a.s.r. is an important provider of pension products in the Netherlands. The business combination with Aegon NL has led to a substantial increase in the customer base. Approximately 70% of the portfolio consists of Defined Benefit (DB) schemes, but the new business and the majority of the premium income derives from the Defined Contribution (DC) schemes. The total customer base consists of some 63,000 schemes with two million participants.

A large number of customers is served by the two Institutions for Occupational Retirement Provision (IORP): ASR Premiepensioeninstelling N.V. and Aegon Cappital B.V. These two IORPs are separate legal entities and are expected to be integrated in H1 2024.

Market

Following enforcement of the Future Pensions Act (Wet toekomst pensioenen; WTP) on 1 July 2023, the pensions market is in full swing. The purpose of this Act is to enable all pensions to become more personal, with more choices. Communications and advice on customer options form important parts of the WTP.

All existing contracts must be adapted to this act before 1 January 2028. New contracts will be subject to the new rules immediately. This also means that all DB schemes will be converted into DC schemes in the coming years.

In order to prepare for these changes, a.s.r. is developing a new system for all its DC products, with the aim of further digitisation of communications and guidance on choices, while reducing costs. Customers expect to be able to arrange their financial affairs themselves, online, and a.s.r. wishes to facilitate this. The new target landscape went live for new business at the end of 2023. For the administration of DB schemes, a.s.r. will make use of pensions administrator TKP.

Products

a.s.r. offers a full range of pension products. a.s.r. offers employers various DC products and it offers employees a fixed and variable pension product at retirement.

For employers with DB schemes, there is the option of purchasing indexations of these rights. For pension funds that do not wish to transfer their accrued rights to the new system as a result of the WTP, but wish to transfer them to an insurer, a.s.r. offers a pension buy-out product.

Strategy and achievements

a.s.r.’s competitive position has been strengthened by the business combination with Aegon NL, the use of scale benefits and the focus on the digital transformation. a.s.r. is well-positioned and has a wealth of experience with activation and option guidance for participants in order to realise the opportunities that have arisen with the introduction of the WTP, such as pension buy outs.

Distribution of pensions takes place via independent advisors. a.s.r. maintains good relations with the advisory channel and aims to match requirements with its products and services.

The current pensions strategy consists of five focus points:

• A high level of service with high customer satisfaction and on retaining customers by helping them to make the right financial decisions and through excellent operational performance;

• The realisation of a new IT platform in order to be prepared for the future and to reduce costs;

• Through co-creation, a.s.r. forms partnerships with intermediaries, making the a.s.r. pension product more visible;

• Building the pension business of the future, in which a.s.r. and Aegon NL form a single company that invests in the development and change capacities of its people. The business combination of a.s.r. and Aegon NL leads to the realisation of scale and efficiency benefits;

• a.s.r. complies with all current legislation and regulations at all times and is in control of all processes.

The NPS-c measures customers satisfaction during contact moments, please refer to the result in the graph.

Outlook for 2024

In 2024, a.s.r. will continue to focus on growth in the DC market, the buy-out market and the market for immediate pensions. a.s.r. will continue to work on realising a single pensions business, in which a.s.r. and Aegon NL will be integrated.

The IT landscape will be developed further and the Employees' Pension product will be migrated to the upgraded landscape.

The implementation of the WTP will have an impact and a.s.r. will support its customers with the transition to the new legislation.