Half Year 2026 ASR Nederland NV Earnings Call

August 19, 2026

Michel Hülters: It will kick it off with the progress of our strategy and the highlights of our financial results. Ewout will then talk about the development of our financial capital position and solvency position. After that, we will open up for Q&A. We have ample time planned for this call, but we will stop sharply at 10:30 at the latest. Please observe a limit of two questions so that everybody has a chance to ask questions. Finally, as usual, please review the disclaimer that we have at the back of the presentation for any forward-looking statements that we may make. Having said that, Ingrid, the floor is yours.

Speaker #1: With the progress of our ur strategy, and the highlights of our financial results. Ewout will then talk about the development of our financials, capital position, and solvency position.

Speaker #1: We'll kick it off with the progress of our strategy and the highlights of our financial results. Ewout will then talk about the development of our financials, capital position, and solvency position.

Speaker #1: And after that, we will open up for Q&A. Now, we have ample time planned for this call, but we will stop sharply at 10:30 the latest.

Speaker #1: Please observe a limit of 2 questions, so that everybody has a chance to ask questions. And finally, as usual, please review the disclaimer that we have at the back of the presentation for any forward-looking statements that we may make.

Speaker #1: Please observe a limit of 2 questions so that everybody has a chance to ask questions. And finally, as usual, please review the disclaimer that we have at the back of the presentation for any forward-looking statements that we may make.

Speaker #1: So, having said that, Ingrid, the floor is yours.

Speaker #2: Thank you, Michel. Good morning, everyone, and thank you for joining us. It's a pleasure to welcome you to my first results call as CEO of ASR.

Ingrid de Swart: Thank you, Michel. Good morning, everyone, and thank you for joining us. It is a pleasure to welcome you to my first results call as CEO of ASR. I look forward to engaging with you as the investment community in building a constructive dialogue with our shareholders and analysts. Together with Ewout, I am proud to present our strong H1 2026 results. Let us turn to slide 2, showing our strategic progress. Over the past years, we have successfully pursued our strategy of profitable growth to create long-term value. Following a string of smaller bolt-on acquisitions over some years, the transaction with Aegon Netherlands was transformational and has put us into various leadership positions. On 2 July, the legal merger of the life entities came through, and this marks the final step and a successful completion of the integration.

Speaker #2: I look forward to engaging with you as the investment community in building a constructive dialogue with our shareholders and analysts, and together with Ewout, I'm proud to present our strong first half 2026 results.

Speaker #2: So let's turn to slide 2, showing our strategic progress. Over the past years, we have successfully pursued our strategy of profitable growth to create long-term value.

Speaker #2: Following a string of smaller bolt-on acquisitions over some years, the transaction with Aegon the Netherlands was transformational and has put us into various leadership positions.

Speaker #2: On the 2nd of July, the legal merger of the life entities came through, and this marks the final step and a successful completion of the integration.

Speaker #2: At the same time, we've already started the next integration, the acquisition of both AMA has been closed on the 1st of July. Now, I will discuss the both AMI deal in a minute, but it's clear that this deal is another proof point of ASR as a disciplined consolidator in the Dutch non-life market.

Speaker #2: At the same time, we've already started the next integration. The acquisition of both AMA has been closed on the 1st of July. Now, I will discuss the both AMI deal in a minute, but it's clear that this deal is another proof point of ASR as a disciplined consolidator in the Dutch non-life market.

Ingrid de Swart: At the same time, we have already started the next integration. The acquisition of Bovemij has been closed on 1 July. I will discuss the Bovemij deal in a minute, but it is clear that this deal is another proof point of ASR as a disciplined consolidator in the Dutch non-life market. We also show discipline in the pension buyout market. The market has clearly become more competitive, particularly in larger transactions. So far this year we have announced two smaller transactions, and importantly, only at terms that make sense for us. The progress we have made across the businesses gives us confidence that we are on track to deliver on our 2024 CMD commitments. Over the H1 of this year, we report a record OCC and a record operating result. We also see strong commercial performance with continued growth in non-life and pensions.

Speaker #2: We also showed discipline in the pension buyout market. The market has clearly become more competitive, particularly in larger transactions, but so far this year we have announced 2 smaller transactions.

Speaker #2: We also showed discipline in the pension buyout market. The market has clearly become more competitive particularly in larger transactions, but so far this year we have announced 2 smaller transactions.

Speaker #2: An importantly, only at terms that make sense for us. The progress we have made across the businesses gives us confidence that we are on track to deliver on our 2024 CMD commitments.

Speaker #2: Over the first half of this year, we reported a record OCC and a record operating result. We also see strong commercial performance, with continued growth in non-life and pensions.

Speaker #2: Over the first half of this year, we reported a record OCC and a record operating result. We also see strong commercial performance with continued growth in non-life and pensions.

Ingrid de Swart: We also see strong commercial performance with continued growth in non-life and pensions. Together, these results give us confidence in achieving our OCC target of EUR 1.35 billion for this year. Lastly, we continue to operate from a position of capital strength that enables us to invest in value accretive opportunities such as Bovemij and the pension buyouts. At the same time, we are committed to offer our shareholders an attractive return. To that end, we announced an interim dividend per share of EUR 1.39, an increase of more than 9%, and we completed the EUR 175 million share buyback, which we announced at the full year results. We made significant progress so far this year. Let us turn to slide three and look at the financial performance.

Speaker #2: Together, these results give us confidence in achieving our OCC target of 1.35 billion euros for this year. And lastly, we continue to operate from a position of capital strength.

Ingrid de Swart: Together, these results give us confidence in achieving our OCC target of EUR 1.35 billion for this year. Lastly, we continue to operate from a position of capital strength that enables us to invest in value accretive opportunities such as Bovemij and the pension buyouts. At the same time, we are committed to offer our shareholders an attractive return. To that end, we announced an interim dividend per share of EUR 1.39, an increase of more than 9%, and we completed the EUR 175 million share buyback, which we announced at the full year results. We made significant progress so far this year. Let us turn to slide 3 and look at the financial performance. Our OCC increased by more than 7% to EUR 773 million. This was driven by a strong performance in P&C, contributions from the pension buyouts completed in 2025, and the continued delivery of cost synergies.

Speaker #2: That enables us to invest in value-accrued opportunities, such as both AMI and the pension buyouts. At the same time, we are committed to offer our shareholders an attractive return and, to that end, we announced an inward interim dividend per share of 1 euro and 39 cents, an increase of more than 9%, and we completed the 175 million euro share buyback, which we announced at the full-year results.

Speaker #2: That enables us to invest in value-accrued opportunities such as both AMI and the pension buyouts. At the same time, we are committed to offer our shareholders an attractive return and to that end we announced an inward interim dividend per share of 1 euro and 39 cents and increase of more than 9%, and we completed the 175 million euro share buyback which we announced at the full year results.

Speaker #2: So, we made significant progress so far this year. Let's turn to slide 3 and look at the financial performance. Our OCC increased by more than 7% to 773 million euros.

Ingrid de Swart: Our OCC increased by more than 7% to EUR 773 million. This was driven by a strong performance in P&C, contributions from the pension buyouts completed in 2025, and the continued delivery of cost synergies. These items more than offset the increased investment in new technology and AI. The Solvency II ratio increased by 4 percentage points to 222%. This reflects strong capital generation and the resilience of our balance sheet in volatile market conditions. Our operating result rose by almost 10% to more than EUR 901 million, and as a result, our operating ROE reached over 15%, comfortably above our target of more than 12%. In non-life, the combined ratio for P&C and disability was 91.6%, better than our target range of 92% to 94%. This reflects, amongst others, favorable claim experience in P&C.

Speaker #2: This was driven by a strong performance in BNC, contributions from the pension buyouts completed in 2025, and the continued delivery of cost synergies. These items, more than offset the increased investment in new technology and AI.

Speaker #2: This was driven by a strong performance in BNC, contributions from the pension buyouts completed in 2025, and the continued delivery of cost synergies. These items more than offset the increased investment in new technology and AI.

Ingrid de Swart: These items more than offset the increased investment in new technology and AI. The Solvency II ratio increased by 4 percentage points to 222%. This reflects strong capital generation and the resilience of our balance sheet in volatile market conditions. Our operating result rose by almost 10% to more than EUR 901 million, and as a result, our operating ROE reached over 15%, comfortably above our target of more than 12%. In non-life, the combined ratio for P&C and disability was 91.6%, better than our target range of 92% to 94%. This reflects, amongst others, favorable claim experience in P&C. Our organic growth rose 6%, supported by targeted price increases in group disability at the end of last year. In pension DC, we have seen solid inflows, and the annuity inflows showed positive momentum. This was driven by renewed focus on the customer journey and offering attractive retirement solutions.

Speaker #2: The solvency 2 ratio increased by 4 percentage points to 222%. This reflects strong capital generation and the resilience of our balance sheet in volatile market conditions.

Speaker #2: Our operating result rose by almost 10% to 901 million euros, and as a result, our operating ROE reached over 15%, comfortably above our target of more than 12%.

Speaker #2: Our operating result rose by almost 10% to 901 million euros, and as a result our operating ROE reached over 15%, comfortably above our target of more than 12%.

Speaker #2: In non-life, the combined ratio for PNC and disability was 91.6%, better than our target range of 92 to 94%. This reflects amongst others favorable claim experience in PNC, our organic growth rose 6%, supported by targeted price increases in group disability at the end of last year.

Speaker #2: In non-life, the combined ratio for PNC and disability was 91.6%, better than our target range of 92 to 94%. This reflects amongst others favorable claim experience in PNC.

Speaker #2: Our organic growth rose 6%, supported by targeted price increases in group disability at the end of last year. In pension DC, we have seen solid inflows.

Ingrid de Swart: Our organic growth rose 6%, supported by targeted price increases in group disability at the end of last year. In pension DC, we have seen solid inflows, and the annuity inflows showed positive momentum. This was driven by renewed focus on the customer journey and offering attractive retirement solutions. Overall, we remain well on track to deliver our organic growth ambitions for this plan period. Let's move to slide 4 and look at our non-financial KPIs and how we continue to create sustainable value for all stakeholders. As this slide shows, our investment portfolio is already meeting its targets for both carbon footprint reduction and impact investments. We continue to make good progress in reducing emissions across the portfolio, and I'm pleased with that.

Speaker #2: In pension DC, we have seen solid inflows. And the annuity inflows showed positive momentum. This was driven by renewed focus on the customer journey and offering attractive retirement solutions.

Speaker #2: And the annuity inflows showed positive momentum. This was driven by renewed focus on the customer journey and offering attractive retirement solutions. Overall, we remain well on track to deliver our organic growth ambitions for this plan period.

Speaker #2: Overall, we remain well on track to deliver our organic growth ambitions for this plan period. Let's move to slide 4 and look at our non-financial KPIs and how we continue to create sustainable value for all stakeholders.

Ingrid de Swart: Overall, we remain well on track to deliver our organic growth ambitions for this plan period. Let's move to slide 4 and look at our non-financial KPIs and how we continue to create sustainable value for all stakeholders. As this slide shows, our investment portfolio is already meeting its targets for both carbon footprint reduction and impact investments. We continue to make good progress in reducing emissions across the portfolio, and I'm pleased with that. However, I should also mention that the significant decline is primarily driven by improved and updated data regarding the government bond portfolio. Just to be clear, this concerns not our own data, but data from external data providers. Our sustainable reputation improved further in the first 6 months of this year, and we are pleased with the increasing recognition we get from society. Our other non-financial metrics are also progressing well.

Speaker #2: Let's move to slide 4 and look at our non-financial KPIs and how we continue to create sustainable value for all stakeholders. As this slide shows, our investment portfolio is already meeting its targets for both carbon footprint reduction and impact investments.

Speaker #2: As this slide shows, our investment portfolio is already meeting its targets for both carbon footprint reduction and impact investments. We continue to make good progress in reducing emissions across the portfolio, and I'm pleased with that.

Speaker #2: We continue to make good progress in reducing emissions across the portfolio, and I'm pleased with that. However, I should also mention that the significant decline is primarily driven by improved and updated data regarding the government bond portfolio.

Speaker #2: However, I should also mention that the significant decline is primarily driven by improved and updated data regarding the government bond portfolio. Just to be clear, this concerns not our own data, but data from external data providers.

Ingrid de Swart: However, I should also mention that the significant decline is primarily driven by improved and updated data regarding the government bond portfolio. Just to be clear, this concerns not our own data, but data from external data providers. Our sustainable reputation improved further in the first 6 months of this year, and we are pleased with the increasing recognition we get from society. Our other non-financial metrics are also progressing well. I'm pleased to see that our customer satisfaction, measured through MPSI, has already outperformed our 2026 targets. This reflects the investment we have made in both technology and service delivery. By using AI in customer interactions, we can handle routine tasks more efficiently and give our people more time to focus on what matters most, personal contact with customers and helping them when they need us.

Speaker #2: Just to be clear, this concerns not our own data, but data from external data providers. Our sustainable reputation improved further in the first 6 months of this year, and we are pleased with the increasing recognition we get from society.

Speaker #2: Our sustainable reputation improved further in the first 6 months of this year, and we are pleased with the increasing recognition we get from society.

Speaker #2: Our other non-financial metrics are also progressing well. I'm pleased to see that our customer satisfaction measured through MPSI has already outperformed our 2026 target.

Ingrid de Swart: I'm pleased to see that our customer satisfaction, measured through MPSI, has already outperformed our 2026 targets. This reflects the investment we have made in both technology and service delivery. By using AI in customer interactions, we can handle routine tasks more efficiently and give our people more time to focus on what matters most, personal contact with customers and helping them when they need us. Lastly, our strong ESG profile continues to be recognized by a broad range of international sustainability indices and benchmarks. Let's move to the next slide and discuss the acquisition of Bovemij. Small bolt-on acquisitions are for many years already a firm part of our strategy to create value. The acquisition of Bovemij is a very good example of how we deploy capital in a disciplined way.

Speaker #2: This reflects the investment we have made in both technology and service delivery. By using AI in customer interactions, we can handle routine tasks more efficiently and give our people more time to focus on what matters most: personal contact with customers and helping them when they need us.

Speaker #2: Lastly, our strong ESG profile continues to be recognized by a broad range of international sustainability indices, and benchmarks. Let's move to the next slide and discuss the acquisition of both AMI.

Ingrid de Swart: Lastly, our strong ESG profile continues to be recognized by a broad range of international sustainability indices and benchmarks. Let's move to the next slide and discuss the acquisition of Bovemij. Small bolt-on acquisitions are for many years already a firm part of our strategy to create value. The acquisition of Bovemij is a very good example of how we deploy capital in a disciplined way. This deal strengthens our number three position in non-life and gives us a unique presence in the Dutch mobility sector. Through Bovemij, we gain access to the BOVAG ecosystem, and in addition, we will establish a joint venture with BOVAG for the distribution activities. This gives us a strong and embedded distribution platform in the mobility sector.

Speaker #2: Small bolt-on acquisitions are for many years already a firm part of our strategy to create value. The acquisition of both AMI is a very good example of how we deploy capital in a disciplined way.

Speaker #2: Small Bolton acquisitions are for many years already a firm part of our strategy to create value. The acquisition of both AMI is a very good example of how we deploy capital in a disciplined way.

Speaker #2: This deal strengthens our number 3 position in non-life and gives us a unique presence in the Dutch mobility sector. Through both AMI, we gain access to the Beaufort ecosystem, and in addition, we will establish a joint venture with Beaufort for the distribution activities.

Ingrid de Swart: This deal strengthens our number 3 position in non-life and gives us a unique presence in the Dutch mobility sector. Through Bovemij, we gain access to the BOVAG ecosystem, and in addition, we will establish a joint venture with BOVAG for the distribution activities. This gives us a strong and embedded distribution platform in the mobility sector. Bovemij adds roughly EUR 400 million of annual premiums and further strengthens our number 2 position in the Dutch motor insurance market, while also reinforcing our leading position in non-life more broadly. The deal was closed at the start of July, and we expect the integration to take about a year and a half. Actually, this year already, we have planned for the legal merger with our non-life entity. From a financial perspective, transaction fits squarely within our investment framework.

Speaker #2: This gives us a strong and embedded distribution platform in the mobility sector. Both AMI adds roughly 400 million euro of annual premiums, and further strengthens our number 2 position in the Dutch motor insurance market, while also reinforcing our leading position in non-life more broadly.

Speaker #2: This gives us a strong and embedded distribution platform in the mobility sector. Both AMI adds roughly 400 million euro of annual premiums and further strengthens our number 2 position in the Dutch motor insurance market, while also reinforcing our leading position in non-life more broadly.

Ingrid de Swart: Bovemij adds roughly EUR 400 million of annual premiums and further strengthens our number two position in the Dutch motor insurance market, while also reinforcing our leading position in non-life more broadly. The deal was closed at the start of July, and we expect the integration to take about a year and a half. Actually, this year already, we have planned for the legal merger with our non-life entity. From a financial perspective, transaction fits squarely within our investment framework. We expect the deal to exceed our 12% return hurdle and contribute around EUR 25 million of run rate OCC after the integration period. As mentioned in our press release in January, we expect the impact on our Solvency II ratio to be around -3.5 percentage points.

Speaker #2: The deal was closed at the start of July, and we expect the integration to take about a year and a half. Actually, this year already, we have planned for the leading merger with our non-life entity.

Speaker #2: From a financial perspective, transaction fits squarely within our investment framework. We expect the deal to exceed our 12% return hurdle and contribute around 25 million euros of run rate OCC after the integration period.

Ingrid de Swart: We expect the deal to exceed our 12% return hurdle and contribute around EUR 25 million of run rate OCC after the integration period. As mentioned in our press release in January, we expect the impact on our Solvency II ratio to be around -3.5 percentage points. Finally, I believe Bovemij is a good example of a broader trend that we may see materialize in the Dutch P&C market in the coming years. Beyond the three largest players, which together already account for around 65% of the market, there is a long tail of smaller insurers. For some of these companies, the investments required to remain compliant with increasing regulation, digitalization, data capabilities, and AI may become increasingly difficult to absorb on a standalone basis. The minimum size for insurers to run their business in an economically viable way just continues to creep up every year.

Speaker #2: And as mentioned in our press release in January, we expect the impact on our solvency 2 ratio to be around minus 3.5 percentage points.

Speaker #2: And as mentioned in our press release in January, we expect the impact on our solvency 2 ratio to be around minus 3.5 percentage finally, I believe both AMI is a good example of a broader trend that we may see materialize in the Dutch BNC market in the coming years.

Speaker #2: And finally, I believe both AMI is a good example of a broader trend that we may in the coming years. Beyond the 3 largest players, which together already account for around 65% of the market, there is a long tail of smaller insurers.

Ingrid de Swart: Finally, I believe Bovemij is a good example of a broader trend that we may see materialize in the Dutch P&C market in the coming years. Beyond the three largest players, which together already account for around 65% of the market, there is a long tail of smaller insurers. For some of these companies, the investments required to remain compliant with increasing regulation, digitalization, data capabilities, and AI may become increasingly difficult to absorb on a standalone basis. The minimum size for insurers to run their business in an economically viable way just continues to creep up every year. The Bovemij acquisition demonstrates that we are an active and disciplined consolidator. Over the past years, we have built a strong track record to successfully integrate into acquisitions and realize their full potential.

Speaker #2: Beyond the 3 largest players, which together already account for around 65% of the market, there is a long tail of smaller insurers. For some of these companies, the investments required to remain compliant with increasing regulation, digitalization, data capabilities, and AI may become increasingly difficult to absorb on a standalone basis.

Speaker #2: For some of these companies, the investments required to remain compliant with increasing regulation digitalization, data capabilities, and AI may become increasingly difficult to absorb on a standalone basis.

Speaker #2: The minimum size for insurers to run their business in an economically viable way just continues to creep up every year. The both AMI acquisition demonstrates that we are an active, and disciplined, consolidator.

Ingrid de Swart: The Bovemij acquisition demonstrates that we are an active and disciplined consolidator. Over the past years, we have built a strong track record to successfully integrate into acquisitions and realize their full potential. We have the capital to continue to pursue attractive opportunities. With that, let's move to the next slide and let me talk you through our business segments. Firstly, non-life, where we delivered another strong performance. Premium income increased by 6%, clearly above our organic growth target range of 3% to 5%. Growth was primarily driven by targeted pricing actions in group disability as well as new volume. Premium growth is really strong in H1, helped by some single premiums and price increases in portfolios that mainly have annual upfront payments. The premium growth in the second half of the year is expected to be somewhat lower.

Speaker #2: Over the past years, we have built a strong track record to successfully integrate into acquisitions and realize their full potential. And we have the capital to continue to pursue attractive opportunities.

Ingrid de Swart: We have the capital to continue to pursue attractive opportunities. With that, let's move to the next slide and let me talk you through our business segments. Firstly, non-life, where we delivered another strong performance. Premium income increased by 6%, clearly above our organic growth target range of 3% to 5%. Growth was primarily driven by targeted pricing actions in group disability as well as new volume. Premium growth is really strong in H1, helped by some single premiums and price increases in portfolios that mainly have annual upfront payments. The premium growth in the second half of the year is expected to be somewhat lower. On an annual basis, we still expect growth towards the upper end of the 3% to 5% target range.

Speaker #2: With that, let's move to the next slide and let me talk you through our business segments. Firstly, non-life. Where we delivered another strong performance.

Speaker #2: Premium income increased by 6%, clearly above our organic growth target range of 3 to 5%. Growth was primarily driven by targeted pricing actions in group disability, as well as new volume.

Speaker #2: Premium growth is really strong in H1, helped by some single premiums, and price increases in portfolios that mainly have annual upfront payments. So the premium growth in the second half of the year is expected to be somewhat lower.

Speaker #2: Premium growth is really strong in H1, helped by some single premiums and price increases in portfolios that mainly have annual upfront payments. So the premium growth in the second half of the year is expected to be somewhat lower.

Speaker #2: But on an annual basis, we still expect growth towards the upper end of the 3 to 5% target range. Our combined ratio for BNC and disability came in at 91.6%, exceeding our target range of 92 to 94%.

Ingrid de Swart: On an annual basis, we still expect growth towards the upper end of the 3% to 5% target range. Our combined ratio for P&C and disability came in at 91.6%, exceeding our target range of 92% to 94%. P&C was particularly strong with a combined ratio of 89.9%, which benefited from favorable claims development on prior years, and there were also some one-off expense benefits. Weather-related claims increased compared with last year, but remained within our semi-annual budget. In disability, the combined ratio came in at 93.3%. This reflects the pricing actions in the second half of last year, particularly in group disability, to address higher incidence rates related to psychological absenteeism. I should also mention that the uncertainty around the challenges remain, and the backlog at the Dutch Employee Insurance Agency has worsened and is something that we monitor closely.

Ingrid de Swart: Our combined ratio for P&C and disability came in at 91.6%, exceeding our target range of 92% to 94%. P&C was particularly strong with a combined ratio of 89.9%, which benefited from favorable claims development on prior years, and there were also some one-off expense benefits. Weather-related claims increased compared with last year, but remained within our semi-annual budget. In disability, the combined ratio came in at 93.3%. This reflects the pricing actions in the second half of last year, particularly in group disability, to address higher incidence rates related to psychological absenteeism. I should also mention that the uncertainty around the challenges remain, and the backlog at the Dutch Employee Insurance Agency has worsened and is something that we monitor closely.

Speaker #2: BNC was particularly strong, with a combined ratio of 89.9%, which benefited from favorable claims development on prior years, and there were also some one-off expense benefits.

Speaker #2: Weather-related claims increased compared with last year, but we remained within our semi-annual budget. In disability, the combined ratio came in at 93.3%. This reflects the pricing actions in the second half of last year, particularly in group disability, to address higher incidence rates related to psychological absenteeism.

Speaker #2: I should also mention that the uncertainty around the challenges remain, and the backlog at the employee insurance agency has worsened. And it's something that we monitor closely.

Speaker #2: We will reassess our assumptions as part of the usual year-end review, and will not hesitate to take further actions where necessary. Lastly, health continued to perform steadily.

Ingrid de Swart: We will reassess our assumptions as part of the usual year-end review and will not hesitate to take further actions where necessary. Lastly, health continued to perform steadily. The combined ratio was 99.6%, while our customer base grew to more than 700,000 customers. Premium volume increased by 10%, supported by both pricing actions and higher benefits received from the Dutch equalization contribution. With that, let's move to the next slide and discuss our pension business. In DC pensions, inflows increased to EUR 1.5 billion in the first half of this year, and we remain well on track to achieve our medium-term target of EUR 8 billion in cumulative inflows. Supported by favorable financial markets, our DC assets under management increased by 14% to EUR 34 billion. Annuities, our pension decumulation product, gains momentum. Inflows increased by 38%, driven by growing volume of maturing DC assets and an improved customer journey.

Speaker #2: The combined ratio was 99.6%, while our customer base grew to more than 700,000 customers. Premium volume increased by 10%, supported by both pricing actions and higher benefits received from the Dutch equalization contribution.

Speaker #2: With that, let's move to the next slide, and discuss our pension business. In DC pensions, inflows increased to 1.5 billion euros in the first half of this year.

Speaker #2: With that, let's move to the next slide and discuss our pension business. In DC pensions, inflows increased to 1.5 billion euros in the first half of this year.

Speaker #2: And we remain well on track to achieve our medium-term target of 8 billion euros, in cumulative inflows. Supported by favorable financial markets, our DC asset under management increased by 14% to 34 billion euros.

Speaker #2: And we remain well on track to achieve our medium-term target of 8 billion euros in cumulative inflows. Supported by favorable financial markets, our DC asset under management increased by 14% to 34 billion euros.

Speaker #2: Annuities are pension decumulation product, gains momentum. Inflows increased by 38%, driven by growing volume of maturing DC assets and an improved customer journey. Our focus remains on retaining these assets through high customer satisfaction and competitive pricing.

Ingrid de Swart: Inflows increased by 38%, driven by growing volume of maturing DC assets and an improved customer journey. Our focus remains on retaining these assets through high customer satisfaction and competitive pricing. Based on current developments, we are on track to exceed our medium-term cumulative annuity inflow target of EUR 1.8 billion. In pension buyouts, we remain highly disciplined. During the H1, we successfully executed the Kring Bavaria transaction, adding over EUR 200 million of assets under management. The Ecolab transaction, representing a further EUR 150 million, has already been announced for the H2 of the year. We will maintain our value over volume approach and will only pursue transactions that meet our return requirements. While competition has increased, we remain confident in achieving our EUR 8 billion buyout ambition, although part of the opportunity may materialize beyond 2027.

Ingrid de Swart: Our focus remains on retaining these assets through high customer satisfaction and competitive pricing. Based on current developments, we are on track to exceed our medium-term cumulative annuity inflow target of EUR 1.8 billion. In pension buyouts, we remain highly disciplined. During the H1, we successfully executed the Kring Bavaria transaction, adding over EUR 200 million of assets under management. The Ecolab transaction, representing a further EUR 150 million, has already been announced for the H2 of the year. We will maintain our value over volume approach and will only pursue transactions that meet our return requirements. While competition has increased, we remain confident in achieving our EUR 8 billion buyout ambition, although part of the opportunity may materialize beyond 2027. With that, let's now turn to our fee-based businesses, where acquisitions and cost synergies supported another strong performance.

Speaker #2: Based on current developments, we are on track to exceed our medium-term cumulative annuity inflow target of 1.8 billion euros. In pension buyouts, we remain highly disciplined.

Speaker #2: During the first half, we successfully executed the Kring Bavaria transaction, adding over 200 million euro of assets under management. The EcoLab transaction, representing a further 150 million euros, has already been announced for the second half of the year.

Speaker #2: We will maintain our value over volume approach, and will only pursue transactions that meet our return requirements. While competition has increased, we remain confident in achieving our 8 billion euro buyout ambition, although part of the opportunity may materialize beyond 2027.

Speaker #2: We will maintain our value-over-volume approach, and will only pursue transactions that meet our return requirements. While competition has increased, we remain confident in achieving our 8 billion euro buyout ambition, although part of the opportunity may materialize beyond 2027.

Speaker #2: With that, let's now turn to our fee-based businesses, where acquisitions and cost synergies supported another strong performance. Fee income increased by 33%, driven primarily by the addition of human total care to our distribution and services segment.

Ingrid de Swart: With that, let's now turn to our fee-based businesses, where acquisitions and cost synergies supported another strong performance. Fee income increased by 33%, driven primarily by the addition of HumanTotalCare to our distribution and services segment. HumanTotalCare operates in the growing market for occupational health and reintegration services. With absenteeism levels elevated, we see attractive opportunities across the broader employability value chain. The HumanTotalCare contribution also supported the operating result of fee-based business, which increased by 32% to EUR 150 million. Next to the acquisition, this was mainly driven by the realization of cost synergies from the mortgage platform migration. In mortgages, production amounted to EUR 3.6 billion. Volumes were lower than last year as we see spreads tightening. Competition is particularly strong from banks, especially at the shorter end of the maturity spectrum.

Ingrid de Swart: Fee income increased by 33%, driven primarily by the addition of HumanTotalCare to our distribution and services segment. HumanTotalCare operates in the growing market for occupational health and reintegration services. With absenteeism levels elevated, we see attractive opportunities across the broader employability value chain. The HumanTotalCare contribution also supported the operating result of fee-based business, which increased by 32% to EUR 150 million. Next to the acquisition, this was mainly driven by the realization of cost synergies from the mortgage platform migration. In mortgages, production amounted to EUR 3.6 billion. Volumes were lower than last year as we see spreads tightening. Competition is particularly strong from banks, especially at the shorter end of the maturity spectrum. Nonetheless, we remain disciplined in pricing and only originate mortgages that meet our desired spread levels.

Speaker #2: Human total care operates in the growing market for occupational health and reintegration services. With absenteeism levels elevated, we see attractive opportunities across the broader employability value chain.

Speaker #2: The human total care contribution also supported the operating result of fee-based business, which increased by 32% to 115 million euros. Next to the acquisition, this was mainly driven by the realization of cost synergies from the mortgage platform migration.

Speaker #2: In mortgages, production amounted to 3.6 billion euros, volumes were lower than last year, as we see spreads tightening. Competition is particularly strong from banks, especially at the shorter end of the maturity spectrum.

Speaker #2: In mortgages, production amounted to 3.6 billion euros. Volumes were lower than last year, as we see spreads tightening. Competition is particularly strong from banks, especially at the shorter end of the maturity spectrum.

Speaker #2: Nonetheless, we remain disciplined in pricing, and only originate mortgages that meet our desired spread levels. Overall, our fee-based business continued to demonstrate their value as scalable, capital-light growth platforms for ASR.

Ingrid de Swart: Nonetheless, we remain disciplined in pricing and only originate mortgages that meet our desired spread levels. Overall, our fee-based business continue to demonstrate their value as scalable capital-light growth platforms for ASR. With that, I will hand over to Ewout, who will take you through our capital generation and Solvency position.

Ingrid de Swart: Overall, our fee-based business continue to demonstrate their value as scalable capital-light growth platforms for ASR. With that, I will hand over to Ewout, who will take you through our capital generation and Solvency position.

Speaker #2: With that, I will hand over to Ewout, who will take you through our capital generation and solvency position.

Speaker #1: Thank you, Ingrid. Great to have you all on the call. And I hope everyone enjoyed a nice summer break. CFO cannot be more happy when the results are not only strong, but also very clean set of numbers.

Speaker #1: Thank you, Ingrid. Great to have you all on the call. And I hope everyone enjoyed a nice summer break. A CFO cannot be more happy when the results are not only strong, but also very clean set of numbers.

Ewout Hollegien: Thank you, Ingrid. Great to have you all on the call, and I hope everyone enjoyed a nice summer break. A CFO cannot be more happy when the results are not only strong, but also a very clean set of numbers. Let's move directly to slide 10 and start with the capital wheel. This slide shows what we mean by putting the balance sheet to work. We continue to operate from a strong capital position. This gives us room to invest in growth while the balance sheets remain robust. We deployed capital in a disciplined way that includes organic growth, optimization of the investment portfolio, the Bovemij acquisition, and pension buyouts. In every growth we achieve, value over volume is the starting point. Our level of capital generation increased to EUR 773 million. Our business performance gives us good confidence on delivery towards the EUR 1.35 billion target for 2026.

Speaker #1: Let's move directly to slide 10 and start with the capital wheel. This slide shows what we mean by putting the balance sheet to work.

Speaker #1: We continue to operate from a strong capital position. This gives us room to invest in growth, while the balance sheet remains robust. We deployed capital in a disciplined way, that includes organic growth, optimization of the investment portfolio, the Bofimi acquisition, and pension buyouts.

Speaker #1: We continue to operate from a strong capital position. This gives us room to invest in growth, while the balance sheet remains robust. We deployed capital in a disciplined way.

Speaker #1: That includes organic growth, optimization of the investment portfolio, the Bofemi acquisition, and pension buyouts. And every growth we achieve value-over-volume is the starting point.

Speaker #1: And every growth we achieve value over volume is the starting point. Our level of capital generation increased to 773 million euros. Our business performance gives us good confidence on delivery towards the 1.35 billion euro target for 2026.

Speaker #1: Our level of capital generation increased to 773 million euros. Our business performance gives us good confidence on delivery towards the 1.35 billion euro target for 2026.

Ewout Hollegien: Our business performance gives us good confidence on delivery towards the EUR 1.35 billion target for 2026. Capital return remains attractive as well, with 9% interim dividend per share growth and the completion of the EUR 175 million share buyback announced at the full-year results. In short, the wheel is turning. We invest in profitable growth, we grow OCC, and we increase capital return. Let's zoom in on the development of Solvency on slide 11. As this slide shows, the largest contributor in Solvency development is OCC. OCC added 13 percentage points to the ratio.

Speaker #1: And capital return remains attractive as well, with 9% interim dividend per share growth and the completion of the 175 million euro share buyback announced at the full-year results.

Ewout Hollegien: Capital return remains attractive as well, with 9% interim dividend per share growth and the completion of the EUR 175 million share buyback announced at the full-year results. In short, the wheel is turning. We invest in profitable growth, we grow OCC, and we increase capital return. Let's zoom in on the development of Solvency on slide 11. As this slide shows, the largest contributor in Solvency development is OCC. OCC added 13 percentage points to the ratio. The market and operational movements had only a small negative impact of 1 percentage point, where the positive impact for mortgage spread tightening and real estate revaluations were net offsets by negative impacts, such as the downgrade of Belgian government bonds and the growth of the equity portfolio. After capital distributions, the ratio lands at 222%. Looking ahead, there are two relevant items to keep in mind.

Speaker #1: So in short, the wheel is turning, we invest in profitable growth, we grow OCC, and we increase capital return. Now let's zoom in on the development of solvency on slide 11.

Speaker #1: So in short, the wheel is turning, we invest in profitable growth, we grow OCC, and we increase capital return. Now let's zoom in on the development of Solsy on slide 11.

Speaker #1: As this slide shows, the largest contributor in solvency development is OCC. OCC added 13% points to the ratio. The market and operational movements had only a small negative impact of 1% points, where the positive impact for mortgage spread tightening and wheel state revaluations were net offsets by negative impacts such as the downgrade of Belgium government bonds and the growth of the equity portfolio.

Speaker #1: As this slide shows, the largest contributor in Solsy development is 13% points to the ratio. The market and operational movements had only a small negative impact of 1% points, where the positive impact for mortgage spread tightening and wheel state revaluations were net offsets by negative impacts such as the downgrade of Belgium government bonds and the growth of the equity portfolio.

Ewout Hollegien: The market and operational movements had only a small negative impact of 1 percentage point, where the positive impact for mortgage spread tightening and real estate revaluations were net offsets by negative impacts, such as the downgrade of Belgian government bonds and the growth of the equity portfolio. After capital distributions, the ratio lands at 222%. Looking ahead, there are two relevant items to keep in mind. Those do not differ from what I have mentioned at the full-year results. One is the Bovemij acquisition, which has closed in July, and two is the removal of the DA as part of the legal merger of the life entities. As you all know, we have chosen not to apply for the DA in the budget internal model of a.s.r. Life.

Speaker #1: After capital distributions, the ratio lands at 222%. Looking ahead, there are two relevant items to keep in mind. Those do not differ from what I've mentioned at the full-year results.

Ewout Hollegien: Those do not differ from what I have mentioned at the full-year results. One is the Bovemij acquisition, which has closed in July, and two is the removal of the DA as part of the legal merger of the life entities. As you all know, we have chosen not to apply for the DA in the budget internal model of a.s.r. Life, knowing that the DA has to be eliminated anyway when A-OBR 2020 kicks in the beginning of 2027. Combined, the impact of those two points is around 7 to 8 percentage points. In the H1 of 2027, the implementation of the AOPA 2020 review kicks in, and it is still expected, like by the full year, to add around 10 percentage points. Overall, we remain in a very strong position with ample room to support profitable growth and attractive capital return.

Speaker #1: One is the Bofimi acquisition, which has closed in July, and two is the removal of the DA as part of the legal merger of the life entities.

Speaker #1: One is the Bofemi acquisition, which is closed in July, and two is the removal of the DA as part of the legal merger of the life entities.

Speaker #1: And as you all know, we have to chosen not to apply for the DA in the Belgium internal model for ASR life, knowing that the DA has to be eliminated anyway when AOPA 2020 kicks in in the beginning of 2027.

Speaker #1: And as you all know, we have to chosen not to apply for the DA in the Belgium turnover model for ASR life, knowing that the DA has to be eliminated anyway when AOBA 2020 kicks in in the beginning of 2027.

Ewout Hollegien: Knowing that the DA has to be eliminated anyway when A-OBR 2020 kicks in the beginning of 2027. Combined, the impact of those two points is around 7 to 8 percentage points. In the H1 of 2027, the implementation of the AOPA 2020 review kicks in, and it is still expected, like by the full year, to add around 10 percentage points. Overall, we remain in a very strong position with ample room to support profitable growth and attractive capital return. Let's turn to the next slide for further detail on our OCC. The main driver for the 7% increase in OCC was higher finance capital generation. This reflects the contribution from the pension buyouts that we closed in 2025.

Speaker #1: Combined, the impact of those two points is around 7 to 8 percentage points. And then, in the first half of 2027, the implementation of the AOPA 2020 review kicks in, and it is still expected like by the full year to add around 10 percentage points.

Speaker #1: Combined, the impact of those two points is around 7 to 8 percentage points. And then in the first half of 2027, the implementation of the AOBA 2020 review kicks in, and it is still expected like by the full year to add around 10 percentage points.

Speaker #1: So overall, we remain in a very strong position with ample room to support profitable growth and attractive capital return. Let's turn to the next slide for further detail on our OCC.

Ewout Hollegien: Let's turn to the next slide for further detail on our OCC. The main driver for the 7% increase in OCC was higher finance capital generation. This reflects the contribution from the pension buyouts that we closed in 2025. We also benefited from strong revaluation in equities and real estate over the past year, which are compensated by spread tightening throughout the fixed income portfolio. The non-life contributed positively with a EUR 55 million uplift. In P&C, performance was strong with a combined ratio below 90%. Disability showed a solid performance in H1, proving portfolio discipline and at the same time knowing uncertainty remains given the situation at the UWV. Next to the strong business performance, the increase also includes a lower business strain of around EUR 20 million.

Speaker #1: The main driver for the 7% increase in OCC was higher finance capital generation. This reflects the contribution from the pension buyouts that we closed in 2025.

Speaker #1: We also benefited from strong revaluation in equities and real estate over the past year, which are compensated by spread tightening throughout the fixed income portfolio.

Ewout Hollegien: We also benefited from strong revaluation in equities and real estate over the past year, which are compensated by spread tightening throughout the fixed income portfolio. The non-life contributed positively with a EUR 55 million uplift. In P&C, performance was strong with a combined ratio below 90%. Disability showed a solid performance in H1, proving portfolio discipline and at the same time knowing uncertainty remains given the situation at the UWV. Next to the strong business performance, the increase also includes a lower business strain of around EUR 20 million. This was a result of an increased upper limit of our net cat cover in H2 last year, and though it does not make a difference for the full year, we see an outperformance from H1 to H1 due to this timing effect.

Speaker #1: The non-life contributed positively with a 55 million uplift. In P&C, performance was strong, with a combined ratio below 90%. Disability showed a solid performance in H1, proving portfolio discipline and at the same time knowing uncertainty remains given the situation at the UWV.

Speaker #1: Next to the strong business performance, the increase also includes a lower business strain of around 20 million. This was a result of an increased upper limit of our net debt cover in H2 last year, and though it does not make a difference for the full year, we see an outperformance from H1 to H1 due to this timing effect.

Speaker #1: Next to the strong business performance, the increase also includes a lower business strain of around 20 million. This was a result of an increased upper limit of our net gap cover in H2 last year, and though it does not make a difference for the full year, we see an outperformance from H1 to H1 due to this timing effect.

Ewout Hollegien: This was a result of an increased upper limit of our net cat cover in H2 last year, and though it does not make a difference for the full year, we see an outperformance from H1 to H1 due to this timing effect. Actually, this half year is a solid base to think of also going forward. Segment asset management shows an uplift of EUR 50 million, mostly driven by the migration of the mortgage portfolio in H2 last year. The increase in distribution and services segment mainly relates to the full contribution of HumanTotalCare, which has been reallocated from holding to distribution and services after we acquired the remaining stake of 55%. For the holding and other segments, we see a couple of elements driving the EUR 22 million decrease. Firstly, as you know, we are investing into new technology and AI.

Speaker #1: So actually, this half year is a solid base to think of, also going forward. Segment asset management shows an uplift of 50 million euros, mostly driven by the migration of the mortgage portfolio in H2 last year.

Speaker #1: So actually, this half year is a solid base to think of also going forward. Segment asset management shows an uplift of 50 million euros, mostly driven by the migration of the mortgage portfolio in H2 last year.

Ewout Hollegien: Actually, this half year is a solid base to think of also going forward. Segment asset management shows an uplift of EUR 50 million, mostly driven by the migration of the mortgage portfolio in H2 last year. The increase in distribution and services segment mainly relates to the full contribution of HumanTotalCare, which has been reallocated from holding to distribution and services after we acquired the remaining stake of 55%. For the holding and other segments, we see a couple of elements driving the EUR 22 million decrease. Firstly, as you know, we are investing into new technology and AI. Secondly, a modified treatment of the employer's disability arrangements. Lastly, HTC no longer contributes to the holding segment. Before we head to the operating results, let's look at the outlook for our full year OCC.

Speaker #1: The increase in distribution and services segment mainly relates to the full contribution of HTC, which has been reallocated from holding to distribution and services, after we acquired the remaining stake of 55%.

Speaker #1: For the holding and other segment, we see a couple of elements driving the 22 million euro decrease. Firstly, as you know, we are investing into new technology and AI.

Speaker #1: Secondly, a modified treatment of the employer's disability arrangement. And lastly, HTC does no longer contribute to the holding segment. And before we head to the operating results, let's look at the outlook for our full-year OCC.

Ewout Hollegien: Secondly, a modified treatment of the employer's disability arrangements. Lastly, HTC no longer contributes to the holding segment. Before we head to the operating results, let's look at the outlook for our full year OCC. The OCC of EUR 773 million per H1 2026 should be your starting point. Then, if we add the EUR 594 million OCC from the second half of 2025, you should take into account a few elements. Combined ratio in H2 last year, set within our targeted range. Growth of the business, increased investment return, and cost synergies should provide an additional uplift. Those are offset by headwinds from the impact of the introduction of the PIM to a.s.r. Life, the transfer of Knab Mortgages to BAWAG, the timing effect on the SCR strain as just explained, and additional investments that we are doing in AI and other technology.

Speaker #1: The OCC of 773 million euros per half year 2026 should be your starting point. Then, if we add the 594 million euro OCC from the second half 2025, we should take into account a few elements.

Speaker #1: The OCC of 773 million euros per half year 2026 should be your starting point. Then, if we add the 594 million euro OCC from the second half 2025, you should take into account a few elements.

Ewout Hollegien: The OCC of EUR 773 million per H1 2026 should be your starting point. Then, if we add the EUR 594 million OCC from the second half of 2025, you should take into account a few elements. Combined ratio in H2 last year, set within our targeted range. Growth of the business, increased investment return, and cost synergies should provide an additional uplift. Those are offset by headwinds from the impact of the introduction of the PIM to a.s.r. Life, the transfer of Knab Mortgages to BAWAG, the timing effect on the SCR strain as just explained, and additional investments that we are doing in AI and other technology. All of these developments combined should roughly be a wash.

Speaker #1: Combined ratio in H2 last year, set within our targeted range. Growth of the business, increased investment return, and cost synergies should provide an additional uplift.

Speaker #1: And those are offset by headwinds from the impact of the introduction of the PIM to ASR life, the transfer of CNAPP mortgages to BAWAG, the timing effect on the SCS strain as just explained, and additional investments that we are doing in AI and other technology.

Speaker #1: And those are offset by headwinds from the impact of the introduction of the PIM to ASR life, the transfer of KNAPP mortgages to BAWAG, the timing effect on the SCS strain as just explained, and additional investments that we are doing in AI and other technology.

Speaker #1: All of these developments combined should roughly be a wash. So that would keep the OCC for the second half a touch below 600 million euros, and the full year 2026 OCC north of the targeted 1.35 billion euros.

Ewout Hollegien: All of these developments combined should roughly be a wash. That would keep the OCC for the second half a touch below EUR 600 million and the full year 2026 OCC north of the targeted EUR 1.35 billion. Let's turn to the next slide and talk about the operating results. Given that the most underlying drivers in the operating results are the same as OCC, I will focus on the drivers that are different from the OCC analysis. The operating results increased by 10% to EUR 901 million. The Life segment delivered a strong increase of EUR 17 million, mainly driven by a higher CSM release, reflecting, amongst others, the higher release of CSM due to the capitalization of cost synergies in H2 2025 last year. The positive experience fees observed in pensions was offset by a lower contribution from associations compared to last year.

Ewout Hollegien: That would keep the OCC for the second half a touch below EUR 600 million and the full year 2026 OCC north of the targeted EUR 1.35 billion. Let's turn to the next slide and talk about the operating results. Given that the most underlying drivers in the operating results are the same as OCC, I will focus on the drivers that are different from the OCC analysis. The operating results increased by 10% to EUR 901 million. The Life segment delivered a strong increase of EUR 17 million, mainly driven by a higher CSM release, reflecting, amongst others, the higher release of CSM due to the capitalization of cost synergies in H2 2025 last year. The positive experience fees observed in pensions was offset by a lower contribution from associations compared to last year.

Speaker #1: Let's turn to the next slide and talk about the operating results. Given that the most underlying drivers in the operating results are the same as OCC, I will focus on the drivers that are different from the OCC analysis.

Speaker #1: Let's turn to the next slide and talk about the operating results. Given that the most underlying drivers in the operating result are the same as OCC, I will focus on the drivers that are different from the OCC analysis.

Speaker #1: The operating result increased by 10% to 901 million euros. The life segment delivered a strong increase of 70 million euros, mainly driven by a higher CSM release, reflecting, amongst others, the higher release of CSM due to the capitalization of cost synergies in H2 2025 last year.

Speaker #1: The positive experience funds observed in pensions was offset by a lower contribution from associations compared to last year. And lastly, for life, we realized a higher investment margin from the 2025 pension buyouts.

Ewout Hollegien: Lastly, for Life, we realized a higher investment margin from the 2025 pension buyouts. The increase in operating investment and finance results is higher than the increase in OCC finance capital generation because the tightened mortgage spreads led to a lower liability and liquidity premium under IFRS, but does not impact the VA and the Solvency. In Non-life, the increase in operating results mainly reflects higher investment income. For the insurance results, the business growth is offset by a slightly higher combined ratio compared to last year. The development of our fee-based business and holding are equal to OCC. Let's turn to the next slide and talk you through our updated Solvency sensitivities. Slide 14.

Speaker #1: The increase in operating investment and finance result is higher than the increase in OCC finance capital generation because the tightened mortgage spreads led to a lower liability liquidity premium and IFRS, but does not impact the VA and the SOLSI.

Speaker #1: In non-life, the increase in operating result mainly reflects higher investment income. For the insurance result, the business growth is offset by a slightly higher combined ratio compared to last year.

Speaker #1: And the development of our fee-based business and holding are equal to OCC, so let's turn to the next slide and talk you through our updated SOLSI sensitivities.

Speaker #1: And the development of our fee-based business and holding are equal to OCC, so let's turn to the next slide and talk you through our updated source C sensitivities.

Speaker #1: Slide 14. As mentioned during the full-year call, we would give an update on our sensitivities that also reflects the removal of the determining adjustments, which now actually already has been removed after legal merger on the 2nd of July.

Speaker #1: Slide 14. As mentioned during the full year call, we would give an update on our sensitivities that also reflects the removal of the determining adjustment, which now actually already has been removed after legal merger on the 2nd of July.

Ewout Hollegien: As mentioned during the full year call, we would give an update on our sensitivities that also reflects the removal of the determining adjustment, which now actually already has been removed after the legal merger on 2 July. As a reminder, the DA was an Aegon-specific mechanism that corrected for mismatches between our own portfolio and the VA reference portfolio via the required capital. What you now can see in our sensitivities is that they stay benign and our Solvency resilience remains strong, also after the removal of the determining adjustment. The current sensitivities are actually now more aligned with market practice. Let me for now focus on the free spread sensitivities, since those sensitivities are mainly impacted by the removal of the DA. For government spreads and mortgage spreads, the outcome is quite intuitive.

Speaker #1: And as a reminder, the DA was an Aegon-specific mechanism that corrected for mismatches between our own portfolio and the VA reference portfolio via the required capital.

Speaker #1: And as a reminder, the DA was an Egon-specific mechanism that corrected for mismatches between our own portfolio and the VA reference portfolio via the required capital.

Speaker #1: And what you now can see in our sensitivities is that they stay benign and our SOLSI resilience remains strong, also after the removal of the determining adjustment.

Speaker #1: And what you now can see in our sensitivities is that they stay benign and are source C resilience remains strong, also after the removal of the determining adjustment.

Speaker #1: The current sensitivities are actually now more aligned with market practice. Let me for now focus on the free spread sensitivities since those sensitivities are mainly impacted by the removal of the DA.

Speaker #1: For government spreads and mortgage spreads, the outcome is quite intuitive. If spreads widen, valuation go down, and for both investment categories, risk is low, and therefore limited compensation in required capital.

Speaker #1: For government spreads and mortgage spreads, the outcome is quite intuitive. If spreads widened, valuation go down, and for both investment categories, risk is low and therefore limited compensation in required capital.

Ewout Hollegien: If spreads widen, valuation go down, and for both investment categories, risk is low and therefore limited compensation in required capital. Netted, a negative impact on Solvency from spreads widening, and the other way around from spreads tightening. For credit spreads, the picture is different. Here, spread widening actually leads to an uplift in Solvency, and there are two drivers for that. Firstly, in a European context, our fixed income portfolio has a relatively large allocation to mortgages. The VA reference portfolio has a relatively large allocation to corporate bonds. So when credit spreads widen, the VA reacts more strongly than it would on the basis of our own portfolio. Secondly, it is the application of the IAS 19 for the valuation of the pension scheme liabilities for our own employees.

Speaker #1: Netted, a negative impact on SOLSI from spreads widening, and the other way around from spreads tightening. For credit spreads, the picture is different. Here, widening actually leads to an uplift in the SOLSI, and there are two drives for that.

Speaker #1: Netted, a negative impact on source C from spread widening. And the other way around from spreads tightening. For credit spreads, the picture is different.

Speaker #1: Here, a spread widening actually leads to an uplift in the source C. And there are two drivers for that. Firstly, in the European context, our fixed income portfolio has a relatively large allocation to mortgages.

Speaker #1: Firstly, in the European context, our fixed income portfolio has a relatively large allocation to mortgages. The VA reference portfolio has a relatively large allocation to corporate bonds.

Speaker #1: The VA reference portfolio has a relative large allocation to corporate bonds. So when credit spreads widen, the VA reacts more strongly than it would on the basis of our own portfolio.

Speaker #1: So when credit spreads widen, the VA reacts more strongly than it would on the basis of our own portfolio. Secondly, is the application of the IS19 for the valuation of our pension scheme liabilities for our own employees.

Speaker #1: Secondly, is the application of the IS19 for the valuation of our pension scheme liabilities for our own employees. The IS19 discount curve is based on the corporate bond yield curve.

Speaker #1: The IS19 discount curve is based on the corporate bond yield curve. So while the credit spreads therefore also have a positive impact on our SOLSI.

Ewout Hollegien: The IAS 19 discount curve is based on the corporate bond yield curve, so wider credit spreads therefore also have a positive impact on our solvency. Overall, the sensitivities to our balance sheet remain very manageable, and in real life, spread movements in corporates, credits, and mortgages have historically been positively correlated. That means the different direction in spread sensitivities also provide a natural offset. Let us move to the next slide, where we discuss our investment portfolio. This slide shows our robust and high-quality investment portfolio with over 80% allocation to fixed income assets, including mortgages, derivatives, and cash. The fixed income bonds portfolio covering government bonds, credits, and alternatives is a high quality and well-diversified portfolio that I am very comfortable with. We believe that mortgages offer historically a very attractive risk-return profile. The average loan to value is around 50%, and credit losses remain below 1 basis point.

Speaker #1: So why the credit spreads therefore also have a positive impact on our source C. So overall, the sensitivities to our benefit remain very manageable.

Speaker #1: So overall, the sensitivities to our balance sheet remain very manageable, and in real life, spread movements in coffees, credits, and mortgages have historically been positively correlated.

Speaker #1: And in real life, spread movements in coffees, credits, and mortgages have historically been positively correlated. That means the different direction in the spread sensitivities also provide a natural offset.

Speaker #1: That means the different direction in the spread sensitivities also provides a natural offset. Let's move to the next slide where we discuss our investment portfolio.

Speaker #1: Let's move to the next slide where we discuss our investment portfolio. This slide shows our robust and high-quality investment portfolio with over 80% allocation to fixed income assets, including mortgages derivatives and cash.

Speaker #1: This slide shows our robust and high-quality investment portfolio with over 80% allocation to fixed income assets, including mortgages derivatives and cash. The fixed income bond portfolio covering government bonds, credits, and alternatives is a high-quality and well-diversified portfolio that I'm very comfortable with.

Speaker #1: The fixed income bond portfolio covering government bonds, credits, and alternatives is a high-quality and well-diversified portfolio that I'm very comfortable with. We believe that mortgages offer historically a very attractive risk-return profile.

Speaker #1: We believe that mortgages offer historically a very attractive risk-return profile. The average loan-to-value is around 50%, and credit losses remain below one basis point.

Speaker #1: The average loan-to-value is around 50%, and credit losses remain below one basis point. So from a risk perspective, this is a very strong portfolio.

Ewout Hollegien: The average loan to value is around 50%, and credit losses remain below 1 basis point. From a risk perspective, this is a very strong portfolio. As Ingrid mentioned, new mortgage production was lower. That is mainly due to the current interest rate environment, which increases customer appetite for shorter maturities, where there is more competition from banks and resulting in lower spreads. Let us move to real estate and equities, where performance was very strong. In the H1, real estate revaluation were up almost 3%, and this was mainly driven by residential, which was up around 5%, helped by the lowering of the transfer tax we discussed a few years stage, and remains the backbone of our portfolio together with our rural portfolio, that also continues to show solid performance.

Speaker #1: So from a risk perspective, this is a very strong portfolio. As Ingrid mentioned, new mortgage production was lower. That's mainly due to the current interest rate environment, which increases customer appetite for shorter maturities, where there is more competition from banks and resulting in lower spreads.

Ewout Hollegien: From a risk perspective, this is a very strong portfolio. As Ingrid mentioned, new mortgage production was lower. That is mainly due to the current interest rate environment, which increases customer appetite for shorter maturities, where there is more competition from banks and resulting in lower spreads. Let us move to real estate and equities, where performance was very strong. In the H1, real estate revaluation were up almost 3%, and this was mainly driven by residential, which was up around 5%, helped by the lowering of the transfer tax we discussed a few years stage, and remains the backbone of our portfolio together with our rural portfolio, that also continues to show solid performance.

Speaker #1: As Ingrid mentioned, new mortgage production was lower. That's mainly due to the current interest rate environment, which increases customer appetite for short-term maturities, where there is more competition from banks and resulting in lower spreads.

Speaker #1: Let's move to real estate and equities, where performance was very strong. In the first half year, real estate revaluations were up almost 3%, and this was mainly driven by residential, which was up around 5%, helped by the lowering of the transfer tax we discussed at full-year states, and remains the backbone of the portfolio together with our rural portfolio that also continues to show solid performance.

Speaker #1: Let's move to real estate and equities, where performance was very strong. In the first half year, real estate revaluations were up almost 3%, and this was mainly driven by residential, which was up around 5%, helped by the lowering of the transfer tax we discussed at full year stage and remains the backbone of the portfolio together with our rural portfolio that also continues to show solid performance.

Speaker #1: In equities, next to positive revaluation, we used the recent geopolitical volatility to expand our portfolio a bit at attractive buying moments. And that is another example where having your own asset management and being really on top of the market creates real value.

Ewout Hollegien: In equities, next to positive revaluation, we used the recent geopolitical volatility to expand our portfolio a bit at attractive buying moments, and that is another example where having your own asset management and being really on top of the market creates real value. Let us look at the flexibility of the balance sheet on the next slide. This slide shows that we continue to have ample financial flexibility, and that is really supported by the composition of our balance sheet. Financial leverage is at 21%, interest coverage ratio well above our internal limit, and on top of that, we still have significant debt capacity. There is room for more than EUR 2.5 billion RT1 and Tier 2 issuances. As you can see on the bottom right-hand side, our debt maturity schedule remain nicely spread over time.

Speaker #1: Let's look at the flexibility of the balance sheet on the next slide. This slide shows that we continue to have ample financial flexibility. And that is really supported by the composition of our balance sheet.

Speaker #1: Financial leverage is at 21%, interest coverage ratio well above our internal limit, and on top of that, we still have significant debt capacity. There is room for more than 2.5 billion euros RT1 and Tier 2 issuances.

Speaker #1: Financial leverage is at 21%. Interest coverage ratio well above our internal limit. And on top of that, we still have significant debt capacity. There is room for more than 2.5 billion euros RT1 and Tier 2 issuances.

Speaker #1: And as you can see on the bottom right-hand side, our debt maturity schedule remains nicely spread over time. So from whatever angle you look at it, the balance sheet gives us significant financial flexibility.

Ewout Hollegien: So from whatever angle you look at it, the balance sheet gives us significant financial flexibility. Let's turn to my last slide and end with our holdco liquidity. At H1, the holdco liquidity position is temporarily elevated, reflecting the cash upstream needed for the Bovemij acquisition. The cash was already remitted before the H1 closing date, while the actual cash out took place the day after. The additional remittance came specifically from our well-capitalized life entities, and that's also reflected in solvency ratio for a.s.r. Life, which still remains very strong. So OCC good, group solvency good, cash at holdco good, legal entity solvency good. What could I say more? I think this is a good moment to hand it back to you, Ingrid, for the wrap-up.

Speaker #1: Let's turn to my last slide and end with our Haldor liquidity. At half year, the Haldor liquidity position is temporarily elevated, reflecting the cash upstream needed for the buffet acquisition.

Speaker #1: Let's turn to my last slide and end with our Haldwell liquidity. At half year, the Haldwell liquidity position is temporarily elevated, reflecting the cash upstream needed for the buffet acquisition.

Speaker #1: The cash was already remitted before the half-year closing date, while the actual cash out took place the day after. The additional remittance came specifically from our well-capitalized live entities.

Speaker #1: And that's also reflected in the SOLSI ratio for ASA Live, which still remains very strong. So OCC good, group SOLSI good, guess that Haldor good, legal entity SOLSI good.

Speaker #1: And that's also reflected in the source C ratio for ASA Live, which still remains very strong. So OCC good, group source C good, cash at Haldwell good, legal entity source C good.

Speaker #1: What could I say more? I think this is a good moment to hand it back to you, Ingrid, for the wrap-up.

Speaker #2: Thank you very much, Ewout. This brings us to the end of our presentation. Let me briefly close with the key messages. First, we have pursued profitable growth and strengthened our platform.

Ingrid de Swart: Thank you very much, Ewout. This brings us to the end of our presentation. Let me briefly close with the key messages. First, we have pursued profitable growth and strengthened our built platform. The integration of Aegon Netherlands is now finalized, and the acquisition of Bovemij was completed in July. Those are important steps in creating a leading insurer in the Netherlands. Second, we delivered a solid performance across all business segments. Our OCC is on track to reach the EUR 1.35 billion target in 2026. Third, our capital position remains very strong. The Solvency II ratio increased to 222%, reflecting strong capital generation and well-positioned to pursue value-accretive opportunities. And finally, we will present our updated strategy and new targets at our Capital Markets Day on 1 December of this year. With that, we are happy to take your questions. Looking forward to answering them.

Speaker #2: The integration of Aegon the Netherlands is now finalized, and the acquisition of Buffet Mai was completed in July. Those are important steps in creating a leading insurer in the Netherlands.

Speaker #2: The integration of Egon the Netherlands is now finalized, and the acquisition of Bovema was completed in July. Those are important steps in creating a leading insurer in the Netherlands.

Speaker #2: Second, we delivered a solid performance across all business segments. Our OCC is on track to reach the 1.35 billion euro target in 2026. Third, our capital position remains very strong.

Speaker #2: The SOLSI 2 ratio increased to 222%, reflecting strong capital generation and well-positioned to pursue value-accretive opportunities. And finally, we will present our updated strategy and new targets at our Capital Markets Day on the 1st of December of this year.

Speaker #2: The source C2 ratio increased to 222%, reflecting strong capital generation and well-positioned to pursue value-accretive opportunities. And finally, we will present our updated strategy and new targets at our capital markets day on the 1st of December of this year.

Speaker #2: With that, we are happy to take your questions. Looking forward to answering them.

Ingrid de Swart: With that, we are happy to take your questions. Looking forward to answering them.

Speaker #1: Thank you. As a reminder, to ask a question, please press star 11 on your telephone, and wait for your name to be announced. To whisper your question, please press star 1 and 1 again.

Speaker #1: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To whisper your question, please press star 1 and 1 again.

Operator: Thank you. As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. We kindly ask to limit yourselves to two questions per person. We will now take our first question. One moment, please. From the line of Cor Kluis from ABN AMRO - ODDO BHF, please go ahead.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. We kindly ask to limit yourselves to two questions per person. We will now take our first question. One moment, please. From the line of Cor Kluis from ABN AMRO - ODDO BHF, please go ahead.

Speaker #1: We kindly ask to limit yourselves to two questions per person. We will now take our first question. One moment, please. From the line of Cor Kluis from ABN AMRO Auto VHF, please go ahead.

Speaker #3: Yeah, hello. Good morning. Indeed, Cor Kluis of ABN AMRO Auto. Congratulations with the results, especially I think the organic growth, the premium growth, and non-life was quite high, better than expected.

Speaker #3: Yeah, hello. Good morning, indeed. Cor Kluis of ABN AMRO Auto. Congratulations with the results, especially I think the organic growth, the premium growth, and non-life was quite high, better than expected.

Cor Kluis (ABN AMRO: Yeah. Hello, good morning, indeed. Cor Kluis from ABN AMRO - ODDO BHF. Congratulations with the results, especially, I think the organic growth, the premium growth in non-life was quite high, better than expected. Could you elaborate a little bit more on that? So disability and P&C, could you split it in price increase and volume? How was the churn? And are you satisfied with the price increases in disability, especially given the WIA situation? So that's a question on premium growth in non-life organic. Second question is about M&A. Ingrid, you as new CEO, of course, doing acquisitions has always been an important part of ASR, so you probably also will continue that in the future. Could you give your first views and context and way of looking to M&A as probably a continuing way of doing business, but your own view on that. And last question is about the WIA.

Speaker #3: Could you elaborate a little bit more on that? So invisibility and P&C, could you split it in price increase and volume? How was the churn?

Speaker #3: Could you elaborate a little bit more on that? So disability and P&C, could you split it in price increase and volume? How was the churn?

Speaker #3: And are you satisfied with the price increases and visibility, especially given the VA situation? So that's a question on premium growth and non-life organic.

Speaker #3: And are you satisfied with the price increases in disability, especially given the VA situation? So that's a question on premium growth and non-life organic.

Speaker #3: Second question is about M&A. Yeah, Ingrid, you as a new CEO, of course, doing acquisitions has always been an important part of ASR, so you will probably also continue that in the future.

Speaker #3: Second question is about M&A. Yeah, Ingrid, you as a new CEO, of course, doing acquisitions has always been an important part of ASR. So you will probably also continue that in the future.

Speaker #3: Could you give your, yeah, first views and context and way of looking to M&A? It's probably a continuing way of doing business, but your own view on that.

Speaker #3: Could you give your, yeah, first views and context and way of looking to M&A as probably a continuing way of doing business, but your own view on that?

Cor Kluis (ABN AMRO: Could you give your first views and context and way of looking to M&A as probably a continuing way of doing business, but your own view on that. And last question is about the WIA. I get it that, of course, you will do an update in Q3. Could you give some comments about what is going on, how the government is acting, what your interactions with the government indicate will get the backlog in order, et cetera? So those were my questions. Thank you.

Speaker #3: And last question is about the VA. I get it that, of course, you will do an update in Q3. Yeah, could you give some comments about, yeah, what's going on, how the government is acting, what your interactions with the government indicate, what get the backlog in order, et cetera?

Speaker #3: And last question is about the VA. I get it that, of course, you will do an update in Q3. But yeah, could you give some comments about, yeah, what's going on, how the government is acting, what your interactions with the government indicate, what get the backlog in order, et cetera?

Cor Kluis (ABN AMRO: I get it that, of course, you will do an update in Q3. Could you give some comments about what is going on, how the government is acting, what your interactions with the government indicate will get the backlog in order, et cetera? So those were my questions. Thank you.

Speaker #3: So that were my questions. Thank you.

Speaker #2: And good morning. Thanks, Cor, for those questions. We will, I will start with answering the question around M&A and then Ewout will take care of the P&C and disability questions that you posed.

Ingrid de Swart: Good morning. Thanks, Cor, for those questions. I will start with answering the question around M&A, and then Ewout will take care of the P&C and disability questions that you posed. Thanks for the compliments as well, Cor. We are also very happy with the clean set that we presented this morning. I have been part of this company for almost seven years, and M&A has been an important part of the strategy and an important source of growth for years. I think that the Aegon Netherlands integration and deal was really transformational to ASR, and we are really proud that we completed the integration within the three years and delivered on all the targets that we promised. More importantly, also we were very successful in bringing two cultures together.

Speaker #2: And thanks for the compliments as well, Cor. We're also very happy with the clean set that we presented this morning. So I've been part of this company for almost seven years, and M&A has been an important part of the strategy and an important source of growth for years.

Speaker #2: And thanks for the compliments as well, Cor. We're also very happy with the clean set that we presented this morning. So I've been part of this company for almost seven years.

Speaker #2: And M&A has been an important part of the strategy and an important source of growth for years. I think that the Egon the Netherlands transformation of integration and deal was really transformational to ASR, and we are really proud that we completed the integration within the three years and delivered on all the targets that we promised.

Speaker #2: I think that the Aegon the Netherlands transformation of integration and deal was really transformational to ASR, and we are really proud that we completed the integration within the three years and delivered on all the targets that we promised.

Speaker #2: And more importantly, also we're a very successful in bringing two cultures together. I'm also very happy that while we have just closed down the integration and really completed it, we have already started the next integration of Buffet Mai.

Speaker #2: And more importantly, also we're very successful in bringing two cultures together. I'm also very happy that while we have just closed down the integration and really completed it, we have already started the next integration of Bovema.

Ingrid de Swart: I am also very happy that while we have just closed down the integration and really completed it, we have already started the next integration of Bovemij. I love the blueprint of Bovemij that well fits into what we have always said, that in the non-life space, particularly in P&C, there may be opportunities in the coming years because of the 65% that is divided between the three biggest players in the market. Very little smaller players. We see now that Bovemij is, I think, a perfect proof point of that. It is quite difficult for a smaller P&C insurer to stay economically viable, to do the investments into digitalization and AI, and to remain relevant to customers. That is why I am very happy that we were able to have such a nice deal together with Bova and Bovemij, and we are very keen to explore additional opportunities.

Speaker #2: And I love the blueprint of Buffet Mai, that well fits into what we have always said, that in the non-life space, particularly in P&C, there may be opportunities in the coming years, because of the 65% that's divided between the three biggest players in the market, there is a till, smaller players, and we see now that Buffet Mai is, I think, a perfect proof point of that it's quite difficult for a smaller P&C insurer to stay economically viable to do the investments into digitalization and AI.

Speaker #2: And I love the blueprint of Bovema that well fits into what we have always said. That in the non-life space, particularly in P&C, there may be opportunities in the coming years because of the 65% that's divided between the three biggest players in the market.

Speaker #2: There is a tail of smaller players. And we see now that Bovema is, I think, perfect proof point of that. It's quite difficult for a smaller P&C insurer to stay economically viable to do the investments into digitalization and AI.

Speaker #2: And to remain relevant to customers. And that's why I'm very happy that we were able to have such a nice deal together with Bovag on Buffet Mai, and we are very keen to explore additional opportunities.

Speaker #2: And to remain relevant to customers. And that's why I'm very happy that we were able to have such a nice deal together with Bovega and Bovema.

Speaker #2: And we are very keen to explore additional opportunities. So I would say, as expected, no change here, but looking forward to creating more opportunities.

Ingrid de Swart: We are very keen to explore additional opportunities. I would say as expected, no change here, but looking forward to creating more opportunities. The same goes for the financial investment return point of view deals. While we also always have looked at Life and also Funeral, they are also very keen and interested in buy portfolios, both in Life with the back books that have predictable cash flows, but also in Funeral. We still believe that there is one big insurer that we think may come to the market at some point in time, and we will be keen to have a look at that, as you can imagine. In the last couple of years, we have also acquired a range of smaller distribution companies, such as also HumanTotalCare that we mentioned in our presentation today.

Speaker #2: So I would say, as expected, no change here, but looking forward to creating more opportunities. And the same goes for the financial investment return point of view deals, while we also always have looked at life and also funeral.

Ingrid de Swart: I would say as expected, no change here, but looking forward to creating more opportunities. The same goes for the financial investment return point of view deals. While we also always have looked at Life and also Funeral, they are also very keen and interested in buy portfolios, both in Life with the back books that have predictable cash flows, but also in Funeral. We still believe that there is one big insurer that we think may come to the market at some point in time, and we will be keen to have a look at that, as you can imagine. In the last couple of years, we have also acquired a range of smaller distribution companies, such as also HumanTotalCare that we mentioned in our presentation today. We also are of continued interest to add those to our portfolio.

Speaker #2: And the same goes for the financial investment return point of view deals, while we also always have looked at life and also funeral. There are also very keen and interested in buy portfolios.

Speaker #2: There are also very keen and interested in buy portfolios both in life with the backbooks that have predictable cash flows, but also in funeral.

Speaker #2: Both in life with the back books that have predictable cash flows, but also in funeral. And we still believe that there is one big insurer that we think may come to the market at some point in time, and we will be keen to have a look at that as you can imagine.

Speaker #2: And we still believe that there is one big insurer that we think may come to the market at some point in time, and we will be keen to have a look at that as you can imagine.

Speaker #2: And in the last couple of years, we've also required a range of smaller distribution companies such as also Human Total Care that we mentioned in our presentation today.

Speaker #2: And in the last couple of years, we've also required a range of smaller distribution companies. Such as also Human Total Care that we mentioned, in our presentation today.

Speaker #2: And we also are, of continued interest to add those to our portfolio. So that's how I would look at it, looking forward to all the opportunities feeding forward.

Speaker #2: And we also are, of continued interest to add those to our portfolio. So that's how I would look at it. Looking forward to all the opportunities feeding forward.

Ingrid de Swart: We also are of continued interest to add those to our portfolio. That is how I would look at it, looking forward to all the opportunities feeding forward. With that, please, Ewout, can you do the P&C and income?

Ingrid de Swart: That is how I would look at it, looking forward to all the opportunities feeding forward. With that, please, Ewout, can you do the P&C and income?

Speaker #2: And with that, please, Ewout, can you do the P&C and income?

Speaker #4: Yeah. So Cor, on the premium growth, indeed, we were very happy with the strong growth in non-life that we have shown, so 6% growth.

Speaker #4: Yeah. So Cor, on the premium growth, indeed, we were very happy with the strong growth in non-life that we have shown. So 6% growth.

Ewout Hollegien: Yeah. Cor, on the premium growth, indeed, we were very happy with the strong growth in non-life that we have shown, so 6% growth. When we look underlying, we see a 4% growth in the P&C market. We were able to grow in the middle of actually the target range that we are having of 3% to 5%. At the same time, having a very strong combined ratio. So definitely very happy with that. In Disability, we grew even 8%. What we see there is that the price increases that we pushed through as a result of the developments in Group Disability, which I will answer after this question, actually resulted in less losing customers than we actually were expecting. As a consequence of that, we actually saw that the increase in Disability rose to 8%.

Speaker #4: And we look underlying, we see a 4% growth in the P&C market. So we were able to growth in the middle of the actually the target range that we are having of 3 to 5%.

Speaker #4: And we look underlying, we see a 4% growth in the P&C market. So we were able to grow in the middle of, in the middle of the, actually the target range that we are having of 3% to 5%.

Speaker #4: And at the same time, having a very strong combined ratio. So definitely very happy with that. In disability, we grew even 8%. And what we see there is that the price increases that we pushed through as a result of the developments in group disability, which I will answer after this question.

Speaker #4: Actually, a result in less losing customers than we actually were expecting. And as a consequence of that, we actually saw that the increase in disability rose to 8%.

Speaker #4: Actually, it resulted in less, in less losing customers than we actually were expecting. And as a consequence of that, we actually saw that the increase in disability rose to 8%.

Speaker #4: Good to mention is that we see the increase mostly, of course, in disability in group disability and also a bit in sickness relief. And what that also means is that we have more customers that actually do annual payments.

Speaker #4: Good to mention is that we see the increase mostly of in disability in group disability and also a bit in sickness leave. And what that also means is that we have more customers that actually do annual payments.

Ewout Hollegien: Good to mention is that we see the increase mostly in Disability, in Group Disability, and also a bit in sickness leave. What that also means is that we have more customers that actually do annual payments. We do, as a result of that, expect that that growth in Disability flattens a bit in the H2 of the year. But with the strong growth that we are presenting today, we are having the confidence that we can land somewhere in the higher end of our target range. On Disability, definitely an important topic to answer as well. As you all know, in Group Disability, and as I think also the market is seeing in Group Disability, we are observing elevated incident rates, which is mostly driven by mental illness and also long COVID, a broader market trend and something we also observed last year.

Speaker #4: So we do, as a result of that, expect that that growth in disability flattens a bit in the second half of the year. But with the strong growth that we are presenting today, we are having the confidence that we can land somewhere in the higher end of our target range.

Speaker #4: Then on disability, definitely an important topic to answer as well. As you all know, in group disability, and as I think also the market is seeing in group disability, we are observing elevated incident rates, which is mostly driven by mental illness and also long COVID.

Speaker #4: A broader market trend and something we also observed last year. That was also the main reason for repricing our business significantly in group disability for the year 2026.

Ewout Hollegien: A broader market trend and something we also observed last year. That was also the main reason for repricing our business significantly in Group Disability for the year 2026. When we actually look today into our portfolio, we see that the payments that we are doing, so the claims that we are having, is actually more or less in line with the actuarial assumptions that we are having. This, in a way, proves the effectiveness of our portfolio discipline and also of the repricing. At the same time, Ingrid was already referring to that, we do see that the situation at the UWV, so the Dutch Employee Insurance Agency, is further deteriorating, and that their backlog is also increasing.

Ewout Hollegien: That was also the main reason for repricing our business significantly in Group Disability for the year 2026. When we actually look today into our portfolio, we see that the payments that we are doing, so the claims that we are having, is actually more or less in line with the actuarial assumptions that we are having. This, in a way, proves the effectiveness of our portfolio discipline and also of the repricing. At the same time, Ingrid was already referring to that, we do see that the situation at the UWV, so the Dutch Employee Insurance Agency, is further deteriorating, and that their backlog is also increasing. The risk that comes with that is that we might not have the full view on the inflow of disabled people as not everyone is assessed yet.

Speaker #4: And when we actually look today, into our portfolio, we see that the payments that we're doing, so the claims that we're having is actually more or less in line with the actual real assumptions that we are having.

Speaker #4: And this in a way proves the effectiveness of our portfolio discipline and also of the repricing. At the same time, and Ingrid was already referring to that, we do see that the situation at the UWV, so the Dutch Employee Insurance Agency, is further deteriorating.

Speaker #4: And that their backlog is also increasing. The risk that comes with that is that we might not have the full view on the inflow of disabled people is not everyone is assessed yet.

Ewout Hollegien: The risk that comes with that is that we might not have the full view on the inflow of disabled people as not everyone is assessed yet. The second-order effect can also be that reassessments are executed less because of this backlog. This could mean, compared to the past, that individuals return less often back to work, and are also less often reclassified into a group which is not expected to return at all because they are lifetime disabled. In that situation, actually the payments are no longer covered by the insurer, but by the government. What we are doing to actually solve that backlog is that we, together with the Dutch Association of Insurers, are in very close contact with the UWV and the government of social affairs.

Speaker #4: And the second order effect can also be that reassessments are executed less because of this backlog. And this could mean, compared to the past, that individuals return less back to work, less often back to work, and are also less often reclassified into a group, which is not expected to return at all because they are lifetime disabled.

Ewout Hollegien: The second-order effect can also be that reassessments are executed less because of this backlog. This could mean, compared to the past, that individuals return less often back to work, and are also less often reclassified into a group which is not expected to return at all because they are lifetime disabled. In that situation, actually the payments are no longer covered by the insurer, but by the government. What we are doing to actually solve that backlog is that we, together with the Dutch Association of Insurers, are in very close contact with the UWV and the government of social affairs. We see definitely solutions there, but it might require, and we do not know that exactly, time, and also change in legislation.

Speaker #4: And are also less often reclassified into a group, which is not expected to return at all because they are lifetime disabled. And in that situation, the actually the payments are no longer covered by the insurer.

Speaker #4: And in that situation, the actually the payments are no longer covered by the insurer, but by the government. What we are doing to actually solve that backlog is that we together with the Dutch Insurance Association are in very close contact with the UWV and the government of social affairs.

Speaker #4: But by the government. What we are doing to actually solve that backlog is that we together with the Dutch Insurance Association are in very close contact with the UWV and the government of social affairs.

Speaker #4: And we see definitely solutions there. But it might require, and we don't know that exactly time, and also change in legislation. What we will do is actually bringing all those developments, the conversation that we are having the risk that there might be some delay in the inflow and in the reassessments, that we bring that all together as part of the annual review that we are doing on our actuarial assumptions in H2.

Speaker #4: And we see definitely solutions there. But it might require, and we don't know that exactly, time and also change in legislation. What we will do is actually bringing all those developments, the conversation that we are having, the risk that there might be some delay in the inflow and in the reassessments, that we bring that all together as part of the annual review that we are doing on our actuarial assumptions in H2.

Ewout Hollegien: We see definitely solutions there, but it might require, and we do not know that exactly, time, and also change in legislation. What we will do is actually bringing all those developments, the conversation that we are having, the risk that there might be some delay in the inflow and in the reassessments, that we bring that all together as part of the annual review that we are doing on our actuarial assumptions in H2. We will definitely look at this in conservative, as you know us, in considering further actions. That is actually the situation where we are looking at today.

Ewout Hollegien: What we will do is actually bringing all those developments, the conversation that we are having, the risk that there might be some delay in the inflow and in the reassessments, that we bring that all together as part of the annual review that we are doing on our actuarial assumptions in H2. We will definitely look at this in conservative, as you know us, in considering further actions. That is actually the situation where we are looking at today.

Speaker #4: And we will definitely look at this in a conservative as you are as you know us. In considering further actions and that's actually the situation where we are looking at today.

Speaker #4: And we will definitely look at this in conservative as you are as you know us. In considering further actions. And that's actually the situation where we are looking at today.

Speaker #1: Okay. Very clear explanation. Thanks very much.

Speaker #2: Okay. Very clear explanation. Thanks very much.

Ingrid de Swart: Okay. Thank you for your explanation. Thank you very much.

Cor Kluis (ABN AMRO: Okay. Thank you for your explanation. Thank you very much.

Speaker #3: Thank you. We will now take the next question. From the line of Andrew Baker from Goldman Sachs, please go ahead.

Speaker #1: Thank you. We will now take the next question. From the line of Andrew Baker from Goldman Sachs, please go ahead.

Operator: Thank you. We will now take the next question from the line of Andrew Baker from Goldman Sachs. Please go ahead.

Speaker #5: Hi. Thank you for taking my questions. The first one, just on the non-life OCC. I know you touched on this in your comments, but can you just give a little bit more detail on the year-on-year SCR development that you saw in one half '26?

Speaker #3: Hi. Thank you for taking my questions. The first one, just on the non-life OCC. I know you touched on this in your comments, but can you just give a little bit more detail on the year-on-year SCR development that you saw in one half '26?

Andrew Baker: Hi. Thank you for taking my questions. The first one, just on the non-life OCC. I know you touched on this in your comments, but can you just give a little bit more detail on the year-on-year SCR development that you saw in H1 2026? I guess, what drove the differences year-on-year? I think you said the first half is a good base to project off going forward. How do we think about the H2 then in 2026 versus the H2 in 2025? Just picking apart those moving pieces would be really helpful. Secondly, are you able to give us a sense of the amount of investment in technology and AI that you are running through the holding company cost line in the H1? What type of investments these are in? How should we think about this level of investment going forward?

Speaker #5: I guess what drove the differences year-on-year? I think you said the first half is a good base to project off going forward. How do we think about the second half then in '26 versus the second half in '25?

Speaker #3: I guess what drove the differences year-on-year? I think you said the first half is a good base to project off going forward. How do we think about the second half then in '26 versus the second half in '25?

Speaker #5: So just picking apart those moving pieces would be really helpful. And then secondly, are you able to give us a sense of the amount of investment in technology and AI that you're running through the holding company cost line in the first half?

Speaker #3: So just picking apart those moving pieces would be really helpful. And then secondly, are you able to give us a sense of the amount of investment in technology and AI that you're running through the holding company cost line in the first half?

Speaker #5: What type of investments these are in? How should we think about this level of investment going forward? And I guess when should we expect to see the benefits flow into the results?

Speaker #3: What type of investments these are in? How should we think about this level of investment going forward? And I guess when should we expect to see the benefits flow into the results?

Andrew Baker: How should we think about this level of investment going forward? When should we expect to see the benefits flow into the results? Thank you.

Andrew Baker: When should we expect to see the benefits flow into the results? Thank you.

Speaker #5: Thank you.

Speaker #3: Thank you.

Speaker #2: Good morning, Andrew. Thank you for your question. As a former CTO, I will take the AI and technology question. You should think about tens of millions.

Ingrid de Swart: Good morning, Andrew. Thank you for your question. As a former CTO, I will take the AI and technology question. You should think about tens of millions. Ewout, can you take the OCC question?

Speaker #2: Ewout, can you take the OCC question?

Speaker #4: Absolutely. Absolutely. So on the so we already call it internally the net cat. The net cat question because it's raised every day. Maybe to start with, we now see in H1 of 2026 is really kind of the normal level of what we should expect.

Speaker #4: Absolutely. Absolutely. So on the so we already call it internally the net get. The net get question, because it's raised every day. Maybe to start with, we now see in H1 of 2026 is really kind of the normal level of what we should expect.

Ewout Hollegien: Absolutely. We already call it internally the net cat question because it is raised every day. Maybe to start with, what we now see in H1 of 2026 is really kind of the normal level of what we should expect. What happened is that given the continued growth that we had in the P&C portfolio, we actually saw in H1 of 2025 that the exposure levels temporarily exceeding the coverage assumptions underlying parts of our net cat program. As a consequence, we saw that additional solvency capital was required during the H1 of 2025 until the reinsurance program was adjusted at year-end. The subsequent update to that program released this additional solvency capital requirement in the H2 of 2025. As a result, we benefit from lower capital strain in the H1 of 2026 compared with the prior year period, and this created a positive year-on-year effect.

Speaker #4: What happened is that during given the continued growth that we had in the P&C portfolio, we actually saw in H1 of 2025 that the exposure levels temporarily exceeding the coverage assumption underlying parts of our net cat program.

Speaker #4: As a consequence, we saw that additional solvency capital was required during the first half of 2025 until the reinsurance program was adjusted at year end.

Speaker #4: So the subsequent update to that program released this additional solvency capital requirement in the second half of 2025. As a result, we benefit from lower capital strain in the first half of 2026 compared with the prior year period.

Speaker #4: And this created that positive year-on-year effect. But again, the level of H1 is normal. What it does indeed mean is that around, let's say, 20 million that's around the number, we expect around 20 million less capital release or 20 million higher strain in H2 compared to last year.

Ewout Hollegien: This created a positive year-on-year effect. But again, the level of H1 is normal. What it does indeed mean is that around, let's say, EUR 20 million, that is around the number, we expect around EUR 20 million less capital release or EUR 20 million higher strain in H2 compared to last year. That was also part of the OCC bridge that I provided that is included in that. That is one of the reasons that we expect more or less to land at the same level on OCC in the second half of the year as last year. Hopefully that helps, Andrew.

Ewout Hollegien: But again, the level of H1 is normal. What it does indeed mean is that around, let's say, EUR 20 million, that is around the number, we expect around EUR 20 million less capital release or EUR 20 million higher strain in H2 compared to last year. That was also part of the OCC bridge that I provided that is included in that. That is one of the reasons that we expect more or less to land at the same level on OCC in the second half of the year as last year. Hopefully that helps, Andrew.

Speaker #4: And that was also part of the OCC bridge that I provided. That is included in that. That's one of the reasons that we expect more or less to land at the same level of on OCC of in the second half of the year as last year.

Speaker #4: Hopefully, that helps Andrew.

Speaker #4: Hopefully that helps, Andrew.

Speaker #5: That's really clear. Thank you.

Speaker #3: That's really clear. Thank you.

Andrew Baker: It is really clear. Thank you.

Speaker #3: Thank you. We will now take the next question. From the line of Michael Huttner from Bernberg, please go ahead.

Speaker #1: Thank you. We will now take the next question. From the line of Michael Huttner from Bernberg, please go ahead.

Operator: Thank you. We will now take the next question from the line of Michael Huttner from Berenberg. Please go ahead.

Speaker #5: And thank you very much. And I have two ones on the real estate and the other one on reinsurance. On real estate, I saw so you said about 3% and in residential sorry, 3% in real estate, 5% residential, I think, and solid in rural.

Speaker #5: And thank you very much. And I have two ones on real estate. And the other one on reinsurance. On real estate, I saw the so you said 3% and in residential sorry, 3% in real estate, 5% residential, I think, and solid in rural.

Michael Huttner: Thank you very much. I have two. One is on real estate and the other one on reinsurance. On real estate, I saw you mentioned, you said 3% in real estate, 5% residential, I think, and solid in rural. In your 13% OCC increase, how much of that was from real estate or is it somewhere else? How much more could we expect from real estate in the second half? Then on reinsurance, you just said you got negatives on or not negatives, but the highest strain due to the high exposure numbers. Is there a benefit from buying more reinsurance, or did you decide not to buy more reinsurance? I was just curious. Thank you.

Speaker #5: In your 13% OCC increase, how much of the was that from real estate or is it somewhere else? And how much more could we expect from real estate in the second half?

Speaker #5: And then on reinsurance, you just said you've got negatives on or not negatives, but a highest strain due to the high exposure numbers. Is there a benefit from buying more reinsurance or did you decide not to buy more reinsurance?

Speaker #5: And then on reinsurance, you just said you got negatives on not negatives, but a highest strain due to the high exposure numbers. Is there a benefit from buying more reinsurance or did you decide not to buy more reinsurance?

Speaker #5: I was just curious. Thank you.

Speaker #4: Yes. Thanks, thanks for those questions. On the real estate, so what we have as a kind of the total return assumption in real estate is a pre-tax return of 5.5%.

Ewout Hollegien: Yes. Thanks for those questions. On the real estate, what we have as a kind of the total return assumption in real estate is a pre-tax return of 5.5%. Every revaluation that is actually exceeding that number, and the 5.5% is also including the direct yield. Everything that is outperforming those assumptions is not part of the organic capital creation, but is part of the market and operational developments. That is why I also mentioned in the kind of market and operational developments, there was some positive effect from the revaluation of real estate. In the H2 of the year, we are neutral in our view on real estate. We see still attractive direct yields, revaluation, more or less a neutral view. Then the second question in buying reinsurance. The way we are looking to reinsurance is actually always in two ways.

Speaker #4: So every revaluation that is actually exceeding that number and the 5.5% is also including the direct yield. So everything that is excluding the is outperforming those assumptions is not part of the organic capital creation, but is part of the market and operational developments.

Speaker #4: That's why I also mentioned in the kind of market and operational developments, there was some positive effect from the revaluation of real estate. In the second half of the year, we are neutral in our view on real estate.

Speaker #4: So we see still attractive direct yields, revaluation more or less a neutral view. Then the second question in buying reinsurance. So the way we are looking to reinsurance is actually always in two ways.

Ewout Hollegien: The way we are looking to reinsurance is actually always in two ways. One is what is effective from a cost of capital perspective there. We assess the reinsurance program from a cost of capital perspective. That is one element. Also what we like, just as ASR being predictable, is that because of our reinsurance program, we also have a performance that is, well, that if there is kind of gaps happens, that our performance remains also strong in that type of situation. With those two criteria in place, we are actually happy with the reinsurance program that we are having today. We do not foresee to further expand our reinsurance program.

Speaker #4: One is what is effective from a cost of capital perspective? So we assess the reinsurance program for a cost of capital perspective. That's one element.

Speaker #4: One is what is effective from a cost of capital perspective. So we assess the reinsurance program for a cost of capital perspective. That's one element.

Ewout Hollegien: One is what is effective from a cost of capital perspective there. We assess the reinsurance program from a cost of capital perspective. That is one element. Also what we like, just as ASR being predictable, is that because of our reinsurance program, we also have a performance that is, well, that if there is kind of gaps happens, that our performance remains also strong in that type of situation. With those two criteria in place, we are actually happy with the reinsurance program that we are having today. We do not foresee to further expand our reinsurance program. Maybe you can free up some solvency, but then it comes at a really high cost and from a cost of capital perspective, that is then not really interesting.

Speaker #4: And also what we like just as ASR being predictable is that because of our reinsurance program, we also have a performance that is well, that is that if there is kind of cats happens, that our performance remains also strong in that type of situation.

Speaker #4: And also what we like just as ASR being predictable is that because of our reinsurance program, we also have a performance that is well, that is that if there is kind of gets happens, that our performance remains also strong in that type of situation.

Speaker #4: And with those two kind of criteria in place, we are actually happy with the reinsurance program that we are having that we are having today.

Speaker #4: And with those two kind of criteria, in place, we are actually happy with the reinsurance program that we are having that we are having today.

Speaker #4: So we don't foresee to further expand our reinsurance program. Maybe you can free up some solvency, but then it comes at a really high cost and from a cost of capital perspective, that's then not really interesting.

Speaker #4: So we don't foresee to further expand our reinsurance program. Maybe you can free up some solvency, but then it comes at a really high cost.

Ewout Hollegien: Maybe you can free up some solvency, but then it comes at a really high cost and from a cost of capital perspective, that is then not really interesting.

Speaker #4: And from a cost of capital perspective, that's then not really interesting.

Speaker #5: Brilliant. Thank you.

Michael Huttner: Brilliant. Thank you.

Speaker #3: Thank you. We will now take the next question. From the line of Farooq Hanif from JP Morgan, please go ahead.

Speaker #1: Thank you. We will now take the next question. From the line of Farooq Hanif from JP Morgan, please go ahead.

Operator: Thank you. We will now take the next question from the line of Farooq Hanif from J.P. Morgan. Please go ahead.

Operator: Thank you. We will now take the next question from the line of Farooq Hanif from JPMorgan. Please go ahead.

Speaker #5: Hi, everybody. Thank you very much. Two questions which maybe more for Ewout, but just firstly, you gave that bridge on OCC. It sounds like a lot of the elements that neutralize OCC in 2H are not what you would apply to operating profit.

Speaker #6: Hi, everybody. Thank you very much. Two questions which maybe more for Ewout, but just firstly, you gave that bridge on OCC. It sounds like a lot of the elements that neutralize OCC in 2H are not what you would apply to operating profit.

Farooq Hanif: Hi, everybody. Thank you very much. Two questions which may be more for Ewout. Firstly, you gave that bridge on OCC. It sounds like a lot of the elements that neutralize OCC in H2 are not what you would apply to operating profit. I am kind of thinking that the expansion that you had on operating profit, will that be more normalized? If you could talk about some of the one-offs in H1 that we should not repeat in H2 for operating profit. Actually just digging into one really large amount of detail, apologies, but the other line in the life result, which went negative, I think that is where you mainly earn your DC fees. Can you explain what happened there and what we should expect in that line going forward? Thank you.

Speaker #5: So I'm kind of thinking that the expansion that you had in operating profit, will that be more normalized? So if you could talk about some of the one-offs in 1H that we should not repeat in 2H for operating profit.

Speaker #6: So I'm kind of thinking that the expansion that you had an operating profit, will that be more normalized? So if you could talk about some of the one-offs in 1H that we should not repeat in 2H for operating profit.

Speaker #5: And actually, just digging into one really large amount of detail, apologies, but the other line in the life result, which went negative, I think that's where you mainly earn your DC fees can you explain what happened there and what we should expect in that line going forward?

Speaker #6: And actually, just digging into one really large amount of detail, apologies, but the other line in the life result, which went negative, I think that's where you mainly earn your DC fees.

Speaker #6: So can you explain what happened there and what we should expect in that line going forward? Thank you.

Speaker #5: Thank you.

Speaker #3: Thank you very much, Farooq, for the questions. And I think, like you guided already, these are typical questions for Ewout, I would say.

Speaker #2: Thank you very much, Farooq, for the questions. And I think, like you guided already, these are typical questions for Ewout, I would say.

Ingrid de Swart: Thank you very much, Farouk, for the questions. I think like you guided already, these are typical questions for Ewout, I would say.

Speaker #4: Yeah. So Farooq, I think you're right. So when we talk about the strain on in P&C, the benefit compared to last year was not part of the IFRS operating profit that we presented.

Ewout Hollegien: Yeah. Farouk, I think you are right. When we talk about the strain in P&C, the benefit compared to last year was not part of the IFRS operating profit that we presented. The fact that that will be normalized in H2 will also not be part of the operating profit. Net-net, one could say that that amount of EUR 20 million is not normalized in an operating profit base. You are definitely right on that one, Farouk. I think your other question was also relating to the operating profit and then mostly the other results. What we actually see in the operating profit of the life segment is two elements that is worth mentioning. One is indeed the lower other results.

Speaker #4: And the fact that that will be normalized in H2 will also not be part of the operating profit. So net one could say that that amount of 20 million is not normalized in an operating profit base.

Speaker #4: So you're definitely right on that one, Farooq. And I think your other question was also relating to the operating profit and then mostly the other results.

Speaker #4: So what we actually see in the operating profit of the life segment is two elements that is worth mentioning. One is the is indeed the lower operating result of other results, sorry.

Speaker #4: And that is has to do with the fact that in H1 last year, we had a couple of associations so participations in the life in the life segment.

Ewout Hollegien: That has to do with the fact that in H1 last year, we had a couple of associations, so participations in the life segment that really made a strong performance and that landed in the other result, and that is not there in H1 2026. That is actually compensated by a positive experience variance, and they are mostly on the positive experience variances, mostly also have to do with the expense level that we assume on the IFRS versus the expense level that we were actually seeing in the life segment. That resulted in the positive experience variance. There are actually two elements that are more or less offsetting each other. A lower contribution from participations, which was very high last year, with good, strong experience variance, mostly driven by a little bit of mortality, and then the other part is expenses in the experience variance.

Speaker #4: And that is has to do with the fact that in H1 last year, we had a couple of associations so participations in the life in the life segment that really made a strong performance and that landed in the other result.

Speaker #4: That really made a strong performance and that landed in the other result. And that is not there in H2026. That is actually compensated by a positive experience variance.

Speaker #4: And that is not there in H2026. That is actually compensated by a positive experience variance. And there mostly on the kind of the positive experience variance is mostly also have to do with the expense level that we assume on the IFRS versus the expense level that we were actually seeing in the life segment.

Speaker #4: And there mostly on the kind of the positive experience variance is mostly also have to do with the expense level that we assume on the IFRS versus the expense level that we were actually seeing in the life segment.

Speaker #4: And that resulted in the positive experience variance. So there are actually two elements that more or less offsetting each other. Lower contribution from participations which was very high last year, but good strong experience variance mostly driven by a little bit of mortality and the other part is expenses in the experience variance.

Speaker #4: And that resulted in the positive experience variance. So there are actually two elements that more or less offsetting each other. Lower contributions from participations, which was very high last year, but good strong experience variance, mostly driven by a little bit of mortality and the other part is expenses in the experience variance.

Ewout Hollegien: Then the other part is expenses in the experience variance.

Speaker #5: And so just to follow up as well quickly on that, so non-life, you also benefited, didn't you, in the combined ratio from non-recurring elements.

Speaker #6: And so just to follow up as well, quickly on that, so non-life, you also benefited, didn't you, in the combined ratio from non-recurring elements.

Farooq Hanif: Just to follow up as well quickly on that. In non-life, you also benefit a bit in the combined ratio from non-recurring elements. What is the size of that?

Speaker #5: What's the size of that?

Speaker #6: What's the size of that?

Speaker #4: Yeah, that was 5 that was 5 million. And the offsetting effect of that 5 million was, by the way, in holding and others. So there was kind of the offsetting effect.

Ewout Hollegien: Yeah, that was EUR 5 million. The offsetting effect of that EUR 5 million was, by the way, in holding and other. So there was kind of the offsetting effect. So there was EUR 5 million benefit in non-life, EUR 5 million lower results in the holding and other. So it is more or less neutral for the H2 of the year.

Speaker #4: So there was 5 million benefit in the non-life, 5 million lower result in the holding and others. So it's more or less neutral for the second half of the year.

Speaker #5: So you're implying that 1H is kind of a run rate in operating profit?

Speaker #6: So you're implying that 1H is kind of a run rate in operating profit?

Farooq Hanif: So you are implying that H1 is kind of a run rate in operating profit?

Speaker #4: That's exactly why I'm so happy as a CFO that I not only present strong numbers, but also very clean set, definitely. Yeah, true.

Speaker #4: That's exactly why I'm so happy as a CFO that I not only present strong numbers, but also very clean set definitely. Yeah, true.

Ewout Hollegien: That is exactly why I am so happy as a CFO that I not only present strong numbers, but also very clean set. Definitely. Yeah, true.

Speaker #5: Thanks. Thank you so much. Thank you.

Speaker #6: Thank you so much. Thank you.

Farooq Hanif: Thank you so much. Thank you.

Speaker #3: Thank you. We will now take the next question. From the line of Benoit Petrarque from Kepler Chevret, please go ahead.

Speaker #1: Thank you. We will now take the next question. From the line of Benoit Petrarque from Kepler Chevret, please go ahead.

Operator: Thank you. We will now take the next question from the line of Benoit Petrarque from Kepler Cheuvreux. Please go ahead.

Operator: Thank you. We will now take the next question from the line of Benoît Pétrarque from Kepler Cheuvreux. Please go ahead.

Speaker #4: Yeah, good morning. So actually, the first one is on the clean OCC. Could you give us kind of the clean run rate for H1?

Benoit Petrarque: Yes. Well, the first one is on the clean OCC. Could you give us kind of the clean run rate for H1? I think you had some prior years provision release in non-life and also one-off expense benefits. Just wondering how much it is on the clean basis. The second one is on disability. If I remember well last year, you lost clients after the repricing put through in 2025. Now the churn is quite limited in H1 2026. Are you reaching a point where clients are becoming less sensitive and you could be more active on the pricing into 2027? On disability, given all what you said on the backlog and the repricing, do you think you can maintain a combined ratio in the range of 92% to 94% for the disability business, given what you know currently?

Benoît Pétrarque: Yes. Well, the first one is on the clean OCC. Could you give us kind of the clean run rate for H1? I think you had some prior years provision release in non-life and also one-off expense benefits. Just wondering how much it is on the clean basis. The second one is on disability. If I remember well last year, you lost clients after the repricing put through in 2025. Now the churn is quite limited in H1 2026. Are you reaching a point where clients are becoming less sensitive and you could be more active on the pricing into 2027? On disability, given all what you said on the backlog and the repricing, do you think you can maintain a combined ratio in the range of 92% to 94% for the disability business, given what you know currently?

Speaker #5: Yes, good morning. So actually, the first one is on the clean OCC. Could you give us kind of the clean run rate for H1?

Speaker #4: I think you had some prior years provision release in non-life and also one of expense benefits. So just wondering how much it is on the clean basis.

Speaker #5: I think you had some prior years provision release in non-life and also one of expense benefits. So just wondering how much it is on the clean basis.

Speaker #4: The second one is on disability. So if I remember well last year, you lost clients after the repricing put through in '25. Now the churn is quite limited in H126.

Speaker #5: The second one is on disability. So if I remember well last year, you lost clients after the repricing put through in '25. Now the churn is quite limited in H126.

Speaker #4: So are you kind of reaching a point where clients are becoming less sensitive and you could be yeah, more active on the pricing into '27?

Speaker #5: So are you kind of reaching a point where clients are becoming less sensitive and you could be yeah, more active on the pricing into '27?

Speaker #4: And on disability, given all what you said on the backlog and the repricing, do you think you can maintain a combined ratio in a range of 92 to 94 percent for the disability business given what you know currently?

Speaker #5: And on disability, given all what you said on the backlog and the repricing, do you think you can maintain a combined ratio in a range of 92 to 94 percent for the disability business, given what you know currently?

Speaker #4: And just the final one on the pension buyout. So you've done two small deals. I was wondering how you see the pipeline for the rest of the year on the pension buyout.

Benoit Petrarque: Just the final one on the pension buyouts. You have done two small deals. I was wondering how you see the pipeline for the rest of the year on the pension buyout. Thank you.

Speaker #5: And just the final one on the pension buyout, so you've done two small deals. I was wondering how you see the pipeline for the rest of the year on the pension buyout.

Benoît Pétrarque: Just the final one on the pension buyouts. You have done two small deals. I was wondering how you see the pipeline for the rest of the year on the pension buyout. Thank you.

Speaker #4: Thank you. On the 5 million of sorry, on the OCC, run rate OCC, that was the question. There was so the release that was mentioned was only 5 million on the expense side, but we wanted to flag that because you actually see that the expense ratio goes down 1.2 percent in P&C.

Speaker #5: Thank you.

Speaker #4: On the 5 million of sorry, on the OCC, run rate OCC, that was the question. There was so the release that was mentioned was only 5 million on the expense side, but we wanted to flag that because you actually see that the expense ratio goes down 1.2 percent in P&C.

Ewout Hollegien: On the EUR 5 million of, sorry, on the OCC, run rate OCC, that was the question. So the release that was mentioned was only EUR 5 million on the expense side, but we wanted to flag that because you actually see that the expense ratio goes down 1.2% in P&C, and that's a high number. That's why we want to flag that EUR 5 million has to be seen as a one-off. But again, the compensating effect is involving an other. With that, you can also see this as a run rate number. So the SCR strain is in a run rate number because of the NetCat program at the right level, but also this is a run rate number. So that's on the OCC H1.

Speaker #4: And that's a high number. And that's why we want to flag that 5 million was kind of a more have to be seen as a one-off.

Speaker #4: And that's a high number. And that's why we want to flag that 5 million was kind of a more has to be seen as a one-off.

Speaker #4: But again, the compensating effect is in holding and other. And with that, you can also see this as a run rate number. So the SAR strain is in a run rate number because of the net cap program at the right level.

Speaker #4: But also this is a run rate number. So that's on the OCC H1. Then if I understand your question correctly, on the pricing and whether we can push even more price increases to the market and that they will easily accept that.

Speaker #4: But also this is a run rate number. So that's on the OCC H1. And then if I understand your question correctly, on the pricing and whether we can push even more price increases to the market, and that they will easily accept that.

Ewout Hollegien: If I understand your question correctly, on the pricing and whether we can push even more price increases to the market and that they will easily accept that. Well, that would be lovely if the market works like that. I think in all fairness, we do see that it is a hard market. So you can definitely ask the margins that you want to achieve. At the same time, there's also competition. So also corporates can also go to the UW fee to insure themselves. I think there you will probably see the most competition out of it. What we have said is we see uncertainty, and as you can expect from us, that we will address that uncertainty in a conservative manner. Then it's up to the clients to decide whether or not they want to stay with us.

Speaker #4: Well, that's would be lovely if the market works like that. I think in all fairness, we do see that it is a hard market.

Speaker #4: So you should can definitely ask the margins that you want to achieve. And at the same time, there's also a competition. So also corporates can also go to the UWV to ensure themselves.

Speaker #4: So you should can definitely ask the margins that you want to achieve. And at the same time, there's also competition. So also corporates can also go to the UWV to ensure themselves.

Speaker #4: And I think there you will probably see the most competition out of it. What we have said is we see uncertainty. And as you can expect from us, that we will address that uncertainty in a conservative manner.

Speaker #4: And then it's up to the clients to decide whether or not they want to stay with us. That is the position that we are taking when it comes down to this business.

Ewout Hollegien: Then it's up to the clients to decide whether or not they want to stay with us. That is the position that we are taking when it comes down to this business. Will that keep us in the target range, around 94%? Well, when we look today, that's actually the case. But again, we have seen that uncertainty that I described given the backlog at the UWV. That is something that we will assess in the H2 of the year. But definitely when we look today, we do see that the portfolio is performing in a solid way.

Ewout Hollegien: That is the position that we are taking when it comes down to this business. Will that keep us in the target range, around 94%? Well, when we look today, that's actually the case. But again, we have seen that uncertainty that I described given the backlog at the UWV. That is something that we will assess in the H2 of the year. But definitely when we look today, we do see that the portfolio is performing in a solid way.

Speaker #4: Will that keep us in the target range around 94 percent? Well, when we look today, that's actually the case. But again, we have seen that uncertainty that I described on the given the backlog at the UWV.

Speaker #4: And that is something that we will assess in the second half of the year. But it's definitely when we look today, we do see that the portfolio is performing in a solid way.

Speaker #3: Okay. Thank you. Then the last question, Benoit, around the buyout pipeline. We still believe that the market opportunity of 20 to 30 billion is there.

Speaker #1: Okay. Thank you. Then the last question, Benoit, around the buyer pipeline. We still believe that the market opportunity of 20 to 30 billion is there.

Ingrid de Swart: Okay. Thank you. The last question, Benoit, around the buyout pipeline. We still believe that the market opportunity of EUR 20 billion to EUR 30 billion is there. We also think and see that a part of that is likely to materialize over a longer period than we initially anticipated. Market competition is increasing after Achmea entering the market, and we see that Aspiration is willing to play the game. We also see that returns are coming down. However, we really remain disciplined in pricing and are very true to our value over volume principle, and will not deploy our capital if we can't make our 12% hurdle rate on these deals. We see room for us in the smaller mid-size deals, proven by the two announced buyouts that I mentioned before.

Speaker #3: And we also think and see that a part of that is likely to materialize over a longer period than we initially anticipated. Market competition is increasing after Acmea entering the market.

Speaker #1: And we also think and see that a part of that is likely to materialize over a longer period than we initially anticipated. Market competition is increasing after Acmea entering the market.

Speaker #3: And we see that Authora is willing to play the game. And we also see that returns are coming down. However, we really remain disciplined in pricing.

Speaker #1: And we see that Authora is willing to play the game. And we also see that returns are coming down. However, we really remain disciplined in pricing.

Speaker #3: And our very true to our value over volume principle, and will not deploy our capital if we can't make our 12 percent hurdle rate on these deals.

Speaker #1: And our very true to our value over volume principle, and will not deploy our capital if we can't make our 12 percent hurdle rate on these deals.

Speaker #3: We see room for us in the smaller midsize deals, proven by the two announced buyouts that I mentioned before. And we still believe, and expect, to be able to take our fair market share over the market of the 8 billion of the 20 to 30 billion market in total.

Speaker #1: We see room for us in the smaller mid-size deals, proven by the two announced buyouts that I mentioned before. And we still believe, and expect to be able to take our fair market share over the market of the 8 billion of the 20 to 30 billion market in total.

Ingrid de Swart: We still believe and expect to be able to take our fair market share over the market of the EUR 8 billion of the EUR 20 billion to EUR 30 billion market in total. But we do believe that it will extend beyond 2027.

Speaker #3: But we do believe that it will extend beyond 2027.

Speaker #1: But we do believe that it will extend beyond 2027.

Speaker #4: Thank you.

Speaker #5: Thank you.

Benoit Petrarque: Thank you.

Benoît Pétrarque: Thank you.

Speaker #3: Thank you. We will now take the next question. From the line of Nasib Ahmed from UBS, please go ahead.

Speaker #1: Thank you. We will now take the next question. From the line of Nasib Ahmed from UBS, please go ahead.

Operator: Thank you. We will now take the next question from the line of Nasib Ahmed from UBS. Please go ahead.

Speaker #4: Perfect. Morning. Thanks for taking my questions. Firstly, on AI, where do you see the biggest benefits coming through within AI, which segments? I think previously you mentioned health as a easy win.

Speaker #5: Perfect. Morning. Thanks for taking my questions. Firstly, on AI, where do you see the biggest benefits coming through? Within AI, which segments, I think previously you mentioned health as a easy win.

Nasib Ahmed: Perfect. Morning. Thanks for taking my questions. Firstly, on AI, where do you see the biggest benefits coming through within AI? Which segments? I think previously you mentioned health as an easy win. Then kind of related to that, the combined ratio, Ewout, you mentioned there is a 1.2 points of benefit from a reallocation of expenses. It feels like that is a run rate, like you said. So your combined ratio, 92% to 94%, seems like it is going to come down just of the reallocation of expenses, maybe some AI on top. So you should be running a little bit lower than that range. Is that my correct interpretation? Then just last question on longevity reinsurance. Is there still more capacity to do that based on what you have got on the books? Thank you.

Speaker #4: And then kind of related to that, the combined ratio, A, what you mentioned, there's 1.2 points of benefit from a reallocation of expenses. It feels like that's a run rate, like you said.

Speaker #5: And then kind of related to that, the combined ratio, A, what you mentioned, there's 1.2 points of benefit from a reallocation of expenses. It feels like that's a run rate, like you said.

Speaker #4: So your combined ratio, 92 to 94, seems like it's going to come down just the reallocation of expenses, maybe some AI on top. So you should be running a little bit lower than that range.

Speaker #5: So your combined ratio, 92 to 94, seems like it's going to come down just the reallocation of expenses, maybe some AI on top. So you should be running a little bit lower than that range.

Speaker #4: Is that my correct interpretation? And then just last question on longevity reinsurance. Is there still more capacity to do that based on what you've got on the books?

Speaker #5: Is that my correct interpretation? And then just last question on longevity reinsurance. Is there still more capacity to do that based on what you've got on the books?

Speaker #4: Thank you. The last part, I didn't get fully Nasib, but I will answer so the just to the one of was not 1.2 percent.

Speaker #5: Thank you.

Speaker #4: The last part, I didn't get fully Nasib, but I will answer so the just to the one of us, not 1.2 percent, it was a part of that 1.2 percent.

Ewout Hollegien: The last part I did not get fully, Nasib, but I will answer that. Just to the one-off was not 1.2%, it was a part of that 1.2%. Around EUR 5 million, I think that is around 0.5 or 0.6. That was kind of the one-off that we saw in the expense ratio of P&C. That is just to clarify that. Sorry for not being clear. Whether or not that result in a kind of structural lower combined ratio, I think that is too early to say. It is something that we also will assess with respect to the Capital Markets Day.

Speaker #4: It was a part of that 1.2 percent. So around 5 million, I think that's around 0.5 or 0.6. That was kind of the one of that we saw in the expense ratio of P&C.

Speaker #4: So around 5 million, I think that's around 0.5 or 0.6. That was kind of the one of that we saw in the expense ratio of P&C.

Speaker #4: So that is just to clarify that. Sorry for not being clear. And whether or not that results in a kind of structural lower combined ratio, that's I think that's too early to say.

Speaker #4: So that is just to clarify that. Sorry for not being clear. And whether or not that result in a kind of structural lower combined ratio, that's I think that's too early to say.

Speaker #4: It's something that we also will assess in with respect to the capital marks today. But in all honesty, and we also have that dialogue in the past.

Speaker #4: It's something that we also will assess in with respect to the capital marks today. But in all honesty, and we also have that dialogue in the past, there is we are in we do see that the Netherlands is a well-consolidated market.

Ewout Hollegien: But in all honesty, and we also have that dialogue in the past, we do see that the Netherlands is a well-consolidated market, and at the same time, there is still a lot of competition. Having a combined ratio at the low 90s is already very attractive from a return on capital perspective. So whether or not the combined ratio can be structurally lower, that is really a question mark and not something to answer during this call.

Speaker #4: There is we are in we do see that the Netherlands is a well-consolidated market. And at the same time, there is still a lot of competition.

Speaker #4: And at the same time, there is still a lot of competition. And having a combined ratio at a low 90s is already very attractive from a return on capital perspective.

Speaker #4: And having a combined ratio at a low 90s is already very attractive from a return on capital perspective. So whether or not the combined ratio can be structural lower, that's really a question mark and not something to answer during this call.

Ewout Hollegien: Having a combined ratio at the low 90s is already very attractive from a return on capital perspective. So whether or not the combined ratio can be structurally lower, that is really a question mark and not something to answer during this call.

Speaker #4: So whether or not the combined ratio can be structural lower, that's really a question mark and not something to answer during this call.

Speaker #3: Okay. Thanks, Avout. Then I will take the AI question. Thanks for asking such a nice question because I really like this subject. As you all know, I think.

Speaker #1: Okay. Thanks, Ewout. Then I will take the AI question. Thanks for asking such a nice question because I really like this subject. As you all know, I think.

Ingrid de Swart: Okay. Thanks, Ewout. I will take the AI question. Thanks for asking such a nice question because I really like this subject, as you all know, I think. You were mentioning already the health part of our business. That is the part where we started experimenting with AI, and we used health as a nursery for the whole company. Why? Because we were in the middle of an integration with Aegon Netherlands. Health was not in that integration since Aegon did not have any health. That was one, and two, we were able to have a lot of direct customer contact there, so a lot of data. So we built some use cases there, especially in the customer contact area, and that is a very good area to start because there is a lot of customer contact.

Speaker #3: So you were mentioning already the health part of our business. That's the part where we started experimenting with AI. And we used health as a nursery for the whole company.

Speaker #1: So you were mentioning already the health part of our business. That's the part where we started experimenting with AI. And we used health as a nursery for the whole company.

Speaker #3: Why? Because we were in the middle of an integration with Egon the Netherlands. Health was not in that integration since Egon didn't have any health.

Speaker #1: Why? Because we were in the middle of an integration with Egon the Netherlands. Health was not in that integration since Egon didn't have any health.

Speaker #3: So that was one. And two, we were able to have a lot of direct customer contact there. So a lot of data. So we built some use cases there for especially in the customer contact area.

Speaker #1: So that was one. And two, we were able to have a lot of direct customer contact there. So a lot of data. So we built some use cases there for especially in the customer contact area.

Speaker #3: And that's a very good area to start because there is a lot of customer contact. And we were able to really develop those use cases a bit further through.

Speaker #1: And that's a very good area to start because there is a lot of customer contact. And we were able to really develop those use cases a bit further through.

Ingrid de Swart: We were able to really develop those use cases a bit further through. So we have seen, that was your other question, that when you combine AI with very well adoption by people, because it is 30% around technology, 70% is about people, processes, and also culture. We see if you do combine that in a correct way, and I mean a way that really creates value for businesses, that we see an increase in customer satisfaction and employee satisfaction, and we see costs go down, and that is a very important proof point that we have seen. Of course, as you might imagine, we have a lot of businesses outside of health that can benefit from the same. So we do see that there is ample opportunity to really scale this from health towards all the big business segments within ASR.

Speaker #3: So we have seen that was your other question. That when you combine AI with very well adoption by people, because it's 30 percent around technology 70 percent is about people, processes, and also culture.

Speaker #1: So we have seen that was your other question. That when you combine AI with very well adoption by people, because it's 30 percent around technology 70 percent is about people processes and also culture.

Speaker #3: We see if that if you do combine that in a correct way, and I mean a way that really creates value for businesses, that we see an increase in customer satisfaction and employee satisfaction.

Speaker #1: We see if that if you do combine that in a correct way, and I mean a way that really creates value for businesses, that we see an increase in customer satisfaction and employee satisfaction.

Speaker #3: And we see cost go down. And that's very important proof point that we have seen and of course, as you can might imagine, we have a lot of businesses outside of health that can benefit from the same.

Speaker #1: And we see cost go down. And that's very important proof point that we have seen. And of course, as you can might imagine, we have a lot of businesses outside of health that can benefit from the same.

Speaker #3: So we do see that there are example opportunity to really scale this from health towards the whole all the big business segments within ASR.

Speaker #1: So we do see that there are example opportunity to really scale this from health towards the whole all the big business segments within ASR.

Ingrid de Swart: So we do see that there is ample opportunity to really scale this from health towards all the big business segments within ASR. We see that not only operational efficiency, operational effectiveness is an important driver for ASR towards the future, driven by AI. We also do see that customer experience also really benefits from AI digitalization and automation. As one would expect, we have a focus on creating long-term value, and we see the combination of people with technology as an important driver for this. We truly believe that there is an accelerator for our strategy feeding forward if we can successfully combine the technology, AI, and people components with each other. We have programs in place to drive this successful adoption and also build a lot of proof points within the company.

Speaker #3: And we see that not only operational efficiency operational effectiveness is an important driver for ASR towards the future driven by AI, but we also do see that customer experience also really benefits from AI digitalization and automation.

Speaker #1: And we see that not only operational efficiency operational effectiveness is an important driver for ASR towards the future driven by AI, but we also do see that customer experience also really benefits from AI digitalization and automation.

Ingrid de Swart: We see that not only operational efficiency, operational effectiveness is an important driver for ASR towards the future, driven by AI. We also do see that customer experience also really benefits from AI digitalization and automation. As one would expect, we have a focus on creating long-term value, and we see the combination of people with technology as an important driver for this. We truly believe that there is an accelerator for our strategy feeding forward if we can successfully combine the technology, AI, and people components with each other. We have programs in place to drive this successful adoption and also build a lot of proof points within the company.

Speaker #3: So as one would expect, we have a focus on creating long-term value. And we see the combination of people with technology as an important driver for this.

Speaker #1: So as one would expect, we have a focus on creating long-term value. And we see the combination of people with technology as an important driver for this.

Speaker #3: And we truly believe that there is an accelerator for our strategy feeding forward if we can successfully combine the technology AI and people components with each other.

Speaker #1: And we truly believe that there is an accelerator for our strategy feeding forward if we can successfully combine the technology AI and people components with each other.

Speaker #3: We have programs in place to drive this successful adoption and also build a lot of proof points within the company. And I'm really looking forward to telling you the whole story on the 1st of December of this year.

Speaker #1: We have programs in place to drive this successful adoption and also build a lot of proof points within the company. And I'm really looking forward to telling you the whole story on the 1st of December of this year at the capital markets day because there's so much to AI technology.

Ingrid de Swart: I am really looking forward to telling you the whole story on 1 December of this year at the Capital Markets Day, because there is so much to AI technology and how you can really place it in the middle of your businesses that it would be a shame to just have a couple of minutes more to talk about it.

Speaker #3: At the capital markets day, because there's so much to AI technology and how you can really place it in the middle of your businesses that it would be a shame to just have a couple of minutes more to talk about it.

Speaker #1: And how you can really place it in the middle of your businesses that it would be a shame to just have a couple of minutes more to talk about it.

Speaker #4: Perfect. Thank you, guys. The last question, Avout, was around longevity reinsurance. What's the capacity?

Speaker #5: Perfect. Thank you, guys. The last question, Ewout, was around longevity reinsurance. What's the capacity?

Nasib Ahmed: Perfect. Thank you, guys. The last question, Ewout, was around longevity reinsurance. What is the capacity?

Speaker #1: Sorry, that was the one I didn't get. So we are currently in the middle of assessing to do additional longevity reinsurance, also to give some context is that we do see longevity reinsurance on one hand as an important tool to optimize actually the risk, the insurance risk that we have in our portfolio because in the whole ASR book, longevity risk is the largest insurance risk that we have on the benefit.

Speaker #4: Sorry, that was the one I didn't get. So we are currently in the middle of assessing to do additional longevity reinsurance, also to give some context is that we do see longevity reinsurance on one hand as an important tool to optimize actually the risk the insurance risk that we have in our portfolio because in the whole ASR book, longevity risk is the largest insurance risk that we have on the balance sheet.

Ewout Hollegien: Sorry, that was the one I did not get. We are currently in the middle of assessing to do additional longevity reinsurance. Also to give some context, is that we do see longevity reinsurance on one end as an important tool to optimize actually the insurance risk that we have in our portfolio, because in the whole ASR book, longevity risk is the largest insurance risk that we have on the balance sheet. Simultaneously, it also provides a balance sheet optimization opportunity against attractive cost. When we look to the current portfolio, roughly EUR 50 billion of our liabilities has longevity risk in it. A part of that risk is already being mitigated, let us say a sixth by the natural hedge that we are having between longevity and mortality because of the funeral book that we are having.

Speaker #1: And simultaneously, it also provides a balance sheet optimization opportunity against attractive cost. When we look to the current portfolio, roughly 50 billion of our liabilities has longevity risk in it.

Speaker #4: And simultaneously, it also provides a balance sheet optimization opportunity against attractive cost. When we look to the current portfolio, roughly 50 billion of our liabilities has longevity risk in it.

Speaker #1: And that part of that risk is already being mitigated, let's say a sixth by the natural hedge that we are having between longevity and mortality with the funeral book that we are having.

Speaker #4: And that part of that risk is already being mitigated, let's say a sixth by the natural hedge that we are having between longevity and mortality with the funeral book that we are having.

Speaker #1: A third is something that we already have reassured in the past. And of course, we also think about this more going forward that we might add in the future additional Dutch funeral business and then you also want to have some mortality risk.

Speaker #4: A third is something that we already have reassured in the past. And of course, we also think about this more going forward that we might add in the future additional Dutch funeral business.

Ewout Hollegien: A third is something that we already have reissued in the past. Of course, we also think about this more going forward, that we might add in future additional Dutch funeral business, and then you also want to have some mortality risk after longevity risk still on your balance sheet. I think with that in mind, roughly 10 to 15 million of remaining liabilities is really applicable for longevity reinsurance. That will probably be separated into several tranches, if any. I think general rule of thumb is that the EUR 5 billion deal will bring around roughly 2% to 3% level of solvency benefits at group level, and that is currently still our stance, mostly driven by a lower risk margin. So that's actually where we are in the middle of assessing it.

Speaker #4: And then you also want to have some mortality risk. I've had a longevity risk still on your balance sheet. I think with that in mind, roughly 10 to 15 million of remaining liabilities is really applicable for longevity reinsurance.

Speaker #1: I've had longevity risk still on your balance sheet. I think with that in mind, roughly 10 to 15 million of remaining liabilities is really applicable for longevity reinsurance.

Speaker #1: And that will be probably be separated into several tranches if any. I think general rule of thumb is that the 5 billion deal will bring around roughly 2 to 3 percent level solvency benefits at group level.

Speaker #4: And that will be probably be separated into several tranches if any. I think general rule of thumb is that the 5 billion deal will bring around roughly 2 to 3 percent level solvency benefits at group level.

Speaker #1: And that is currently still our stance. Mostly driven by a low risk margin. So that's actually where we are in the middle of assessing it.

Speaker #4: And that is currently still our stance. Mostly driven by a low risk margin. So that's actually where we are in the middle of assessing it.

Speaker #1: We see that the solvency benefits that we mentioned in the past are still more or less seems still more or less be the case.

Speaker #4: We see that the pride of the solvency benefits that we mentioned in the past are still more or less seems still more or less be the case.

Ewout Hollegien: We see that the solvency benefits that we mentioned in the past seem to still more or less be the case. Good risk management attracted from a cost of capital perspective, and we hope to give further clarity on H somewhere in H2 whether or not we enter into a longevity deal.

Speaker #1: Good risk management, attractive from a cost of capital perspective, and we hope to give further clarity on age somewhere in age two whether or not we enter into a longevity deal.

Speaker #4: Good risk management, attractive from a cost of capital perspective. And we hope to give further clarity on age somewhere in age two whether or not we enter into a longevity deal.

Speaker #4: Perfect. Thank you very much.

Speaker #5: Perfect. Thank you very much.

Nasib Ahmed: Perfect. Thank you very much.

Speaker #3: Thank you. We will now take the next question. From the line of Ian Pierce from BNP Paribas, please go ahead.

Speaker #1: Thank you. We will now take the next question. From the line of Ian Pierce from BNP Paribas, please go ahead.

Operator: Thank you. We will now take the next question from the line of Iain Pearce from BNP Paribas. Please go ahead.

Speaker #5: Hi, morning. Thanks for taking my questions. The first one was just on the fee business. I'm just trying to get a feel for the underlying growth in the fee businesses.

Speaker #6: Hi. Morning. Thanks for taking my questions. The first one was just on the fee business. I'm just trying to get a feel for the underlying growth in the fee businesses.

Iain Pearce: Hi. Morning. Thanks for taking my questions. The first one was just on the fee business. I am just trying to get a feel for the underlying growth in the fee businesses. There has been a bit going on in terms of resegmentation, HTC, the mortgage transfers. Just trying to get a feel, if you can give us some sort of feel for the underlying growth rates that you are seeing. Also on the operating expenses in the asset management segment, which went down year on year. If you could give us, obviously synergies is part of that, but is there anything we sort of need to factor in in terms of the cost income ratio outlook for asset management? Then on the P&C segment, just trying to think about the impact of Bovemij on the combined ratio.

Iain Pearce: Hi. Morning. Thanks for taking my questions. The first one was just on the fee business. I am just trying to get a feel for the underlying growth in the fee businesses. There has been a bit going on in terms of re-segmentation, HTC, the mortgage transfers. Just trying to get a feel, if you can give us some sort of feel for the underlying growth rates that you are seeing. Also on the operating expenses in the asset management segment, which went down year on year. If you could give us, obviously synergies is part of that, but is there anything we sort of need to factor in in terms of the cost income ratio outlook for asset management? Then on the P&C segment, just trying to think about the impact of Bovemij on the combined ratio.

Speaker #5: There's been a bit going on in terms of resegmentation, HTC, the mortgage transfer. Just trying to get a feel if you can give us some sort of feel for the underlying growth rates that you're seeing and also on the operating expenses in the asset management segment, which went down year on year.

Speaker #6: There's been a bit going on in terms of resegmentation, HTC, the mortgage transfer. Just trying to get a feel if you can give us some sort of feel for the underlying growth rates that you're seeing.

Speaker #6: And also on the operating expenses in the asset management segment, which went down year on year. If you could give us obviously synergies as part of that, but is there anything we sort of need to factor in in terms of the cost income ratio outlook for asset management?

Speaker #5: If you give us obviously synergies as part of that, but is there anything we sort of need to factor in in terms of the cost income ratio outlook for asset management?

Speaker #5: And then on the P&C segment, just trying to think about the impact of Bovenmai on the combined ratio, just looking at the OTC guidance sort of implications that might have a bit of a negative impact on the combined ratio.

Speaker #6: And then on the P&C segment, just trying to think about the impact of Bovenmai on the combined ratio, just looking at the OTC guidance sort of implications that might have a bit of a negative impact on the combined ratio.

Iain Pearce: Just looking at the OCC guidance sort of implications, that might have a bit of a negative impact on the combined ratio for H2. So again, if you could give us any sort of feel for the headwinds that it might provide to the combined ratio going forwards. Thanks.

Speaker #5: For H2, so again, if you could give us any sort of feel for the headwinds that it might provide to the combined ratio going forward.

Speaker #6: For H2, so again, if you could give us any sort of feel for the headwinds that it might provide to the combined ratio going forward.

Speaker #5: Thanks.

Speaker #6: Thanks.

Speaker #1: Yeah. On the fee basis, so in detail, so we saw an increase in the result of our fee businesses. Actually, the two main drivers there.

Speaker #4: Yeah. On the fee basis, so in detail, so we saw an increase in the result of our fee businesses. Actually, the two main drivers there.

Ewout Hollegien: Yeah. On the fee basis, so in detail. So we saw an increase in the result of our fee businesses. Actually, the two main drivers there. One is the HTC business that we acquired, the remaining 55% stake. As a consequence, it actually moved from a participation that was part of holding an order fully to the fee segment. The total contribution in the fee segment on the OCC level, so net of tax, is around EUR 15 million. The other contributor, EUR 15 to 20 million. So the other contributor is actually the synergies that we realized from migrating the mortgage portfolio of Aegon to the ASR platform. That resulted in the lower expense base that you were referring to. Also roughly EUR 12 million is what we are seeing on a lower expense basis, roughly EUR 20 million of contribution coming from that.

Speaker #1: One is the HTC business that we acquired the remaining 55 percent stake. As a consequence, it actually moved from a participation that was part of holding another fully to the fee segment.

Speaker #4: One is the HTC business that we acquired the remaining 55 percent stake. As a consequence, it actually moved from a participation that was part of holding an order fully to the fee segment.

Speaker #1: The total contribution in the fee segment on an OCC level, so net of tax, is around 50 million euros contributed 50 to 20 million euros.

Speaker #4: The total contribution in the fee segment on the OCC level, so net of tax, is around 50 million euros contributed 50 to 20 million euros.

Speaker #1: The other contributor is actually the synergies that we realized from migrating the mortgage portfolio to the Aegon to the ASR platform. And that resulted in the lower expense base that you were referring to, roughly also roughly 12 million is what we are seeing on a lower expense basis, roughly 20 million of contribution coming from that.

Speaker #4: The other contributor is actually the synergies that we realized from migrating the mortgage portfolio to the ASL of Aegon to the ASR platform. And that resulted in the lower expense base that you were referring to, roughly also roughly 12 million is what we are seeing on a lower expense basis, roughly 20 million of contribution coming from that.

Ewout Hollegien: Also roughly EUR 12 million is what we are seeing on a lower expense basis, roughly EUR 20 million of contribution coming from that. So that is actually on the fee-based business that we are seeing. I think the second question was on the combined ratio of P&C. Of Bovemij, sorry. The combined ratio of Bovemij. So what we already mentioned during the full year, we do not expect a material contribution from Bovemij in 2026 already. That is because we added actually a portfolio that needs to be repriced, but even more importantly, where synergies needs to be realized so that you end up with a kind of healthy P&C portfolio of Bovemij. As we integrate from end of 2026 onwards, you really will start seeing benefits kicking in from 2027 onwards and the full amount from 2028 onwards.

Speaker #1: So that's actually on the fee business that we are seeing. I think the second question was on the kind of on the combined ratio in of P&C.

Speaker #4: So that's actually on the fee business. That we are seeing. I think the second question was on the kind of on the combined ratio of P&C.

Ewout Hollegien: So that is actually on the fee-based business that we are seeing. I think the second question was on the combined ratio of P&C. Of Bovemij, sorry. The combined ratio of Bovemij. So what we already mentioned during the full year, we do not expect a material contribution from Bovemij in 2026 already. That is because we added actually a portfolio that needs to be repriced, but even more importantly, where synergies needs to be realized so that you end up with a kind of healthy P&C portfolio of Bovemij. As we integrate from end of 2026 onwards, you really will start seeing benefits kicking in from 2027 onwards and the full amount from 2028 onwards.

Speaker #1: Bovenmai, sorry. The combined ratio of Bovenmai. So what we already mentioned during the full year, we don't expect a material contribution from Bovenmai in 2026 already.

Speaker #4: Bovenmai, sorry. The combined ratio of Bovenmai. So what we already mentioned during the full year, we don't expect a material contribution from Bovenmai in 2026 already.

Speaker #1: That's because we added actually a portfolio that needs to be repriced, but even more importantly, where synergies needs to be realized so that you end up with a kind of healthy P&C portfolio of Bovenmai.

Speaker #4: That's because we added actually a portfolio that needs to be repriced, but even more importantly, where synergies needs to be realized so that you end up with a kind of healthy P&C portfolio of Bovenmai.

Speaker #1: As we integrate from end of 2026 onwards, you really will start seeing benefits kicking in from 2027 onwards in the full amount from 2028 onwards.

Speaker #4: As we integrate from end of 2026 onwards, you really will start seeing benefits kicking in from 2027 onwards in the full amount from 2028 onwards.

Speaker #3: Thank you. We will now take the next question. From the line of Farquhar Charles Murray from Autonomous, please go ahead.

Speaker #1: Thank you. We will now take the next question. From the line of Farquhar Charles Murray from Autonomous, please go ahead.

Operator: Thank you. We will now take the next question from the line of Farquhar Murray from Autonomous. Please go ahead.

Speaker #5: I'll add two questions if I may. Firstly, thanks for the guidance towards non-life premium growth kind of moderating back into the 3 to 5 percent range.

Farquhar Murray: I will add two questions if I may. Firstly, thanks for the guide towards non-life premium growth, kind of moderating back into the 3% to 5% range. A lot of that turns on the disability market. So my question there is whether ASR would be willing to kind of perhaps go below the 3% to 5% target range, particularly in full year 2027, if it is not possible to address the kind of issues in terms of the disability market, gain visibility on claims costs on which to build appropriate pricing. Secondly, thanks for your comments on M&A. Those are helpful. More specifically, do you think the opportunity set is opening up a bit more than recent years? Is that mainly at the kind of smaller end of the spectrum in terms of what you are seeing? Finally, can you outline your thinking on business expansion outside the Netherlands?

Speaker #3: I'll add two questions if I may. Firstly, thanks for the guide towards non-life premium growth kind of moderating back into the 3 to 5 percent range.

Speaker #5: A lot of that turns on the disability market. So my question there is whether ASR would be willing to kind of perhaps go below the 3 to 5 percent target range, particularly in full year 27, if it's not possible to address the kind of issues in terms of the disability market gain visibility on claims costs on which to build appropriate pricing.

Speaker #3: A lot of that turns on the disability market. So my question there is whether ASR would be willing to kind of perhaps go below the 3 to 5 percent target range, particularly in full year 27, if it's not possible to address the kind of issues in terms of the disability market gain visibility on claims costs on which to build appropriate pricing.

Speaker #5: And then secondly, thanks for earlier comments on M&A. Those are helpful. More specifically, do you think the opportunity set is opening up a bit more than recent years?

Speaker #3: And then secondly, thanks for earlier comments on M&A. Those are helpful. More specifically, do you think the opportunity set is opening up a bit more than recent years?

Speaker #5: And is that mainly at the kind of smaller end of the spectrum in terms of what you're seeing? And then finally, could you outline your thinking on business expansion outside the Netherlands?

Speaker #3: And is that mainly at the kind of smaller end of the spectrum in terms of what you're seeing? And then finally, can you outline your thinking on business expansion outside the Netherlands?

Farquhar Murray: Finally, can you outline your thinking on business expansion outside the Netherlands? Is that still mainly for holidays? Thanks.

Speaker #5: Is that still mainly for holidays? Thanks.

Speaker #3: Is that still mainly for holidays? Thanks.

Farquhar Murray: Is that still mainly for holidays? Thanks.

Speaker #3: Hello. I begin with our thanks, Farquhar, for your question. I will answer the last two questions around M&A and abroad and then Ewart will take your first question.

Speaker #1: Hello. Begin with our thanks, Farquhar, for your question. I will answer the last two questions around M&A and abroad and then Ewart will take your first question.

Ingrid de Swart: I begin with, thanks Farquhar for your questions. I will answer the last two questions around M&A and abroad, and then Ewout will take your first question. So, starting with the abroad still for holidays question. ASR is really focused on becoming the leading insurer in the Netherlands. I am really happy where we are today, but we do believe that we have a lot of organic growth opportunities, but also see that there is further consolidation possible and will occur in the Dutch market, and we are more than willing to participate in that. So that is, I think, quite clear. We continue to believe that has not changed, that it is incredibly difficult to find a compelling business case for ASR to buy another insurer outside of the Netherlands. So, really focused on the Netherlands. Then to your question around P&C and especially the longer tail of smaller insurance.

Speaker #3: So starting with the abroad still for holidays question, ASR is really focused on becoming the leading insurer in the Netherlands. I'm really happy where we are today, but we do believe that we have a lot of organic growth opportunities, but also see that there is further consolidation possible and will occur in the Dutch market.

Speaker #1: So starting with the abroad still for holidays question, ASR is really focused on becoming the leading insurer in the Netherlands. I'm really happy where we are today, but we do believe that we have a lot of organic growth opportunities, but also see that there is further consolidation possible and will occur in the Dutch market.

Speaker #3: And we are more than willing to participate in that. So that's, I think, a quite clear we continue to believe that has not changed.

Speaker #1: And we are more than willing to participate in that. So that's, I think, a quite clear we continue to believe that has not changed.

Speaker #3: That it's incredibly difficult to find a compelling business case for ASR to buy another insurer outside of the Netherlands. So really focused on the Netherlands.

Speaker #1: That it's incredibly difficult to find a compelling business case for ASR to buy another insurer outside of the Netherlands. So really focused on the Netherlands.

Speaker #3: And then to your question, around P&C and especially the longer tail of smaller insurance, like I said, we are really happy with Bovenmai being a blueprint.

Speaker #1: And then to your question, around P&C and especially the longer tail of smaller insurance, like I said, we are really happy with Bovenmai being a blueprint.

Ingrid de Swart: Then to your question around P&C and especially the longer tail of smaller insurance. Like I said, we are really happy with Bovemij being a blueprint. I do believe that with the current revolution going on around AI technology, digitalization, also changing customer behavior and the investment money that needs to be put into a business to successfully meet the standards that are nowadays normal for P&C players, that is incredibly difficult for the smaller companies to do that on a standalone basis. We are happy and thinking that the blueprint of Bovemij will have, how do you say, will have new transactions in the coming time.

Ingrid de Swart: Like I said, we are really happy with Bovemij being a blueprint. I do believe that with the current revolution going on around AI technology, digitalization, also changing customer behavior and the investment money that needs to be put into a business to successfully meet the standards that are nowadays normal for P&C players, that is incredibly difficult for the smaller companies to do that on a standalone basis. We are happy and thinking that the blueprint of Bovemij will have, how do you say, will have new transactions in the coming time.

Speaker #3: And we do believe that with the current revolution going on around AI technology, digitalization, also changing customer behavior, and the investment money that needs to be put into a business to successfully meet the standards that are nowadays normal for P&C players, that's incredibly difficult for the smaller companies to do that on a standalone basis.

Speaker #1: And we do believe that with the current revolution going on around AI technology, digitalization, also changing customer behavior, and the investment money that needs to be put into a business to successfully meet the standards that are nowadays normal for P&C players, that's incredibly difficult for the smaller companies to do that on a standalone basis.

Speaker #3: So we are happy and thinking that the blueprint of Bovenmai will have a, how do you say, a will have new transactions in the coming time.

Speaker #1: So we are happy and thinking that the blueprint of Bovenmai will have a, how do you say, a will have new transactions in the coming time.

Speaker #1: Yeah. Farquhar, on your question around the disability growth and are we willing to accept growth below actually our targeted range, the simple answer is yes.

Speaker #4: Yeah. Farquhar, on your question around the disability growth and are we willing to accept growth below actually our targeted range, the simple answer is yes.

Ewout Hollegien: Faka, on your question around the disability growth and are we willing to accept growth below actually our targeted range, the simple answer is yes. The reason is that we strongly believe in the value of volume, and that every business that you write needs to deliver on the right return. That is why I also mentioned that we will definitely look at the whole situation more on conservative side and take that into account, for example, in our price level. If that means that, yeah, we lose more clients, and that we then will come below the 3% growth in 2027, then that is what it is. We also have to make a margin, and that is how we are always in the market.

Ewout Hollegien: Farquhar, on your question around the disability growth and are we willing to accept growth below actually our targeted range, the simple answer is yes. The reason is that we strongly believe in the value of volume, and that every business that you write needs to deliver on the right return. That is why I also mentioned that we will definitely look at the whole situation more on conservative side and take that into account, for example, in our price level. If that means that, yeah, we lose more clients, and that we then will come below the 3% growth in 2027, then that is what it is. We also have to make a margin, and that is how we are always in the market.

Speaker #1: And the reason is that we strongly believe in a kind of the value of volume and that every business that you write needs to deliver on the right return.

Speaker #4: And the reason is that we strongly believe in a kind of the value of volume and that every business that you write needs to deliver on the right return.

Speaker #1: That's why I also mentioned we will definitely look at the whole situation more on conservative side and take that into account in, for example, in our price levels.

Speaker #4: That's why I also mentioned we will definitely look at the whole situation more on conservative side and take that into account in, for example, in our price levels.

Speaker #1: And if that means that, yeah, we lose more clients and that we then will come below kind of the 3 percent growth in 2027, then that is what it is.

Speaker #4: And if that means that, yeah, we lose more clients and that we then will come below kind of the 3 percent growth in 2027, then that is what it is.

Speaker #1: We also kind of have to make a margin and that is how we are always in the market. And for the long run, we believe that is actually the right position also to have as an insurance company because that makes you also predictable for advisors and for clients.

Speaker #4: We also kind of have to make a margin and that is how we are always in the market. And for the long run, we believe that is actually the right position also to have as an insurance company because that makes you also predictable for advisors and for clients.

Ewout Hollegien: For the long run, we believe that is actually the right position also to have as an insurance company, because that makes you also predictable for advisors and for clients.

Speaker #5: Thanks.

Speaker #3: Okay. Thanks.

Farquhar Murray: Thanks.

Speaker #3: Thank you. We will now take the next question. From the line of Michele Valatore from KBW, please go ahead.

Speaker #1: Thank you. We will now take the next question. From the line of Michele Valatore from KBW, please go ahead.

Operator: Thank you. We will now take the next question from the line of Michele Ballatore from KBW. Please go ahead.

Speaker #4: Yes. Thank you for taking up with Jason's question from me. In if we look at the good trends in the especially in the finance capital generation, both in non-life, but particularly in life, so how should we look in terms of the outlook on this line?

Speaker #5: Yes. Thank you for taking a good Jason question from me. In if we look at the good trends in the especially in the finance capital generation, both in non-life, but particularly in life, so how should we look in terms of the outlook on this line?

Michele Ballatore: Yes, thank you for taking my call. Just one question from me. If we look at the good trends, especially in the finance capital generation, both in non-life but particularly in life. How should we look in terms of the outlook on this line? How do you see this trend continuing next foreseeable future? Thank you.

Speaker #4: I mean, how do you see these trends continuing next foreseeable future? Thank you.

Speaker #5: I mean, how do you see these trends continuing next foreseeable future? Thank you.

Speaker #1: I think if I understand your question correctly, is how do we look to the trend on the finance capital generation in OCC? Yeah. Okay.

Ewout Hollegien: I think if I understand your question correctly, is how do we look to the trend on the finance capital generation in OCC?

Speaker #4: I think if I understand your question correctly, is how do we look to the trend on the finance capital generation in OCC? Yeah. Okay.

Michele Ballatore: Yeah.

Speaker #1: So no, we are what we see actually in the portfolio in also in H1 compared to 2025 is then on one hand, we saw actually spreads were tightening a bit.

Ewout Hollegien: Okay. What we see actually in the portfolio, also in H1 compared to 2025, is on one end, we saw actually spreads were tightening a bit. Because of that, you see spreads tightening, and we have small spread tightening, and we have seen in most cases spread tightening in govvies and also spread tightening in credits. That brings you a somewhat lower return, for example, compared to the full year 2025. At the same time, we saw positive revaluation in real estate more than expected. In our total return assumption, we saw good developments of equity markets, and that all contributes actually to a high investment margin. If we look going forward to our finance capital generation, we expect that will develop in the same direction as we have seen over the year in H1 2026. No really worries there.

Speaker #4: So no, we are what we see actually in the portfolio also in H1 compared to 2025 is then on one end, we saw actually spreads were tightening a bit.

Speaker #1: So because of that, you see spreads tightening. We have small spread tightening and we have seen in more cases. Spread tightening, coffees, and also spread tightening in credits.

Speaker #4: So because of that, you see spreads tightening. We have small spread tightening and we have seen in more cases. Spread tightening, coffees, and also spread tightening in credits.

Speaker #1: That is that brings you a somewhat lower return, for example, compared to the full year 2025. At the same time, we saw positive revaluation in real estate, more than expected.

Speaker #4: That is that brings you a somewhat lower return for example compared to the full year 2025. At the same time, we saw positive revaluation in real estate, more than expected.

Speaker #1: In our total return assumption, we saw a good developments of equity markets. And that all contributes actually to a high investment margin. So if we look going forward to our finance capital generation, we expect that that will kind of develop in the same direction as we have seen over the year in the first half of 2026.

Speaker #4: In our total return assumption, we saw a good developments of equity markets. And that all contributes actually to a high investment margin. So if we look going forward to our finance capital generation, we expect that that will kind of develop in the same direction as we have seen over the year in the first half of 2026.

Speaker #1: So no really worries no really worries there. And but it all by the end of the day always depends a bit on how markets will develop.

Speaker #4: So no really worries, no really worries there. And but it all by end of the day always depends a bit on how markets will develop.

Ewout Hollegien: By end of the day, always depends a bit on how markets will develop.

Speaker #4: Thank you.

Speaker #5: Thank you.

Michele Ballatore: Thank you.

Speaker #3: Thank you. We will now take our next question. From the line of Jason, Callum Buses from ING, please go ahead.

Speaker #1: Thank you. We will now take our next question. From the line of Jason Kalamboussis from ING, please go ahead.

Operator: Thank you. We will now take our next question from the line of Jason Kalamboussis from ING. Please go ahead.

Speaker #5: Yes. Hi. Quick follow-up, if I may. The first one is on longevity. I mean, we'll get more clarity maybe in the second half, maybe you can do a deal.

Speaker #5: Yes. Hi. Quick follow-up, if I may. The first one is on longevity. I mean, we'll get more clarity maybe in the second half, maybe you can do a deal, but looking at your solvency ratio, three years out, it looks very high building up quite a lot.

Jason Kalamboussis: Yes. Hi. Quick follow-ups, if I may. The first one is on the longevity. We get more clarity maybe in the H2, maybe you can do a deal, but looking at your solvency ratio 3 years out, it looks very high, building up quite a lot. Is that fair to say that actually you do not need to do longevity deals at this stage given your stronger capital position? The second thing is a follow-up, again, is on the buyout market. Could you differentiate between Achmea and ASR? Because as far as I am aware, maybe I have missed it, but we have not seen a lot of large deals as last year. Do you find that, even though there is competition in pricing, it takes more time for the pensions funds to take the decision?

Jason Kalamboussis: Yes. Hi. Quick follow-ups, if I may. The first one is on the longevity. We get more clarity maybe in the H2, maybe you can do a deal, but looking at your solvency ratio three years out, it looks very high, building up quite a lot. Is that fair to say that actually you do not need to do longevity deals at this stage given your stronger capital position? The second thing is a follow-up, again, is on the buyout market. Could you differentiate between Achmea and ASR? Because as far as I am aware, maybe I have missed it, but we have not seen a lot of large deals as last year. Do you find that, even though there is competition in pricing, it takes more time for the pensions funds to take the decision?

Speaker #5: But looking at your solvency ratio, three years out, it looks very high. Building up quite a lot. So is that fair to say that, you know, actually longevity is not you don't need to do longevity deals at this stage given your strong capital position?

Speaker #5: So is that fair to say that actually longevity is not you don't need to do longevity deals at this stage given your strong capital position?

Speaker #5: The second thing is follow-up again is on the buyout market. Could you differentiate between Achmea and Athora? Because as far as I am aware, maybe I've missed it, but, you know, I haven't we haven't seen a lot of large deals and, you know, as last year.

Speaker #5: The second thing is follow-up again is on the buyout market. Could you differentiate between Achmea and Athora? Because as far as I am aware, maybe I've missed it, but I haven't seen a lot of large deals and as last year.

Speaker #5: So do you find that, you know, it also takes even though there is competition in pricing, it takes more time for the pensions funds to take the decision and are there also softer factors than pricing that could make that things come back to ASR?

Speaker #5: So do you find that it also takes even though there is competition in pricing, it takes more time for the pensions funds to take the decision and are there also softer factors than pricing that could make that things come back to ASR?

Jason Kalamboussis: Are there also softer factors than pricing that could make that things come back to ASR? Or do you think that at the end of the day, it is a lot more pricing, it will be more Achmea and ASR battling it out, and you focusing on the mid-sized deals over the next 12 months? The third question is on non-life. Could you give us a mean specifically for the P&C combined ratio of 89.9%? What is the percentage benefit you got from the prior year reserve releases? Maybe it was given earlier, I am not sure. I think that you said that expenses was -1.2%, but if I could have the PY answer, that would be great. Thank you very much.

Speaker #5: Or do you think that at the end of the day it is a lot more pricing? It will be more Achmea and Athora battling it out and you focusing on the midsize deals over the next 12 months.

Speaker #5: Or do you think that at the end of the day it is a lot more pricing, it will be more Achmea and Athora battling it out and you focusing on the midsize deals over the next 12 months?

Speaker #5: And the third question is on non-life. Could you give us a mean specifically for the P&C combined ratio? The 89.9 percent, what is the percentage benefit you got from the prior year reserve releases?

Speaker #5: And the third question is on non-life. Could you give us some specifically for the P&C combined ratio? The 89.9%, what is the percentage benefit you got from the prior year reserve releases?

Speaker #5: Maybe it was given earlier. I'm not sure. I think that you said that expenses was minus 1.2 percent, but if I could have the PYR so that would be great.

Speaker #5: Maybe it was given earlier. I'm not sure. I think that you said that expenses was minus 1.2%, but if I could have the PYR so that would be great.

Speaker #5: Thank you very much.

Speaker #1: Thanks, Jason. You called it follow-ups, but I think there was one follow-up and two new questions that you raised. Let me try to give a clear answer to that.

Speaker #4: Thanks, Jason. You called it follow-ups, but I think there was one follow-up and two new questions that you raised. Let me try to give a clear answer to that.

Ewout Hollegien: Thanks, Jason. You called it follow-ups, but I think there was one follow-up and two new questions that you raised. Let me try to give a clear answer to that. On the longevity part, I think that's the beauty where we are looking at today. We do not need longevity reinsurance from a position of weakness there because we need solvency. We are in a strong solvency position, and we only want to do longevity reinsurance because on one end it is good risk management there. An important risk that we have on the balance sheet you can offload. That's one element that we take into account. But the second element, just as important. If you can do this against the right prices and you see that your cost of capital can become close to zero of such a deal, that makes it also from a benefit optimization attractive.

Speaker #1: On the longevity part, I think that's the beauty where we are looking at today. So we don't need longevity reinsurance from kind of a position of weakness where we because we need SOLC, we are in a strong SOLC position and we only want to do longevity reinsurance because on one hand, it is good risk management there.

Speaker #4: On the longevity part, I think that's the beauty where we are looking at today. So we don't need longevity reinsurance from kind of a position of weakness where we because we need solvency, we are in a strong solvency position and we only want to do longevity reinsurance because on one hand, it is good risk management there.

Speaker #1: So an important risk that we have on the balance sheet. You can offload. That's one element that we take into account. But the second element, just as important, if you can do this against the right prices and you see that your cost of capital can become close to zero of such a deal, yeah, that makes it also from a balance sheet optimization attractive.

Speaker #4: So an important risk that we have on the balance sheet. You can offload. That's one element that we take into account. But the second element, just as important, if you can do this against the right prices and you see that your cost of capital can become close to zero of such a deal, yeah, that makes it also from a balance sheet optimization attractive.

Ewout Hollegien: If you can do this against the right prices and you see that your cost of capital can become close to zero of such a deal, that makes it also from a benefit optimization attractive. That is the reason that we are considering this. It's just good balancing management, good risk management, and that is the main drive, and not because we need sourcing. The second element on the non-life, how much reserve release? Well, that's a simple answer. Thanks for that. That's actually negligible. This is a real strong underlying number. There's the EUR 5 million that we discussed which has an offset of the holding, but it's a clean number that we present here today, which is very strong and we are very happy with. Then on the buyout market and how that is developing.

Speaker #1: And that is the reason that we are considering this. So it's just good balance sheet management, good risk management. And that is the main drive and not because we need SOLC.

Speaker #4: And that is the reason that we are considering this. So it's just good balance sheet management, good risk management. And that is the main driver, not because we need solvency.

Ewout Hollegien: That is the reason that we are considering this. It's just good balancing management, good risk management, and that is the main drive, and not because we need sourcing. The second element on the non-life, how much reserve release? Well, that's a simple answer. Thanks for that. That's actually negligible. This is a real strong underlying number. There's the EUR 5 million that we discussed which has an offset of the holding, but it's a clean number that we present here today, which is very strong and we are very happy with. Then on the buyout market and how that is developing. In detail, we saw H1 2025, Athora and ASR both winning quite some deals. H2, Athora have won a lot of deals, a lot of activity in the buyout market.

Speaker #1: The second element on the non-life how much reserve release well, that's a simple answer. So thanks for that. That's actually negligible. So there is this is a real strong underlying number.

Speaker #4: The second element on the non-life how much reserve release well, that's a simple answer. So thanks for that. That's actually negligible. So there is this is a real strong underlying number.

Speaker #1: There's the 5 million that we discussed with which has an offset of the holding, but it's a clean number that we present here to that we present here today.

Speaker #4: There's the 5 million that we discussed with which has an offset of the holding, but it's a clean number that we present here to that we present here today.

Speaker #1: Which is very strong and we are very happy with. And then on the buyout market and how that is developing, so indeed there we saw H2 H1 2025 A4 and ASR both winning quite some deals.

Speaker #4: Which is very strong and we are very happy with. And then on the buyout market and how that is developing, so indeed there we saw H2 H1 2025 A4 and ASR both winning quite some deals.

Ewout Hollegien: In detail, we saw H1 2025, Athora and ASR both winning quite some deals. H2, Athora have won a lot of deals, a lot of activity in the buyout market. H1 of 2026 is a bit less, and at the same time, we see deals happening, and also ourselves actually have won two smaller deals. I think Ingrid described it very well in a way that we see is that because the main competitor being Athora in this market really won a lot of bigger deals, their appetite for smaller deals seems to fade away a bit, and that provided us the opportunity against the right return levels that we want to have to win those deals. I think so it is not because of pension funds are now thinking differently to the market.

Speaker #1: H2 A4 have won a lot of deals, a lot of activity in the buyout market. H1 of 2026 is a bit less and at the same times we see deals happening and also our sales actually have won to smaller deals.

Speaker #4: H2 A4 have won a lot of deals, a lot of activity in the buyout market. H1 of 2026 is a bit less and at the same times we see deals happening and also our sales actually have won to smaller deals.

Ewout Hollegien: H1 of 2026 is a bit less, and at the same time, we see deals happening, and also ourselves actually have won two smaller deals. I think Ingrid described it very well in a way that we see is that because the main competitor being Athora in this market really won a lot of bigger deals, their appetite for smaller deals seems to fade away a bit, and that provided us the opportunity against the right return levels that we want to have to win those deals. I think so it is not because of pension funds are now thinking differently to the market. It's just sometimes you have a bit more activity in the market, sometimes you have a bit less activity.

Speaker #4: I think with described it very well in a way that we see is that because kind of the main competitor being A4 in this market really won a lot of bigger deals their appetite for smaller deals seems to kind of fade away a bit and that provided us the opportunity against the right return levels that we want to have to win those deals.

Speaker #4: And that is and I think so this is not because of pension funds are now thinking differently to the market. It's just sometimes you have a bit more activity in the market.

Ewout Hollegien: It's just sometimes you have a bit more activity in the market, sometimes you have a bit less activity. But H1 of 2026, there were still a couple of buyouts, and also when we look going forward, there's still a pipeline, and that's why we are still confident, though it might take two more years that we will reach the EUR 8 billion.

Speaker #4: Sometimes you have a bit less activity, but H1 of 2026, there were still a couple of buyouts and also when we look going forward, there's still a pipeline and that's why we are still confident.

Ewout Hollegien: But H1 of 2026, there were still a couple of buyouts, and also when we look going forward, there's still a pipeline, and that's why we are still confident, though it might take two more years that we will reach the EUR 8 billion.

Speaker #4: Though it might take two more years, that we will reach the 8 billion.

Speaker #5: Great. Thank you.

Jason Kalamboussis: Great. Thank you.

Speaker #1: Thank you. We will now take the next question. From the line of Michael Huttner from Barenberg, please go ahead.

Operator: Thank you. We will now take the next question from the line of Michael Huttner from Berenberg. Please go ahead.

Speaker #5: Fantastic. Thank you so much. Q2, one, you spoke lots of times on funeral business. I just wanted, could you remind us who is the lucky competitor you might be looking at or any indication maybe you can't say, I don't know.

Michael Huttner: Fantastic. Thank you so much. Ewout, one, you spoke lots of times on funeral business. I just wondered, could you remind us, who is the lucky competitor who you might be looking at or any indication? Maybe you can't say, I don't know. We had the question on pension buyouts. Can you talk a little bit about the individual annuities? That's the one you're exceeding. Can you give us a feel for how much more growth there is? Because it's clearly not a closed block. It's linked to the DC growth. Thank you.

Speaker #5: And then on we had the question on pension buyers. Can you talk a little bit about the individual annuities? So your that's the one you exceeding.

Speaker #5: Is there can you give us a feel for how much more growth there is because it's clearly not a closed block. It's linked to the DC growth.

Speaker #5: Thank you.

Speaker #1: I will answer your last question, Michael. So if you look at the annuities, so we have a big book of DC that's accumulative accumulation business.

Ingrid de Swart: I will answer your last question, Michael. If you look at the annuity, we have a big book of DC that's accumulative, accumulation business, and now we have the deaccumulation, that's where the annuities come in. What we do see is that if you have a very good customer journey and competitive pricing, and people are already used to your brand service and happy with that they've experienced over the DC time of period that they have been customer with us, we see that people really like to stay with ASR because of the very good customer journey where we have invested in to the new standards that are there today. With that, I mean more digital, more AI, et cetera, more personal.

Speaker #1: And now we have the decumulation that's where the annuities come in. And what we do see is that if you have a very good customer journey and competitive pricing and people are already used to your brand service and happy with that, that they have experienced over the DC time of period that they have been customer with us, we see that people are really like to stay with ASR because of the very good customer journey where we have invested in to the new standards that are there today.

Speaker #1: And then with that, I mean more digital, more AI, et cetera, more personal. And if you also have competitive pricing, people do stay with the with us because they liked during the accumulation phase and they do also like us for the decumulation phase.

Ingrid de Swart: If you also have competitive pricing, people do stay with us because they liked during the accumulation phase, and they do also like us for the deaccumulation phase. That is why we have indeed a very exciting increase of our annuities of 38%. Also, we really think that we will exceed our target for this year.

Speaker #1: And that's why we have indeed a very exciting increase over annuities and of 38%. And also we leave that we really think that we will exceed our target for this year.

Speaker #4: And on funeral, so it's never please be with me, Michael, that it's not really good to mention names in a call like this when it comes down to funeral insurance.

Ewout Hollegien: On funeral, please bear with me, Michael Huttner, that it is not really good to mention names in a call like this when it comes down to funeral insurance. To answer your question, of course, we are open to onboard closed books of funeral businesses there. There are a couple of closed books of funeral business, and we are also more than willing to look more to open funeral businesses. There are a couple of bigger players where the largest players has 50% market share. Probably that is not possible for us also from a competition perspective to really be interested in, but other players would be of our interest.

Speaker #4: But to answer your question, of course, we are open to onboard closed books of funeral businesses. So there are a couple of closed books of funeral business and we are also more than willing to look more to open funeral businesses.

Speaker #4: And there are a couple of bigger players where the largest players has 50% market share probably that is not possible for us also from a competition perspectives to really be interested in.

Speaker #4: But other players would be of our interest.

Speaker #5: Brilliant. Thank you so much.

Michael Huttner: Brilliant. Thank you so much.

Operator: There are no further questions at this time. I would now like to turn the conference back to Ingrid de Swart for closing remarks.

Speaker #1: There are no further questions at this time. I will now like to turn the conference back to Ingrid De Swart for closing remarks.

Speaker #2: Thanks a lot. And thank you all for listening in and also for your very nice and interesting questions. We enjoyed being with you this morning and are looking very much forward to meeting Hope lots of you in London in the coming days.

Ingrid de Swart: Thanks a lot, and thank you all for listening in and also for your very nice and interesting questions. We enjoyed being with you this morning and are looking very much forward to meeting, hope lots of you in London in the coming days. I would like to really look forward toward the London engagement and meetings and hope you all have a very nice day with our clean set of results. Thanks very much.

Speaker #2: So with that, I would like to really look forward toward our the London engagement and meetings and hope you all have a very nice day with our clean set of results.

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Half Year 2026 ASR Nederland NV Earnings Call

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