Continuing the Growth Journey Annual Report 2016 Annual ageas SA / NV Rue du Marquis 1 bte 7 - Markiesstraat 1 bus 7 1000 Brussels Belgium reporting2016.ageas.com Annual Report 2016 Annual Report 2016 Brussels, 7 April 2017 Report of the Board of Directors Consolidated Financial Statements Summarised ageas SA/NV Company Financial Statements 002 Ageas - Annual Report 2016 003 Ageas - Annual Report 2016 Annual Report 2016 Brussels, 7 April 2017 004 Ageas - Annual Report 2016 CONTENTS Introduction .................................................................................................................................................. 6 Report of the Board of Directors .................................................................................................................. 7 1 General description and strategy of Ageas ..................................................................................................................................... 7 2 Developments and results ............................................................................................................................................................. 10 3 Corporate Governance Statement ................................................................................................................................................. 13 AGEAS Consolidated Financial Statements 2016 ...................................................................................... 30 Consolidated statement of financial position .............................................................................................................................................. 31 Consolidated income statement ................................................................................................................................................................. 32 Consolidated statement of comprehensive income ................................................................................................................................... 33 Consolidated statement of changes in equity ............................................................................................................................................ 34 Consolidated statement of cash flow .......................................................................................................................................................... 35 General Notes ............................................................................................................................................ 36 1 Legal structure ............................................................................................................................................................................... 37 2 Summary of accounting policies .................................................................................................................................................... 38 3 Acquisitions and disposals ............................................................................................................................................................ 49 4 Earnings per share ......................................................................................................................................................................... 52 5 Risk Management .......................................................................................................................................................................... 53 6 Regulatory supervision and solvency ............................................................................................................................................ 89 7 Remuneration and benefits ............................................................................................................................................................ 92 8 Related parties ............................................................................................................................................................................. 108 9 Information on operating segments ............................................................................................................................................. 110 Notes to the Consolidated statement of financial position ....................................................................... 122 10 Cash and cash equivalents ......................................................................................................................................................... 123 11 Financial investments ................................................................................................................................................................... 124 12 Investment property ..................................................................................................................................................................... 132 13 Loans ............................................................................................................................................................................................ 134 14 Investments in associates ............................................................................................................................................................ 136 15 Reinsurance and other receivables ............................................................................................................................................. 138 16 Accrued interest and other assets ............................................................................................................................................... 139 17 Property, plant and equipment .................................................................................................................................................... 140 18 Goodwill and other intangible assets ........................................................................................................................................... 142 19 Shareholders’ equity .................................................................................................................................................................... 146 20 Insurance liabilities....................................................................................................................................................................... 151 21 Subordinated liabilities ................................................................................................................................................................. 156 22 Borrowings ................................................................................................................................................................................... 158 23 Current and deferred tax assets and liabilities ............................................................................................................................ 160 24 RPN (I) .......................................................................................................................................................................................... 162 25 Accrued interest and other liabilities ........................................................................................................................................... 163 26 Provisions ..................................................................................................................................................................................... 164 27 Liabilities related to written put options NCI ................................................................................................................................ 165 28 Non-controlling interests .............................................................................................................................................................. 167 29 Derivatives .................................................................................................................................................................................... 168 30 Commitments ............................................................................................................................................................................... 170 31 Fair value of financial assets and financial liabilities ................................................................................................................... 171 005 Ageas - Annual Report 2016 Notes to the Consolidated Income Statement .......................................................................................... 174 32 Insurance premiums .................................................................................................................................................................... 175 33 Interest, dividend and other investment income .......................................................................................................................... 177 34 Result on sales and revaluations ................................................................................................................................................. 178 35 Investment income related to unit-linked contracts ..................................................................................................................... 179 36 Share in result of associates .......................................................................................................................................................