Ageas posts strong half year results
Significant improvement in insurance results across all segments
- Insurance net profit of EUR 303 million, compared to EUR 111 million1
- Life net profit at EUR 205 million (vs. EUR 52 million, HY 2011 results, impacted by net impairment charges on Greek bonds)
- Non-Life net profit at EUR 90 million (vs. EUR 48 million)
- Group combined ratio at 98.3% vs.100.1% driven by an outstanding second quarter with a Group combined ratio at 94.7%
- Group inflows at EUR 10.8 billion, up 20%, higher inflows in all segments
- Life inflows at EUR 7.8 billion, +20%
- Non-Life inflows at EUR 3.0 billion, +22%
- Life Funds under management of consolidated entities at EUR 65.8 billion, scope-on-scope up 2% vs. end of 2011
- Increasing corporate bonds investments and entering the corporate loans market
Group net profit of EUR 305 million, compared to a net loss of EUR 59 million
- General Account net profit of EUR 2 million (vs. a net loss of EUR 170 million)
- Substantial progress in solving legacy issues including the positive impact related to the agreement with ABN AMRO and the Dutch State
Shareholders' equity up and solvency remains strong
- Shareholders' equity at EUR 8.8 billion, EUR 3.69 per share, + 14% vs. end of 2011
- Insurance solvency at 211%; Group solvency ratio at 248%; net cash position of EUR 1.5 billion
- Share buy-back programme announced of up to EUR 200 million
CEO Bart De Smet said:
"We are pleased with our half year results, showing that we are delivering on our strategy. Our insurance activities performed strongly with increased inflow levels and a higher net profit across all segments, continuing the positive momentum of the first quarter. The strong overall combined ratio of 98.3% for the first half and especially the excellent second quarter underline the positive results of the various corrective measures taken. In Life, results came in much higher than last year when results were heavily impacted by the Southern European debt crisis.
By reaching agreements with ABN AMRO and the Dutch State on outstanding legal proceedings and with BNP Paribas on the RPN(I) and the Tier 1 Instrument, we have made substantial progress in solving our legacy issues. This, alongside the recent Shareholders' approval for the simplification of our legal structure, allows us to focus even more on the development of our insurance activities. In light of this recent settlement and taking into account our strong liquidity and solvency position, we believe it is an opportune moment to implement a share buy-back.
Based on our performance in the first half year, we are confident in re-confirming our expected outlook for the inflow levels of 2012 to exceed 2011."
1 All Half Year 2012 data are compared to the first Half Year of 2011 unless otherwise stated.
