a.s.r. operates in the residential mortgage market and provides mortgage loans to retail customers for its own account and external investors. The mortgage loans for the a.s.r. brand are issued by ASR Levensverzekering N.V. and for the Aegon brand by Aegon Hypotheken B.V. and Aegon Levensverzekering N.V.

Market

The Dutch mortgage market shows significant growth in 2024 due to continued tightness of the Dutch housing market, which boosts housing prices and mortgage coupons that have, on average, declined throughout the year. While mortgage interest rates stood at around 4–4.5% in 2023, these fell to below 4% in 2024. Combined with increasing wages in 2024 this led to an increase in the number of mortgage applications and has subsequently contributed to rising housing prices.

Products

a.s.r. offers its mortgage products via intermediaries to its customers through two different mortgage brands: Aegon and a.s.r.

Under the Aegon brand, standard products (a.o. annuity, linear and interest-only mortgages) are offered to a broad customer base. In addition to standard products, the a.s.r. brand offers specialised products for distinct customer types. This includes products for first-time buyers, sustainable home modifications, and senior citizens. With these products, a.s.r. aims to make the housing market more affordable to young and elderly people and offer more customers the option to make their homes more sustainable.

Strategy and achievements

a.s.r. is focused on becoming a leading sustainable mortgage company in the Netherlands. In 2024, a.s.r. was able to further grow its fee business through higher assets under administration while simultaneously enabling asset strategies in which mortgages are used as an attractive investment for a.s.r.'s own account as well as for external investors.

The Aegon-branded products will be fully integrated with the a.s.r.-branded products in 2026. Throughout 2024 preparations have been made for integrating the a.s.r. and Aegon product portfolio.

a.s.r.’s mortgage business showed strong results in 2024, with rising production volumes on the back of higher market volumes. Despite these strong results, investor appetite for mortgages remained at lower levels than previously, further impacted by the proposed transfer of the servicing of mortgages on Knab’s balance sheet as part of the deal with BAWAG Group AG. This year a.s.r. has made improvements in its sustainability mortgage proposition by extending the maturity from 15 to 30 years and increasing the maximum amount from € 25,000 to € 65,000. By implementing these changes, the sustainability mortgage, which is priced lower than a.s.r.’s standard mortgage propositions, allows more clients to invest in sustainable home improvements. Additionally, extending the repayment period to 30 years helps reduce monthly instalments.

Outlook for 2025

In 2025, a.s.r. expects a stabilising mortgage market due to a limited number of permits granted for new-build housing and a continuing low refinancing market. However, large interest rate shocks can have a significant impact on the Dutch housing market. In a stabilising mortgage market, a.s.r. aims to at least maintain its market share. a.s.r.’s mortgage businesses will be further integrated. Starting in January 2025, a part of the Aegon-branded products will be offered through the Stater platform, where a.s.r.-branded products are also offered. During the integration, the ambition is to maintain customer service levels.

The AuM of the mortgage portfolio is expected to decline due to the sale of the Knab mortgage portfolio to BAWAG Group AG. Nonetheless, it is expected that the declining operating result due to the sale of the Knab mortgage portfolio is offset by increasing cost efficiency.

This page is intentionally left blank.