Ageas has released its Q3 2022 results, saying that it saw a ‘strong impact’ from UK and Turkish inflation, along with adverse financial markets in China.
The firm had said, while commenting on the first half year 2022 performance in August, that it was confirming its guidance of €1bn for the full year 2022 result excluding the impact from RPN(i) and under the reserve of the impact of extreme negative developments in the financial markets. However, it said that since that time, inflation has further developed and equity markets in China have been particularly volatile. The impact of these developments could not be compensated for by the solid underlying performance.
Ageas wrote in a statement: “The impact on the Group’s net result through negative net capital gains including IFRS1 impairments in Asia, and the high inflation in the UK and Türkiye amounts to €175m over the third quarter 2022. Based on the strength of the balance sheet and the Group’s solid net cash position, Ageas maintains its dividend outlook for the year of a DPS2 growth of 9%, including an €1.50 interim dividend to be paid later this week.”
These results come only a few weeks after the firm said it intended to underwrite reinsurance in open market.
In September, the firm said it Ageas hopes to further increase its benefits from diversification.
In recent years, the company’s reinsurance business has grown from an internal activity to a significant segment of the group with a top line of €1.6bn and net profit of €87m in 2021, with Ageas also holding a 25% stake in Taiping Re as of 2020.
Under Ageas’s Impact24 strategic plan, reinsurance has been identified as a key engine for future growth, and the firm currently sees favourable market conditions in terms of pricing and a high dynamic in the reinsurance market, which it says should help it in establishing new client relationships.
The main underwriting focus, in this initial stage, will be P&C reinsurance in EMEA which complements the business the group has in its joint venture with Taiping Re. Ageas will start activities progressively for the upcoming 1st January 2023 renewals.
The reinsurance business will be underwritten at the level of the top holding, ageas SA/NV, a licensed reinsurer since 2018.
