Ageas reports first quarter 2020 results
Ageas reports first quarter 2020 results
- First quarter Group net result strongly supported by exceptional non-cash one-off
- Overall solid underlying operational performance mitigating lower investment result due to Covid-19 pandemic
- Strong solvency and cash position
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| Net Result | - Insurance net result of EUR 113 million versus EUR 258 million. The solid underlying operational performance was partly offset by impairments on the equity portfolio in Belgium and Asia
- Life net result of EUR 89 million influenced by Covid-19 related turmoil on the financial markets in Belgium and Asia
- Net result in Non-Life down from EUR 35 million to EUR 24 million due to February storms in Belgium and the UK despite the strong performance in most business lines across all segments
- First quarter Group net result stood at EUR 452 million versus EUR 251 million benefiting from the result of the tender on the FRESH securities at the end of 2019
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| Inflows | - Group inflows (at 100%) of EUR 12 billion, down 7%
- Life inflows (at 100%) decreased 9% to EUR 10 billion due to lower new sales in Asia, the gradual transition to new products in Portugal, and the lower Unit-Linked sales compared to last year in Belgium
- Non-Life inflows (at 100%) up 10% at EUR 1.9 billion supported by all regions
- The first quarter Group inflows (Ageas’s part) decrease by 8% to EUR 4.6 billion
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Operating
Performance | - Combined ratio at 99.7% versus 98.3%, including an 8% impact from adverse weather
- Operating Margin Guaranteed at 56 bps versus 88 bps, with 37 bps impact from lower net capital gains
- Operating Margin Unit-Linked at 28 bps versus 18 bps
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| Balance Sheet | - Shareholders’ equity at EUR 10.8 billion or EUR 57.75 per share
- Group Solvency IIageas ratio at 196% including the negative impact of the tender on the FRESH securities.
- General Account Total Liquid Assets at EUR 1.6 billion, of which EUR 0.4 billion is ring-fenced for the Fortis settlement
- Life Technical Liabilities excluding shadow accounting of the consolidated entities at 31 March 2020 decreased by 3% to EUR 75,5 billion
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A complete overview of the figures can be viewed on the .
Key figures and main highlights on the segments can be found in the Annexes of this press release
Ageas CEO Bart De Smet said: «The Covid-19 pandemic has been impacting society in ways that we have never seen before. In these turbulent times and under sometimes difficult circumstances our employees across the business made sure that our customers could continue to benefit from the service levels they expect from us. Thanks to our specific and diversified business portfolio focused on insurance for individuals and smaller businesses, the direct impact on our commercial activities and claims remained limited. Our prudent investment strategy means that we have also been able to maintain a robust solvency position. Given that a return to normal is unlikely to happen quickly, the impact of the pandemic on the economy and the financial markets will most likely continue to affect Ageas’s performance and results throughout the year. As a consequence of these external uncertainties, Ageas cannot confirm its profit guidance for 2020.»
