Ageas, the reinsurance needs of which are served by its internal reinsurance operations, will be opening up those operations to outside clients.
Under the brand Ageas Re, the Belgian insurance group will start third-party reinsurance activities progressively for the upcoming January 2023 renewals. The business will be underwritten at the level of the group’s top holding company, ageas SA/NV.
Lifting the lid on the move, Ageas noted: “In recent years, reinsurance has grown from an internal activity to a significant segment of the group with a top line of €1.6 billion and net profit of €87 million in 2021, delivering business and capital synergies.”
Internal clients of the reinsurance unit are based in Belgium, Portugal, the UK, France, Turkey, India, Malaysia, Singapore, Thailand, and Hong Kong. According to Ageas, underwritten portfolios are usually local ones, with the exception of HK where the group writes global risks under Taiping Re’s retrocession programme.
“Since 2020, Ageas holds a 25% stake in Taiping Re,” said the insurance group. “By developing the reinsurance activity through writing third-party business, Ageas will further increase the benefits from diversification.”
It was highlighted that reinsurance has been identified as a key engine for future growth under Ageas’ strategic plan.
The Brussels-headquartered business stated: “Ageas currently sees favourable market conditions in terms of pricing but also a high dynamic in the reinsurance market, offering opportunities to start building new and long-term client relationships.
“The main underwriting focus, in this initial stage, will be P&C (property and casualty) reinsurance in EMEA (Europe, Middle East, and Africa) which complements the business the group has in its joint venture with Taiping Re.”
