Brussels-headquartered multinational insurer Ageas has reported a total net operating result of the Reinsurance segment of €66 million for the first half of 2023, a significant increase compared to last year mainly due to benign weather.
Last year’s reinsurance segment’s result was significantly impacted by adverse weather in Belgium and the UK, the insurer noted.
The combined ratio of the Protection business improved to 71.4%, compared to 94.9% in the first half of 2022.
Reinsurance protection inflows increased due to new non- proportional external premiums related to the third-party reinsurance business via Ageas Re.
The company’s group inflows were up 6% as they rose to €9.3 billion due to increases in both its Life and Non-Life businesses.
Growth in Life inflows was primarily driven by new business sales in China, ahead of a regulatory pricing rate change. In Belgium and Portugal customer appetite for Life insurance products was impacted by the higher interest rates and volatile financial markets.
Non-Life inflows increased in the mature markets of Belgium and Europe as well as in the Asian partnerships, driven by portfolio growth and tariff increases in response to increased inflation.
At the same time, Ageas’ life inflows increased by 4%, supported by strong growth in Asia. While, Non-Life inflows were up 11 % and stood at €3.0 billion, increasing significantly across all segments.
In addition, Combined ratio stood at 93.3%, driven by a strong claims experience across all product lines and an improved expense ratio.
Ageas’ Group Solvency II ratio improved, reaching 220%, well within the Group’s risk appetite.
“We delivered a strong first half, with a solid commercial performance in Life in China and in Non-Life across all segments. All operating entities showed resilience under continued turbulence in the financial markets in Europe and China,” Hans De Cuyper, CEO Ageas, said.
“Thanks to our strong business performance and Operational Capital Generation, we are confident we will reach a Net Operating Result between EUR 1.1 and 1.2 billion for 2023,” Cuyper added.
“The Ageas Board has decided to pay out an interim gross cash dividend of EUR 1.5 per share and we intend to repeat this on an annual basis going forward.”
