Pension

Hybrid financing for your group insurance

Depending on your objectives, you can opt to finance your group insurance commitment via a Branch 21 or Branch 23 solution. With a flexible combination of the two, you get the best of both worlds: a certain degree of security plus upside potential.

The best of both worlds

You get the security of Branch 21 plus the opportunity to earn a higher return with Branch 23.

An innovative financing solution for your group insurance

Branch 21 gives you stability while with Branch 23, you get the benefit of our unique multi-management approach: the opportunity to earn more consistent returns than with a single manager strategy.

Lower volatility

Past performance has shown that a combination that includes Branch 21 significantly reduces volatility without sacrificing your return on investment.

A wide range of funds

With AG's wide range of funds, you can select the portion you finance via Branch 23 to your match own risk appetite.

A sustainable investment policy

For both Branch 21 and Branch 23, we apply the principles of socially responsible investing. This way, you can be sure that your investments are aligned with your values.

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Branch 21, Branch 23... or a combination of both?

Depending on your needs and objectives, you can opt to finance your group insurance commitment by investing in a Branch 21 or Branch 23 solution.

Branch 21 offers you the security of a guaranteed return plus access to AG's attractive profit participation plan. But in the current protracted low interest rate environment, this also means a lower guaranteed return.

Branch 23, on the other hand, involves direct investment in the financial markets, so while this financing solution offers a higher potential return, it also comes with higher risk..

The flexible combination of both offers the best of both worlds and could be the most innovative financing solution for your group insurance commitment

Quickly to

Man reads on smartphone that hybrid financing provides the best of both worlds.

Add extra spice to your investment mix.

The potential to earn a higher return

By investing a portion of your group insurance contributions in Branch 23, you get the upside potential of investing directly in the financial markets. AG also applies a unique multi-management approach to its Branch 23 funds, which optimises ROI and provides more consistency than with a single manager strategy. The ideal way to add an extra bit of spice to your investment mix.

Woman considers the benefits of combining Branch 21 and Branch 23.

Branch 21, an excellent alternative to a bond fund.

You keep some of the benefits of a safe-haven investment

As the portion of your group insurance contributions invested in Branch 21 earn a guaranteed return, this reduces the volatility (i.e. fluctuation in returns) of your total investment. This favourable effect on the investment risk makes Branch 21 an excellent alternative to a bond fund.

Past performance¹ has shown that investing 50% in equities combined with 50% in Branch 21 significantly reduces volatility without sacrificing your return on investment. By replacing the bond component in this investment with Branch 21, volatility has dropped by 20% over the past 20 years:

	50% bonds + 50% equities (RB Green fund)	50% Branch 21 (RB White fund) + 50% equities (RB Red fund)
Volatility (over 20 years)	11.56%	9.36%
Average annual return (over 20 years)	3.74%	4.05%

1 An investment mix of 50% bonds and 50% equities is the equivalent of the AG EB Rainbow Green fund's actual annual returns from 2001 to 2020. An investment mix of 50% Branch 21 and 50% equities is the equivalent of the combined annual returns earned by the AG EB Rainbow White fund (under group management) and the Rainbow Red fund from 2001 to 2020, respectively. These are past annual returns and are are not a reliable indicator of future performance..

In practical terms, the lower volatility means that the fluctuations in ROI for the investment in 50% Branch 21 and 50% equities (green line) were less pronounced than for the investment in 50% bonds and 50% equities (blue line):

With a flexible combination of Branch 21 and Branch 23, one retains some security with a higher potential return.

Select your Branch 23 funds to match your own risk appetite.

Wide range of Branch 23 funds to choose from

With AG's wide range of funds, you can select the portion you finance via Branch 23 to your match own risk appetite. Find out more about our full range of Branch 23 funds here.

You can flexibly combine AG's extensive Branch 21 and Branch 23 options in the group insurance solutions e-Volulife, Cash Balance and Pension@ease.

AG and sustainable investment

At AG, we recognise the importance of ESG factors in delivering sustainable long-term returns. This is reflected in our general investment policy, where we set high environmental, social and governance standards and address sustainability risks. This way, all of our customers can be sure that their investments are aligned with their values.

For customers who want to go a step further, AG now offers several products with an even more advanced approach to sustainability. For more information, you can check the detailed descriptions for our Branch 21 (FR-NL) and Branch 23 (FR-NL) options.

AG Employee Benefits is fully committed to your digital support.

Unique advantage: digital support

AG Employee Benefits has capitalised on the digital revolution to provide additional value to its customers. For the benefit of you and your staff members, we’ve developed a unique digital platform that offers a multitude of possibilities, all in a user-friendly environment.

AG EB Online

Whether it’s to enrol new employees, manage existing plan participants or transfer other data, you’ll be happy to know that your days of endless paperwork are over. It’s all right at your fingertips with this user-friendly web application.

Find out more about AG EB Online

My Global Benefits

The market’s very first digital supplementary pension platform for employees. In just a few keystrokes, your participants can check the size of their supplementary pension as well as their death benefit coverage. And that’s not all – we’ve even

incorporated their healthcare plans.

More information about My Global Benefits

Do you have a question?

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