The ASR Group 2024 SFCR, published ahead of the official deadline of 20 May 2025, shows the group Solvency ratio has bounced back to 198% after dipping to its lowest value yet in 2023 176%.
The chart below shows the key drivers of the ratio bounce have been a rise in Eligible Own Funds (EOF) and drop in the Solvency Capital Requirement (SCR) relative to 2023.
Both rose steeply in 2023, however an increase by almost twice as much in the SCR drove the drop in ratio.
In its 2024 SFCR, the company explained the increase in the ratio as follows: “The Solvency II ratio increased to 198% (31 December 2023: 176%) and includes a deduction for share buy back (€ 100 million), interim dividend 2024 (€ 244 million) and final dividend 2024 (€ 409 million) and positive impact from the Knab transaction.
The EOF increase was mostly due to better investment returns and offestting the sale of the online bank Knab. “The EOF increased … mainly driven by positive expected excess returns on investments (€ +957 million), value of new business (€ +117 million) and market and operational developments (€ +698 million), partly offset by the decrease in eligible own funds due to the Knab transaction (€ -254 million) and capital management actions (dividend € -653 million and share buy back € -100 million).”
The Knab transaction also helped to drive down the SCR. “The SCR decreased to € 6,209 million (31 December 2023: € 6,581 million), driven by the Knab transaction (€ -649 million) and capital release (€ -79 million), partly compensated by an increase following market and operational developments (€ +356 million), among which model changes for LAC DT and harmonisation of mortgage valuation of a.s.r. and Aegon. Other Capital Required relate to other financial sectors such as de Hoop and TKP (Knab was included in 2023).
ASR farewell to tier 3 capital, again
While the company increased its EOF it also reported no tier 3 capital, which was made up of deferred tax assets.
The SFCR states: “Tier 3 of a.s.r. capital consists of deferred tax assets. a.s.r. has no Tier 3 own fund items at year-end 2024 (2023: € 529 million).”
