Brussels-headquartered multinational insurer Ageas has reported a 21% increase in its net result for 2019, marking its best ever full-year results.
The 2019 result stood at €979 million versus €809 million in 2018 thanks to good non-life performance in Belgium and Continental Europe, as well as its Asian life business.
This was despite Ageas’ Q4 results falling by 34% from €154 million to €102 million, mainly due to the RPN revaluation over the quarter offsetting the earlier gains, and the lower UK net result.
During the fourth quarter, the non-life net result also decreased from €88 million to €60 million mainly due to challenging UK motor market conditions.
But life performance improved considerably during this same period, with business in Asia and Belgium helping to drive the net result from €45 million to €174 million.
Overall, the Ageas combined ratio was 95.0%, representing a deterioration from the 94.3% recorded in 2018 but still better than the group’s target of 96%.
2019 was a remarkable year for Ageas,” said Ageas CEO Bart De Smet. “We closed the year with the best ever result and an Insurance net results of more than EUR 1 billion, thanks to strong performances in Belgium and Continental Europe supported by an exceptionally high result in Asia. Group inflows were also at an all-time high.”
“Connect21, our new strategic plan took an excellent start achieving all targets but one, where we are closing the gap. Based on these accomplishments, our solid balance sheet and our capacity to generate cash, the Board of Ageas proposes to increase the dividend significantly to EUR 2.65,” De Smet continued.
“Additionally to the strong 2019 performance and supported by our improved rating, we modernised our capital structure with the tender on the Fresh securities and the successful issuance of two new debt instruments.”
Looking ahead, Ageas is confident that it will face only limited exposure to risks such as the coronavirus, but De Smet added that the accompanying economic slowdown and financial market volatility could “influence our Asian commercial activity and results.”
