised its voting rights at shareholder meetings. The full report for 2016 is available Sustainable real estate on a.s.r.’s website. 11. Tenant satisfaction rating of at least 7.0 Human rights a.s.r. Real Estate Investment Management (a.s.r. REIM) Human rights are basic rights and freedoms that all seeks to rent properties to committed, mindful and people are entitled to. a.s.r. respects and subscribes to satisfied tenants. In this context, it periodically performs fundamental human rights as internationally agreed in customer satisfaction surveys of tenants of residential the Universal Declaration of Human Rights, and a.s.r. properties (ASR DCRF), retail and office properties (ASR Governance Report expects the same from its employees, customers and other DPRF and ASR PF) and lessees and leaseholders (rural real business associates. estate). Investment portfolio The most recent surveys have shown that the scores Moreover, a.s.r. fully endorses human rights in its business achieved were as follows (on a ten-point scale): ASR DCRF: dealings, for instance by implementing various policies, 7.1; ASR DPRF: 7.2; rural real estate: 7.5. In other words, such as the voting policy or the Socially Responsible these business lines met the target. With a score of 6.5, the Investment Policy. a.s.r. signed the United Nations Office business line fell short of the mark; its key objective Principles for Responsible Investments (UNPRI) in 2011. is to improve upon this score. This target will apply in the a.s.r. always verifies, with the assistance of an independent coming year. Financial Statements 2016 international screening agency, whether companies included in its investment portfolio are not involved in 12. National property portfolio asbestos-safe human rights abuses. by 2020 a.s.r. REIM seeks to minimize the presence of asbestos in a.s.r. excludes investments in companies if they are its existing Dutch property stock. To achieve this, the entire complicit in systematic and/or gross violations of human portfolio of retail, office and residential properties has rights. These human rights standards can be found been made asbestos-safe. Some buildings in the rural real in the International Bill of Human Rights (IBHR). IBHR estate portfolio may still contain asbestos. In order to make consists of the Universal Declaration of Human Rights, the its rural real estate portfolio fully asbestos-safe by 2020, the International Covenant on Economic, Social and Cultural goal for 2016 was to conduct an asbestos screening and to Rights and the International Covenant on Civil and Political perform asbestos abatement procedures at no less than Rights and its two Optional Protocols. There are nine core 5% of at-risk addresses. a.s.r. exceeded this goal in 2016 international human rights treaties. Each of these treaties was amply achieved: 27% of the addresses in the portfolio Other has established a committee of experts to monitor the were declared asbestos-safe. implementation of the treaty provisions by its contracting parties. Some of the treaties have been supplemented a.s.r. REIM invests for its clients in retail properties, with optional protocols covering specific concerns. These residential units, offices, agricultural land and country includes: estates.


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    Strategic Report | 2.5 Sustainability 50 Making real estate more sustainable Introduction a.s.r. REIM seeks to make the properties in its portfolio more sustainable at natural moments using as many green solutions as possible using sustainable materials and methods and with a keen eye for the risks associated with asbestos and soil pollution. Sustainable forestry Part of a.s.r. REIM’s assets under management qualify as rural real estate, some of which (15%) are country estates with wooded areas and natural habitats. a.s.r. REIM’s Strategic Report forest management meets the sustainability principles of the codes of conduct for nature management and forest management. Through these investments, a.s.r. REIM makes a structural contribution to the management and upkeep of the Dutch (agricultural) landscape. Sustainable investing By participating annually in the GRESB, a.s.r. REIM improves the transparency and awareness of sustainability. Business Report In 2016, all three funds improved their score compared the scores for 2015: • ASR Dutch Core Residential Fund (ASR DCRF) – Green Star with two stars; • ASR Dutch Prime Retail Fund – Green Star with three stars; • ASR Property Fund (ASR PF) – Green Talker. The ambition is to achieve and retain Green Star status (highest rating) for all three funds. Governance Report Society a.s.r. REIM participates in two institutions for general public advancements (foundations), whose mission is to monitor natural and scenic values and cultural and social heritage, as well the management of same for future generations to enjoy: • Stichting Ambachtsheerlijkheid Cromstrijen; • Stichting Kasteel Bleijenbeek. Financial Statements 2016 Other

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