Grupo Ageas Portugal, SAP Portugal and Score announce the conclusion of an agreement with the purpose of transforming the systems, the applications and the information processes of the Belgian multinational insurance company. This partnership aims to implement a solution that responds to the framework of IFRS17, the accounting standard that is applicable to the accounting of insurance agreements, reinsurance agreements and investment agreements with features of discretionary participation.

By advancing to this program, Ageas stands-out as the first organization in the country to move forward in implementing the SAP solution, which supports and responds to the defined standard. The IFRS17 will replace the current IFRS 4 and is expected to enter info force on January 1^st of 2022.

IFRS17 is the new standard for financial and statutory reporting, to be applied throughout the European Union, and SAP has developed a new specific financial offer based in SAP S/4HANA solution, integrating a new regulatory environment and the  - increasingly complex- reports that insurance companies, but also banking and fin-tech will have to tackle.

The key aspects for the success of the solution to be developed, require a clear definition of the model to be implemented for each Ageas business line, for the licensing of software and the involvement of SAP experts and, also, for the guarantee of knowledge transfer by Score, a partner and implementer of SAP solutions, in order to ensure the continuity of the solution.

A partnership for digital transformation

Since 2016, year in which it acquired AXA Portugal, Grupo Ageas Portugal has been developing a new operating model, reinforced with substantial investments in a new configuration of its data systems, with technological updates in most of its applications, and also the introduction of new applications. 

The guarantee of an efficient digital processing and optimization of the cost basis is a strategic priority for Grupo Ageas Portugal, while transforming the entire Groups’ business structure nationwide and adapting all systems and process, in order to comply with the IFRS17 requirements.

João Barão, Accounting and Reporting Director of Grupo Ageas Portugal, emphasizes that "this agreement, established with SAP and Score, aims to ensure the transformation of processes and systems, necessary for the successful adoption of the new requirements of the IFRS 17 standard, in order for Grupo Ageas Portugal to present reliable financial statements and, also, to prepare the entire organization for a structural change in the way of analysing results, as  foreseen by this new regulation".

The relationship between Ageas and SAP goes back to the delivery of the ERP solution by SAP, along with the specific application for the management and accounting of insurance policies. This new IFRS17 project will be developed based in the SAP S/4HANA solution, which will allow the management of data between operational and financial systems, and facilitate accounting flows, by increasing their control and transparency.

According to Carlos Jerónimo, Commercial Director for Large Dimension Companies, of SAP Portugal, "companies are now taking the digitalization path of the entire organization and business processes, in a way that is very much aligned with SAP’s vision for the digital transformation and its corresponding challenges. In this context, and in view of the need to comply with the IFRS17 standard, Ageas has defined a new approach along with SAP, adopting the SAP 4/HANA solution as the first step towards becoming more flexible and speedy".

Reinforcing the SAP offer, already existent in Grupo Ageas Portugal, for the financial area – Accounting, Consolidation, Disclosure Management and Collections and Disbursement – implementing this new solution will allow to manage the data and specific calculations of the new metrics of the aforementioned standard, in connection between the actuarial and accounting systems, with enormous requirements in term of processing speed, data storage and versioning, and accounting systems and audit trail. This project will allow Grupo Ageas Portugal to achieve compliance and comply with the regulation of the European and national regulation.