Ageas announces its new three-year strategic plan: Elevate27
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Ageas announces its new three-year strategic
plan: Elevate27
Today, Ageas announces its next 3-year strategic
plan, Elevate27, for the period 2025-2027. As the name suggests, it
is about taking the Group’s strong performance to the next level,
building on Ageas’s unique growth profile and strong long-term
track record, and the experience it has garnered over the years. A
new chapter in Ageas’s journey, Elevate27 is a
plan for sustained profitable growth and
accelerated progress in key areas of strength, that respond
to the needs of the ageing population and SMEs, with the
ambition to extend the Group’s leadership in technical
insurance and operational excellence while
future-proofing distribution capabilities and
enriching the customer experience.
|
”As the world continues to change at speed, we will need to
stay agile and alert. This is why our focus is on what comes next.
That means always asking ourselves – can we do better? Or can we do
more? That’s what excites us about Elevate27. It is about further
elevating our performance as a Group, building on our strengths,
embracing technological advancements where they add value, to
deliver on evolving expectations of our stakeholders and on their
hopes and dreams for the future. We’ve successfully delivered and
outperformed in the past and we’re ready to do so again.” |
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Hans De Cuyper, CEO Ageas |
ELEVATE27 COMMITMENTS |
|
AS A BUSINESS AND TO INVESTORS. |
Target by end 2027 |
Average earnings per share growth |
6% to 8% |
Holding Free Cash Flow |
EUR 2.2+ billion |
Shareholder Remuneration |
EUR 1.9+ billion (Progressive Dividend per Share) |
TO CUSTOMERS |
|
Delivering the best customer experience |
Top quartile NPS scores across all our markets |
TO EMPLOYEES |
|
Employee NPS |
Top quartile |
Women in senior and middle management |
40% |
TO SOCIETY |
|
Products |
35+ % of GWP from products that stimulate the transition to a more
sustainable and inclusive world. |
ESG Ratings |
Top quartile with 3 out of 6 rating agencies we actively engage
with |
Over the past three years, we have successfully
executed our Impact24 growth strategy, delivering
on most targets we have set. This was achieved through strong
commercial progress and robust operational performance, enabling us
to meet our commitments to investors regarding earnings per share
and dividend growth, while meeting Net Operating Result guidance.
Besides our operational and financial achievements, we are
increasingly recognised for our dedication to non-financial goals,
as evidenced by improved scores from ESG rating agencies and
various recognitions we received such as TOP Employer and the
Platinum ECOVADIS label (AG Insurance). We also advanced well
on our commitments to customers and employees, as reflected in our
high NPS and eNPS scores. As we near the end of our three-year
strategic plan, we are confident that we will successfully deliver
on Impact24, providing the Group a solid foundation to start
Elevate27.
Elevate27 is built on three
strategic drivers: driving profitable growth, leading in technical
insurance and operational excellence to sustain and improve
margins, and future-proofing distribution and enriching customer
experience.
By focusing on three strategic
drivers, we aim to leverage the Group's strengths to
elevate our performance in the coming years. Elevate27 will follow
two dynamics: continuing what we already excel at
and accelerating our efforts in areas where we see new potential to
generate additional value for our stakeholders. Central to this
strategy will be our increased emphasis on our People and Tech,
Data & AI capabilities at the level of the Group, which will
enable us to deliver on our ambitions.
Our actions are guided and influenced by a
commitment to sustainability, long-term thinking, and our
partnership DNA.
Drive profitable growth
Leveraging our strong presence in Life
and Non-Life throughout Europe and Asia,
and the successful launch of a fully-fledged
Reinsurance arm that provides a solid cash and
diversification engine, we will continue to focus on market
segments that align with our core competencies, and that open up
new opportunities to create and accelerate profitable growth moving
forward. We will further accelerate the development of our offering
to SMEs, which is already a significant part of
our portfolio and where the market is expected in time to outgrow
the retail market. We will also accelerate the provision of our
solutions for an ageing population, a market
opportunity seen in all markets in which Ageas is active, by
capitalising on our strong position in the Life market and
experience in the over 50 customer segment.
Lead in technical insurance and
operational excellence
Ageas has a strong track record in terms of
technical insurance and operational excellence and wants to grasp
the opportunity to maintain and also elevate its leadership in that
respect. Taking a lead in these areas, including making use of the
new opportunities offered by Technology, Data and AI, ensures
attractive margins for the business and
intrinsically offers customers an efficient and seamless
service.
To achieve leadership in technical insurance and
operational excellence, we will continue to invest in our
systems and processes, supporting at the same time
our partners in their own digital (transformation) journeys. We
want the operational aspect of delivery to be invisible to the
customer, the ultimate beneficiary, and to add value to our
employees. We want to maintain our financial discipline and strong
risk culture, allowing us to sustain and improve our margins. And
we want to step up group empowered synergies by
leveraging assets and expertise across the entities, demonstrating
the power of the Group in this specific area.
And finally, we have a strong expertise in Data
& AI. We want to put these technologies to work for us – adding
value but in a disciplined and controlled way, allowing us to
better serve our customers, and making insurance more accessible
and inclusive.
Future-proof distribution and enrich
customer experience
In a distribution landscape that is continuously
changing, we remain committed to working through all distribution
channels that allow us to best reach our customers and gain access
to new types of customers.
By leveraging on our strong partnership model
and new possibilities offered by AI, we want to develop
innovative propositions and services for customers
by combining the data insights and expertise of Ageas and our
partners. With full confidence in our traditional
distribution partners - Banks, Agents and Brokers - we
will pay special attention to jointly enhancing our digital
capabilities. At the same time, and in the context of continued
diversification, we will further accelerate our engagement with
digital B2B2C sales platforms.
In Impact24 we have successfully implemented
solutions designed to provide the best experience for customers
focusing on CX Culture, Customer Journey Management and
Tech & Data, giving the Group the capabilities to
develop a leading on- and offline customer experience,
while promoting greater efficiency. This will continue to
be our primary focus. We aim to advance even further by reinventing
the way we interact with customers across different channels and
platforms by innovating our client-interaction model, prioritising
self-service solutions and automated
customer assistance, and investing in
hyper-personalised services.
Leveraging on two critical assets to
deliver on our plan: ‘People’ and ‘Tech, Data &
AI’
Through Elevate27 we will reconfirm the
commitment we made to our people to deliver a Great place
to Grow, both today and for future, and we will take
optimal advantage of the opportunities offered by Tech, Data &
AI to meet our ambitions. We have put in place high-quality data
management and established a pipeline of over 300 AI initiatives
group-wide that under Elevate27 will be fully deployed.
The rapid evolutions in these areas require us
to act fast as a Group to maintain a leading position. By
harnessing the collective strength of the Group,
we can offer our entities and partnerships access to
essential resources and skills, generate economies
of scale, increase our speed-to-market and adopt the most
effective approaches and methodologies, that benefit all.
As a prerequisite to delivering on the drivers
of Elevate27, we will continue to invest in our
technological capabilities, such as ensuring our
IT architecture is open and composable to easily integrate with
partners and increase our speed to market. Furthermore, we will
accelerate the adoption of new Data and (Gen)AI solutions
where they add value, as their integration in areas such
as Pricing, Underwriting and Product Development, Claims Processes,
Fraud Management & Customer Journeys will become even more
prominent moving forward.
Sustainability and Long-term thinking as
guiding principles
As a true supporter of the lives of all our
stakeholders, our dedication to sustainability and adopting a
long-term perspective will continue to underpin our actions.
Leveraging 200 years of solid business experience
along with recent successes and learnings from Impact24, we will
further strengthen our group-wide efforts in sustainability and
long-term thinking.
A targeted performance
As a true stakeholder driven company, we hold
ourselves accountable for delivering on our promises by 2027. This
translates to setting clear financial and non-financial targets
that allow us to measure our progress over time.
For investors and our business in
general, we have set out a range of targets that
demonstrate the strength of our balance sheet, our financial
performance, and our ability to drive profitable growth and
attractive returns, providing confidence in the sustainability of
our investment case in the long term. Our commitment to create
value is reflected in 3 financial targets:
- Average earnings per share growth:
6% to 8%
- Holding Free Cash Flow: EUR 2.2+
billion
- Shareholder Remuneration: EUR 1.9+
billion (Progressive Dividend per Share)
For customers, we aim to be
recognised for excellence at every interaction. To underscore our
commitment to delivering the best customer experience, we will
strive to reach top quartile NPS scores across all our markets.
For our partners, we want to be
the partner of choice both for our traditional partners and new
types of partnerships and will closely monitor and actively address
partnership feedback at local level.
For our employees we want to be
recognised as a Great place to Grow. This commitment is
demonstrated through two specific targets:
- Employee NPS: top quartile
- 40% women in senior and middle
management
For society we continue to
place sustainability at the heart of our business, influencing
decisions about products, investments, and emissions, with external
acknowledgment of our ESG initiatives.
- Products: 35+ % of GWP from
products that stimulate the transition to a more sustainable and
inclusive world.
- ESG ratings: top quartile with 3
out of 6 rating agencies we actively engage with.
INVESTOR DAY WEBCAST
23 September 2024 - 17:00 CET (16:00 UK
Time)
Audio webcast via https://ageaspresents.com/aid2024/live
- Pdf version of the press release
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