Athora Netherlands Annual Results 2020

Progress in Becoming a Fully Dedicated Pension Provider

Resilient Financial Results in an Eventful Year

Robust Financial Results

• Net Underlying Result of EUR 280 million (2019: EUR 277 million) as a result of lower costs partly offset by lower direct investment income. The impact of Covid-19 on results was limited
• Gross premiums of EUR 1,764 million (2019: EUR 1,849 million) driven by stable pension premiums offset by lower individual life premiums due to the shrinking Dutch individual life insurance market
• Zwitserleven PPI almost doubled its assets under management to above EUR 1 billion
• Total operating costs (excluding restructuring costs) were 7% lower as a result of a continued focus on cost control
• The Net Result IFRS of -/- EUR 57 million (2019: EUR 333 million) was impacted by one-off costs as well as a negative Liability Adequacy Test impact due to the lower interest rate environment

Stable Solvency

• Stable solvency position against a volatile market backdrop and business transformation towards becoming a focused pensions provider
• 2020 Solvency II ratio of 161% (YE19: 170%) at Athora Netherlands NV. Taking into account the sale of the Non-life business, and the associated loss of diversification benefits, the Solvency II ratio remained stable
• 2020 Solvency II ratio of 163% (YE19: 163%) at SRLEV

Strategic Progress

• Announced a new strategy to become a fully focused pension provider; good progress made on implementation with reorganisation well on track
• Athora Netherlands is exploring strategic options for its asset manager ACTIAM
• Successful rebranding of VIVAT into Athora Netherlands

Tom Kliphuis, Chairman of Athora Netherlands’ Executive Board:
“2020 was an eventful year for our company. We welcomed our new shareholder Athora, executed the sale and started the disentanglement of the non-life business, rebranded to Athora Netherlands and developed a new strategy which we have started implementing. Amidst the change of ownership, turbulent economic and Covid-19 environment, we were able to provide an uninterrupted and high-quality service to our customers whilst delivering solid financial results coupled with a stable solvency position.

Athora Netherlands improved its Net Underlying Result by further reducing the operating costs and improving the technical result. The impact of Covid-19 on the results has been limited. The solvency position remained robust at 161%. Focus on capital and a strong balance sheet will remain a key priority for the company.

Commercially, it was another successful year for our pension business. Gross premiums remained high at EUR 1.1 billion, with an all-time high production of EUR 300 million of immediate annuities, and our PPI doubled its assets under management to above EUR 1 billion. The retention rate remained high at 84%. The declining individual life market led to lower gross premiums of EUR 674 million, but the sale of immediate annuities – identified as a strategic focus product within our new strategy - increased in the final quarter of the year to EUR 60 million.

We are making strong progress in implementing the new strategy and are simplifying the operating model and organisational structure, within a single Pension Business, a dedicated Life Service Business and fewer smaller support functions. In addition, we are initiating and accelerating digitalisation initiatives and we will consider outsourcing a number of - non-strategic – activities in the coming years. This enables Athora Netherlands to position itself as the only fully dedicated large pension provider in the Netherlands using the well-known Zwitserleven brand. Our new strategy will benefit all our existing and future customers.”

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