Athora Netherlands Annual Results 2021

Significant Improvement of Solvency II Ratio to 180%

Strategic Progress to Become a Fully Focused Pension Provider

Financial Results

• Net Underlying Result of EUR 302 million (2020: EUR 283 million) driven primarily by higher investment income, supported by the continued repositioning of the asset portfolio
• Gross premiums of EUR 2,167 million (2020: EUR 1,764 million) driven by pension buy-out contract and a high retention rate in the pension business
• Zwitserleven PPI continued to grow its assets under management, increasing by EUR 548 million to reach EUR 1.6 billion
• Total operating costs were significantly lower, supported by lower restructuring expenses partly offset by strategic initiatives and expenses related to implementation of IFRS 17
• The Net Result IFRS for continuing operations of -/- EUR 27 million (2020: -/- EUR 47 million) improved as a result of a higher investment income and lower operating costs

Solvency

• 2021 Solvency II ratio increased to 180% (YE20: 161%) at Athora Netherlands N.V., driven by a longevity reinsurance transaction, a EUR 325 million capital injection from Athora Group, capital efficiencies and the application of LAC DT, partially offset by the impact of the continued repositioning of the asset portfolio and certain market movements.
• To support a further acceleration of Athora Netherlands’ strategic objectives, Athora Group provided EUR 325 million of additional capital during 2021, comprising an equity injection of EUR 275 million and a EUR 50 million Tier 1 loan
• Operating Capital generation, including organic development of the capital requirement, was limited over 2021. Capital generation turned positive in the fourth quarter supported by asset repositioning.
• 2021 Solvency II ratio of 180% (YE20: 163%) at SRLEV

Strategic Progress

• Athora Netherlands stepped up its long-term ambitions for 2025 based upon three levers: increased growth, enhanced investment returns and a simplified operating model
• Sale of asset manager ACTIAM completed to fully focus on pensions
• Successful pension buy-out involving an invested pension capital amounting to EUR 460 million
• Athora Netherlands was voted the most sustainable insurance company in the Netherlands

Jan de Pooter, Chairman of Athora Netherlands’ Executive Board:

“2021 was marked by strong positive momentum for our company. Athora Netherlands was voted the most sustainable insurance company in the Netherlands by VBDO, had another successful commercial year and made good progress in further simplifying the organisation. On top of that, we ended the year with a strong capital position, aided by the additional capital provided by Athora Group, which will facilitate a further acceleration of our strategic objectives.

In December 2021, Athora Netherlands concluded its strategy update reconfirming the strategic choices already made in 2020 but also stepping up our long-term ambitions for 2025 based upon three levers: increased growth of our business, enhanced investment returns supported by an operating model that is more suitable to the narrower business focus.

In that respect, the successful sale of ACTIAM to Cardano in combination with a long-term strategic partnership formed an important milestone in the strategy – to focus on pension solutions and to further simplify our organisation.

Athora Netherlands will embark on this journey from a position of strength. With our dedicated employees, the strong Zwitserleven brand and a leading market position supported by a financially strong Group with unique investment expertise we are very well positioned. There are many opportunities in the changing pension market for a highly focused and specialised solutions provider that will benefit our customers.

The business of Athora Netherlands developed very favorably in 2021. We achieved the highest renewal rate ever of 91.3% in corporate pensions, we posted a record inflow of more than EUR 500 million in annuities premiums (DIL and DIP) and we recorded 53% growth in assets under management in PPI to EUR 1.6 billion. We were also very proud that the Atradius pension fund has chosen the buy-out solution of Zwitserleven to transfer its pension entitlements and rights to. We expect more pension funds to consider an insured solution in the future and strongly believe that Athora Netherlands is well positioned to play an important role in this market.

Thanks to the capital strengthening, Athora Netherlands’ solvency ratio increased to 180% at the end of 2021. The capital support is a clear testimony of the continued strong commitment of Athora Group to the Dutch pension markets. The increase was also driven by the application of LAC DT, capital efficiencies and a reinsurance transaction, partly offset by the impact of the continued repositioning of investments.

The capital support will also allow Athora to continue the repositioning of its investment portfolio towards higher yielding assets with a better balance between risk and reward contributing to a further improvement of our capital generation. The repositioning of investments already led to positive capital generation at the end of 2021 and we expect the upward trend in capital generation to continue.

I am proud of our performance in 2021 and would like to thank our customers for their continued trust and our valued employees for their tireless efforts in making the past year possible. In 2022 we will continue to build on the positive momentum for our company.

Finally, when looking into 2022, it is inevitable to also mention the crisis in Ukraine. We are deeply concerned about the situation in Ukraine and our thoughts go out to the people of Ukraine and all those directly affected by the conflict. To support the humanitarian relief efforts for the war in Ukraine, Athora Netherlands and its employees have donated to Giro555 of the Cooperating Aid Organisations of the Netherlands. Athora Netherlands has no business activities in Ukraine, Russia or Belarus and there is no direct exposure through our own account investments portfolio and only very limited exposure through our unit linked portfolio. We will continue to monitor the developments closely.”

For the full press release about the Annual Results, please download the pdf below.

Publication Annual Reports & Solvency and Financial Condition Report

Today, Athora Netherlands also published its Annual Report Athora Netherlands N.V. 2021, the Annual Reports 2021 of SRLEV N.V., Proteq Levensverzekeringen N.V. and the Solvency and Financial Condition Report (SFCR) 2021 of Athora Netherlands N.V.