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Overall quality of capital increases significantly
• Unrestricted Tier 1 capital as a percentage of SCR increased by 16%-pts in 1H18, driven by increase in own funds
• Following the increase in unrestricted Tier 1 capital, overflow from restricted Tier 1 to Tier 2 reduced
• Gross financial leverage ratio increases to 28.9% due to refinancing activities;
Ratio to approach low-end of 26-30% target range in second half of 2018
- Maturity of EUR 500 million senior debt in August 2018 to reduce leverage by ~150 bps pro forma
- Redemption of EUR 200 million 6% perpetual capital securities in 2H18 to reduce leverage by ~50 bps pro forma