AGF: Results for First Half 2001


PARIS, Sept. 19, 2001 (PRIMEZONE) -- AGF (Paris Stock Exchange: AGF):


 --  The net income before exceptional items and goodwill of insurance
     companies and banks stood at 544 mn euros, a 24.8% rise from
     one-half of results for 2000.

 --  Capital gains accounted for 54% of total net income before
     exceptional items and goodwill, compared with 84% for first half
     2000.

 --  Exceptional results: -12 mn euros , vs. +90 mn at 30.06.00

 --  Consolidated net income: 419 mn euros

 --  Earnings per share: 2.5 euros

 --  Annualised profitability of allocated capital : 13.3%, vs. 13.6%
     at year-end 2000

     -    Good insurance profitability again in France (13.1%), as
          domestic non-life improved (7.3%, vs. 6.5% at year-end
          2000),
     -    Impact of Banque AGF development on the profitability of
          Asset Management and Banking (7.1%, vs. 14.6% at year-end
          2000),
     -    International business improved (15.5%, vs. 14.5% at
          year-end 2000)

 --  ROE (annualised): 14.3%

Note on the events of Sept. 11, 2001:

AGF Chairman, Mr. Jean-Philippe Thierry, made the following statement at the Rendez-vous de Septembre reinsurance convention held in Monte-Carlo on 12 September 2001:

On behalf of all insurers and reinsurers, I wish to express our immense sadness and compassion for all victims of the barbarous acts committed in the United States; our thoughts are with them, their families and friends.

As insurers and reinsurers, we manage uncertainty and risk. Our business is to face them head on. However, we are ill-equipped when confronted with deliberate and intentional acts, and the killing and mass destruction of people and property. Pre-meditated violence is radically foreign to our world. These were acts of war in times of peace.

Because AGF insures neither property nor individuals in the United States and no longer has a reinsurance business, the direct impact of the events of September 11 is relatively limited; the pre-tax cost after reinsurance in now estimated between 30 and 35 mn euros distributed as follows:

- AGF MAT: 22-27 mn euros (after reinsurance and reconstitution premiums)

- Mondial Assistance: 7 mn euros (for AGF 50% share)

- Group insurance: 1 mn euros

Lastly, in terms of today' equity markets, AGF still has a significant volume of unrealised capital gains globally.


 KEY FIGURES
 (in millions of euros)

                          30.06.01    1/2 2000      Ch.      30.06.00
                                                  30.06.01/
                                                  1/2 2000

 Premium income
  from insurance           8 051                               7 742

 Income before
  exceptional items
  of insurance companies
  and banks                  544         436       +24.8%       639

 Consolidated net income     419         422        -0.7%       672
 
 Normalised net income       463         449                    461
 
 Net earnings per
  share (euros)             2.50        2.51        -0.4%      3.91

 Net asset value/share
  (euros)                   47.0                               50.1

 Annualised profitability
  of allocated
  capital                   13.3%                             14.6%

At the end of the 1st half of 2001, AGF still had a strong level of profitability in a difficult financial market. The change in income for the period from first half 2000 was much affected by capital gains.

Consolidated net income, group share, stood at 419 mn euros, unchanged from half of net income for 2000 (422 mn euros). Net earnings per share (EPS), based on 167,743,282 shares outstanding at 30.06.01, excluding 16,856,702 treasury shares, amounted to 2.50 euros (5.02 euros at 31.12.00).

Annualised ROE was 14.3%, compared with 15.6% at year-end 2000, and the profitability of allocated capital, at 13.3%, compared with13.6%.

The entire AGF earnings release, as well as downloadable tables, can be found at the following:

http://www.prline.com/affiche.asp?Doc_id=120710



            

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