![]() Annual premium equivalent (APE) will rely almost exclusively on regular premium business and will trend down to between EUR30 million to EUR40 million in 20 and We anticipate that the reliance on regular premium business will also mitigate the impact of changes in customer remuneration The pace of decline in life gross written premium should slow as ASR completes its withdrawal from single premium business ![]() ![]() The macroeconomic context in the Dutch market and strategic decisions regarding the exit of single premium business will continue to weigh heavily on the competitive position of ASR: Company published combined ratios are likely to remain about 99%-100% during 20 as disability claims stay high and the company increases its focus on the low margin health sector. Embedded value margins on new business will remain low relative to peers, but are likely to improve slightly as operating expense efficiencies are implemented and Unit-linked policyholder compensation will not have any further earnings implications in 2012 Profits before tax will remain in the EUR200 million to EUR300 million range Operating performance will continue to be hampered by the macroeconomic environment, which is increasing claims and claim duration in the disability portfolio in particular causing significant investment volatility and the guarantees in the pensions business to bite. ASR will continue to prudently manage capital and investments, predominantly using the stressed Solvency I metric. However, we believe capitalization as measured by Standard & Poor’s risk-adjusted capital model will remain strong A dividend is likely to be paid in respect of 20 as the company builds a track record on its path to an anticipated IPO. We believe that this will continue to support the rating. Given that the one-offs associated with these measures are mostly implemented we expect greater resilience in the financial risk profile against ongoing volatility.ĪSR has taken a number of important steps to improve the strength and stability of the balance sheet. ASR has also improved the efficiency of its processes and its claims handling capability. The group has de-risked its balance sheet through changes to the composition and profile of the asset portfolio, and by reducing the interest rate sensitivity of its liabilities. However, we do not expect to revise down our assessment of operating performance from strong to good, as our criteria define these terms, nor do we expect it will be detrimental to the balance sheet. Though considered strong, operating performance remains a relative weakness to the rating in particular in the life operations where new business margins will remain low relative to peers. Operating performance remains a weakness to the rating, but management actions have reduced the extent to which this drives our view of the financial risk profile.ĪSR will not fully achieve its operating performance targets for 2012, which were set in 2009. The track record of achievement in this area has led us to revise our assessment of management and corporate strategy from marginally negative to marginally positive. 16, 2011 on the Global Credit Portal).ĪSR has taken steps to improve the resilience of the balance sheet as well as the stability of operating performance. ![]() We have previously recognized the improvements in capitalization at ASR (see “ASR Nederland Group,” published Nov. Since breaking up with Fortis and being purchased by the Dutch government, the management team has taken steps to improve the financial risk profile of ASR. (ASR), ASR Levensverzekering N.V., and ASR Schadeverzekering N.V., have benefited from the re-building of capital and the de-risking of the balance sheet. The outlook revision reflects our assessment that the core operating entities of ASR Nederland Group. At the same time, we affirmed our ‘A’ long-term counterparty credit and insurer financial strength ratings on the two entities. and ASR Schadeverzekering N.V., to stable from negative. 23, 2012, Standard & Poor’s Ratings Services revised the outlook on Netherlands-based multiline insurer ASR Nederland Group’s core operating entities, ASR Levensverzekering N.V. We are therefore revising the outlook on ASR Nederland Group’s core operating subsidiaries to stable from negative and affirming the ratings. This has mitigated the requirement for improvements in earnings to support the financial risk profile. Management actions to de-risk the balance sheet have helped capital remain resilient over 2011, positioning the company well for ongoing volatility. Since 2008, Netherlands-based multiline insurer ASR Nederland Group has strengthened the resilience of its financial risk profile through de-risking actions and retained earnings. (The following statement was released by the rating agency)
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