On 7 December 2021, a.s.r. held an IU to update the investment community on its strategy and also announced new targets for the 2022-2024 period. These targets are divided into group and business targets and financial and non-financial targets. The targets for operating ROE, COR, Non-life organic growth, Life operating result, Life operating expenses and fee-based business operating result will be impacted by IFRS 17 and a review is due in 2023.
A strong capital position remains very important to a.s.r. and it will therefore continue to target a Solvency II ratio safely above 160% (based on the standard formula). A strong capital position enables a.s.r. to deploy capital for entrepreneurial purposes, absorb certain financial shocks, pay cash dividends and offer an additional capital return via a share buyback programme (SBB) of at least € 100 million per annum. a.s.r. aims to execute an annual SBB if the Solvency II ratio is at least 175% and there are no inorganic growth opportunities or possibilities to further re-risk the investment portfolio.
a.s.r. has also set a cumulative target for OCC for the 2022-2024 period. It aims to achieve a cumulative OCC for the plan period of € 1.7-1.8 billion, a substantial increase compared with the previous target (target 2019-2021: € 500 million per annum).
As a rational and economical allocator of capital, a.s.r. has set a target range for the return on equity deployed in its businesses. A target range for Operating ROE is set at 12-14%, in line with the previous target.
a.s.r. had amended its dividend policy effectively as from 2022, offering its shareholders a progressive dividend going forward. This target on dividend is based on the full year 2021 dividend of at least € 2.42 per share.
a.s.r. closely monitors customer and advisor satisfaction by continuously measuring feedback, through the Net Promoter Score (NPS-r). The NPS-r score on a consolidated a.s.r. level is compared to the market average and peers. Driven by the ambition to be the best financial service provider, the target is to achieve an NPS-r higher than the market average by 2024. The NPS-r is an analysis of the customer relationship, this extends the previous methodology of the NPS-c which only measured customer satisfaction during contact moments.
a.s.r.'s target is to reduce the carbon footprint (scope 3) for internal assets under management by 65% by 2030, compared to 2015. This ambitious reduction applies to a.s.r.'s own investment portfolio and builds on the previous target to measure the carbon footprint for 95% of the investment portfolio. With this target, a.s.r. contributes substantially to the targets of the Paris Agreement for reducing global temperature increase to a maximum of 1.5°C.
Impact investments are investments that seek to generate positive, measurable, social and / or environmental impact in addition to financial returns. The target is to have at least € 4.5 billion of impact investments on the balance sheet by 2024. This is a substantial improvement on the previous target of € 1.2 billion in impact investments. This target applies to AVB, Real Estate and Mortgages together.
A high level of employee engagement is important to achieve the company’s targets. a.s.r. wants to be an attractive employer and will make a positive contribution to reducing absenteeism. The target is to achieve an employee engagement score of over 85 in percentile (1-100)1 each year until 2024 (base year 2020: 89).
a.s.r.’s sustainability reputation is important for a.s.r.'s strategy and positioning. Sustainability, transparency, reliability and corporate social responsibility are the four important underlying topics for the indicator for this target. This indicator reflects a.s.r.’s sustainability reputation among the Dutch population. The target is to increase to more than 40% by 2024 (base year 2020: 36%).
a.s.r. aims to continue its competitive and leadership position in managing the profitability in P&C and Disability. Based on its strong performance in recent years, a.s.r. has improved its target to achieve a COR in the range of 93-95%. The range also allows a.s.r. to absorb a certain number of calamities, such as major fires and heavy storms. a.s.r. expects that in a year with an average number of storms and large claims, it can deliver a COR of < 95%.
Reflecting a.s.r.’s continued ambition for profitable growth is its target of GWP growth for P&C and Disability combined. a.s.r. aims to grow this organically by 3-5% per annum while remaining within the targeted COR range. In pursuit of profitable growth, a.s.r. will not forfeit its key strategic principle of value over volume.
a.s.r. aims to keep its operating result in Life over € 700 million per annum for the period 2022-2024. In addition, a.s.r. has sharpened its ambitions on the Life operating expenses and aims to manage these within the range of 40-50 bps.
a.s.r.’s fee-generating businesses in the segments Asset Management and Distribution and Services are growing in terms of contributions to operating results. a.s.r. raises its target for the operating result of these fee-based business to more than € 80 million by 2024.