“Solid” was how Ageas chief executive Bart De Smet described the firm’s financial results for the first nine months of 2018.
From €360 million in the same period last year, Ageas saw its interim group net profit surge to €656 million. Insurance net result, however, fell 3% to €664 million due to the low level of net capital gains. Meanwhile general account net result was negative €8 million – a huge improvement from 2017’s negative €326 million.
“The €152 million lower contribution of net capital gains was almost entirely compensated for by the exceptionally high first quarter result in China,” reported Ageas this morning. “The non-life net result stood at €201 million.
“Although impacted by adverse weather in Belgium and the UK for €60 million, the result decreased by only €11 million year-on-year, thanks to a continued strong operating performance. Last year’s result included a €40 million negative Ogden impact.”
Ageas said total inflows, driven by Belgium and China, rose 3% to €27.4 billion at a constant exchange rate. Combined ratio was at 95.1%.
“The solid results we realised over the first nine months demonstrate that we are well on track to deliver on our Ambition2018 promises,” commented De Smet. “They also represent a strong basis for the commitments made for the next three years under Ageas’s strategic plan Connect21.
“An excellent third quarter in non-life underscored a good performance across all of our businesses leading to a strong nine months non-life result notwithstanding the adverse weather in the first half of the year. In life, growth in inflows continued, although the result was impacted somewhat by lower net capital gains in Belgium and the recent challenging equity markets in Asia.”
Aside from its interim results, Ageas also today announced the acquisition of a 40% stake in Royal Sundaram General Insurance Co. Limited in India. The company believes the transaction will provide a strong foothold in what De Smet called a “large and fast growing” non-life market.
“Together with the recent sale of our minority stake in Cardif Lux Vie in Luxemburg, this illustrates our determination to prioritise growth markets and non-life activities,” said the CEO.
