6.11.3.1 Accounting policies

The company financial statements are prepared in accordance with Title 9, Book 2 of the Dutch Civil Code. The consolidated financial statements of a.s.r. for 2021 have been prepared in accordance with IFRS – including the IAS and Interpretations – as accepted within the EU and with part 9 of the book of the Dutch Civil Code. In accordance with Section 362(8), Book 2 of the Dutch Civil Code, the same accounting policies for the recognition and measurement of assets and liabilities and determination of results applied to the company financial statements are applied to the consolidated financial statements.

Investments in group companies are recognised, using the equity method, in accordance with the accounting policies used in a.s.r.’s consolidated financial statements whereby the goodwill, if any, is presented separately. The share of profit of group companies is reported in conformity with the accounting policies used in a.s.r.’s consolidated financial statements.

Lease contracts are disclosed using IFRS 16 based on the option under RJ 292.1.

Unless stated otherwise, all amounts presented in these financial statements are in millions of €. Calculations in the tables are made using unrounded figures. As a result rounding differences can occur.

6.11.3.2 Intangible assets

The goodwill relates to the acquisition of BNG Vermogensbeheer in 2016 (€ 4 million) and to the acquisition of Generali in 2018 (€ 13 million). No impairments were deemed necessary. For more information see chapter 6.5.1.

The change in the amount of intangible assets relates to amortisation which is presented in the operating expenses.

6.11.3.3 Property and equipment

The right-of-use assets includes property and equipment that is leased by a.s.r. Land and buildings owned by subsidiary relates mainly to the a.s.r. head office, which is owned by a.s.r. life.

Depreciation of property and equipment is recorded in the operating expenses (see chapter 6.11.3.19).

6.11.3.4 Subsidiaries

Included in the other changes 2021 is a share premium reimbursement of € 17 million related to the sale of ASR Bank N.V. in 2020.

The share of result in subsidiaries also includes consolidation adjustments, amongst others relating to the LAT-shortfall of a.s.r. life (see chapter 6.8.2).

6.11.3.5 Investments

The investments consists of cash invested in government bonds with a maturity of less than one year to optimise the Solvency II ratio, see chapter 6.11.3.10.

6.11.3.6 Loans to group companies

The loans to group companies are € 45 million (2020: € 41 million) which are expected to be settled more than one year after the balance sheet date and an average interest rate of 5.14% (2020: 4.85%).

Interest income on loans to group companies amounts to € 2 million (2020: € 1 million).

6.11.3.7 Loans and deposits

The loans and deposits which are expected to be settled within one year after the balance sheet date are nil (2020: nil).

6.11.3.8 Deferred tax assets

The deferred tax assets mainly arises from the difference in commercial and fiscal valuation of employee benefits (including the assets resulting from the insurance contracts, which are administrated by a.s.r. life) amounting to € 170 million (2020: € 226 million), partly offset by the equalisation reserve of € 108 million (2020: € 94 million).

6.11.3.9 Other receivables

The other receivables includes receivables from group companies, which include the receivable with respect to non-qualifying plan assets (see chapter 6.5.17) administered by a.s.r. life amounting to € 3,308 million (2020: € 3,302 million). The plan assets administered by a.s.r. life include the separate account to fund future inflation indexation amounting to € 192 million as at 31 December 2021 (2020: € 242 million). The remaining portion of the receivables from group companies is payable on demand.

6.11.3.10 Cash and cash equivalents

In 2021, cash is invested in short-term government bonds, see chapter 6.11.3.5.

Cash and cash equivalents are fully and freely available.

6.11.3.11 Equity

Share capital

For a breakdown of the share capital, see chapter 6.5.13.1.

Legal reserves

The legal reserves relate to the revaluation of investments in group companies. The legal reserves are maintained in relation to the (not yet received as dividend) share in the result (and other additions to equity) of group companies accounted for using the equity method since initial recognition reduced with the amount of dividend that a.s.r. is able to distribute without restrictions. The legal reserves are not freely distributable. See chapter 6.9 for more information on the regulatory restrictions.

Other equity instruments

The other equity instruments relate to two (2020: two) different hybrid Tier 1 and Tier 2 instruments classified as equity. See chapter 6.5.13.5 for more information.

Freely distributable items

The part of equity attributable to shareholders that is available for dividend distributions is limited by the Dutch Civil Code and the Dutch Supervisory Rules and Regulations (Solvency II requirements). The distribution of capital is restricted in accordance with the Dutch Civil Code for share capital and statutory reserves. The Solvency II requirements stipulate that a.s.r. must maintain a minimum amount of capital.

The freely distributable reserves is based on the lowest outcome of the restrictions from the Dutch Civil Code and the Solvency II requirements. This is further explained in the table below:

• ¹ Less the nominal value of treasury shares if applicable

For more information on Solvency II capital management objectives see chapter 6.9.1.

6.11.3.12 Employee benefits

Employee benefits can be broken down as follows (see chapter 6.5.17 for further details):

6.11.3.13 Other provisions

Provisions primarily relate to provisions for employee restructuring and retained disability risk.

The timing of the outflow of resources related to these provisions is uncertain because of the unpredictability of the outcome and time required for the settlement of disputes.

An amount of € 8 million (2020: € 16 million) of the provisions is expected to be settled within twelve months after the balance sheet date.

6.11.3.14 Subordinated liabilities

The subordinated liabilities relate to two Tier 2 notes and can be broken down as follows (see chapter 6.5.14 for more information).

6.11.3.15 Borrowings

The lease liabilities consist primarily (€ 221 million, 2020: € 260 million) of the lease of the a.s.r. head office from a.s.r. life. The interest rate for the lease of the head office is 1.7% (2020: 1.5%). The decline in lease liabilities relates primarily to the decline of the present value of the future lease payments due to the risen interest rate, see accounting policy AA in chapter 6.3.5. The maturity of this contract is 34 years, which includes the total of five extension options of five years each.

An amount of € 13 million (2020: € 14 million) of the lease liabilities is expected to be settled within twelve months after the balance sheet date.

6.11.3.16 Debts to group companies

Debts to group companies have been paid in full in 2021 (2020: € 31 million) which contained one deposit due to group companies of € 31 million with an average interest rate of 0.6% (2020: 0.6%).

The interest expense on debts to group companies in 2021 is € 0.1 million (2020: € 0.1 million).

6.11.3.17 Due to banks

In 2021 due to banks amounted to € 105 million (2020: € 105 million). The entire amount of due to banks is expected to be settled less than or equal to one year after the balance sheet date.

6.11.3.18 Other liabilities

The carrying amount of other liabilities is a good approximation of their fair value.

6.11.3.19 Operating expenses

The operating expenses of € 135 million (2020: € 160 million) are operating expenses relating to holding activities. The decline in the operating expenses is mainly a result of lower costs of the new post-employment DC pensions plan (see chapter 6.5.17.1). See chapter 6.6.8 for the total operating expenses of the group. Operating expenses also include depreciation of the right-of-use assets owned by subsidiaries of € 12 million (2020: € 12 million), see chapter 6.11.3.4.

6.11.3.20 Investment income

The investment income of € 51 million (2020: € 98 million) mainly decreased as a result from a decrease in interest income relating to the employee benefits obligation allocated to the Holding.

6.11.3.21 Interest expense

The interest expense relates primarily to the interest on subordinated liabilities, interest owed to credit institutions and to the interest on the lease liabilities.

6.11.3.22 Auditor’s fees

The following fees for the financial years have been charged by KPMG Accountants N.V. to a.s.r., its subsidiaries and other consolidated entities, on an accrual basis.

Fees for audit engagements include fees paid for the audit of the consolidated and company financial statements, quarterly reports and other reports.

In the above mentioned years no fees were paid for tax-related advisory services to KPMG Accountants N.V. and no fees were paid to other KPMG networks, other than KPMG Accountants N.V.

6.11.3.23 Related parties

A related party is a person or entity that has significant influence over another entity, or has the ability to affect the financial and operating policies of the other party. Parties related to a.s.r. include associates, joint ventures, members of the EB, members of the SB, close family members of any person referred to above, entities controlled or significantly influenced by any person referred to above and any other affiliated entity.

The group regularly enters into transactions with related parties during the conduct of its business. These transactions mainly involve loans, deposits and commissions, and are conducted on terms equivalent to those that prevail in arm’s length transactions. These disclosures related to these transactions are included in the relevant note in the company financial statements and in the consolidated financial statements (see primarily chapters 6.7.4 and 6.7.9).

The remuneration of the EB and SB members of a.s.r. is disclosed in chapter 6.7.5.

6.11.3.24 Contingent liabilities

Joint and several liability

a.s.r. forms a fiscal unity for corporate income tax and VAT with nearly all of its subsidiaries. The company and its subsidiaries that form part of the fiscal unity are jointly and separately liable for taxation payable by the fiscal entity.

A statement of joint and several liability under section 403, Book 2 of the Dutch Civil Code has been issued by a.s.r. for the companies identified in chapter 6.7.9.

Investment obligations and guarantees

As in 2020, a.s.r. has issued no guarantees to third parties for real estate development projects.

Utrecht, 22 March 2022

Executive Board

Jos Baeten

Ingrid de Swart

Ewout Hollegien

Supervisory Board

Joop Wijn

Herman Hintzen

Sonja Barendregt

Gisella van Vollenhoven

Gerard van Olphen