Ageas unveils first-half financials

Brussels-headquartered insurance group Ageas has published its consolidated interim financial statements for the first half of 2021, revealing a net result worth €407 million.

The latest figure represents a decrease from the group net result of €791 million in the same six-month span in 2020. The financial statements as of June 30 do not include the impact of the July 2021 floods in Belgium.

Broken down by segment, here’s how Ageas performed in terms of net result:

By type, life insurance posted a higher net result – from €310 million previously to €340 million this time around. Non-life’s net result, meanwhile, was unchanged at €181 million.

“Our businesses continue to post healthy commercial and operational performances in both Europe and Asia,” noted group boss Hans De Cuyper. “We are seeing a reduced operational impact of disruption caused by the COVID pandemic, though it is still affecting our inflows. In Life, our inflows are gradually recovering to pre-COVID levels. In Non-Life we are posting a remarkable growth, thanks to the inclusion of Taiping Re and strong growth in Belgium.

“The underlying results over the first half of the year are stable, but the next quarter results will be impacted by the catastrophic floods in Belgium. We remain confident that we can maintain the net profit guidance from the beginning of the year, €850 million to €950 million, reviewing the positive adjustment made in the wake of our very strong Q1 results.”

According to Ageas, the total cost related to customer claims with respect to July’s Belgian floods is estimated to be as much as €0.4 billion. The group’s result is expected to be impacted to the tune of €55 million after tax and net of reinsurance.

Meanwhile, in the UK, the insurer’s £29.8 million result after tax represents a 30.7% increase from the corresponding figure in the first six months of 2020. Ageas UK’s combined ratio stood at 96%, while gross written premium (GWP) fell to £592.7 million. GWP grew in the areas of household and other (including commercial) but slid in motor.    

Commenting on the numbers, Ageas UK chief executive Ant Middle said: “These strong results support our strategy to invest in our stand-out capabilities. Our focus on doubling down on our heartland of personal lines is starting to gather momentum with important new broker distribution agreements, alongside the continuous improvement of our technical engine room, fuelling our competitive position.

“Looking ahead, there is a pressing need to recognise the market-wide pressures and uncertainty in the motor market. We have retained our underwriting discipline in what has been a unique and challenging trading environment. We will continue with this diligent approach as we manage inflation and an unprecedented range of other factors for the remainder of 2021 and in our preparations for 2022.”