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    2020 Annual Report Dit is de tijd van doen.


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    Cover The campaign slogan, which appears on the title page, is ‘Dit is de tijd van doen’. This translates as ‘Now is the time for action’. This annual report features illustrations of these campaigns accompanied by explanatory text. The slogan was chosen to indicate that the time for inaction is past. If a sustainable future is to be achieved, steps must be taken now. It is important to be fully aware of the consequences these choices will have for the long term. a.s.r. wants to provide insurance in a way that contributes to a fair and sustainable society. And the more people and companies that do so, the better things will be. ASR Nederland N.V. Archimedeslaan 10 P.O. Box 2072 3500 HB Utrecht The Netherlands www.asrnl.com


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    2020 Annual Report


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    1 About a.s.r. 2 3 4 5 6 7 8 9 Contents 1 About a.s.r. 6 6 Financial statements 148 1.1 At a glance 8 6.1 Introduction 152 1.2 Message from the CEO 12 6.2 Consolidated financial statements 154 1.3 Value creation model 14 6.3 Accounting policies 162 6.4 Group structure and segment information 183 2 Operating environment 16 6.5 Notes to the consolidated balance sheet 194 2.1 The story of a.s.r. 18 6.6 Notes to the consolidated income statement 222 2.2 SWOT analysis 23 6.7 Other notes 230 2.3 Stakeholders and material topics 24 6.8 Risk Management 249 2.4 Strategic targets and results 28 6.9 Capital management 283 2.5 Sustainable Development Goals 32 6.10 Operating result 288 6.11 Company financial statements 290 3 Sustainable value creation 34 3.1 Sustainable insurer 36 7 Other information 300 3.2 Sustainable investor 41 7.1 Independent auditor's report 302 3.3 Sustainable employer 47 7.2 Provisions of the Articles of Association 3.4 Sustainable management 54 regarding profit appropriation 320 3.5 Investor community 65 3.6 Role in society 68 8 Report of the Stichting Continuïteit ASR Nederland 322 4 Business performance 72 8.1 Report of Stichting Continuïteit ASR 4.1 Group and segment performance 74 Nederland 324 4.2 Risk management 98 4.3 Compliance 105 9 Annexes 326 4.4 Approach to addressing climate change 106 A Facts and figures 328 4.5 Statements of the Executive Board 115 B About this report 339 4.6 Assurance report of the independent auditor 116 C Glossary 341 D Abbreviations 346 5 Governance 120 E Materiality analysis and stakeholder dialogue 348 5.1 Corporate Governance 122 F GRI Content Index 351 5.2 Supervisory Board report 131 G EU Directive: disclosure on non-financial and 5.3 Remuneration report 138 diversity information 354 5.4 Employee participation 147 The financial statements for 2020 as included in this annual report are on the agenda for adoption at the Annual General Meeting of shareholders of 19 May 2021. Annual Report 2020 | Contents 5


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    Sustainable investment policy


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    1 About a.s.r. For a.s.r., sustainable investing is a positive contribution to a sustainable means rather than an end. This is the society. best option for all stakeholders in the a.s.r. wants to play long term. a.s.r. believes in engagement through a prominent role in All investments managed by constructive dialogue with the companies it invests in, with the aim sustainable business a.s.r. asset management are screened for their social and environmental of increasing long-term shareholder value and the social return on practice through aspects and governance criteria, investment. based on a.s.r.’s SRI (Socially its sustainable Responsible Investment) policy. a.s.r.’s sustainable investment policy Countries and companies that was devised to enable sustainable investment policy fail to uphold these criteria will be and responsible investment excluded, whereas a.s.r. will increase while minimising the negative investments in those that make a consequences for investment returns.


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    1.1 At a glance Company facts Leading market positions and 4,042 #3 Founded in 1720, employees overall in Dutch market Head office deeply rooted in (FTEs) based on gross written in Utrecht Dutch society premiums (excl. Health) Group and business performance Operating result IFRS net result Operating return on equity IFRS Return on equity (in € million) (in € million) (in %) (in %) 885 2019: 858 656 2019: 972 15.3 2019: 15.1 11.7 2019: 19.1 Solvency II ratio Organic capital creation Total equity Total equity attributable (Standard Formula) (in %) (in € million) (in € million) to shareholders (in € million) 199 2019: 194 500 2019: 501 6,093 6,313 5,089 5,309 Dividend per share (in €) Total dividend (in € million) 2.04 2019: 1.90 282 2019: 267 2019 2020 2019 2020 Gross written premiums New business Life Operating expenses Combined ratio (in € million) segment (APE) (in € million) (in € million) (Non-life segment) (in %) 5,276 124 2019: 4,666 2019: 159 -701 -656 2020 2019 2020 2019 93.6 93.5 Interest coverage ratio Financial leverage Share buyback Credit rating (Factor: x) (in %) (in € million) (S&P) 9.5 2019: 12.9 28.3 2019: 29.2 75 A 2019: A About a.s.r. | 1.1 At a glance 8


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    1 About a.s.r. 2 3 4 5 6 7 8 9 Non-financial performance Net Promoter Score Impact investing Carbon footprint Employee contribution (in € billion) (in % of portfolio for own account) to local society (in hours) 49 2019: 44 1.7 2019: 0.9 93 2019: 89 4,398 2019: 12,413 Supervisory Board Executive Board Senior management Other employees (in %) (in %) (in %) (in %) Female Male Female Male Female Male Female Male 33 67 67 33 28 72 43 57 2019: 33 / 67 2019: 33 / 67 2019: 25 / 75 2019: 42 / 58 Dow Jones Sustainability Sustainalytics Carbon Disclosure Project Vigeo Eiris Index (DJSI) (0-100) (100-0, lower is better) (CDP) (D- to A+) (0-100) Number 82 2019: 73 14.7 2019: 13.6 C 2019: B 60 2018: 521 MSCI ISS Oekom FTSE4Good Fair insurance guide (CCC to AAA) (D- to A+) (0 - 5) (out of 9 largest Dutch insurers) Number BBB C 2019: BBB 2019: C (prime) (prime) 4.3 2019: 4.9 1 2019: 1 For the multi-year overview, please refer to Appendix A Facts and figures. 1 Vigeo Eiris takes place on a bi-annual basis. For that reason the 2018 results are presented. About a.s.r. | 1.1 At a glance 9


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    a.s.r. operating segments and brands Non-life Asset Management ASR Nederland N.V. Life Distribution and Services Holding and Other ASR Nederland N.V. ASR Nederland N.V., hereinafter ‘a.s.r.’, is a Dutch Gross written premiums Operating result insurance company for all types of insurance. a.s.r. offers (in € million) (in € million) a broad range of non-life and life insurance products, mortgages and investments products for consumers, self-employed people and companies. a.s.r. is active as an investor and provides asset management services to institutional clients. Furthermore, a.s.r. is a full service provider for intermediaries and operates exclusively in the Dutch market. Find out more on page 74 5,276 885 2019: 4,666 2019: 858 Non-life The Non-life segment consists Gross written premiums Combined ratio of Property & Casualty (P&C), (in € million) (P&C and Disability) (in %) Disability and Health. 3,643 2019: 3,192 93.6 2019: 93.5 Operating result Cost ratio (in € million) (in %) Find out more on page 77 241 2019: 226 8.1 2019: 8.4 Brands About a.s.r. | 1.1 At a glance 10


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    1 About a.s.r. 2 3 4 5 6 7 8 9 Life The Life segment Gross written premiums Operating result Life operating expenses consists of Pensions, (in € million) (in € million) on basic life provision Individual life and (in bps) Funeral. Find out more on page 85 1,810 730 2019: 1,619 2019: 696 45 2019: 53 Brands Asset Management The Asset Management segment Assets under management for Operating result relates to asset management of the third parties (in € million) insurance entities as well as third (in € billion) party asset management. 25.4 31 Find out more on page 89 2019: 22.0 2019: 24 Brands Distribution and Services The Distribution and Services Total income Operating result segment includes the activities (in € million) (in € million) related to distribution of insurance contracts. 99 25 Find out more on page 94 2019: 90 2019: 23 Brands About a.s.r. | 1.1 At a glance 11


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    1.2 Message from the CEO It is now a year ago – 15 March 2020 to be precise – that we decided that all employees had to work from home. COVID-19 was then beginning to gain a hold on the country and the government responded by introducing what became the first lockdown. Apart from a brief period during which our employees were permitted a limited return to the office, we are still in a state of lockdown and working from home. We are therefore delighted that in spite of this, we have not only reported a strong financial performance for 2020, but have also been able to further strengthen our good relationship with our customers and intermediaries over the past year. Furthermore we have been able to offer practical solutions to those of our customers particularly hard hit by the COVID-19 crisis, e.g. in the form of payment schemes. Our performance Working from home We are satisfied with the company’s results for 2020. We have done and continue to do our utmost to make a.s.r. either met or surpassed its financial targets, an it as easy as possible for our employees to thrive at their achievement to which all the business lines contributed. work, even when working from home. Both physically, by Our operating result went up, gross written premiums providing good IT and office equipment, and mentally by (GWP) for Non-life and Life showed a rising trend, as providing training, courses and tips & tricks for keeping did solvency. Mortgage production rose sharply and we fit and active. We also give employees the opportunity also saw growth in our fee business. Our organic capital to periodically take time off to spend on personal creation (OCC) remained stable despite the impact of matters such as childcare and informal care. Together, lower interest rates. However, the net IFRS result for 2020 these measures have kept morale, motivation and vitality was below the 2019 result, partly due to volatility on high throughout the COVID-19 crisis so far. These levels the financial markets as a result of the COVID-19 crisis. are measured weekly using a mood monitor we have In the light of our results for 2020 and in line with our developed ourselves. Another positive introduction has dividend policy, we will be paying our shareholders an been the a.s.r. Vitality programme, which is also offered annual dividend of up to € 2.04 per share, a growth of 7% to employees and customers, helping people to remain compared to 2019. Based on our robust solvency position fit and active. and OCC, we have decided to repurchase € 75 million of our own shares in 2021. Due to lockdown restrictions and social distancing rules, our employees have not been able to do as much of the We have maintained our high level of service in 2020, volunteer activities we typically do for society, which is and customer satisfaction has actually improved. Our one of our non-financial medium term targets. To protect Net Promoter Score (NPS) has gone up by five points the health of our employees and the people involved in to 49, this is well above our target of > 44 as well as these projects, we had to either cancel or scale down being the highest NPS a.s.r. has achieved to date. The these activities. In some cases, we have been able to intermediaries we work with also appreciate our efforts. convert to digital versions. As soon as social distancing At the annual Adfiz survey (association of independent measures are lifted, we will scale them up again. intermediaries) a.s.r. won all three awards for Best Partner in terms of efficiency, insurability, business Strategy and customisation. These themes are crucial for good During the past year, the Executive Board (EB) regularly cooperation with the intermediary and ensure good discussed the strategy of a.s.r. and concluded that our customer service. current strategy still allows us to operate successfully on the Dutch market. We will therefore continue to adhere a.s.r.’s purpose is to help customers share risks and to its roll-out and to our aim of creating sustainable accumulate assets for later, using sustainable solutions value for our stakeholders, in which our goal is to grow to benefit people, the environment, society and both organically and through targeted acquisitions. The future generations. We are glad to report that this focus is on Non-life, Asset Management and Distribution. is progressively being recognised and acknowledged, Another priority for 2021 will be the ongoing digitisation with a.s.r. increasingly featuring in the top echelon of our organisation and customer service, and the of sustainability rankings and benchmarks. The most further sharpening of customer focus throughout the significant appreciation we were given in 2020 was our organisation. The goal is to digitise our customer service inclusion in the Dow Jones Sustainability World Index. as far as possible, since we know that customers can and This means we are among the 10% top-performing want to do more online. Doing so improves customer insurers worldwide in terms of sustainable business satisfaction and it is also more sustainable because it operations. means we can significantly cut down on paperwork. About a.s.r. | 1.2 Message from the CEO 12


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    1 About a.s.r. 2 3 4 5 6 7 8 9 In doing so, we will factor in the interests and role of the These uncertainties do not only hit us but of course also independent intermediaries. our customers and intermediaries. a.s.r. will do the utmost it can to help resolve this issue, in which prevention will Another noteworthy milestone for 2021 is that we will be an important element. This is our role as an employer be saying farewell to De Amersfoortse as a separate and as a sustainable business partner in society. brand. a.s.r. will continue with the same employees, insurance products and level of service to offer itself as a Also in a broader perspective, we will exercise our trustworthy partner for self-employed persons, employers responsibility as an insurer and make the choices needed and advisors alike. By moving forward as a single brand to help build a sustainable and sound economy and a we will strengthen the a.s.r. brand and further consolidate society in which everyone counts and feels free to take our market position. part and to gain from opportunities presented to them. Governance We also want to take steps in this regard within our own Two new EB members joined a.s.r. in late 2019 and begin organisation. Surveys have shown that our employees 2020: Ingrid de Swart and Annemiek van Melick. Like the feel respected and enjoy equal opportunities. This is rest of the company, the EB was affected by the measures underlined with the latest Gender Equality report by taken in response to COVID-19. Nonetheless, we were Equileap, in which a.s.r. is included in the top 100 out able to work closely together and I am greatly impressed of 3,500 companies worldwide. Nonetheless, we continue by how quickly and effectively they have mastered their to further improve diversity and inclusion at a.s.r. We have roles at a.s.r. under these circumstances. therefore started a process to encourage these topics to be addressed at all levels in the organisation. The EB Kick van der Pol, who has been Chairman of the and senior management have been among the first to Supervisory Board (SB) for the last 12 years, will be have taken training in this area, to be followed by all standing down at the Annual General Meeting (AGM) employees. of Shareholders this year. Kick made an invaluable contribution to a.s.r. during his years in office. This Acknowledgement includes, not least, his efforts to ensure an independent Over the past year, we have invested a great deal in role for a.s.r. on the Dutch insurance market and our Initial maintaining contact with employees, customers and our Public Offering (IPO) in 2016. Moreover, his analytical shareholders. And while we are aware that it is not always skills and ability to ask the right questions always easy to do everything over a video or phone link, we provided us with inspiration as well as challenge. We are pleased that we have nevertheless managed to retain will miss Kick, but are grateful that he will be followed these contacts. We have been able to maintain contact by a worthy successor in the person of Joop Wijn, who with analysts and investors to answer questions and tell joined the SB in autumn 2020. I have every confidence in them what we do, hold regular digital employee sessions Joop as the new Chairman of the SB and look forward to with the entire company and seamlessly transfer all our working with him. customer contacts from our call centres to the homes of our employees. Looking forward In 2020 we managed to mitigate the impact of COVID-19 We would like to thank all our employees, customers on our business and we remain on track to meet our 2021 and shareholders for their ongoing support and the targets as communicated on our Capital Markets Day confidence they have placed in a.s.r. We hope that during (CMD) in 2018. The impact of COVID-19 going forward the course of 2021 we will to some extent be able to is however still impossible to accurately predict. This return to the pre-COVID situation, to enjoy genuine face­ depends on the speed with which the pandemic is being to-face contact and restore social cohesion. contained and therefore the rate at which the current restrictions are lifted, as well as on the impact on society Jos Baeten and the economy also after the government support CEO and Chairman of the Executive Board measures have been completed. Specifically the GWP growth in Non-life could be affected by the economic situation for small and medium-sized enterprises (SME), corporates and self-employed post COVID-19. About a.s.r. | 1.2 Message from the CEO 13


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    1.3 Value creation model a.s.r. is committed to create sustainable, long-term value business, to the economic, social or environmental value for its stakeholders. This value may be economic, social or created (output, outcome and impact) as a result of its environmental. activities. This model is based on the framework developed by the International Integrated Reporting Council (IIRC). The value creation model shows the creation of this value from the resources or ‘capitals’ which a.s.r. utilises in its Input Business model Financial • GWP: € 5,276 million • Assets under management (Aum) for third parties: € 25.4 billion • Total equity: € 6,313 million • Total liabilities: € 70.9 billion le value crea tainab • IFRS net result: € 656 million t i on S us egic principles Manufactured S tra t • IT infrastructure Head office a.s.r. strategic principl • Best in class operator y Ke • e Intellectual Core values rk Be • Smooth internal processes and excellent service ewo st to Life, Non-life, Asset Management and other fna Purpose Solid fnancial fram customers ncial s • Intelligence to prevent fraud and cybercrime • Craftsmanship in pricing, underwriting and a.s.r. helps customers share risks and accumulate capital for ervice provide claims management later. The sustainable solutions a.s.r. offers, take into account Human the interests of people, ess • • Employees: 4,365 (headcount) environment, society and Finan ition Training spending per FTE: € 1,285 r for • future generations. iven It ly • Responsible business including sustainable nk an s ve hi i cus cial cis e ct policies, the a.s.r. code of conduct, the a.s.r. ah de y tr ea t eff Collective Labour Agreement (CLA) and a.s.r.’s d• t om s I’m helpful • I a c elf erg st Vitality programme er -re Co s• en li a xc t• E d en nc el an Value len over volume m e Social c ge ge an d ei a in clu np ma n an • Customers: > 1.5 million siv ricin ims ch Intermediaries: > 5,000 g, un d cl a te derwriting an ma • en • Business partners and suppliers ess Cli •V itali ilit y• • Employee turnover rate: 10.0% ty an ab • Number of employees volunteering in a.s.r. d (sustainable) employ foundation: 427 Natural Key trends • Energy consumption per m²: 78 kWh • Technological • Environmental and demographic • Economic and financial markets • Political and regulatory About a.s.r. | 1.3 Value creation model 14


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    1 About a.s.r. 2 3 4 5 6 7 8 9 Impact Output Outcome Positive impact Negative impact Financial Financial • Correct and smooth • Claims and benefits paid: € 5.1 billion a.s.r. pays out pensions, insurance claims and claim handling and • Dividend to be paid: € 282 million investment returns. a.s.r. pays taxes and other payment to customers • Interest expenses: € 331 million contributions to society. • Stable annual dividend • Solvency II ratio: 199% a.s.r. maintains a strong balance sheet and takes a per share • Organic capital creation (OCC): € 500 million disciplined approach to capital management, aiming • Payment of interest to • Standard & Poor’s (S&P) rating: A to fulfil its long term commitments to policyholders investors • Financial leverage: 28.3% and to provide attractive and sustainable returns for its • Solid financial results • Combined ratio (COR): 93.6% investors. • Operating result: € 885 million • Operating expenses: € 701 million • Salaries and wages paid: € 276 million Manufactured Manufactured • Good accessibility for • Number of complaints • IT business system supports all employees working Investments in a reliable IT infrastructure enables a.s.r.’s a.s.r.’s customers from home employees to work from home, resulting in a smooth • Improved efficiency • Enhanced digital services and efficient processes continuation of a.s.r.’s business processes. Enabling for a.s.r. customers through robotisation and artificial a.s.r. to serve its customers optimally resulting in a intelligence (AI) positive customer journey. • Know-how in migrating and optimising (acquired) portfolios in a.s.r. IT systems Intellectual Intellectual • Up-to-date digital • Prevention of • 89 complaints relating to privacy a.s.r. creates intellectual value and applies this against customer solutions cybercrime and fraud • 14 notifications of data leaks to the Dutch Data to the benefit of its stakeholders. By deploying • Active contribution to Protection Authority (DPA) intellectual capital, a.s.r. reduces the consequences of avoid money laundering • NPS: 49 money laundering, cybercrime and fraud to a minimum. Additionally this leads to more sustainable and reliable products and services. Human Human • Sustainable • Prevention of incapacity • Employee engagement score: 89 percentile a.s.r. creates value for its employees by paying fair employability of a.s.r.’s for work and no longer • Employability through training and development salaries and offering attractive secondary employee workforce being able to participate • Diverse and inclusive workforce benefits, including pension contributions. a.s.r. also • Diverse and inclusive in the labour market • A healthy and vital workforce invests in the personal and professional development workforce of its employees through training and development to • Equal remuneration for enhance sustainable employability. a.s.r. encourages females and males the vitality of its employees by providing them with a • Healthy and vital safe working environment in combination with the a.s.r. workforce Vitality programme. Social Social • Support to local • Reduction of financial • NPS: 49 a.s.r. creates value by taking responsibility, for example initiatives vulnerability of • Impact investing: € 1.7 billion preventing payment arrears with its customers. • Fair tax payments individuals • SRI policy In addition, a.s.r. delivers an active contribution to • Improved financial • Tax and social security benefits paid: € 772 million the financial development of (future) customers by awareness and social • Voluntary contribution to local society: 4,398 hours financially educating both adults and children. security benefits Sustainable investment is of crucial importance. a.s.r. • Contribution to applies the same strict criteria when investing on behalf financial self-reliance of its customers as it does when investing for itself. Natural Natural • Investment portfolio in • Environmental impact • 2,728 tonnes of CO2 emissions of own operations a.s.r. creates value, for example by continuously line with SRI policy • 2,667,397 tonnes of CO2 emissions of investment investigating where its business operations could portfolio (for own account) become even more sustainable. For investments a.s.r. • Impact investing: € 1.7 billion follows its own SRI policy. a.s.r.’s investments aim at long-term value creation. a.s.r. takes into consideration the fact that the present generation has inherited the earth, hoping to pass it on to the next generation in a healthy shape. About a.s.r. | 1.3 Value creation model 15


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    Sustainability mortgage


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    2 Operating environment In order to contribute to the a.s.r. offers the Verduurzamings- Paris Agreement, it is important to hypotheek as a standard feature a.s.r.’s mortgage encourage home improvements alongside its mortgages. This loan customers can take aimed at sustainability rather than solely allowing sustainable houses has an extra low interest rate and the money is available to the householder out an extra loan to into the a.s.r. mortgage portfolio. This is why a.s.r. has introduced for up to two years. There are many advantages to making homes more make their homes the Verduurzamingshypotheek energy-efficient: it increases comfort, (Sustainability mortgage), which reduces energy bills and helps cut more eco-friendly makes energy conservation measures CO2 emissions. easier and cheaper to finance.


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    2.1 The story of a.s.r. a.s.r. is deeply rooted in Dutch society. In 2020, a.s.r. the concept of ‘helping by doing’, which had originally marked its 300th anniversary and through all these been the starting point for the a.s.r. of old. And which centuries, customers’ needs and interests have been would in turn be refined to ‘a.s.r. doet het’ (a.s.r. does it). at the forefront of a.s.r.'s attention, as this is essential to a.s.r. a.s.r. is committed to delivering products and The IPO in 2016 was a crucial milestone towards future services that are sustainable, clear and transparent. a.s.r. success. A future that a.s.r. celebrated in 2020 then continuously innovates and develops new products and marking its 300 years of history. One that is worth services based on its expertise to meet its clients’ needs experiencing in all kinds of ways. a.s.r.'s long history does in a fast-changing world. a.s.r. values the provision of not only consists of highlights, but unfortunately also independent third party advice to customers as reflected darker periods. Such as the role a.s.r. played in the history in its strong position in the intermediary channel. of slavery and in relation to unpaid Jewish life insurance policies after World War II. 2.1.1 300 years of a.s.r. In the heyday of the Dutch East India Company (VOC), colonial products such as spices and coffee were Only companies that cherish their history have a future. produced by slaves on plantations. As an insurer for ships This is certainly true for a.s.r., because the a.s.r. of 2020 and slaves, a.s.r played a role in this. At the time it was innovates, works every day to serve its customers even no exception, but seen from the current perspective, this better, and considers sustainability to be an integral part way of acting is unquestionably to be disapproved and of its strategy. regrettable. This ambition to offer customers excellent products and During the World War II, Jewish property, including services goes back to 1720, when two businessmen insurance money, was claimed by the Nazis as part of the conceived the idea of setting up an insurance company Holocaust. After the war, Holocaust survivors started legal to satisfy the economic need for investments. This proceedings for unpaid Jewish life insurance policies. was initially done to insure shiploads, but they soon Nowadays there is still a need to answer questions spotted opportunities to further expand their activities. regarding Jewish life insurance policies. The N.V. Maatschappij van Assurantie, Discontering en Beleening der Stad Rotterdam Anno 1720 became a More information and background can be found on a.s.r.'s success despite a stock market crash. website www.asrnl.com. In parallel to this another organisation was founded in the nineteenth century to respond to the need for a proper 2.1.2 Strategy funeral in order to avoid the shame of having a ‘poor man’s’ funeral. This, too, became a success and was also a.s.r.'s strategy as presented in the figure on the next an early example of ‘helping by doing’. This insurer, Let page is based on a.s.r.'s purpose and the idea of op Uw Einde, would eventually result, via De Utrecht, in a sustainable value creation. This means that sustainability name we still remember today: AMEV. is part of everything a.s.r. does and that volume growth must add value to a.s.r. and its stakeholders at all times. The second half of the 20th century was a time of growth, takeovers, consolidations and IPOs in the world Purpose of insurance. In 1990, ASR Verzekeringsgroep was formed, a.s.r.’s purpose is to help people ensure their financial which, following a merger with AMEV, continued as part of stability by sharing risks and accumulating capital for Fortis under the name Fortis ASR. later. The sustainable solutions a.s.r. offers, take into account the interests of people, environment, society Unfortunately, things went wrong in 2007 when the and future generations. It helps them by mitigating financial crisis reared its head, and its repercussions the financial risks they are unable or unwilling to bear were felt across the world. Fortis, together with Banco themselves, and assisting them to accumulate capital for Santander and Royal Bank of Scotland, underestimated their financial needs later on in life. Through its expertise, the consequences of the takeover of ABN AMRO. a.s.r. contributes to long-term solutions for societal issues relating to financial self-reliance and inclusiveness, vitality Following the downfall of Fortis, a.s.r. continued as a and (sustainable) employability and climate change and state owned independent insurer from 2008. a.s.r. set energy transition. about creating an independent raison d’être, based on Operating environment | 2.1 The story of a.s.r. 18


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    1 2 Operating environment 3 4 5 6 7 8 9 le value crea tainab t i on Sus egic principles S t r at y strategic principl Ke e Core values rk est B ewo fna Purpose Solid fnancial fram ncial s a.s.r. helps customers share risks and accumulate capital for ervice provide later. The sustainable solutions a.s.r. offers, take into account the interests of people, ess • environment, society and Finan ition r fo future generations. iven It ly r cu nk an s ve hi i si cial ec t ah ec sto y tr ea td eff d• s I’m helpful • I ac elf me erg st -re Co rs en lia • xc t• E d en nc el an Value len over volume m e ce ge ge an d a in clu in p ma n an siv ricin ims ch g , un e en derwriting and cla m at ess li •V •C ity itali ty an abil d (sustainable) employ Core values business models and customer behaviour. a.s.r. must a.s.r. believes its objectives can only be achieved through stay on top of these trends and developments and be motivated and engaged employees. Having a talented, flexible and agile enough to become the best financial qualified and healthy workforce is key in enabling a.s.r. to service provider. achieve its business targets. The employees are guided by • Excellence in pricing, underwriting and claims a.s.r.’s core values: management • I’m helpful. Employees are approachable, listen To remain competitive, a.s.r. continues to build on its attentively and help customers with solutions using expertise, which it refers to as craftsmanship. a.s.r. their expertise, experience and commitment; excels in disciplined pricing, underwriting and claims • I think ahead. Employees empathise and think ahead management. to proactively help customers, intermediaries and • Cost-effectiveness colleagues; a.s.r. applies a ‘no waste’ cost principle. Cost­ • I act decisively. Employees keep a close eye on effectiveness is not about large one-off cost reduction content and process, and come up with solutions. processes every couple of years, but something a.s.r. They coordinate, are persistent and stand by their believes should be ever-present and embedded in commitments. day-to-day operations. Cost-effectiveness is part of the foundation of sustainable and profitable business Key strategic principle models. • Value over volume • Solid financial framework In the insurance industry, price competition is an a.s.r. is a highly diversified insurer with solid solvency effective instrument and volume growth can be and profitable, capital generating businesses. Its relatively easily achieved by lowering premiums. sound capital base allows a.s.r. to fulfill its long-term However, this short-term growth may attract loss­ obligations and absorb shocks while taking advantage generating business and is therefore unattractive to of opportunities to invest in organic growth as well as a.s.r. in the long term. At all times, growth must meet in selective acquisitions. a.s.r.’s minimum return hurdles and as such add value to a.s.r., whether this is in the form of organic growth or Sustainable value creation growth through acquisitions. a.s.r. seeks to be a leader in sustainable business practices in the financial sector, based on a sustainable business Strategic principles model. It strives to meet the needs of existing and • Best financial service provider for customers potential customers while simultaneously adding value a.s.r. serves its customers’ needs. As mentioned in for its other stakeholders. a.s.r. feels a responsibility to chapter 2.2 SWOT analysis, there are important trends adopt a long-term approach as the starting point for and developments ongoing that affect insurers, their its decisions and activities. And it believes it can make Operating environment | 2.1 The story of a.s.r. 19


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    a positive and sustainable contribution to addressing • Climate change and energy transition societal challenges. Financial institutions increasingly need to take into account the risks associated with climate change There are three areas in which a.s.r. believes it has the and declining biodiversity. a.s.r. contributes to the most impact – and where it can potentially create the transition to a low carbon economy through its SRI and most value for its stakeholders: sustainable products and services; an example is the • Financial self-reliance and inclusiveness Verduurzamingshypotheek. As a financial service provider, a.s.r. feels it is important for people to have financial continuity in their lives, Based on these three areas, a.s.r. invests, develops and to be able to take risks responsibly and make promotes products and services to create sustainable well-informed financial decisions. It therefore helps value for its stakeholders. At the same time the company customers to gain insight into their financial situation recognises its duty to minimise the negative impact of and is helping people to make conscious financial its business activities, including its investment policy. decisions. As an insurer, a.s.r. wants its customers to Therefore, a.s.r. has adopted a strict SRI policy that is be financially secure, now and in the future. a.s.r. continuously being updated, as part of its efforts to be is an insurer for people living and working in the a frontrunner in sustainable and responsible investment. Netherlands. a.s.r. includes vulnerable target groups In doing so, a.s.r. makes sure that its investments are and operates on the basis of financial solidarity. responsible, taking a holistic view on risk, return and costs This requires that a.s.r. pays careful attention to and ensuring that these are taken into account. inclusiveness and appreciation for diversity on the basis of equality. Examples of relevant products include the WelThuis Startershypotheek and the Interest only mortgage. • Vitality and (sustainable) employability There is growing attention for health and vitality, prompted partly by social trends and challenges such as a later retirement age and rising health care costs. In its products and services, a.s.r. focuses on the prevention of illness, absenteeism and disability, and on encouraging sustainable employability. It promotes the sustainable employability of its customers and employees by investing in personal development, vitality and facilities that offer flexible working conditions. Furthermore, a.s.r. offers products and services that contribute to vitality and sustainable employability, such as the Langer Mee AOV, the Doorgaan Verzekering, and the Vitality programme that customers can participate in. Operating environment | 2.1 The story of a.s.r. 20


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    1 2 Operating environment 3 4 5 6 7 8 9 2.1.3 Portfolio and execution of its business portfolio for its current and potential future strategy value accretion on an ongoing basis. Based on the value contribution and growth outlook of the businesses, a.s.r. The strategy described earlier is the driver of the divides its portfolio into four categories: composition of a.s.r.’s business portfolio. a.s.r. reviews Business domains in Non-life with Asset management related growth growth potential businesses Activities that provide stable cash flows and Activities that offer business enhancement generate value with relatively strong growth opportunities, typically capital-light potential P&C Disability Health Asset Management Distribution and Services Pensions DC Robust and predictable service books Non-core businesses Businesses that represent robust and predictable Non-core activities which are being scaled down service books and contribute to profitability or eventually divested Individual life Pensions DB Funeral Bank (divested per 1 December 2020) Business domains in Non-life with growth increasing operational expenses, consequently benefiting potential from economies of scale. The distribution partners in the Within the non-life domain, a.s.r. focuses on the continued portfolio can facilitate the organic growth. growth of P&C, Disability, Health and Distribution and Services, both organically and inorganically. Selected a.s.r. is well-equipped to benefit from the trends insurance and distribution and service companies have in disability insurance that are driving demand for been acquired in recent years to facilitate this growth services surrounding sustainable employability. a.s.r. has and to enable a.s.r. to become an even more services­ a strong position in an evolving ecosystem in sustainable orientated company. employability, which includes: • Insurance intermediaries, in-house distributors and The basis for creating value and growing profitability in service providers which provide access to customer P&C is underpinned by the following capabilities of a.s.r.: groups; Insurance craftsmanship, i.e. its underwriting skills - risk • Services to assist employees and a growing cohort of selection and pricing, claims management and cost­ self-employed individuals; effective operations - resulting in a strong COR; • Partnership with Discovery’s Vitality; • Disability prevention services; • Leading position in the intermediary channel and its • Disability treatment and reintegration services. in-house distributors and serviceproviders; • Know-how in integrating and optimising the portfolios Sustainable employability is an opportunity for a.s.r. to and businesses it has acquired. a.s.r.’s IT systems and serve its customers across all parts of the value chain. platforms can onboard businesses quick and efficient. In October 2020, a.s.r. and Nationale-Nederlanden (NN) In P&C, a.s.r. can continue to grow organically by split-up the joint venture Keerpunt B.V. (Keerpunt). gaining market share at the targeted COR and, where Keerpunt is a high quality provider of working condition available, by adding books of business without materially services, case management, reintegration and sustainable Operating environment | 2.1 The story of a.s.r. 21


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    deployment. The split-up of this joint venture allows The basis of its operations lies in multiple aspects, given a.s.r. to expand its services and knowledge in the area that a.s.r. has gained extensive experience and expertise of disability insurance. It also provides a.s.r. with the in: opportunity to further strengthen its leading position as a • Niche asset classes such as Dutch mortgages; provider of integrated sustainable employment solutions • Unique proposition in real estate; for employers. • Environmental, Social and Governance (ESG)-driven asset management solutions; In 2020, a new business unit was established within a.s.r.'s • Capital-light pension solutions; disability organisation: a.s.r. reintegration & services. • Liability-driven investment (LDI) management solutions Through it, a.s.r. intends to further grow its service offering based on managing its own insurance liabilities and in the sustainable employability domain, by focusing on related assets. three areas: • Reintegration services; Robust and predictable service books • Sustainable employability consultancy; The existing life books’ contribution to the operating • Innovation and quality services. result and capital generation is expected to remain substantial in the medium to long term. Life premiums Combining teams with the relevant expertise within a.s.r. account for 35% of total premiums. The robustly allows the pooling of knowledge and innovation power, capitalised books that a.s.r. manages as service books enabling a.s.r. to accelerate the development of relevant are traditional Defined Benefit (DB) pensions, individual services in the sustainable employability domain. The life and funeral books. The DB pension book will be Keerpunt employees who have joined a.s.r. are part of the formally closed for new business from 1 January 2021. a.s.r. reintegration & services business unit. Both individual life and funeral books are still open, although production has reduced over time due partly to With the health proposition, a.s.r. stimulates and supports the low interest rate environment and a.s.r.’s value over customers to make healthy choices. The combination of volume key strategic principle. health insurance and health services that a.s.r. provides helps to motivate and retain customers. The close a.s.r.’s profitability in this segment has its origin in effective relationship with customers provides further organic and simplified processes based on low and variable cost growth potential for P&C and Disability offerings through operations, in the excellent migration and conversion of cross sell. books of business and in the optimisation of Solvency II capital and investment returns. In 2020 Life completed the Asset management-related growth integration of the VvAA and Loyalis portfolio. businesses Growth of asset management and in the Defined Growth opportunities within life insurance are: Contribution (DC) pension business continue to be part • a.s.r. continues to be a consolidator of funeral books; of a.s.r.’s strategy. • a.s.r. continues to pursue individual life consolidation; • Benefits that may be achieved by leveraging a.s.r.’s In 2020 a.s.r. announced that it would strengthen operational efficiency in the segment. its position in the Dutch DC pension market by obtaining 100% of the shares in Brand New Day Non-core businesses Premiepensioeninstelling N.V. (Brand New Day Institution a.s.r. completed the sale of almost all of its banking for Occupational Retirement Provision (IORP)), of which it activities to the Dutch insurance company Achmea in already owned 50%. This process is likely to be finalised 2019. The remainder of the banking activities was sold to in the first half of 2021. With this transaction, a.s.r. Van Lanschot Bankiers, a Dutch bank, a transaction that further fulfilled its ambition to grow as a provider of was finalised in the first half of 2020. With effect from ‘capital-light’ pension solutions. Brand New Day IORP is 1 December 2020, the banking license was withdrawn by a rapidly growing player in the field of pensions and the European Central Bank (ECB) at a.s.r.’s request. No currently serves 6,239 employers with 158,038 participants non-core activities remained within a.s.r. at the end of in pension schemes (2019: 5,048 and 126,789 respectively). 2020. AuM for third parties amounted to € 25.4 billion as at the end of 2020 (2019: € 22.0 billion). a.s.r. has been able to succesfully expand its third party AuM. It pursues a buy and build strategy to add scale and skills to its asset management business. In 2020 Pensions completed the integration of the last remaining Generali Nederland portfolio, after which the Generali Nederland book was fully closed. Operating environment | 2.1 The story of a.s.r. 22


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    1 2 Operating environment 3 4 5 6 7 8 9 2.2 SWOT analysis a.s.r. operates in a changing and highly regulated to its business models. a.s.r. has compiled the following environment and needs to stay on top of trends that non-exhaustive list of its strengths and weaknesses and impact its business models. It aims to be adaptive so that opportunities and threats. The various elements could be it can benefit from opportunities as well as mitigate risks affected by the COVID-19 pandemic. Strengths Weaknesses • Strong solvency position and high quality capital • Gradually declining (individual) life book • Diversified and large Dutch insurer with leading impacting long-term cost effectiveness and positions in attractive market segments profitability • Skilled, experienced management focused on • Legacy systems due to changes in regulations execution and delivery of high performance and developments in technology, as well as past • Excellence in pricing, underwriting and claims acquisitions handling • Limited differentiation across distribution • Focus on sustainable customer solutions needs channels due to strong focus on independent • Proven cost reduction capability and continuous intermediaries focus on operational efficiency • Limited use of the direct channel • Track record of attractive return on equity (ROE), capital and cash generation, value-creating acquisitions and proven integration skills • Robust LDI Asset Management platform with solid SRI policy Opportunities Threats • Products that fit in well with the growing • Prolonged low interest rate environment demand for sustainable, transparent and • Long-term financial obligations providing straightforward insurance products interest rate sensitivity • Technological developments enabling improved • Financial markets turmoil customer services, products and increasing • Disadvantageous changes in regulations awareness of sustainable investment • Increasing life expectancy with impact on certain • Growing demand for complementary services, life insurance service books (Pension DB) enhancing customers' relevance • Further deterioration of solidarity, undermining • Growing demand for sustainable employability the risk sharing driven by the increase in self-employed people, • Growing insecurity for businesses and self­ higher pension age and work-life balance (in line employed people due to the economic impact with the Borstlap committee) of COVID-19 • With the new pensions deal and a shift to • Disruption by new entrants and technologies DC pensions, there is potential demand to • Development of the consumption-based vs the accumulate capital on an individual basis ownership-based economy • Consolidation potential in the closed books for • Interest of private equity parties into the individual life and funeral insurance consolidation of life insurance portfolios • Evolving risks due to climate change or cyber • Future legal proceedings regarding unit-linked attacks require insurance solutions file insurance policies • The shift towards digital channels, further • Potential financial impact of climate change escalated by COVID-19 • The risk of a (potential future) pandemic • Ongoing consolidation of the Dutch market developing, including COVID-19 Operating environment | 2.2 SWOT analysis 23


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    2.3 Stakeholders and material topics In creating sustainable (long-term) value, it is essential Investors to maintain an ongoing dialogue with stakeholders Investors rely on a.s.r.'s management to devise and concerning trends, developments and the strategy and succesfully execute the best strategy in order to maximise activities of a.s.r. The stakeholders have varying interests the value of the organisation. They are guided by and expectations. a.s.r. identifies customers, employees, delivery of its financial and non-financial targets. They investors and society at large as its key stakeholder expect management to seize the opportunities that arise groups. The interests of these stakeholder groups and to continuously monitor risks. Dividends and share determine the strategy of a.s.r. and are conversely price developments as well as coupons should offer an affected by the organisation’s activities, products and attractive total return on investment for shareholders and services and performance. bond-holders. Investors are also increasingly interested in the social relevance of the companies they invest in. It is Customers important for them that a.s.r. represents the interests of all Customers expect to obtain good value for the premiums stakeholders in order to create long-term value and return they pay. They need to be confident that their funds are on capital. being managed skilfully and in a socially responsible way, and that their rights are respected and protected by a.s.r. Society at large Customer expectations change continuously and a.s.r. Beyond the aforementioned stakeholders, a.s.r. has a needs to be able to adapt accordingly to fulfill customer range of other stakeholders to take into account when needs, now and in the future. a.s.r. is committed to a high doing business, including business partners, regulators, level of customer service in its product offering in order tax authorities, trade unions, suppliers and civil society to sustain successful customer relationships in the future. organisations. Depending on the topic and type of a.s.r. distributes the majority of its products and services relationship involved, expectations and interests may vary through independent advisors and intermediaries. They from responsible investments, complying with regulations have broad knowledge of the insurance market, including and supporting people with financial self-reliance to products, prices and providers, and an acute sense of the constructive cooperation with business partners in needs of insurance purchasers. Their specific knowledge different contexts. Overall, these diverse stakeholders and experience with local markets and customers is expect a.s.r. to create sustainable and responsible societal valuable for a.s.r. and its customers. value. Employees Material topics Employees want a professional working environment In 2020, a.s.r. carried out a stakeholder dialogue, with where they can self-manage and make choices in separate sessions for internal and external stakeholders. their work and career and enhance their sustainable Due to COVID-19, these dialogues were conducted as employability. They want good terms of employment, online interactive sessions, with all members of the work that is enjoyable, a good work-life balance, attention EB present to listen to the views of the stakeholders for their health and wellbeing and an appreciation of the and to participate in the dialogues. These dialogues contribution they make. They also want to be recognised and other sources were used to review the materiality for who they are and to feel included and ‘at home’ at analysis. This annual report is based on the material a.s.r. A satisfactory response to these requirements makes topics which are presented on the next pages. The results for strong employee engagement, which in turn benefits of the stakeholder dialogues are used to evaluate and a.s.r. and the other stakeholders. reformulate a.s.r.'s strategy. A full description can be found in Annex E Materiality analysis and stakeholder dialogue. More information about the integrated business strategy can be found in chapter 2.1 The story of a.s.r. Operating environment | 2.3 Stakeholders and material topics 24


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    1 2 Operating environment 3 4 5 6 7 8 9 Connectivity table Impact on Chapter Material topic Strategic principles KPIs & targets Results 2020 stakeholders reference Meeting customer needs • Best financial • NPS > 44 by 2021 49 Customers 2.4, 3.1, Continuously focusing on service provider 4.1 improving levels of customer for customers satisfaction in terms of quality and availability of services, comprehensible communication and customer focus. Developing and promoting • Climate change • Increase of the NA Customers 3.1, 3.2, sustainable products/services and energy percentage of sustainable Society at 3.6, 4.1 To offer sustainable products and transition repair to cars and large services and encourage customers • Vitality and property to 80% and 50% to positively and actively choose sustainable respectively, of all repairs them. employability in 2021 • Financial self­ • 18% of new mortgage 15% reliance and customers opt for a inclusiveness Verduurzamingshypotheek • Best financial service provider for customers Socially responsible investments • Climate change • € 1.2 billion impact € 1.7 billion Customers 2.4, 3.2, Investing with due regard for and energy investments (for own Investors 3.6 ethical standards, policies and transition account) by 2021 Society at procedures, in line with the • Vitality and • 100% compliant with a.s.r. 100% large interests of a.s.r.'s stakeholders, sustainable SRI policy compliant where the integration of ESG employability criteria is key. This includes • Financial self­ respect for human rights, labour reliance and rights, the environment and inclusiveness adequate corporate governance. a.s.r. aims to have a positive impact with a special focus on the transition towards a low carbon and inclusive society. Mitigating and adapting to the • Climate change • Carbon footprint: 95% 93% Investors 2.4, 3.1, consequences of climate change and energy of investment and Customers 3.2, 4.4 Taking into account the impacts transition mortgages portfolio (for Employees of climate-related risks and • Solid financial own account) measured Society at opportunities, taking measures framework in 2021 large to mitigate the effects of • Best financial • a.s.r. is working with climate change and accelerate service provider suppliers to enrich data the transition to a low carbon for customers and will test the SBTi economy (for clients). (Science-Based Targets initiative) methodology in 2021 • 100% of P&C’s insurance products as far as they are influenced by climate risks and opportunities to make them more resilient and enhance them with (more) sustainable covers in 2025 Operating environment | 2.3 Stakeholders and material topics 25


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    Impact on Chapter Material topic Strategic principles KPIs & targets Results 2020 stakeholders reference Robust financial framework • Solid financial • Solvency II ratio safely 199% Investors 2.4, 4.1, A financially reliable and stable framework above 160% Customers 6 institution which is strong enough • Operating ROE 12-14% 15.3% Employees to meet its financial targets per annum Society and objectives and can fulfill its • Dividend pay-out ratio 45% short- and long-term obligations 45-55% and commitments to all its • OCC > € 500 million in € 500 stakeholders. 2021 million • Financial leverage < 35% 28.3% • Rating S&P Single A A Contributing to financial self­ • Financial self­ • +5% employee -54% Society 2.4, 3.6 reliance reliance and contribution to local Customers Offering knowledge and skills to inclusiveness society per annum (base help people avoid getting into year 2018) debt or getting out of debt and to help people make conscious financial choices. Supporting vitality • Vitality and • Absenteeism rate: 3.4% 3.6% Employees 3.1, 3.3 Helping employees and sustainable • Nil absenteeism: up to 63% Customers customers improve and maintain employability 55% of total work force Society at a healthy lifestyle and providing • Number of Vitality 46,565 large (self-employed) customers with subscribers services to support mental and physical fitness. Contributing to sustainable • Vitality and • Vacancies filled internally: 43% Customers 3.1, 3.3 employability sustainable at least 40% Employees Encouraging and supporting employability • Number of Vitality 46,565 employees to professionally subscribers develop themselves with the aim of enhancing their opportunities on the internal and external labour market and helping customers reduce the risk of (long-term) disability and encouraging sustainable employability. Fostering diversity and inclusion • Financial self­ • At least 30% of the SB: Employees 3.3, 3.6, A balanced workforce compostion reliance and Supervisory Board (SB), 33/67% Customers 5.1 based on age, gender, cultural inclusiveness Executive Board (EB) and EB: Society at or social origin, skills, views and • Vitality and senior management to be 67/33% large working styles. Being an insurer sustainable female or male SM: for all people who live and work employability 28/72% in the Netherlands. • Number of employees 37 through the Participation Desk: 70 in 2026 Operating environment | 2.3 Stakeholders and material topics 26


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    1 2 Operating environment 3 4 5 6 7 8 9 Impact on Chapter Material topic Strategic principles KPIs & targets Results 2020 stakeholders reference Biodiversity and ecosystem • Climate change • Initiatives yet to be Society at 3.2, 4.4 services and energy determined1 large Taking into account biodiversity transition Investors and ecosystem services, which Customers include necessities such as food provision, water security and regulation of air quality, that are vital to maintaining the health and stability of communities and economies. 1 Biodiversity and ecosystem services is a new material topic for a.s.r. It was identified as a material topic through stakeholder dialogue, societal developments and various reports published in 2020. Although the topic is a new material topic for a.s.r., a.s.r. has been quite active in this area and taken part in a number of activities and industry initiatives related to biodiversity. In the coming years, a.s.r. will develop more policies and processes and monitor progress on this topic. Operating environment | 2.3 Stakeholders and material topics 27


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    2.4 Strategic targets and results The direct effects of COVID-19 have so far been limited. hybrid capital instruments) as well as an ambition to offer a.s.r. remains cautious for the effects in the longer term. shareholders a stable dividend per share. Management The ultimate impact of COVID-19 on the results going proposes a total dividend of € 2.04 per share for the forward is still impossible to accurately predict. This full year of 2020 (2019: € 1.90 per share). This is a 7.4% depends on the speed with which the pandemic is being increase compared to the cash dividend of 2019. contained and therefore the rate at which the current restrictions are lifted, as well as on the impact on society a.s.r. aspires to create sustainable value for all its and the economy also after the government support stakeholders and has set four non-financial targets as an measures have been completed. integral part of its strategy. On the CMD on 10 October 2018, a.s.r. announced its Customers are at the heart of a.s.r.‘s purpose and its targets for the 2019-2021 period. These are divided into strategy is aimed at meeting their needs. a.s.r. measures group and business targets and into financial and non­ how customers experience its services using the NPS. The financial targets. NPS is measured separately for all business lines. a.s.r.'s NPS is determined by the arithmetic mean of the scores Group targets 2019 - 20211 of the business lines. In 2020 the NPS stood at 49 points2 a.s.r. has set itself ambitious group targets, positioning (2019: 44).It is a.s.r.’s goal to maintain a NPS score of at itself for profitable growth. a.s.r. aims to maintain a strong least 44 points by 2021. capital position and a Solvency II ratio safely above 160% (Standard Formula). This enables a.s.r. to deploy a.s.r. monitors the carbon footprint of the investments capital for entrepreneurial purposes, to absorb certain for its own account. The results are published on a financial shocks and to be able to pay cash dividends. quarterly basis on www.asrnl.com. The metrics are partially The Solvency II ratio (after proposed full year dividend) calculated in accordance with the methodology of the increased by 5% points to 199% (2019: 194%) and was well Partnership for Carbon Accounting Financials (PCAF). a.s.r. above the target of ‘safely above 160%’. actively contributes to the development of metrics for additional asset classes as well as for indirect investments. Given the confidence a.s.r. has in its businesses for the The target is to regularly measure at least 95% of a.s.r.’s medium term and their strong performance in recent entire investment portfolio for its own account by 2021. years, a.s.r. has set a target for Operating ROE in the The percentage shown is calculated by dividing the value range of 12-14%. The Operating ROE over 2020 was of the investments for which the carbon footprint is known 15.3% (2019: 15.1%). by the value of the total investment portfolio for own account, which includes Asset Management, Real Estate a.s.r. has also set a target for organic capital creation and Mortgages. At 31 December 2020, 93% 2 of the total (OCC). In 2019 a new definition of OCC was introduced investment portfolio was measured (2019: 89%). resulting in a reset of the OCC target. Based on this definition, the OCC target for 2021 is set at more than In the investment process, Asset Management pays € 500 million. The 2020 OCC result was € 500 million special attention to impact investing to make a (2019: € 501 million). sustainable contribution to society, for instance, through investments in waste recycling, renewable energy The maximum level of financial leverage has been set (solar and wind), social enterprises or in health(care) at 35% and supports a.s.r.’s S&P (Single) A rating target. improvements. The value of the impact investments is The financial leverage stood at 28.3% at year-end 2020 calculated as the sum of all impact investments in Asset (2019: 29.2%) and the S&P rating was confirmed at (single) Management, Real Estate and Mortgages. In 2018, a.s.r. A during the year. set the target of increasing impact investments for its own account at € 300 million per year to a total of € 1.2 billion a.s.r. has a dividend policy which comprises a pay-out of impact investments (for own account) in 2021. By the ratio of 45–55% of the net operating result attributable to end of 2020, a.s.r.’s exposure to listed and non-listed shareholders (i.e. after tax and net of costs related to the impact investments addressing specific environmental 1 Targets are based on the assumption of normal market, environmental and economic conditions and no material regulatory changes and on a stand-alone basis. 2 This indicator has been part of reasonable assurance, see chapter 4.6 Assurance report of the independent auditor. Operating environment | 2.4 Strategic targets and results 28


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    1 2 Operating environment 3 4 5 6 7 8 9 or societal needs stood at over € 1.7 billion1 (2019: The COVID-19 measures have challenged the employees' € 0.9 billion). All asset classes contributed to reaching the voluntary efforts. a.s.r. put the safety and health of its target by a large margin which confirms a.s.r.'s ambition to employees and the people who needed help first. Due play a substantial role in impact investing. to social distancing required by COVID-19 many of the planned activities could not take place. The hours spent a.s.r. encourages its employees to support local society by employees amounted to 4,3981, a decline of -54% and communities by devoting part of their time to helping compared to the base year 2018 (8,733 hours). on a voluntary basis individuals and/or groups with financial difficulties. a.s.r. provides financial educational For the definitions of the four non-financial targets see courses for children, helps families to understand and Annex C Glossary. improve their financial planning and assists communities in more general ways. a.s.r. aims for an annual growth of 5% of time spent by employees compared to the base year 2018 by participating in the activities of the a.s.r. foundation. Solvency II Dividend pay-out ratio Credit rating (Standard Formula) (% of net operating result after hybrid (S&P) expenses2) Single A 194% Single A 199% 45% Single A Safely above 160% 45% 45 - 55% Substantial capital for At least entrepreneurship Ambition to offer a stable to growing dividend per share. Organic Capital Creation Operating return on equity Financial leverage € 501 million 15.1% 29.2% € 500 million 15.3% 28.3% > € 500 million 12 - 14% < 35% Result 2019 Result 2020 Target 2021 1 This indicator has been part of reasonable assurance, see chapter 4.6 Assurance report of the independent auditor. 2 In general, a.s.r. does not expect to pay cash dividends if the Solvency II ratio (calculated in accordance with the standard formula) falls below 140%. Operating environment | 2.4 Strategic targets and results 29


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    Net Promoter Score Employee contribution to local society Impact investing (in no. of hours) (for own account) 44 49 > 44 +42% € 0.9 billion - 54% € 1.7 billion +5% p.a. € 1.2 billion Base year 2018 Carbon footprint investment and mortgages portfolio (for own account) Result 2019 Result 2020 89% Target 2021 93% 95% Business targets 2019-20211 a.s.r. aims to keep its operating result in Life at least In P&C and Disability combined, a.s.r. aims to achieve a stable compared to 2017 levels for the period up to and COR in the range of 94-96%. This reflects a.s.r.’s leadership including 2021. In addition, a.s.r. aims to decrease the Life to manage these businesses profitably whilst remaining operating expenses from 57 basis points (bps) on its basic competitive. The range also allows a.s.r. to absorb a life provision in 2017 to within the range of 45-55 bps. certain level of calamities, such as major fires and heavy The operating result for the Life segment amounted to storms. a.s.r. expects that in a year with an average € 730 million in 2020 (2019: € 696 million), well in excess level of storms and large claims, it can deliver a COR of the target, and the expenses in relation to the basic of < 96%. Health is excluded from the target as the life provision amounted to 45 bps in 2020 (2019: 53 bps), pricing and profitability of this business line has different within the stated target range. dynamics, which in addition to rational economics also includes an elevated level of political scrutiny. At 99%, the a.s.r.’s fee-generating businesses in the segments Asset target for Health stand-alone remains stable compared Management and Distribution and Services are growing in to previous years. The COR for P&C and Disability terms of absolute and relative contributions to operating combined amounted to 93.6% for 2020 (2019: 93.5%) results. a.s.r. aims to achieve more than € 40 million and outperformed the target range of 94-96%. Whilst of operating result for the two segments combined the overall impact of COVID-19 on the Non-life segment and expects to increase its operating results by 5% amounted to only € 21 million, within the segment there per annum thereafter. The operating result of the fee­ were considerable offsetting effects between P&C and based businesses amounted to € 57 million in 2020 Disability. P&C benefitted for an amount of € 88 million (2019: € 48 million). (-6% points in COR) while Disability was negatively impacted for an amount of € -71 million (+6% points in COR). Importantly, ambition for profitable growth is connected with a.s.r.’s GWP growth target for P&C and Disability combined. a.s.r. aims to grow this organically by 3-5% per annum while remaining within the targeted COR range. In pursuit of profitable growth, a.s.r. will not forfeit its key strategic principle of value over volume. The GWP growth for P&C and Disability, amounted to 4.6% over 2020 (2019: 4.0%). 1 Targets are based on the assumption of normal market, environmental and economic conditions and no material regulatory changes and on a stand-alone basis. Operating environment | 2.4 Strategic targets and results 30


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    1 2 Operating environment 3 4 5 6 7 8 9 Combined ratio P&C and Disability Life operating result Life operating expenses 93.5% € 696 million 53 bps 93.6% € 730 million 45 bps 94 - 96% € 633 million 45 - 55 bps Stable, compared to € 633 million in Of basic life provision 2017 GWP P&C and Disability annual Combined operating result organic growth fee based business1 Result 2019 4.0% € 48 million Result 2020 4.6% € 57 million 3 - 5% € 40 million Target 2021 Non-life (P&C and Disability) 5% growth per annum thereafter 1 Asset Management and Distribution and Services. Operating environment | 2.4 Strategic targets and results 31


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    2.5 Sustainable Development Goals The 17 UN Sustainable Development Goals (SDGs), SDGs 1, 3, 7, 8, 13 and 17 are the most closely connected launched in 2015, represent a global call to action to end to a.s.r.’s strategy. The table below shows how the SDGs poverty, protect the planet and improve political and and the relevant underlying SDG targets can be connected economic stability globally. a.s.r. has identified six SDGs to relevant a.s.r. targets and other activities by a.s.r. relating to its integrated business strategy, to which it For SDG 17 in particular examples are provided of how has most to contribute as a sustainable insurer, investor, a.s.r.’s activities are connected to the overall goal of employer and socially engaged business partner. SDG 17. Financial self-reliance and inclusiveness Relevant SDG target a.s.r. target a.s.r.’s activities connected to the SDG targets Economic By 2030, reduce at least by half • +5% employee • a.s.r. supports the financial education of children and growth must be the proportion of men, women contribution to local young people (reading and teaching) and households inclusive to and children of all ages living society per annum (base with (a risk of) problematical debts; provide sustainable jobs in poverty in all its dimensions year 2018). • a.s.r. complies with the 10 principles of the Ethical and promote equality. according to national definitions Manifesto to ensure that customers are financially (SDG target 1.2). self-reliant and can gain access to insurance services should payment arrears and problems arise. Promote By 2030, achieve full and • At least 30% of the • a.s.r. is committed to fostering an inclusive culture inclusive and productive employment and SB, EB and senior in which difference is recognised, valued and used sustainable decent work for all women and management to be to the fullest. The principles of a.s.r.’s policy on economic growth, men, including for young people female or male; diversity include ‘Participation of people with limited employment and decent and persons with disabilities, and • Number of employees labour market potential’ and ‘Equal development work for all. equal pay for work of equal value employed via the opportunities for all employees’. Therefore, a.s.r. has (SDG target 8.5). Participation Desk: 70 launched a company wide programme on diversity in 2026. and inclusion. Examples of relevant partnerships and sector initiatives Strengthen the • Sector initiative Platform Living Wage Financials (PLWF) which encourages and monitors investee companies in addressing means of the non-payment of living wage in global supply chains; implementation • Partnership with FC Utrecht football club to contribute to the improvement of financial awareness in the province of Utrecht; and revitalise the global • Partnership with Stichting Lezen & Schrijven (Reading & Writing Foundation) to reduce the number of illiterate people in the partnership for Netherlands; sustainable development. • Partnership with Diversion to contribute to the prevention of poverty and debts among young people through the peer education programme Moneyways. Vitality and (sustainable) employment Relevant SDG target a.s.r. target a.s.r.’s activities connected to the SDG targets Ensure healthy Achieve universal health coverage, • € 1.2 billion impact • a.s.r. offers insurance to cover (the costs of) health lives and including financial risk protection, investments (for care, available at one price (per brand) for anyone who promote access to quality essential own account) is eligible for this type of insurance under Dutch law; well-being for all at all healthcare services and access including investments • a.s.r. plays an active social role in helping people ages. to safe, effective, quality and contributing to health recognise health risks, advising on possible affordable essential medicines and improvements by 2021. interventions and increasing awareness of the vaccines for all (SDG target 3.8). importance of health. Promote By 2030, achieve full and • Number of employees • a.s.r. provides job opportunities for people with an inclusive and productive employment and employed via the occupational disability. sustainable decent work for all women and Participation Desk: 70 economic growth, men, including for young people in 2026. employment and decent and persons with disabilities, and work for all. equal pay for work of equal value (SDG target 8.5). Examples of relevant partnerships and sector initiatives Strengthen the • Partnerships with several companies and foundations, such as ArboNed, HumanCapitalCare and the Johan Cruyff means of Foundation, to encourage a healthy lifestyle. implementation and revitalise the global partnership for sustainable development. Operating environment | 2.5 Sustainable Development Goals 32


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    1 2 Operating environment 3 4 5 6 7 8 9 Climate change and energy transition Relevant SDG target a.s.r. target a.s.r.’s activities connected to the SDG targets Ensure access to By 2030, increase substantially the • € 1.2 billion impact • a.s.r. increases renewable energy generated on site affordable, share of renewable energy in the investments (for own by the placement of wind and solar farms on rural real reliable, global energy mix (SDG target account) by 2021 estate and the use of energy storage and placing PV sustainable and modern 7.2). contributing to the panels on the roofs of offices, retail and residentials. energy. production and distribution of renewable energy. Take urgent Improve education, awareness- • Carbon footprint: 95% • a.s.r. makes insurance products more resilient as far as action to combat raising and human and of investment and these are influenced by climate risks and opportunities climate change institutional capacity on climate mortgages portfolio (for (e.g. by adding coverage for damage to flooding) and and its impacts. change mitigation, adaptation, own account) measured enhances them with (additional) sustainable cover; impact reduction and early in 2021; • a.s.r. develops climate maps, improves risk and claims warning (SDG target 13.3). • 50% carbon reduction assessments and helps intermediaries and customers target by 2030, using a with information to prevent damages from climate 2015 baseline, applying risks. to all a.s.r.’s internally managed portfolio (for own account) in listed equities, corporate bonds and government bonds; • Direct footprint of a.s.r. head office is climate- neutral; • 50% reduction of CO2 emissions of a.s.r. head office in 2025 (base year 2018). Examples of relevant partnerships and sector initiatives Strengthen the • Partnership on impact investment with Triodos Bank; means of • Partnership with Rabobank and water company Vitens to develop the Open (source) Soil Index (OSI); implementation • Partnership with ASN Bank for distribution and further development of sustainable P&C insurance products; and revitalise the global • Partnership with multiple sustainable repair companies to offer sustainable repair options; partnership for • Partnership with energy company Essent to encourage mortgage clients to make their homes more sustainable; sustainable development. • Sector initiative PCAF to work together to jointly develop open source methodologies to measure the carbon footprint of investments; • SBTi intended to increase corporate ambition on climate action by mobilising companies to set greenhouse gas emission reduction targets; • Coalitie van Anders Reizen (the Coalition of Travelling Differently) to reduce the CO2 emissions of business-related travelling to 50% (of the emissions in 2016). Assessing impact on the SDGs through investments In late 2020, a.s.r. launched a pilot project to assess its positive and negative impact on the SDGs through its investment portfolio. By using machine learning, the pilot helps a.s.r. understand how 2,000 listed companies in its portfolio measure up against the SDGs. In the pilot, a.s.r.’s service provider Util mines worldwide academic knowledge to map and quantify the impact of a.s.r.’s portfolio, as well as a.s.r.’s own impact going back five years, in order to measure trends and changes. This data can be compared with data that was self-reported by the 2,000 companies. The pilot will result in a co-authored white paper which a.s.r. will publish in April 2021. | 2.5 Sustainable Operating Development environment Goals | 2.5 Sustainable Development Goals 2 33


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    Diversity and inclusion


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    3 Sustainable value creation a.s.r. is working to achieve an background, competencies, diversity a.s.r. believes in the inclusive corporate culture where of thought and work styles. a.s.r. is differences is acknowledged, valued developing a range of initiatives added value of a and utilised, and no-one is excluded. aimed at encouraging inclusive a.s.r. is consequently striving dialogue and awareness of diversity, diverse and inclusive towards a balanced composition equality and inclusion in the organisation of its employees, based on age, gender, cultural, social and ethnic workplace.


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    3.1 Sustainable insurer For a.s.r., being a sustainable insurer essentially means is especially valuable for a.s.r. and its customers. creating long-term value. Customers rely on a.s.r. being New products and solutions are developed in close able to meet its financial liabilities, now and in the future. cooperation to ensure that they are competitive and meet a.s.r. strives to continuously improve its processes in order the ever-changing needs of customers. to provide its customers with an even better service and to be able to develop sustainable products and services Based on its purpose and core values, a.s.r. strives to with long term value. a.s.r. offers solutions that align ensure that customers experience it as a sustainable with the needs of its customers and help solve societal insurer. To achieve this goal, a.s.r. invests in improving and challenges. a.s.r. also supports clients and insurance further digitising the services it provides. intermediaries by actively sharing relevant content and practical guidance for damage prevention. 3.1.1 Sustainable products a.s.r. helps customers to share risks and accumulate capital for later. a.s.r. serves over 1.5 million customers, There is a growing demand for sustainable and socially mainly via a network of about 5,000 intermediaries and responsible products which increase positive and reduce through its online channel. These intermediaries are negative impacts. Developing and marketing these independent financial advisors who advise their clients products is part of a.s.r.’s business strategy. in the field of insurance, mortgages and pensions. Their specific knowledge of the local market and customers Insurance Flood insurance Responding to climate change, a.s.r. was the first insurer in the Netherlands to offer flood cover. Doorgaan Verzekering Doorgaan Verzekering is a single policy offering both occupational disability insurance and group medical cover. It includes extended cover, psychological support and advice from a.s.r.'s medical and vocational experts. Langer Mee AOV a.s.r. offers a solution for the social challenge of the rising age of retirement. Working with a.s.r. on sustainable employability enables customers to remain at work in good health for longer. MKB Verzuimontzorgverzekering At the MKB Verzuimontzorgverzekering an ontzorgmanager is the single point of contact during reintegration and has knowledge of all relevant legislation and regulations. The employee is in control of his or her own reintegration. Sustainable value creation | 3.1 Sustainable insurer 36


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    1 2 3 Sustainable value creation 4 5 6 7 8 9 Investments a.s.r. funds All investments managed by a.s.r. asset management are screened on their social, environmental and governance criteria, based on a.s.r.'s SRI policy. a.s.r. ESG Funds For its ESG fund range including euro sovereign bonds, euro credits and European equities, a.s.r. has additional guidelines on ESG indicators over and above the strict overall a.s.r. SRI policy. These guidelines resulted in ESG funds with a lower absolute carbon footprint compared to their respective benchmarks for credits and equities. Mortgages Verduurzamingshypotheek a.s.r.'s Verduurzamingshypotheek is designed to encourage its clients to install energy conservation measures in their homes. This helps to cut CO2 emissions while increasing comfort in the home and reducing energy consumption and costs. WelThuis Startershypotheek The WelThuis Startershypotheek is designed for first-time buyers and offers lower monthly expenses, flexibility and certainty. The exended duration of the mortgage ensures a lower monthly amount. WelThuis Levensrentehypotheek The WelThuis Levensrentehypotheek (life-interest mortgage) is an interest-only mortgage with a lifetime interest rate and fixed monthly payments and is intended for customers who have reached their state retirement age and wish to take up surplus value from their home. This mortgage was introduced in 2020. 3.1.2 Sustainable services only option. In 2020, there was a significant growth in sustainable glass repairs. In addition to the sustainable products mentioned in the previous chapter a.s.r. also provides services that help a.s.r. Vitality customers to become more sustainable and live healthier Vitality is a behavioural science-based health programme lives. which encourages customers to take exercise and live healthier lives. The Vitality programme was developed Sustainable repair by the South African insurer Discovery. It has been In the event of damage to a property or car, the customer successfully implemented in over 20 countries with over can choose to have this damage repaired by one of 40 million members. the sustainable repair companies in P&C’s sustainable repair network. Customers can contact these sustainable The COVID-19 pandemic has without doubt highlighted repair companies directly online. The sustainable repair the importance of being healthy, and an active and network has nationwide cover. The sustainable repair healthy lifestyle is a major contributor to illness prevention companies in a.s.r.’s network are regularly tested for their and recovery. a.s.r. is proud to support 46,565 Vitality environmentally-friendly repair methods, levels of energy participants to date. Its members achieved relatively high consumption, processing of waste, re-use of materials, goal completion rates throughout 2020, including during care for the sustainable employability of their employees, the lockdown phases. a.s.r. sees this as proof that the recycling and use of non-harmful products. a.s.r.’s goal is programme works: it helps members to integrate exercise to further increase the percentage of sustainable repairs into their daily lives and make adjustments to sustain this to cars and property to 85% and 50% in 2025 respectively, lifestyle despite substantially changing circumstances. of all repairable damage. Not all items and damage are suitable for repair; in some cases, replacement is the Sustainable value creation | 3.1 Sustainable insurer 37


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    a.s.r. offers this programme to customers with a disability receives from a.s.r. This includes tests for comparability, or health insurance to help prevent them becoming ill completeness of the information provided and whether or disabled. Customers can opt to take out membership product characteristics are clearly defined. of a.s.r. Vitality. The a.s.r. Vitality app initially gives customers insight into their own health. Exercise targets In 2020, the PARP Board approved two new propositions, are subsequently set and they can then get moving. If eight product adjustments and 11 reviews of existing they achieve their weekly, monthly and annual targets, products, explicitly taking into account (economic) they are rewarded immediately with vouchers as well as developments resulting from COVID-19. Inherent to with an annual cashback on their insurance premium. almost all the reviews is that product modifications will follow. This year, on the advice of the PARP Board, a a.s.r. is seeing an increase in the interest and active target group-specific proposition was reconsidered by involvement of companies in the Vitality programme. the business lines. Examples of the PARP Committee’s For companies joining the programme, a.s.r. notices approval include: DigiThuis hypotheek and WelThuis relatively high engagement numbers (with about 45-50% Levensrente hypotheek. of employees actively joining the programme), confirming the value of the programme for both employer and employee. Companies joining the a.s.r. Vitality 3.1.4 IT and the Digital strategy programme may earn a cashback on their disability insurance premiums. Digital services are becoming increasingly important for a.s.r. as an insurer. In recent years, the focus has a.s.r. continues to expand the programme and mainly been on reducing complexity and replacing makes improvements to offer its customers meaningful outdated systems. With the integration of acquisitions encouragement and motivation to adopt and maintain such as Generali Nederland and Loyalis, a.s.r. has a healthy lifestyle. a.s.r. is also exploring opportunities again demonstrated its ability to successfully convert to expand the programme to include a broader set of portfolios and realise the intended synergy benefits. Both healthrelated topics such as mental wellbeing, food and integration processes have now been completed. sleep. The focus on reducing complexity will be continued over the coming period in the disability and pensions 3.1.3 Product Approval & Review business. Disability will use a low code platform to Process replace a number of outdated systems. Pensions has launched a programme to replace the current DB The Product Approval & Review Process (PARP) is one and DC administrations with a modern Software as a of the internal processes for assessing the quality of Service (SaaS) solution. Robotics is being used even products and services and their relevance for the target more extensively to achieve higher efficiency. a.s.r. has market. The aim of this process is to ensure that implemented a hybrid cloud strategy to achieve scalability customers’ interests are taken into account in a balanced on which existing applications and innovative solutions way with the development of new products and through can be exploited. a.s.r. maintains its own infrastructure for the review of existing products. This drives continuous solutions where a cloud business case is not delivering a improvement, for example based on feedback from better performance. customers, consultants and changes in legislation and regulations. The PARP is applicable to products that are Under the name The Digital Agenda, a.s.r. has developed actively being offered, as well as to inactive products a strategy to bring customer experience to a higher level. and services that are also reviewed on a regular basis. Intermediaries remain crucial for a.s.r., which is why digital In accordance with the Dutch Authority for the Financial cooperation with this group forms a key part of the The Markets (AFM) assessment framework, and in line with Digital Agenda. Multidisciplinary teams build new digital legislation and regulations, a.s.r. has set up the PARP solutions with which the intermediary and customer will tests, which cover cost-efficiency, usefulness, safety and experience the best service in the market. In addition, the comprehensibility. programme will increase cost savings for both a.s.r. and the intermediary and substantially reduce the ecological The PARP assesses the cost efficiency, focus on footprint caused by the use of paper (90% reduction per sustainable customer solutions and usefulness of a 2023, base year 2020). product and/or service: i.e. to what extent does the product respond to the actual need of the target group Themes such as digital customer activation and the and does it generate sufficient added value? The safety continuous improvement of the digital user experience test concerns the outcome for the target group, which through the customer portal Mijn a.s.r. will be important should be explicable and acceptable in a range of in the years ahead. a.s.r. will seek to meet ever-increasing scenarios. The comprehensibility test examines whether customer expectations in digital services and contribute the target group can properly assess the usefulness to its strategy of becoming a sustainable and socially­ of a product based on the information the customer engaged insurer. As part of the Digital strategy a.s.r. will Sustainable value creation | 3.1 Sustainable insurer 38


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    1 2 3 Sustainable value creation 4 5 6 7 8 9 invest in new contact channels based on the high tech, to recommend a.s.r. to your family, friends and colleagues high touch philosophy. In 2020 Health performed a pilot based on your experience with the a.s.r. employee?’ a.s.r. on live chat with a dedicated team optimising customer uses the NPS as the main key performance indicator (KPI) satisfaction, employee satisfaction and efficiency. for monitoring the level of its service. Customers indicate on an ongoing basis how they experience a.s.r.’s service. Customer validation as standard a.s.r. wants its customers to feel that it is continuously In 2020 a.s.r. launched a customer panel under the improving its service and strives for an increase of name ‘De raad van doen’ to reflect the importance it the NPS. In 2020, the NPS customer contact moment attaches to the feedback and needs of its customers and increased by five points during the year, from 44 (2019) to advisors. The customer panel is part of the proces with 49 (2020). The NPS for each business line is presented in which digitalisation teams apply low-threshold and short chapter 4.1 Group and segment performance and Annex cyclical customer research and customer validation in the A Facts and figures. development and optimisation process. Based on this input, concrete adjustments are made to products and 49 Target: >44 services. 44 42 • The healthcare company helps customers choose the right product by focusing on their care needs and from there guides them to the appropriate insurance. • A redesign of the ‘becoming a customer’ process has been introduced for entrepreneurs in the orientation phase of a new disability insurance. a.s.r. removes as 49 many uncertainties as possible by involving customers 2018 2019 2020 in the process more effectively from the outset. • The claims process has been improved for customers Complaints management with motor insurance. By reassuring customers a.s.r. takes the view that complaints handling requires proactively during the whole process, a.s.r. has realised specific knowledge and skills. Which is why complaints 40% fewer status calls and reduced the total lead time officers keep their knowledge and skills up to date by 11%. The improvement in the NPS process score through continuous education, for example by following from -4.5 at Q2 2019 to +12 per end 2019 and +32 per the course Dealing with Emotion and Aggression. end 2020 shows that the customer feels that he or she Customers give a.s.r.’s complaints officers a score of 8.4 has been helped more effectively. on a scale of 10 (2019: 8.0). • The digital application accelerator helps customers take out mortgages more quickly and easily. Following The Complaints Management Team monitors the the application by the advisor, the customer gives a.s.r. implementation of a.s.r.’s complaints policy and manages permission via an app to retrieve relevant information the complaints scheme. Complaints handling itself is directly from the source (e.g. Mijn Overheid, Mijn decentralised within the organisation. Core principles and Pensioenoverzicht and Mijn Belastingdienst). Which in objectives of complaints management are: turn provides more reliable data and a shorter lead • a.s.r. is open to complaints, making it easy for time for the mortgage application. customers to submit a complaint; • a.s.r. communicates its views and the resolution of the complaint in a comprehensible manner; 3.1.5 Customer satisfaction • a.s.r. wants to learn from complaints. Personal customer experience The complaints settled figures show the number of In order to become more relevant and personal for accepted/rejected complaints. Accepted complaints are customers, communication will be more closely attuned to those that are considered partially or fully justified. These the target group and the relevant phase of the customer include accepted complaints concerning advisors, where journey. In customer communication, current events will a.s.r. acts as mediator. Rejected complaints are those a.s.r. be incorporated as quickly as possible by a.s.r. The considers unjustified, i.e. it does not accept the customer’s COVID-19 dialogues in the chatbot help customers to find argument and/or arguments it regards as unfounded. The answers to their questions quickly and easily. latter are addressed to a.s.r. but are not intended for it. Net Promoter Score a.s.r. continuously monitors the NPS for a.s.r. and its business lines (the overall score is based on the simple average of the business lines). The NPS reflects the satisfaction of an organisation’s customers. In the questions put to the customer, emphasis is placed on interaction with the a.s.r. employee. ‘How likely are you Sustainable value creation | 3.1 Sustainable insurer 39


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    Complaints settled (in numbers) 3,213 3,306 2,935 2,092 2,163 2,082 2018 2019 2020 Upheld Rejected The complaints handled figures represent the percentage of complaints that are fully, partially or incompletely settled and are unclear to the complainant. Most of the complaints a.s.r. receives relate to data modifications (51%) and the payment of claims (22%). Administrative actions relating to the surrender and expiry of life contracts account for a substantial share of complaints about movements. With regard to the payment of claims, customers complain about whether and to what extent damage or loss is covered, or else do not accept the level of reimbursement. Complaints handled One of the questions is whether the complaint has been settled, in the customer's opinion (in numbers) 77% 77% 80% 16% 17% 14% 7% 6% 6% 2018 2019 2020 Yes, fully No, not fully but the follow-up is clear to me No, not fully and the follow up is unclear to me More detailed information about customers can be found in Annex A Facts and figures. Sustainable value creation | 3.1 Sustainable insurer 40


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    1 2 3 Sustainable value creation 4 5 6 7 8 9 3.2 Sustainable investor As an institutional investor, a.s.r. takes ownership of Vigeo Eiris, which focuses on a wide range of ESG criteria social responsibility through the use of ethical decisions such as climate change, human rights, biodiversity and and sustainability criteria in its investment policy. All executive remuneration. Countries and businesses which investments are screened on the basis of this strict SRI do not meet the criteria are excluded. policy, which includes various ESG criteria. a.s.r. also assesses businesses on their level of compliance with international conventions such as the Organisation 3.2.1 a.s.r. asset management for Economic Cooperation and Development (OECD) guidelines, the UN Guiding Principles on Business and First implemented in 2007, a.s.r.’s SRI policy covers all its Human Rights (UNGPs) and the UN Global Compact investments, both for proprietary assets (or own account) principles (UNGC). and those managed on behalf of third party clients. Over the years, a.s.r. has expanded its efforts from its original 100% compliance with own SRI policy focus on exclusions to making a positive contribution to a.s.r. safeguarded the full compliance of its SRI a more sustainable world. A regular update of a.s.r.'s policy using a three-step process: internal teams’ efforts can be found in the quarterly ESG reports; see implementation (investment departments), compliance www.asrnl.com. process (risk department) and an independent external assurance (by Forum Ethibel). a.s.r. will also adhere to this All investments managed by a.s.r. asset management are target in respect of acquirements and mergers. screened against its SRI policy (see www.asrnl.com) by SRI policy compliance Target 2018 2019 2020 100% compliance with own SRI policy Sustainable and responsible investing labour practices, good governance, social impact, a.s.r. understands the importance of, and responsibility human rights and forward-looking carbon data. A expected from, its role as an investor, both as asset owner detailed description of these criteria is published on and asset manager. Sustainability is therefore an essential www.asrnl.com. For sovereign bonds, a.s.r. applies a part of a.s.r.’s investment beliefs. The integration of ESG best-in-class selection of countries based on their SDG criteria in the management of investments contributes performance, in line with the SDG country ranking directly to the reduction of risks (both financial and published by the SDG Index: the weighted average reputational) and has a positive effect on its long-term score of the a.s.r. sovereign portfolio is ranked in the performance. The SRI policy has been integrated into first quartile (best-in-class) of the SDG Index. internal investment practice through: • Exclusion criteria for countries and companies • ESG integration for best-in-class investments of a.s.r. pursues a strict exclusion policy for controversial positive selection activities which it applies to all internally managed Best-in-class investing is part of a.s.r.’s selection portfolios, both for its own account and for third process for companies based on ESG best practices parties. With regard to investments in sovereign and products. a.s.r. favours companies that achieve debt, a.s.r. has excluded 81 countries that are poor an above-average performance in ESG policy and performers in the annual Freedom in the World report, implementation. Based on research carried out by its or which achieve a low ranking on the Corruption data providers Vigeo Eiris and MSCI ESG, companies Perceptions Index or the Environmental SDGs. For are classified as best-in-class using a relative, sector­ excluded companies, see the table on the following based ranking for ESG themes such as: environment, page. Sustainable value creation | 3.2 Sustainable investor 41


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    Screened companies excluded due to In numbers 2020 2019 2018 2017 2016 Human rights violations 7 7 6 3 3 Labour rights violations 2 3 2 3 3 Environmental violations 8 7 13 6 6 Armaments 124 153 100 107 68 Tobacco 19 16 15 17 15 Gambling 52 49 44 39 3 Coal-mining 8 10 47 63 55 Tar sands and shale oil 8 5 4 10 NA Coal-fired electricity generation 11 13 NA NA NA Nuclear energy-related activities 10 8 9 5 5 Total number of exclusions1 249 271 240 253 158 Engagement • a.s.r. employed several initiatives in relation to In 2020, a.s.r. continued increasing its engagement efforts biodiversity and deforestation. For example, a.s.r. to actively promote higher sustainability practices. The list joined an investor coalition that will use satellite of engaged companies is published on the a.s.r. website imagery to address deforestation. a.s.r. also took www.asrnl.com, including the reason and status of the part in United Nations Principles for Responsible engagement. Investment (UN PRI) initiatives to express concern over the proposed deregulation of environmental Active engagement dialogues: at least 25 protections in Indonesia and to the Brazilian engagement projects per calendar year government on high deforestation rates and fires in a.s.r. is actively engaged with a total of 29 companies. the Amazon. It engages with companies that have either shown • Living wages through the PLWF, a collaborative controversial behaviour (e.g. UNGC violations) or are partnership between 15 financial institutions to controversial in another way, for example as a result of engage listed companies in the garment, agri-food societal discussions. and retail sectors in order to address living wage issues in their supply chain. In 2020, a.s.r. actively a.s.r. defines three types of engagement: contributed to the engagement of eight of the companies; I. Engagement for the purpose of influencing: II. Engagement for the purpose of monitoring: this type of engagement is used to move companies Sustainability is a standard topic on a.s.r.’s agenda towards better sustainable practices. In 2020, the issues at meetings with companies from its investment addressed included: portfolio. a.s.r. has also been in dialogue with other • UNGC breaches through a.s.r.’s partnership with players in the investment landscape, such as fund and Robeco: the updated list of companies under index providers, to actively encourage a further ESG engagement and their status can be found on integration for their role in the investment chain. In www.asrnl.com. 2020, a.s.r. conducted 15 of these conversations. • The COVID-19 crisis has affected us all. a.s.r. has III. Public engagement: entered into an engagement with pharmaceutical In 2020, a.s.r. continued to actively participate in companies requesting access to medicines and the implementation of the International Responsible vaccines for all, and responsible and transparent Business Conduct (IRBC) agreements in conjunction pricing. a.s.r. also discussed the risks associated with peers, the public sector and various non­ with COVID-19 in vulnerable production chains such governmental organisations (NGOs). a.s.r. played an as the textile and meat processing industries with active role in three working groups (general assembly, different production companies. development of specific guidelines for a climate policy • Responsible sourcing of natural resources: society and the extra annual ‘Do Good’ working group for increasingly depends on the sourcing of minerals the sector). a.s.r. also signed the Green Recovery and other natural resources, e.g. for the energy Statement urging the Dutch government to consider transition. a.s.r. engaged with the automotive sector sustainability and inclusion in its recovery plans after on the responsible sourcing of cobalt and with COVID-19. mining companies on their water management practices. A full list of companies engaged with is a.s.r. continued to contribute to the development of a available on the a.s.r. website www.asrnl.com. global carbon accounting standard through PCAF and was an active member of four working groups operated by the Dutch PCAF organisation. 1 Includes doublecounts due to the fact that some companies are excluded on more than one criteria. Sustainable value creation | 3.2 Sustainable investor 42


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    1 2 3 Sustainable value creation 4 5 6 7 8 9 In 2020, a.s.r. took part in the Biodiversity Working SRI policy, implementation and transparency. In 2020, Group under the Sustainable Finance Platform of De a.s.r. actively engaged with new and existing managers, Nederlandsche Bank (DNB) and signed the Finance for such as BlackRock, to develop ESG products. a.s.r. Biodiversity Pledge. receives frequent sustainability reporting from its external managers and, where possible, requests impact metrics in Impact investing addition to the sustainability reporting. In 2020, a.s.r. further increased its impact investments among all asset classes. It also launched a pilot with Climate change and energy transition fintech company Util to further develop its impact a.s.r. has integrated climate change and energy transition measurement capabilities. a.s.r. was one of the initiators into its Strategic Asset Allocation (SAA) as an explicit and board members of the National Advisory Board for theme since 2016 and has also taken measures impact investing (NAB), which was launched in October to implement its commitment across the investment 2020. For more information, see chapter 2.5 Sustainable portfolio. a.s.r. has analysed and identified risks for the Development Goals and see for a.s.r.’s target on impact investment portfolio, both bottom-up – covering the investing chapter 2.4 Strategic targets and results. consideration of stranded assets and changing business models in the mining and energy sectors – and top-down, Voting policy in its SAA. In 2020, a.s.r. again acquired updated data A shareholders’ right to vote is essential for the proper from Ortec Finance to incorporate climate scenarios into functioning of a corporate governance system. a.s.r. the SAA. These scenarios served as input for the reporting exercises this right whenever relevant. a.s.r.’s voting policy on climate risks and opportunities, in accordance with was developed in accordance with the Dutch Corporate the Task Force on Climate-related Financial Disclosures Governance Code and a.s.r.'s own SRI policy. This policy (TCFD); see chapter 4.4 Approach to addressing climate is applicable to all internally managed listed equities. In change. 2020, a.s.r. developed further specifications with its proxy voting provider to flag up ESG-related issues. In 2020, External recognition a.s.r. voted at nearly 97% of the shareholder meetings In 2020, a.s.r.’s ESG investing policy was recognised by a held. Of the 1,128 shareholders meetings, 455 had at least number of external parties. one vote Against, Withheld or Abstained from. 352 of • a.s.r. was awarded number 1 position in the Dutch Fair the 1,241 proposals voted against adressed remuneration Insurance Guide for the 6th consecutive time. It gained for the EB or SB and 433 meetings had one or more the highest scores in 7 out of 9 themes and in 8 out of votes against appointments. The voting accountability 10 sectors. report provides a quarterly review of how a.s.r. exercised • a.s.r. was again included as best practice by the its voting rights at shareholder meetings. The voting Dutch Insurers Benchmark by the Dutch Association of policy and voting reports are available on a.s.r.’s website Investors for Sustainable Development (VBDO). www.asrnl.com. • a.s.r.’s sustainable investment strategy was awarded the highest score by the UN PRI assessment, scoring the Votes against management in 2020 same or better than the sector average in all areas, with the highest possible score of A+ given for its strategy (in %) and governance and the ESG management of its equity 1 Anti-takeover investments. 9 Appointments Audit • UN PRI furthermore highlighted a.s.r.’s incorporation of Capitalisation climate factors into its SAA as an industry best practice. 35 Director-related 28 ESG Environment ESG Governance ESG Social 3.2.2 a.s.r. real estate 6 8 Other 1 6 Remuneration As a real estate investment manager focusing on long­ 3 21 Shareholders' term value creation, a.s.r.'s efforts to make its real estate rights portfolios more sustainable are an important objective. a.s.r. real estate believes in long-term relationships with Externally managed assets its stakeholders. In partnership with them, a.s.r. real estate The external providers’ SRI policy is a key criterion in the aims to reduce its carbon footprint, increase the share selection of external managers. a.s.r. seeks to appoint of renewable energy used in its real estate and focus on managers who apply an SRI policy that is as close as the reusability of materials. However, ESG goes beyond possible to its own and, as a minimum condition, requires simply pursuing the sustainable management of real exclusion of controversial weapons as per the Sustainable estate. a.s.r. real estate also wants to have a positive Investing Code of the Dutch Insurance Association and impact on both the environment and society by investing the best possible effort to be a signatory to the in local neighbourhoods, biodiversity and participating UN PRI and UN Global Compact principles. a.s.r. also in the national energy transition process, among other engages with its external managers to enhance their things. 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    striving to enhance the sustainability of the portfolio Impact Investing Market Map. a.s.r. real estate expects to through acquisitions and renovations and to improve the add more impact investment themes as of 2021. environmental efficiency of standing investments, with a keen eye on the energy efficiency of the buildings and the Rural real estate portfolio asbestos-safe use of sustainable materials and methods and greenery. a.s.r. aims to minimise the presence of asbestos in its a.s.r. real estate continuously investigates and implements existing Dutch real estate investments. To achieve this, the new developments and applications, such as solar parks, entire portfolio of retail, office and residential properties energy-neutral dwellings, charging points for electric cars, has been made asbestos-safe. a.s.r. also aims to make electric car-sharing and green rooftops. its rural real estate portfolio fully asbestos-safe. The final steps towards achieving a 100% asbestos-safe rural real Carbon footprint data coverage estate portfolio were taken in 2020. a.s.r. real estate is In 2018 a.s.r. set an objective to improve the carbon now proud to report that 91 % of its rural real estate footprint’s data coverage of at least 95% of all investments portfolio has been made asbestos-safe within the given in 2021. As at 31 December 2020, a.s.r. real estate had timeframe. It is now in contact with the ground lessees insight into 94% of its portfolio. It will focus on increasing and municipalities for the completion of its target for the this percentage in the years to come. remaining 15 properties. Rural portfolio asbestos safe Impact investing a.s.r. real estate defines impact investing based on the (in % of the holdings in the portfolio that were declared asbestos­ GIIN (Global Impact Investing Network) as adopted by safe) a.s.r., and aligns with the INREV (European Association for Investors in Non-Listed Real Estate Vehicles) definition, 91 Target: 100 i.e.: (real estate) investments made with the intention 84 to generate positive social and environmental impact 58 alongside a financial return. Impact investments should comply with the following key elements: • Intentionality An investor’s intention to have a positive social or 91 environmental impact through investments is essential 2018 2019 2020 to impact investing; • Financial return Green Leases for commercial tenants A positive financial return; a.s.r. real estate seeks to sign ‘green lease’ contracts for all • Measurability its new lease agreements for commercial tenants. In these The commitment of the investor to measure and green lease contracts, the landlord and tenant agree on report the social and environmental performance how the leased asset will be used in the most responsible and progress of underlying investments, ensuring and sustainable manner. In 2020, all new rental contracts transparency and accountability while informing the under the ASR Dutch Prime Retail Fund (ASR DPRF) and practice of impact investing and building the field; the ASR Dutch Mobility Office Fund (ASR DMOF) were • Additionality green lease contracts. The positive impact that would not have occurred without the investment. As at 31 December 2020, the total percentage of green lease contracts was 56% for ASR DMOF and 55% for a.s.r. real estate has defined two impact investment ASR DPRF. Over the next few years, the funds will aim themes in 2020: to further increase the number of green lease contracts 1. Affordable Housing; and hold more substantive discussions with tenants on 2. Dutch Science Parks. achieving green lease objectives. a.s.r. real estate contributed to the addition of affordable Sustainable investing – GRESB benchmark dwellings to the Dutch residential market and the quality The a.s.r. real estate sector funds were assessed on of science park ecosystems in the Netherlands. The their sustainability performance by Global Real Estate residential fund delivered three new projects with 216 Sustainability Benchmark (GRESB) in 2020, the global dwellings. These are assets under management in the sustainability benchmark. The ASR Dutch Core Residential rental range between € 737 and € 1,250 per month. The Fund (ASR DCRF) and the ASR DMOF were each awarded science park fund invested in two assets for scale-ups the maximum score of five stars. This means that a.s.r. on the TU Delft and University of Twente campuses and real estate’s residential and office funds are among the commenced construction of two additional buildings for top 20% best-performing GRESB funds worldwide. The tenants with strong research links with TU Delft. These ASR DPRF also saw an improved performance this year, themes are important and acknowledge challenges which with a four-star score. The results confirm a.s.r. real estate’s can be traced back to impact markers in the UN PRI ongoing commitment to sustainability. Sustainable value creation | 3.2 Sustainable investor 44


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    1 2 3 Sustainable value creation 4 5 6 7 8 9 ASR Dutch Core Residential Fund ASR Dutch Prime Retail Fund ASR Dutch Mobility Office Fund (0-100) (0-100) (0-100) 84 84 76 78 84 80 72 77 +0% +3% 70 +7% 2018 2019 2020 2020 2018 2019 2020 2020 2018 2019 2020 2020 Young Farmers Groundlease user-friendliness. Once these steps have been taken, a.s.r. a.s.r. believes in a strong and vital rural area, now will aim to start a roll-out strategy within the rural real and in the future. With reference to the ‘climate smart estate portfolio. agriculture’ investment framework, a.s.r.’s aim is for its farmers to have a sustainably-generated income. a.s.r. has Generate renewable energy therefore launched the Young Farmers Groundlease to Alongside its determined efforts to reduce energy help safeguard the continuation of farming. This product consumption, a.s.r. real estate maintains a firm focus on will enable the next generation of farmers to start their increasing the renewable energy generated on-site. Since own sustainable agricultural company. a.s.r. gives young its portfolios encompass both farmland and the built farmers a kick-start by taking a higher stake in the overall environment, a.s.r. real estate is in an interesting position investment, giving the young farmers the much-needed to contribute to the Dutch energy transition. working capital for their business. To guarantee better soil for the future, a.s.r. defines sustainability requirements In recent years a.s.r. has already installed around 4,000 with these young farmers and shares their soil data with solar panels on the roofs of its residential assets. In 2020, the OSI; see below. This tool gives the farmer insight the focus was on fitting solar panels on the roofs of into the current soil condition and provides him with an its offices and retail assets. Supermarkets in particular inspiration list of measures to improve the soil. Through appeared to be suitable for the installation of solar panels these efforts, a.s.r. aims to make a positive impact for due to their large roof area and high energy demand. the next generation of farmers and sustainable soil management. In 2021, a.s.r. will continue to install solar panels on its properties and will also expand the storage of energy in Open (source) Soil Index batteries in multi-familiy buildings. In the rural real estate a.s.r. believes that farmers can make a significant portfolio, opportunities are being exploited to expand contribution to the various ecological services such wind and solar energy. as water quality, water retention, biodiversity, etc. Sustainable soil management is key to this process, Monitor and adapt to climate change and acknowledged by every farmer. However, due to By understanding and anticipating the long-term risks financial constraints, sustainable soil management is not of climate change, a.s.r. strives to build a portfolio implemented in full by every farmer. a.s.r. therefore that is progressively adaptable. The Royal Netherlands developed the OSI in close collaboration with its charter Meteorological Institute (KNMI) broadly distinguishes coalition partners Rabobank and water company Vitens. four major climate risks which will increasingly affect OSI was given national recognition when it was integrated the portfolio. The indicators used are based on the into the public-private partnership Beter Bodembeheer ‘Klimaateffectatlas’ (Climate Impact Atlas), which is (Better Soil Management). At the beginning of 2020 managed by Climate Adaptation Services (CAS). the OSI consortium comprising Farmhack, Nutrients Management Institute (NMI) and Wageningen University The TCFD framework, used for managing climate risk & Research (WUR), handed over OSI to its assignor. for a.s.r.'s business (reported in chapter 4.4. Approach The coalition intends to host OSI through a foundation to addressing climate change), serves as a basis for the which will underline its independency. The foundation consistent disclosure of climate-related financial risks and will further develop OSI by appointing an experts’ panel opportunities. Adhering to the framework, a.s.r. real estate to improve OSI as more soil and farmer management has set objectives to mitigate the risks of heat, drought data becomes available. The OSI will simultaneously be and extreme weather. challenged by a group of farmers in order to improve its Sustainable value creation | 3.2 Sustainable investor 45


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    3.2.3 a.s.r. mortgages Since the Verduurzamingshypotheek can only be used to promote sustainability, it is a form of impact investing. In 2020, a.s.r. mortgages continued to offer the It also contributes directly to a reduction in the total Verduurzamingshypotheek, first introduced in 2019. carbon footprint of a.s.r.'s mortgage portfolio. In order The Verduurzamingshypotheek is a mortgage which to contribute to the Paris Accord, it is important to can be used for housing improvements that improve encourage home improvements aimed at sustainability the sustainability performance of a home. A new rather than solely allowing sustainable houses into the a.s.r. customer can easily add this mortgage onto a.s.r. mortgage portfolio. a standard WelThuis mortgage. To promote the Verduurzamingshypotheek, a low interest rate is offered a.s.r. mortgages also contributes to the non-financial for this mortgage. targets of a.s.r. by improving the measurement of the carbon footprint of its mortgage portfolio. In 2020, a The Startershypotheek was initiated in 2018, and made total of 96% of the CO2 output of a.s.r.'s mortgage it possible for customers with low or fluctuating incomes portfolio was measured in accordance with established to continue to afford their mortgage by offering lower PCAF methodology. a.s.r. mortgages also contributes to monthly payments. In 2020, a.s.r. continued to offer the strategic target of impact investing, since investments this mortgage. No customers with a Startershypotheek in the Verduurzamingshypotheek fall into this category. experienced payment problems in 2020. The Verduurzamingshypotheek can only be used for sustainable investments and is thus an investment which In November 2020, a.s.r. launched the Levensrente can reduce carbon emissions, contributing to a reduction mortgage, which caters specifically to retired seniors with of environmental impact. surplus value in their homes. Many seniors have paid off their existing mortgage but are not necessarily financially More detailed information about responsible investments well-off. Much of their wealth is locked in the value of their can be found in Annex A Facts and figures. homes. In order to allow these seniors to capitalise on the value of their homes, a.s.r. provides an interest-only mortgage with a lifetime fixed interest rate which can be accessed directly. This allows seniors to remodel their homes so that they can continue to live there, contribute to the housing needs of their (grand)children, purchase in-home care or spend their capital in some other way. Sustainable value creation | 3.2 Sustainable investor 46


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    1 2 3 Sustainable value creation 4 5 6 7 8 9 3.3 Sustainable employer Having a competent, agile, engaged, diverse and vital 3.3.1 Organisational success and workforce is key in enabling a.s.r. to achieve its business employee engagement targets. a.s.r. is therefore committed to attracting, retaining and inspiring the most suitable employees, At the end of March, during the first lockdown, a.s.r. offering them extensive opportunities for training and carried out the Denison Organisation Success Survey. This development, and facilitating a sound work/life balance. annual survey measures the success of an organisation This has been especially important in 2020, when due to in several areas, including employee engagement. The COVID-19 all employees had to work from home. results are compared with a global benchmark of more than 1,200 large organisations. The a.s.r. culture Everyone at a.s.r. abides by the organisation’s core values, 78% of the workforce completed the scan (2019: 74%). which set out the basic approach and are used as a a.s.r.'s score was high in almost all areas. There was a behavioural compass. These core values are: clear improvement in the results with regard to strategic • I’m helpful; direction and purposefulness, and on core values and • I think ahead; behaviour the score was higher. The same applied • I act decisively. to customer focus, although there was still room for improvement here. The scan also showed that clear The influence of COVID-19 improvements had been realised in leadership and 2020 was dominated by this pandemic. The measures culture. deemed necessary by the government to contain the virus had a major impact on society. On 10 March 2020, a.s.r. Employee engagement is measured by means of conducted a test with working from home to see whether four themes: vision, core values, empowerment and all systems wereable to cope with this load. The test was knowledge development. Engagement rose from the 77th very successful, and, since 16 March 2020, all of a.s.r.'s percentile in 2019 to the 89th percentile in 2020. This more than 4,000 employees have been able to work from figure is a relative score compared to the benchmark. home. With the exception of a brief period in the summer, employees continued to work from home for the rest of In 2020 for the first time, a.s.r.'s scores on diversity and 2020. During this period, a.s.r. has paid much attention inclusion were compared with the benchmark. The high to the work-life balance and the other consequences of score obtained showed that many employees felt that all working from home. employees within a.s.r. were treated with respect and were Relative score for employee engagement in Denison scan compared to the benchmark In percentile 2020 2019 2018 a.s.r.1 89 77 76 given equal opportunities for personal development. 3.3.2 The Mood Monitor and eNPS However they also felt that diversity was not yet sufficiently encouraged within the organisation. The low Mood Monitor score on equal opportunities for promotion requires a.s.r. introduced the Mood Monitor to keep a finger attention. Based on these results, an in-depth study was on the pulse during the periods of home-working carried out. It showed, among other things, that there necessitated by COVID-19. This is a self-developed was insufficient clarity about what diversity and inclusion weekly pulse check that consists of three questions about: at a.s.r. implies. Also, more transparency was desired in • Work-related happiness, engagement and motivation; recruitment and selection processes and appointments. • Dedication, productivity and performance; This led to higher awareness in the area of diversity • Vitality, mental and physical well-being. and inclusiveness and a number of adjustments in the recruitment and selection process; for more details, see All employees are invited to complete the Mood Monitor. chapter 3.3.3.6 Diversity and inclusiveness. The general mood of a.s.r. is published via the intranet and managers receive a weekly dashboard with the results of their own team. The results give rise to 1 From 2020 onwards, the employee engagement is measured on four instead of three themes. Previous years have been recalculated accordingly. Sustainable value creation | 3.3 Sustainable employer 47


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    team discussions on topics such as job satisfaction, and career. a.s.r. gives considerable attention to vitality, dedication, vitality and connectedness. In addition, the HR engagement and job satisfaction and provides employees department uses the results for alterations to ensure that with ample opportunity to create a good work-life balance the (HR) policy remains appropriate. and to work on their health. On average, approximately 2,500 out of 4,365 employees 3.3.3.2 Strategic workforce planning completed the Mood Monitor each week in 2020. The Insight into the quality, quantity and potential of overall mood, expressed in a number, varied from 6.1 the workforce is essential for strategic workforce to 8.4 on a scale of 1 to 10. On average the overall planning.a.s.r. formulates a strategic workforce plan for mood score was 7.5. The Mood Monitor will continue each business line in collaboration with the business. to be deployed in 2021. There was considerable interest This includes input from the annual employee review and from external parties in a.s.r.'s Mood Monitor. A pilot was succession planning. therefore started with Disability to offer the instrument to business customers as well. Employee review, succession planning and talent development eNPS In order to ensure the continuity of business operations The Employee Net Promoter Score (eNPS) expresses the and prevent talent from leaving, a.s.r. invests in employees extent to which employees would actively recommend who have been identified as (future) top talents. An annual a.s.r. as an employer. The eNPS is measured via the Mood employee review is carried out for the total employee Monitor and averaged +48 in 2020. Within the insurance population, in which performance, agility and potential sector at large, the eNPS is around +35. Just as the Mood are determined for each employee. The results of this Monitor the eNPS was introduced in 2020. review are discussed individually with each employee and used for strategic personnel planning, succession planning, mobility and recruitment, as well as the targeted 3.3.3 HR strategy implementation of the development programmes. a.s.r. needs competent, agile, diverse and vital employees Trainee programme with an entrepreneurial and versatile attitude to execute a.s.r. operates a trainee programme in which young its strategy. Employees who can and dare to take control talents carry out various assignments over an 18-month of their day-to-day work, including their own careers, and period. Trainees also follow a customised development who can handle change within a.s.r. as well as in the programme. The general trainee programme is intended market in which it operates. to attract young talents who can be groomed for higher positions within a.s.r. Due to COVID-19, no new trainees The strategy is to ensure that a.s.r. has a skilled started in 2020, but the trainee programme will be and motivated workforce with which it can achieve its restarted in 2021. objectives. a.s.r. focuses on the following: • Positive employee experience; IT Talent Traineeship • Strategic workforce planning; Because a.s.r. has an ambitious digital agenda, an IT • Total workforce management; Talent Traineeship was developed in 2020. With this • Agility and leadership; programme, a.s.r. wants to make IT talent enthusiastic for • Vitality; an IT career at a.s.r. Participants will follow a development • Diversity and inclusivenes. programme for two years, obtain IT certificates and do assignments in different departments. The first five 3.3.3.1 Positive employee experience candidates started begin 2021. A positive employee experience is understood by a.s.r. as: • Employees experiencing the freedom to take control 3.3.3.3 Total workforce management and make choices in their work and career; Through total workforce management, a.s.r. ensures that • Employees enjoying their work, feeling connected and the best solution is sought for every capacity requirement. being physically and mentally healthy; This can be a permanent employee or a flex worker, but • Employees feeling included, recognised and valued for also possibly a robot. The vacancy can be filled via internal who they are. transfer but also via external recruitment. a.s.r. gives employees the opportunity to take control and Filling vacancies make choices in their work and career. A mature working a.s.r. strives to fill at least 40% of all vacancies internally. relationship and trust are at the heart of this. The facilities In this way, knowledge of the company is retained and a.s.r. offers in the area of personal development ensure employees are given the opportunity to develop further that employees can also make those choices. In Het within the organisation. In 2020, 199 vacancies of the total Andere Gesprek, the capstone of a.s.r.'s CLA, employees of 464 were filled internally, which means that 43% of all and managers discuss (the progress made on) objectives, vacancies were filled by internal candidates. but also work-life balance, personal development, vitality Sustainable value creation | 3.3 Sustainable employer 48


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    1 2 3 Sustainable value creation 4 5 6 7 8 9 Vacancies filled internally their professional knowledge and improve their skills and agility. Employees receive support to work on their (in %) sustainable employability through career coaching and workshops. In order to enable employees to continue to 53 53 Target: 40 work on their development during the COVID-19 crisis, a 43 large part of the training package was moved online in cooperation with external suppliers. 43 Personal Leadership To realise its targets, a.s.r. needs employees who take responsibility for their work and careers and show 2018 2019 2020 initiative. This is encouraged through agreements laid down in De Andere Cao (CLA) with regard to the 3.3.3.4 Agility and leadership working relationship, employment conditions (time- and In an environment where automation and digitisation place-independent work, no annual appraisal cycle) and are gaining ground, attention to employee development development range. is more important than ever. Continuous development is therefore central to the HR policy, agility and In order to help managers develop and maintain their leadership remain important themes in the development expertise and leadership skills, a.s.r. has developed a programmes and the other training programmes and is modular Leadership Education (LE) programme. The part of the plotting in the fleet review. programme includes workshops, intervision, 360-degree feedback and a Learning Agility Scan. Points can be Continuous development earned by participating in parts of the programme. It a.s.r. employees are encouraged to continuously work on was also determined that in 2020-2021, as a result of their development. They can make use of an extensive COVID-19, managers would have two years rather than range of training programmes and courses to maintain one to achieve their compulsory 12 LE points. Employee development training In numbers 2020 2019 2018 Employees have completed job-related training 1,725 1,912 1,512 Employees took part in one of the development programmes 382 534 719 Employees followed a workshop on sustainable employability 391 343 792 Employees have completed an individual coaching programme 296 487 486 Employees were given guidance in the context of redundancy 85 157 154 3.3.3.5 Vitality • My health; a.s.r. invests in the vitality of its employees, for example • My personal development; through its a.s.r. Vitality programme which is offered • My work and private life in balance; free of charge to all a.s.r. employees. Other means • My social commitment. used to promote vitality include periodic medical examinations, internal sports facilities, vitality workshops, a.s.r.'s basic principle is that employees should take vitality software, a healthy selection of foods range in control of their own vitality and employability. the company restaurants and fresh fruit supplied free of charge. The company fruit was donated to various health Vitality while working from home care facilities during the first lockdown period. During the periods of working from home due to COVID-19, extra attention was paid to the mental and Vitality specialists support the management of the physical health of employees. During the lockdowns, business units in developing the vitality and absenteeism when the schools were also closed, employees were policy and provide guidance on absenteeism case files. allowed to take a few hours off every day for care tasks. Consultation specialists are provided, employees In Beweging can request a virtual home office workplace check and The platform In Beweging (Get Moving) inspires, have an office chair and a monitor delivered from the motivates and mobilises a.s.r. employees to work on their office. personal development and their vitality and to get the best out of themselves. They thus contribute to a healthy A great deal of attention was also paid to maintaining organisation. social cohesion remotely. The EB and members of senior management produced regular blogs and vlogs and a Employees can find content and the full range on offer on number of online employee meetings were organised. the platform. The platform consists of four pillars: Employees received tokens of attention at home. An Sustainable value creation | 3.3 Sustainable employer 49


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    inspiration square was set up on the infonet with tips to improve the health and vitality of its employees in 2021. for working together remotely and staying connected. Due to the COVID-19 situation, the focus will be on the Managers also received a toolkit. Extra attention was paid risk of dropping out due to mental issues. to vitality by offering e.g. tailor-made online workouts. Nil absenteeism2 Absenteeism (in %) The absenteeism rate for 2020 was 3.6% (2019: 4.0%). After the first lockdown in March 2020, absenteeism rates 63 Target: 55 initially rose slightly, then dropped and finally ended 56 54 slightly lower than the previous year. a.s.r. continues to pay considerable attention to the development of absenteeism and provides assistance in this respect, since a longer period of working from home can pose risks to the mental health of employees. Employees can experience more anxiety and stress and less social 63 connectedness and insufficient opportunities to do 2018 2019 2020 something else during the day. During 2020, 63% of all employees were at no time absent Absenteeism rates1 due to illness (2019: 54%). (in %) 3.3.3.6 Diversity and inclusiveness The fundamental principles of a.s.r.’s diversity policy are: 5.5 Target: 3.4 5.4 • A balanced workforce composition based on age, 4.5 gender, cultural or ethnic origin, physical and mental 4.0 3.8 3.6 capacity, beliefs and working styles; 3.2 3.1 • Promotion of a balanced composition of management 2.9 through a policy of gender and cultural diversity; • Equal development opportunities for all employees; 3.6 • Participation of people with limited labour market potential. 2018 2019 2020 Female/male Male Female Total At least 30% of the SB, EB and senior management are to be female or male. In 2020, the SB had two female members (33%) and four male members (67%), the EB had Short absences (and hence also the reporting frequency) two female members (67%) and one male member (33%). decreased considerably compared to 2019. This was On 31 December 2020, senior management consisted of probably because working from home gives employees 18 members, five of whom are female (28%) and 13 were the ability to arrange their work more flexibly. The male (72%). a.s.r's diversity policy is part of the recruitment recovery time for short- and medium-term absenteeism process and the employee review, in which succession was longer compared to 2019. a.s.r. will maintain its efforts planning, among other things, is discussed. Breakdown gender diversity In % 2020 2019 2018 Supervisory Board (female / male) 33 / 67 33 / 67 40 / 60 Executive Board (female / male) 67 / 33 33 / 67 25 / 75 Senior management (female / male) 28 / 72 25 / 75 29 / 71 Management excluding sr. and jr. management (female / male) 22 / 78 21 / 79 20 / 80 Junior management (female / male) 34 / 66 35 / 65 31 / 69 Other employees (female / male) 43 / 57 42 / 58 40 / 60 Participation Desk Persons benefit (Wajong) on various assignments. During To reduce the distance from the labour market for a two-year period (maximum), they gain work experience candidates with a work disability, a.s.r. has established and develop employee skills. They receive intensive ‘The Participation Desk’. This desk employs people with guidance and a tailor-made development programme. a Work and Employment Support for Disabled Young The aim is to prepare them for a permanent position, 1 Excluding maternity leave. 2 Nil absenteeism is the percentage of employees who have not reported sick during the reporting period. Sustainable value creation | 3.3 Sustainable employer 50

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