Athora Netherlands Interim Results 2023

Strong Financial and Commercial Results 

Solvency ratio increased to 214% with HY23 Operating Capital Generation of € 193 million and HY23 Operating Result of €217 million (HY22: €110 million).

Financial Results

• Solvency II Operating Capital Generation (OCG) substantially higher at € 193 million (HY2022: € 74 million) supported by increased investment income and higher interest rates.
• Gross inflows were 21% higher at € 1,228 million (HY2022: € 1,017 million) driven by increased premiums and deposits in the pensions and retirement business, a new innovative pension buy-out with Pensioenfonds Aon and the inclusion of the Willis Towers Watson (WTW) PPI as of the second quarter of 2023.
• First time application of new accounting standards IFRS 17 and 9. No impact on strategy and underlying economics of our business. We continue to steer our business on Solvency II and OCG.
• Operating Result (before taxation) of € 217 million (HY2022: € 110 million) due to higher investment income following the repositioning towards higher yielding assets.
• The Net Result IFRS of € 115 million (HY2022: € -806 million) is predominantly driven by the positive Operating Result. In 2022, the Net Result IFRS was heavily impacted by the change in market value of investments from higher interest rates and spread widening. Solvency
• Solvency II ratio increased to 214% (YE2022: 205%) for Athora Netherlands N.V., driven by strong OCG and the positive impact of management actions.
• SRLEV N.V. Solvency II ratio of 221% (YE2022: 207%).

Strategic Progress

• Athora Netherlands’ strategy continues to be focused on being a leading pension and retirement solutions provider.
• Customer satisfaction increased across all segments.
• Completed an innovative buy-out solution that was developed together with the Board of Pensioenfonds Aon.
• Closed the transaction to acquire WTW’s Premium Pension Institution (PPI) in the Netherlands.
• Closed the transfer of 2nd pillar pension portfolio of Onderlinge ‘s Gravenhage.
• Announced the transfer of administrative tasks pertaining to the legacy individual life portfolio to Tata Consultancy Services (TCS).
• Athora Netherlands selected as the most sustainable insurer in the Netherlands by VBDO for the second time in a row.

Jan de Pooter, CEO and Chair of the Executive Committee of Athora Netherlands: “We delivered strong financial and commercial results in the first half of 2023. In an environment that remained challenging in terms of geo-political developments, financial markets and inflation, I am proud and thankful to all employees for the continued strong progress with the execution of our Ambition 2025 strategy.

After many years, the new Wtp pension law came into force in the second quarter. As the only pure pension specialist, Athora Netherlands is perfectly positioned to capture together with our business partners the opportunities in the dynamic Dutch pension market. With our clear focus, solid capital position, talented workforce and commercial momentum, we have all ingredients in place to build a leading position in the market.

Commercially, we saw strong business volumes in the first six months while customer and advisor satisfaction is increasing across all segments. Employers and advisors were updated on the latest developments in the market during the highly valued annual Zwitserleven pension event.

Healthy business flows were supported by an innovative buy-out out solution that was developed together with Pensioenfonds Aon to provide the fund’s pensioners and former members with the option of a lifelong guaranteed pension at Zwitserleven with a fixed annual indexation. This created a certain degree of freedom of choice for these members, which also strengthened support for the liquidation of the pension fund and the associated transition. With the pension legislation now in place, we expect to be able to provide our market-leading solutions to more pension funds.

We closed the transaction with WTW’s PPI, welcomed our new colleagues and started the planning of the integration with our own Zwitserleven PPI. In addition, we also completed the transfer of 2nd pillar pension portfolio of Onderlinge ‘s Gravenhage.

In August, we announced the transfer of the individual life portfolio management and certain IT activities to TCS. This expansion of our long-standing strategic partnership with TCS will enable us to further improve customer service levels, safeguard the continuity of service, and variabilise the expense base of our Life Service Business.

One of the key levers of our strategy is to increase our investment income through the repositioning of part of our investment portfolio towards higher yielding assets, offering better risk-return characteristics. This ongoing process allows us to offer competitive rates to our customers and the significant progress that has been made to date has led to a substantially higher OCG for the first half of 2023.

Our Solvency II ratio improved to 214% from 205% at year-end 2022, reflecting material OCG and the positive impact from management actions. Our strong capital position provides comfort to our customers and forms a solid and sustainable platform to further develop our business.

We also continue to make tangible progress towards realising our sustainability ambitions. From introducing new sustainable investment categories in our DC pension propositions to more accurate measuring and lowering of the ecological footprint across our value chain. A lot of effort is put into further increasing transparency on sustainability matters to customers and other stakeholders.

Additionally, we continue to make a real world impact by investing in companies that are important for the transition to a sustainable society and economy.  The development of the Prince of Delft building offering affordable housing for 260 young professionals is an example of an investment addressing a pressing need in Dutch society.

We are proud that our efforts and expertise on sustainable investing have once again been recognised, retaining the first place in the renowned Benchmark Responsible Investment by Dutch Insurers conducted by the Dutch Association of Investors for Sustainable Development (VBDO).

We moved to our new office location Edge West in Amsterdam, while our location in Alkmaar has been redesigned. The new offices provide a sustainable and energizing environment for all our colleagues.

I am very pleased with our performance in the first half year of 2023 and would like to thank our customers and business partners for their continued trust. I look forward to continuing to build Athora Netherlands into a leading pension solutions provider in the Netherlands.”