Amortised cost

The amount at which a financial asset or financial liability is measured on initial recognition net of principal repayments, plus or minus accumulated amortisation using the effective interest method or any difference between that initial amount and the amount at maturity, and minus any reduction for impairments or collectability.

Associate

An entity over which a.s.r. has significant influence and which is neither a subsidiary nor an interest in a joint venture.

Basis point

One-hundredth of one percent (0.01%).

Claims ratio

The cost of claims, net of reinsurance in Non-life, excluding the internal costs and exclusively commissions paid of handling non-life claims, less interest accrual on reserves, and a margin of prudence for health, expressed as a percentage of net earned premiums.

Clean fair value

The fair value of an asset or liability, excluding related accrued interest.

Climate adaptation

The process of adjusting to actual or expected climate change and its effects. The goal is to reduce vulnerability and enhance resilience to the impacts of climate change.

Climate mitigation

The efforts and actions taken to reduce or prevent the emission of greenhouse gases into the atmosphere.

Closed books

Closed books are policies that are no longer sold but are still on the books of a life insurance carrier as insurance coverage is still given and insurance policy contract services and/or cashflows are expected. 

Contractual service margin (CSM)

CSM represents the unearned profit a.s.r. will recognise as it provides insurance contract services in the future and is determined at recognition as the equal and opposite amount of the estimates of the future cash flows including acquisition cash flows, an adjustment for the time value of money and a risk adjustment.

Derivative

A financial instrument with all three of the following characteristics: (a) Its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided, where a non-financial variable is concerned, the variable is not specific to a party to the contract (sometimes referred to as the underlying); (b) It requires no initial net investment or else an initial net investment which is lower than would be required for other types of contracts that would be expected to have a similar response to changes in market factors and (c) It is settled at a future date.

Developing and promoting sustainable products/services

a.s.r. offers various sustainable products and services in all its business segments, such as sustainable repair and the 'Verduurzamingshypotheek'. Offering sustainable products and services enables a.s.r. to contribute towards a sustainable, future-proof society. Furthermore, sustainable products and services increase the appeal of a.s.r. for the growing group of customers that regard sustainability as important. The Policy on Sustainable Insurance states that sustainability considerations (such as potential impact on ESG topics) are integrated into the different phases of the product policy.

Dirty fair value

The fair value of an asset or liability, including related accrued interest.

Discounted cash flow method

A valuation technique whereby expected future cash flows are discounted at a rate that expresses the time value of money and a risk premium that reflects the extra return that investors demand as compensation for the risk that the cash flows may not materialise.

Discretionary Participation Feature

A contractual right to receive, as a supplement to guaranteed benefits, additional benefits that are likely to be a significant portion of the total contractual benefits, the amount or timing of which is contractually at the discretion of the issuer, which are contractually based on the performance of a specified pool of contracts or type of contract, realised and/or unrealised investment returns on a specified pool of assets held by the issuer, or the profit or loss of the company, fund or other entity that issues the contract.

Diversity, equity and inclusion

Diversity

All aspects in which people differ from each other. These visible aspects such as age and skin colour and the less visible aspects such as cultural, social and ethnic backgrounds, sexual and gender identities, competences, work styles, education levels, perspectives and views make us authentic and unique as human beings. a.s.r. believes that these differences make the organisation stronger together.

Equity

Every person is unique, but everyone’s contribution is of equal or comparable value. Equity means that everyone can participate fully and has access to equal opportunities.

Inclusion

With inclusion, a.s.r. sees a culture in which differences are recognised, valued and made use of. An environment in which everyone has their place and experiences the freedom and safety to be their authentic and unique selves.

Double Materiality

The concept that considers both financial materiality (how sustainability issues affect the company) and impact materiality (how the company impacts the environment and society).

Embedded derivative

A component of a hybrid instrument that also includes a non-derivative host. The host contract may be a bond or equity, a lease, an insurance contract or a contract of purchase and sale.

Emission own activities

Scope 1 emissions are direct emissions from company-owned and controlled resources.
Scope 2 emissions are indirect emissions from the generation of purchased energy, from a utility provider.
Scope 3 emissions are all indirect emissions - not included in scope 2 - that occur in the value chain of the reporting company, including both upstream and downstream emissions.

Employee benefits

All forms of consideration given by an entity in exchange for service rendered by employees.

Employee contribution

a.s.r.'s employee contribution to local society is measured by the volunteering hours of both a.s.r. employees as well as external employees working on behalf of a.s.r. These hours are non-profit and might include activities of the Doenkracht programme. This contribution can be done in a team or on an individual basis. For some activities the time is estimated based on a standardised table. Activities include improving financial literacy, being a financial buddy, reading aloud to children, etc., as well as team activities for societal organisations. Employees that are involved in an activity within a domain (Financial self-reliance and Helping by doing) more than once per calendar year are considered a double count. And as such only included once in the figure reported for number of employees involved. Volunteering hours also include training hours, travel time and the actual execution of the employee contribution.

Environmental, Social and Governance (ESG)

ESG refers to the three main areas of concern that have developed as central factors in measuring the sustainability and societal impact of an investment in a company. These areas cover a broad set of concerns increasingly included in the non-financial factors that feature in the valuation of investments in equities, property, and corporate and fixed-income bonds. ESG is the catch-all term for the criteria used in what has become known as socially responsible investment.

EU Taxonomy

EU Taxonomy Regulation establishes an EU classification system – or taxonomy – that provides investors, including financial sector entities and corporates, with uniform criteria specifying which economic activities are considered to contribute to the sustainable objectives of the EU. This should provide non-financial and financial actors with clarity on which of their activities are considered sustainable in order to scale up sustainable investments and thereby contribute to the overall objectives of the EU’s 2018 Sustainable Finance Action Plan and 2020 renewed Sustainable Finance Strategy.

EU Taxonomy eligibility

Eligibility used under the EU Taxonomy Regulation means that the economic activity is mentioned in the technical screening criteria and have therefore the potential to be considered or become sustainable, so-called ‘taxonomy aligned’.

EU Taxonomy alignment

Alignment used under the EU Taxonomy Regulation means that the economic activity meets the technical screening criteria for alignment, including the criteria that the activity cause no significant harm to one or more of the other EU Taxonomy Regulation environmental objectives, while at the same time respecting minimum safeguards. These minimum safeguards are set out in particular in the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights.

Expense ratio

Expenses, including the internal costs of handling non-life claims, minus internal investment expenses and restructuring provision expenses, expressed as a percentage of net earned premiums.

Fair value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Full Time Equivalent (FTE)

Full Time Equivalent is a unit of account for the size of a job or total workforce. One FTE is equal to an employee working a full working week (being at least 38 hours) during the entire reporting year.

Global Real Estate Survey Benchmark (GRESB)

The GRESB is a benchmark that looks at the sustainability performance of more than 700 institutional investment funds worldwide.

Goodwill

An asset representing the future economic benefits arising from other assets acquired in a business combination which are not individually identified and separately recognised.

General Measurement Model (GMM)

The default model for the measurement of insurance contracts, except for direct participating contracts. The model comprises of four building blocks to determine the insurance liability, being future cash flows, discounting, risk adjustment and contractual service margin.

Green House Gas (GHG)

These are gases in the Earth's atmosphere that trap heat, contributing to the greenhouse effect and global warming. The main greenhouse gases include carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), and fluorinated gases. Each of these gases has different sources and varying impacts on the climate.

Gross written premiums

Total revenues (earned or otherwise) expected to be received for insurance contracts over the life of the contract, including reinsurance premiums.

Hedge accounting

Hedge accounting (IFRS 9/IAS 39), is an accounting method used to align the financial reporting of hedging instruments (such as derivatives) and the underlying hedged items (such as mortgage loans) to better reflect the company's risk management activities. The goal is to reduce the volatility in the profit and loss account caused by changes in the value of the hedging instruments and the associated hedged items.

HR indicators

The definitions of the HR indicators mentioned in section 3.2 are included below. The scope of the HR indicators is a.s.r. employees excluding subsidiaries, redundant employees, incapacitated employees and employees employed through the Participation desk (Participatiedesk), unless specified otherwise. Some HR indicators are only covered in the Sustainability statements, and explained in section 6.5.

Absenteeism rate

Percentage of working hours that employees called in sick compared to the total number of workable hours according to contact in the reporting period. Maternity leave and pregnancy-related sickness are excluded.

Employee Mood Monitor (eMood®)

The eMood® score measures how employees feel in terms of happiness at work, vitality and productivity. The average of these scores is called the mood of a.s.r. All weekly scores are consolidated in the average score per year. Contractors are in scope.

Employee engagement (Denison Culture Scan)

Employee engagement is measured through the annually performed Denison Culture Scan. Employees are asked to fill in a questionnaire on the basis of four drivers of engagement: vision, core values, empowerment and knowledge development. The results are compared with a global benchmark of more than 1,200 large organisations that use the Denison scan. Contractors are in scope.

Employees followed training courses (%)

The percentage of employees who have completed at least one training course during the reporting period.

Employee turnover

The employee turnover is measured through a percentage which is the total outflow of employees divided by the average number of employees. Redundant employees and employees employed through the Participation desk are in scope.

Employees employed through the Participation desk

Employees that are employed through the participation desk and qualify for the Dutch Participation Act (Participatiewet). Contractors are out of scope, employees employed through the Participation desk are in scope.

eNPS

The eNPS is the extent to which employees would actively recommend a.s.r. as an employer. This is also measured via the Employee Mood Monitor. The eNPS provides a.s.r. an insight in the loyalty and perceived attraction of a.s.r. as an employer. Contractors are in scope.

FTE

Total number of internal FTE that have an employment contract with a.s.r. or one of its subsidiaries. Contractors are out of scope.

Gender diversity (%)

The proportion (in %) of female / male employed at a.s.r.

Gross average hourly wages split by gender

Gross average wage per hour in €, split by gender and per management layer.

Nil absenteeism

Nil absenteeism is the proportion (in %) of employees who have not reported sick during the reporting period.

Parttime and fulltime employees

Fulltime employees are the number of employees that have contract hours of at least 38 hours per week. Parttime employees are the number of employees that have contract hours of less than 38 hours per week.

Pay gap

The pay gap refers to the adjusted pay gap. The pay gap is calculated as follows: (average gross hourly wage for women - average gross hourly wage for men) / average gross hourly wage for men. The calculation is based on the full-time gross annual salary, including allowances. In the unadjusted pay gap, a.s.r. does not correct for type of work, age and work experience, but looks at all men and woman as a whole. In the adjusted pay gap all factors above are included as correction factor in the calculation.

Pay ratio (incl. highest paid and average)

a.s.r. is transparent concerning the remuneration of the EB. Not only in terms of actual amounts, but also in accordance with the Dutch Corporate Governance Code as compared with the average of the remuneration of the employees at a.s.r. The average pay ratio calculation is the difference expressed in a ratio between the average of the remuneration of the employees at a.s.r. and the highest paid individual at a.s.r.

Pay ratio (incl. highest paid and median)

a.s.r. is transparent concerning the remuneration of the EB. Not only in terms of actual amounts, but also in accordance with the Global Reporting Initiative as compared with the median of the remuneration of the employees at a.s.r. The median pay ratio is the difference expressed in a ratio between the median of the remuneration of the employees at a.s.r. and the highest paid individual at a.s.r. Part-time employees are excluded from the calculation of the ratio because accurate extrapolation to full time employees is not possible through certain loan components.

Total spending on training and development

Total a.s.r. investment in € on training and development programmes.

Vacancies filled internally and externally

Internally filled vacancies are the number of vacancies filled by internal candidates, in absolute numbers and in percentage by dividing by total filled vacancies. Externally filled vacancies are the number of vacancies filled by external candidates, in absolute numbers and in percentage by dividing by total filled vacancies. Redundant employees, incapacitated employees and employees employed through the Participation desk are in scope.

Impairment

The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount. The asset's carrying amount is reduced to its fair value and the impairment loss is recognised through the income statement.

Institution for Occupational Retirement Provision (IORP)

IORP is a pension vehicle in the form of a separate legal entity which can operate a pension DC scheme on a separate account basis during the pension accrual phase. When an employee reaches his or her retirement age, the IORP transfers the accrued capital to a pension insurer of the employee's choice to pay the pension benefits. Employers wishing to insure any additional risks (such as survivors' pensions) can do so through an IORP.

Insurance contracts

A contract under which one party (a.s.r.) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder.

Insurance contract revenue

Insurance contract revenue under the general measurement model and Variable fee approach consists mainly of the sum of the changes in the liability for remaining coverage due to the insurance service expenses incurred in the period measured at the amounts expected at the beginning of the period, the change in the risk adjustment for non-financial risk, and the amount of contractual service margin for the services provided in the period. Insurance contract revenue under the premium allocation approach is based on the expected premium receipts for providing coverage in the period, based on the passage of time.

Intangible asset

An identifiable, non-monetary asset without physical substance.

Intermediary

A person or organization that acts as a middleman or mediator between two or more parties to facilitate communication or transactions. In the context of insurance, an intermediary is often responsible for advising clients on various insurance products, helping with policy purchases, and assisting with claims.

International Financial Reporting Standards (IFRS)

As of 1 January 2005, these standards have been the generally accepted international accounting policies that apply to all listed companies in the EU. They make annual results easier to compare and offer a better understanding of a company's financial position and performance.

International Integrated Reporting Council (IIRC)

The IIRC is a global coalition of regulators, investors, companies, standard setters, the accounting profession, academia and NGOs. The coalition promotes communication about value creation as the next step in the evolution of corporate reporting.

Investment contract

A life insurance contract that transfers FR with no significant insurance risk.

Investment property

Property held to earn rentals or for capital appreciation or both.

Joint venture

A contractual arrangement under which two or more parties undertake an economic activity that is subject to joint control.

Mandated broker

An intermediary in the insurance industry who has the authority to sell insurance, issue policies, collect premiums, and handle claims on behalf of an insurance company. This broker acts as an extension of the insurance company and has specific powers outlined in a power of attorney.

Materiality

An aspect is considered material if it is relevant to the stakeholders, has a reasonably estimable economic, environmental, and/or social impact and can have a major impact on the development of a.s.r. The greater the impact of the aspect on both society and a.s.r.'s business operations, results and strategy, the greater its materiality.

Net Promoter Score (NPS)

The NPS is a management tool that can be used to gauge the customer satisfaction of an organisation's customers. a.s.r. uses several NPS indicators, namely the:

• NPS-c: measures customer satisfaction after contact with an a.s.r. employee;

• NPS-d: measures customer satisfaction after interactions via digital channels;

• NPS-r: evaluates overall customer satisfaction, independent of specific customer interactions;

• NPS-i: combines NPS-c and NPS-d to assess satisfaction across both online and offline channels.

Non-participating life insurance contracts

In non-participating life insurance contracts, all values relating to the policy (death benefits, cash surrender values, premiums) are usually determined at policy issue, for the life of the contract, and cannot usually be altered after issue.

Notional amount

An amount of currency, number of shares, number of units of weight or volume or other units specified in a derivatives contract.

Nu, later en altijd

'Nu, later en altijd' is the brand asset developed for the in 2023 launched marketing campaign of a.s.r. It translates to 'Now, later and always'. With its financial services and role as responsible investor, a.s.r. aims for an improved financial situation for its customers and a sustainable society for today, tomorrow and for future generations to come.

Operating lease

A lease that does not transfer substantially all the risk and rewards incidental to ownership of an asset.

Operating Return on Equity

A measure of financial performance calculated by dividing the operating result (after hybrid costs and net of taxes) by the average adjusted equity attributable to shareholders for the reporting period.

Option

A financial instrument that conveys the right to buy (call option) or sell (put option) a security at a reference price during a specified time frame.

Organic capital creation (OCC)

The sustainable creation of capital from both the change in the Eligible own funds (EOF) and the change in the Solvency Capital Requirement (SCR) on Solvency II basis. To express the change in SCR in EOF-equivalent terms, the change in SCR is multiplied by the Solvency II target ratio. The OCC consists of three elements: (1) Business Capital Generation, (2) Finance Capital Generation and (3) Net SCR impact. In this definition, sustainable means: generated by the company on its own account, net of external and one-off effects. This results in a view on the Solvency II figures that is comparable with the definition of the operational result on IFRS basis.

Order in Council

An Order in Council is a decision taken by the Dutch government with respect to statutory provisions.

Pension DB

Defined benefit pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum, or combination thereof on retirement that depends on an employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns.

Pension DC

A defined contribution plan is a type of retirement plan in which the employer, employee or both make contributions on a regular basis. Individual accounts are set up for participants and benefits are based on the amounts credited to these accounts plus any investment earnings on the money in the account.

Photovoltaics

Photovoltaics is the conversion of light into electricity using semiconducting materials that exhibit the photovoltaic effect.

Partial internal model (PIM)

Partial internal model - The Solvency II framework allows an insurance company to calculate the SCR using either the standard formula or, subject to supervisory approval, their own internal model (either full or partial). Partial internal models can be used to model one or more of the standard formula risk modules or sub-modules, the capital requirements for operational risk or for the loss-absorbing capacity of technical provision for either the whole business or one or more business units.

Premium allocation approach (PAA)

PAA is an optional simplification of the GMM. The PAA simplifies the measurement of the liability for remaining coverage. The measurement of the liability for incurred claims does not change and is measured conform the GMM. Revenue recognised is based on the expected premium receipts allocated to the period, based on the passage of time.

Private equity

An asset class consisting of equity securities of companies that are not publicly traded on a stock exchange. The transfer of private equity is strictly regulated. In the absence of a marketplace, any investor looking to sell their stake in a private company personally has to find a buyer.

Provision

A liability of uncertain timing or amount. Provisions are recognised as liabilities if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations (assuming that a reliable estimate can be made).

Recoverable amount

The recoverable amount of an asset or a cash-generating unit is its fair value less costs to sell or its value in use, whichever is higher.

Return on Equity (ROE)

A measure of financial performance calculated by dividing the net result attributable to holders of equity instruments by the average equity attributable to shareholders for the reporting period.

Science Based Targets

a.s.r. considers a target to be science-based if it is based on, the best available or latest, scientific data, as can be derived from the references in the ESRS and the definitions in voluntary frameworks such as the SBTi and SBTN frameworks. In general, to qualify as a target, also in line with ESRS 2 MDR-T, a target needs to be measurable, outcome-orientated and time-bound.

Although one can have its targets validated by, for example, SBTi, this is not a condition for a target to be science-based; a target can be science-based without being validated by SBTi or another validating body.

Science Based Targets initiative (SBTi)

SBTi is a corporate climate action organisation that enables companies and financial institutions worldwide to play their part in combating the climate crisis. They develop standards, tools and guidance which allow companies to set GHG emissions reductions targets in line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at the latest. Its subsidiary provides target validation services.

Securities lending

This refers to the lending of securities by one party to another, with the latter agreeing to return the securities on a specified future date. The borrower usually provides the lender with collateral. Securities lending allows the owner of the securities to generate extra income.

Socially Responsible Investment (SRI)

Investing with due regard for ethical standards, policies and procedures, in line with the interests of a.s.r. stakeholders, where the integration of ESG criteria is key. To achieve this a.s.r. uses multiple ESG approaches such as the exclusion of controversial activities, exclusion of companies and countries due to their ethical performance, the engagement dialogue, the integration of ESG assessments in the portfolio construction and impact investments.

Solvency II

Solvency II is an EU regulatory regime that has been in force in all member states since 1 January 2016. It has introduced a new, harmonised Europe-wide regime for insurance companies and sets regulatory requirements for solvency and risk governance.

Stakeholders

Stakeholders are individuals or organisations that have an interest, of whatever nature, in an organisation. They have a link with its activities, share in its earnings, influence its performance and assess its ESG effects. a.s.r.'s main stakeholder groups are customers, employees, investors and the society as a whole.

Stakeholder Engagement

The process of involving key stakeholders in the decision-making process regarding sustainability issues with the aim to strengthen the relationship to create mutual insight and understanding and opportunities for collaboration.

Subsidiary

An entity that is controlled by ASR Nederland N.V. (the parent company) or a subsidiary of ASR Nederland N.V.

Sustainable repair

The Sustainable repair indicator presents claims for P&C that were repaired as a share of total repairable claims. Research by CE Delft shows that the climate impact of repair is three to six times lower than that of replacement. The definition of sustainable repair was adapted as of reporting year 2023, in line with most recent research of CE Delft, a Dutch research centre specialised in (climate impact related to) energy, raw materials, and transport. Please refer to the research paper here (in Dutch).

Sustainable reputation

Sustainable reputation reflects the brand reputation of a.s.r. in the Netherlands in the areas of sustainability, transparency, and reliability. The score is calculated by determining how much % of the respondents give a top 2 score on a 5-point-scale. E.g. a score of 40 means 40% of the respondents give a top 2 score.

Transaction date

The date at which a.s.r. enters into the contractual terms of an instrument.

Value creation model

In section 2.2, a.s.r.'s value creation model is disclosed. This model illustrates how a.s.r. perceives the process of achieving sustainable value for its customers, employees, investors, and society. Different types of resources serve as inputs into the business model of a.s.r. The different business activities of a.s.r. use these inputs to create intended outputs and outcomes and hence added value to a.s.r.'s different key stakeholders.

Value chain model

The value chain outlines the relationship between the business activities of a.s.r. and the preceding and underlying links.

Value in use

Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit.

Variable fee approach (VFA)

VFA is required for insurance contracts that meet specific requirements whereby a link between payments to the policyholder and the returns on underlying items, such as some ‘participating’, ‘with profits’ and ‘unit linked’ contracts, is key. The interest on the CSM for such contracts is accreted implicitly through adjusting the CSM for the change in the variable fee. The variable fee represents a.s.r.’s share of the fair value of the underlying items less amounts that do not vary based on the return of the underlying items. The CSM is also adjusted for the time value of money and the effect of changes in financial risks not arising from underlying items such as options and guarantees.