Morningstar | Ageas' First Half: Good Numbers in Traditionally Good Quarter Two; Shares Overvalued
Ageas reported an insurance net result of EUR 475 million, an increase of 7% on the comparable period of EUR 445 million. The main driver of the improvement in the Group net result to EUR 441 million from EUR 284 million in 2017 was the improvement in the General Account result. We are maintaining our EUR 42.0 fair value estimate and no-moat rating.Inflows at Group level came in at around EUR 20 billion and this was spread across life, EUR 17 billion, and non-life, EUR 3.1 billion. In total, Group inflows were down 2%. Ageas’s part of these inflows amounted to EUR 8 billion.
The combined ratio has deteriorated a bit to 97.8% because of bad weather in Belgium and United Kingdom. And operating margins within the life segment have broadly held stable at 110 basis points and 28 basis points in Guaranteed business and unit-linked business, respectively. Life technical liabilities of consolidated entities came in at EUR 74.1 billion.
Overall, these results look quite good, but we caution that quarter two can be a better period for the business, with quarter three usually a lower posting.
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