SFCR 2022

Summary

ASR Nederland N.V., hereinafter 'a.s.r.', is the Dutch insurance company for all types of insurance. As part of the Solvency II legislation, a.s.r. discloses the Solvency position, Governance and Risk management practices by means of a Solvency and Financial Condition Report (SFCR).

A Business and performance

The Solvency II ratio stood at 222% (excluding financial institutions) on 31 December 2022, after deduction of the proposed dividend and the proceeds of the € 0.6 billion share issue. The ratio is based on the Standard Formula as a result of € 7,346 million Eligible Own Funds (EOF) and € 3,307 million Solvency Capital Requirement (SCR).

Having generated € 6,041 million in Gross written premiums (GWP) in 2022 (+3.1% compared to 2021), a.s.r. is one of the larger insurance companies in the Netherlands.

The operating result increased by € 30 million to € 1,039 million (2021: € 1,009 million). All business segments performed strongly and apart from Distribution and Services posted higher operating results.

Operating expenses associated by ordinary activities increased by € 41 million to € 703 million, reflecting organic business growth, especially in the Non-life and Asset Management segments and in the additional (running) costs of several new growth initiatives. The increase also reflects the one-off payments to staff to compensate for higher energy costs and the inclusion of acquisitions (total impact € 5 million) in the fee- based segments (Asset Management and Distribution & Services) and the acquisition of Brand New Day IORP as of 1 April 2021 in the Life segment.

Organic capital creation (OCC) increased by € 59 million to € 653 million (2021: € 594 million), mainly due to the improved technical movements (UFR-unwind) due to higher interest reates and better business capital generation due to improved technical results, mainly in Life business as well as an increase in investment returns.

Full details on the a.s.r.'s business and performance are described in chapter A Business and performance (page 8).

B System of governance

General

a.s.r. is a public limited company which is listed on Euronext Amsterdam and governed by Dutch corporate law. It has a two-tier board governance structure consisting of an EB and a SB. The EB is responsible for the setting of the company's corporate objectives, executing the strategy and the delivery of the results.

The SB is responsible for advising the EB, supervising its policies and for the general state of affairs relating to a.s.r. and its group entities. The SB also acts as employer of the EB. Next to the EB, there is also a Business Executive Committee (BEC). The task of the BEC is to support the EB in implementing and realising a.s.r.'s targets and executing the (business) strategy with the associated risk profile.

Risk management

It is of great importance to a.s.r. that risks within all business lines are timely and adequately controlled. In order to do so, a.s.r. has a Risk Management framework in place based on internationally recognised and accepted standards (such as COSO ERM and ISO 31000 risk management principles and guidelines).

Using this framework, material risks that a.s.r. is, or can be, exposed to, are identified, measured, managed, monitored and evaluated. The framework is applicable to a.s.r. group and the underlying (legal) business entities.

Control environment

In addition to risk management, a.s.r.'s Solvency II control environment consist of an internal control system, an actuarial function, a compliance function, a risk management function and an internal audit function. The system of internal control includes the management of risks at different levels in the organisation, both operational and strategic. Internal control at an operational level centres around identifying and managing risks within the critical processes that pose a threat to the achievement of the business line's objectives. The Actuarial Function is responsible for expressing an opinion on the adequacy and reliability of reported technical provisions, reinsurance and underwriting. The mission of the Compliance department is to enhance and ensure a controlled and sound business operation. The Audit Department evaluates the effectiveness of governance, risk management and internal control processes, and gives practical advice on process optimisation.

Full details on a.s.r.'s system of governance are described in chapter B System of governance (page 25).