Earnings Release • Aug 8, 2018
Earnings Release
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Regulated information Brussels, 8 August 2018 - 7:30 (CET)
Major milestones reached Operational performance on track
| 6M 2018 | |
|---|---|
| Net Result | Insurance net result up 7% to EUR 475 million versus EUR 445 million General Account net result of EUR 34 million negative versus EUR 161 million negative Group net result at EUR 441 million versus EUR 284 million |
| Inflows | Group inflows (at 100%) at EUR 20.1 billion, or -2% (including 3% negative foreign exchange impact) thanks to a strong second quarter in Belgium and Asia Group inflows (Ageas's part) at EUR 8 billion, or -2% (including 2% negative foreign exchange impact) Life inflows down 1% to EUR 17.0 billion and Non-Life down 4% at EUR 3.1 billion following the sale of Cargeas (both at 100%) |
| Operating Performance |
Combined ratio at 97.8% versus 95.9% despite bad weather in Belgium and the UK Operating Margin Guaranteed at 110 bps versus 114 bps Operating Margin Unit-Linked at 28 bps versus 25 bps Life Technical Liabilities of the consolidated entities stable at EUR 74.1 billion |
| Balance Sheet | Shareholders' equity at EUR 9.3 billion or EUR 47.29 per share Insurance Solvency II ageas ratio at 202% and Group Solvency IIageas ratio at 211% General Account Total Liquid Assets at EUR 1.8 billion |
| Belgium | Life inflows returning to growth and Non-Life outperforming the market. Strong net results affected by adverse weather |
| UK | Continued improved performance |
| Continental Europe |
Strong scope-on scope Non-Life performance. Decrease in Life inflows |
| Asia | Second quarter marked by recovery of inflow growth and equity markets impacting results |
All 6M 2018 figures are compared to the 6M 2017 figures unless otherwise stated.
Ageas CEO Bart De Smet said: "Over the past six months we have achieved major milestones that will shape the future of Ageas. The Fortis settlement has been declared binding, the put option granted to BNP Fortis Bank expired, and the Group received authorisation from the regulator to operate reinsurance activities. As for the business, we witnessed a commercial turnaround in Asia in particular in China, a return to growth in Life inflows and an outperformance of the market in Non-Life in Belgium, the integration of Portugal on schedule, and a good recovery in the UK. The solid Non-Life operating performance across all businesses and a very strong Life result allowed us to deliver a strong insurance net result. The Group's solid financial position and our confidence in our capital generating capacity, led to the decision by the Ageas Board of Directors to continue the buy-back of shares through a new programme of EUR 200 million."
| Key figures Ageas | |||||||
|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 |
| Gross inflows (incl. non-consolidated partnerships at 100%) | 20,128.7 | 20,465.6 | ( 2 %) | 8,276.0 | 7,793.0 | 6 % | 11,852.7 |
| - of which inflows from non-consolidated partnerships | 15,057.4 | 15,277.4 | ( 1 %) | 5,722.5 | 5,237.3 | 9 % | 9,334.9 |
| Gross inflows Ageas's part | 8,029.3 | 8,170.0 | ( 2 %) | 3,577.5 | 3,463.3 | 3 % | 4,451.8 |
| Net result Insurance attributable to shareholders | 475.4 | 444.7 | 7 % | 176.0 | 222.4 | ( 21 %) | 299.4 |
| By segment: | |||||||
| - Belgium | 219.8 | 259.0 | ( 15 %) | 83.4 | 117.4 | ( 29 %) | 136.4 |
| - UK | 30.5 | 11.2 | * | 19.8 | 10.7 | 85 % | 10.7 |
| - Continental Europe | 53.0 | 58.3 | ( 9 %) | 26.3 | 29.9 | ( 12 %) | 26.7 |
| - Asia | 170.0 | 113.1 | 50 % | 46.2 | 61.6 | ( 25 %) | 123.8 |
| - Reinsurance | 2.1 | 3.1 | ( 32 %) | 0.3 | 2.8 | ( 89 %) | 1.8 |
| By type: | |||||||
| - Life | 373.3 | 312.0 | 20 % | 121.4 | 144.1 | ( 16 %) | 251.9 |
| - Non-Life | 102.1 | 132.7 | ( 23 %) | 54.6 | 78.3 | ( 30 %) | 47.5 |
| Net result General Account attributable to shareholders | ( 34.1 ) | ( 161.0 ) | 79 % | 17.6 | ( 48.9 ) | * | ( 51.7 ) |
| Net result Ageas attributable to shareholders | 441.2 | 283.6 | 56 % | 193.5 | 173.4 | 12 % | 247.7 |
| Life Technical Liabilities (in EUR bn) | 74.1 | 74.2 | ( 0 %) | 74.1 | 74.2 | ( 0 %) | 74.3 |
| Life Operating Margin Guaranteed | 1.10% | 1.14% | 0.83% | 1.03% | 1.37% | ||
| Life Operating Margin Unit-Linked | 0.28% | 0.25% | 0.24% | 0.18% | 0.32% | ||
| Combined ratio | 97.8% | 95.9% | 96.7% | 93.6% | 98.8% | ||
| Total Insurance solvency II ageas ratio | 202.3% | 192.7% | 196.0% | ||||
| Total Group solvency II ageas ratio | 210.7% | 197.8% | 194.7% | ||||
| Weighted average number of ordinary shares (in million) | 198.0 | 203.3 | ( 3 %) | 198.0 | 203.3 | ( 3 %) | 198.5 |
| Earnings per share (in EUR) | 2.23 | 1.40 | 60 % | 1.25 | |||
| Shareholders' equity | 9,310 | 8,974 | 4 % | 9,310 | 8,974 | 4 % | 9,877 |
| Net equity per share (in EUR) | 47.29 | 44.53 | 6 % | 47.29 | 44.53 | 6 % | 49.91 |
| Net equity per share (in EUR) excluding unrealised gains & losses | 33.18 | 32.42 | 2 % | 33.18 | 32.42 | 2 % | 35.93 |
| Return on Equity - Insurance (excluding unrealised gains & losses) | 14.3% | 13.9% |
PRESS RELEASE 8 August 2018 6 month 2018 results
Koen Devos +32 (0)2 557 57 35 - [email protected] Veerle Verbessem +32 (0)2 557 57 32 - [email protected] Arnaud Nicolas +32 (0)2 557 57 34 - [email protected]
Analyst & Investor conference call: 8 August 2018 - 09:30 CET (08:30 UK Time) Audiocast: www.ageas.com Listen only (access number 39771304#) +44 2 071 943 759 (UK) +32 2 403 58 16 (Belgium) +1 646 722 4916 (USA)
+44 2 033 645 147 (UK) +32 2 403 72 61 (Belgium) +1 646 722 4969 (USA) Available until 8 September 2018
PRESS
Eva Mertens
+32 (0)2 557 57 83 – [email protected]
| Executive summary 3 | |
|---|---|
| Details per product 4 | |
| Details by business segment 6 Belgium United Kingdom Continental Europe Asia Reinsurance (Intreas) General Account |
6 8 10 12 14 15 |
| Solvency position and investment portfolio17 | |
| Lexicon on financial disclosure 18 | |
| Annexes19 | |
| Annex 1 : Consolidated Statement of financial position as at 30 June 2018 19 | |
| Annex 2 : Income Statement 20 | |
| Annex 3 : Inflows per region at 100% and at Ageas's part 21 | |
| Annex 4 : Solvency by region 23 | |
| Annex 5 : Statement of financial position split into Life, Non-Life 24 | |
| Annex 6 : Margins Life (%) 24 | |
| Annex 7 : Margins Non-Life (%) 25 | |
| Disclaimer25 |
The first 6 month inflows remained strong. The Insurance net result grew 7%, still benefitting from an exceptionally high Life result in the first quarter, partially offset by equity impairments in Asia in the second quarter. Non-Life operating results were solid across all segments although affected by weather events in Belgium and the UK. Solvency levels at Group and Insurance level remained strong and above target. The beginning of the summer was marked by two major events; BNP Paribas Fortis decided not to exercise the put option it holds on the 25%+ 1 share stake in Ageas's Belgian subsidiary AG Insurance and the Fortis Settlement was declared binding.
Total inflows increased 1% at constant exchange rate as strong inflow growth in Belgium was offset by lower inflows in the UK, reflecting robust pricing and underwriting discipline in a soft market. In Belgium Life inflows returned to growth, reversing the trend witnessed in previous quarters, and Non-Life outperformed the market. Inflows of the Asian non-consolidated partnerships returned to growth at constant exchange rate in the second quarter. Scope-on-scope, and at constant exchange rate, inflows in Continental Europe were down 8%.
The first 6 month Insurance net profit amounted to EUR 475 million, compared to EUR 445 million last year with substantially lower net capital gains in Belgium and the UK and equity impairments in Asia in the second quarter. The significantly higher contribution from China resulted in a Life net profit of EUR 373 million, an increase of 20%. The Non-Life net result stood at EUR 102 million. Although impacted by adverse weather in Belgium and the UK amounting to EUR 62 million, the result decreased by just EUR 31 million year-on-year thanks to a continued strong operating performance. Last year's result included a EUR 31 million negative Ogden impact.
The Group net result in the six months amounted to EUR 441 million with the General Account at EUR 34 million negative. Staff and other operating expenses stood at EUR 39 million (vs. EUR 35 million). The RPN(I) liability reduced to EUR 439 million at the end of June, thus contributing EUR 9 million to the net result.
Total shareholders' equity decreased to EUR 9.3 billion or EUR 47.29 per share at the end of June (vs. EUR 48.30 per share at the end of 2017) mainly related to the expiration of the put option granted to BNP Paribas Fortis and to the execution of the ongoing share buy-back.
The Own Funds of the Group amounted to EUR 8.2 billion, EUR 4.3 billion above SCR. This led to a strong Group Solvency IIageas ratio of 211%, 15pp up compared to year-end 2017 on the back of the expiration of the put option, the increased fungibility of Own Funds related to the license obtained to operate reinsurance activities and the good operational performance of the insurance operations. The Insurance Solvency ratio improved to 202%, with increasing Solvency ratios in all segments.
The operational free capital generation over the first six months amounted to EUR 392 million, including EUR 99 million dividend from the non-European NCP's.
The total liquid assets in the General Account amounted to EUR 1.8 billion up slightly compared to the end of 2017. This increase is mainly explained by a EUR 599 million dividend upstream from the operating companies, more than covering the dividend paid to shareholders and the holding expenses. An amount of EUR 0.9 billion remains ring-fenced for the Fortis settlement.
In the context of the Fortis settlement procedure, the Amsterdam Court of Appeal rendered its judgment on Friday 13 July 2018 and declared it binding to all Eligible shareholders. The notification made on 27 July 2018 initiated the 5 months opt-out period and the 12 months claims file period.
For the other contingent liabilities we refer to the 6M 2018 Interim Financial Statements.
| INCOME STATEMENT | |||||||
|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 |
| Gross Inflows Life (incl non-consolidated partnerships at 100%) |
16,996.9 | 17,199.9 | (1%) | 6,847.2 | 6,278.9 | 9% | 10,149.7 |
| Gross Inflows Life (consolidated entities) | 2,926.7 | 2,894.0 | 1% | 1,574.2 | 1,495.9 | 5% | 1,352.5 |
| Operating result | 328.5 | 336.8 | (2%) | 125.2 | 151.4 | (17%) | 203.3 |
| Non-allocated other income and expenses | 19.0 | 13.0 | 46% | 9.1 | 5.2 | 75% | 9.9 |
| Result before taxation consolidated entities | 347.5 | 349.8 | (1%) | 134.3 | 156.6 | (14%) | 213.2 |
| Result non-consolidated partnerships | 181.3 | 124.0 | 46% | 52.9 | 66.4 | (20%) | 128.4 |
| Income tax expenses | ( 71.0 ) | ( 78.9 ) | (10%) | ( 32.1 ) | ( 43.1 ) | (26%) | ( 38.9 ) |
| Non-controlling interests | ( 84.5 ) | ( 82.9 ) | 2% | ( 33.7 ) | ( 35.8 ) | (6%) | ( 50.8 ) |
| Net result attributable to shareholders | 373.3 | 312.0 | 20% | 121.4 | 144.1 | (16%) | 251.9 |
| XXX | |||||||
| KEY PERFORMANCE INDICATORS BY FAMILY | GUARANTEED | UNIT - LINKED | TOTAL | ||||
| in EUR million | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | |
| Gross Inflows Life (consolidated entities) | 2,074.6 | 1,869.2 | 852.1 | 1,024.8 | 2,926.7 | 2,894.0 | |
| Net underwriting Result | ( 6.9 ) | ( 6.9 ) | 22.9 | 17.7 | 16.0 | 10.8 | |
| Investment Result | 313.1 | 325.0 | ( 0.6 ) | 1.0 | 312.5 | 326.0 | |
| Operating result | 306.2 | 318.1 | 22.3 | 18.7 | 328.5 | 336.8 | |
| Life Technical Liabilities | 58,126.8 | 59,021.1 | 16,016.6 | 15,209.2 | 74,143.4 | 74,230.3 |
Inflows, including non-consolidated partnerships at 100%, were up 1% at constant exchange rates, with strong growth in Belgium and renewed growth in Asia in the second quarter. The discontinuation of single premium product sales in China impacted the inflows in Asia in the first quarter. This was however entirely offset by succesful sales campaigns and a renewed increase in the number of agents in China. Volumes in Belgium were marked by a further increase of Unit-Linked sales (+28%) whereas inflows in Guaranteed products were up 6% following the increase in the guaranteed interest rate in the main individual Life savings product sold by the Bank channel from 0.25% to 0.50%.
Technical Liabilities for the consolidated activities remained stable at EUR 74 billion compared to the end of 2017. Life Technical Liabilities in the non-consolidated partnerships at 100% increased from EUR 78.0 billion at the end of last year to EUR 85.3 billion mainly as a result of high persistency levels in Asia.
The operating result for the consolidated activities was slightly below last year's but remains at a high level, with an operating margin in Guaranteed products of 110 bps. The Unit-Linked margin stood at 27 bps with an increase to 43 bps in Belgium and a decrease to 12 bps in Portugal respectively on the back of higher and lower sales.
The net result increased to EUR 373 million with strong results in all segments and in particular a substantially higher contribution from Asia of EUR 164 million. This high result can mainly be attributed to China where net profit in the first quarter benefitted from a positive evolution of the interest rate, partially offset by equity impairments in the second quarter.
In Belgium, the net result remained at the same high level as last year notwithstanding a lower level of net capital gains.
For Continental Europe, the first quarter result stood at EUR 29 million due to lower underwriting results in Portugal and negative fair value adjustments on the Held For Trading assets in Luxembourg.
| INCOME STATEMENT | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 | |||
| Gross Inflows Non-Life (incl non-consolidated partnerships at | ||||||||||
| 100%) | 3,131.8 | 3,265.7 | (4%) | 1,428.8 | 1,514.1 | (6%) | 1,703.0 | |||
| Gross Inflows Non-Life (consolidated entities) | 2,144.6 | 2,294.2 | (7%) | 979.3 | 1,059.8 | (8%) | 1,165.3 | |||
| Net Earned Premiums | 1,948.6 | 2,069.4 | (6%) | 975.0 | 1,044.6 | (7%) | 973.6 | |||
| Operating result | 125.9 | 194.5 | (35%) | 68.4 | 113.7 | (40%) | 57.5 | |||
| Non-allocated other income and expenses | 7.2 | 6.8 | 5% | 4.0 | 2.5 | 60% | 3.2 | |||
| Result before taxation consolidated entities | 133.1 | 201.3 | (34%) | 72.4 | 116.2 | (38%) | 60.7 | |||
| Result non-consolidated partnerships | 17.1 | 25.8 | (34%) | 8.5 | 15.3 | (44%) | 8.6 | |||
| Income tax expenses | ( 32.2 ) | ( 59.0 ) | (45%) | ( 17.4 ) | ( 33.9 ) | (49%) | ( 14.8 ) | |||
| Non-controlling interests | ( 15.9 ) | ( 35.4 ) | (55%) | ( 8.9 ) | ( 19.3 ) | (54%) | ( 7.0 ) | |||
| Net result attributable to shareholders | 102.1 | 132.7 | (23%) | 54.6 | 78.3 | (30%) | 47.5 | |||
| XXX | ||||||||||
| KEY PERFORMANCE INDICATORS BY FAMILY | ACCIDENT & HEALTH | MOTOR | HOUSEHOLD | OTHER LINES | TOTAL | |||||
| in EUR million | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 |
| Gross Inflows Non-Life (consolidated entities) | 491.0 | 493.1 | 891.0 | 984.7 | 556.2 | 587.9 | 206.4 | 228.5 | 2,144.6 | 2,294.2 |
| Net Earned Premiums | 425.1 | 436.8 | 818.9 | 890.1 | 515.6 | 534.4 | 189.0 | 208.1 | 1,948.6 | 2,069.4 |
| Net Underwriting result | 3.8 | 19.3 | 62.5 | 14.9 | ( 36.4 ) | 54.1 | 13.8 | ( 4.4 ) | 43.7 | 83.9 |
| Combined Ratio | 99.1% | 95.6% | 92.4% | 98.3% | 107.1% | 89.9% | 92.7% | 102.2% | 97.8% | 95.9% |
| of which Prior Year claims ratio | (8.2%) | (5.9%) | ||||||||
| Investment Result | 15.7 | 19.6 | 41.1 | 56.2 | 11.5 | 14.5 | 15.9 | 21.0 | 84.2 | 111.3 |
| Other Result | ( 0.2 ) | 1.5 | ( 0.7 ) | ( 2.2 ) | ( 1.0 ) | ( 0.2 ) | ( 0.1 ) | 0.2 | ( 2.0 ) | ( 0.7 ) |
| Operating Result | 19.3 | 40.4 | 102.9 | 68.9 | ( 25.9 ) | 68.4 | 29.6 | 16.8 | 125.9 | 194.5 |
| Reserves Ratio (in %) as reported | 280% | 289% | 207% | 205% | 84% | 80% | 286% | 297% | 198% | 200% |
| Reserves Ratio (in %) excl. Cargeas | 280% | 292% | 207% | 202% | 84% | 78% | 286% | 285% | 198% | 195% |
Gross inflows at constant exchange rates remained flat. In Belgium inflows were up 4% with growth across all product lines. In the UK, inflows came down significantly as a result of the focus on profit over volume. The UK Motor market remains very much disrupted by the continued uncertainty around a potential future change in the Ogden discount rate. Inflows in Continental Europe increased 28% scope-onscope at constant exchange rates. The growth in inflows was mainly driven by Turkey (+50% at constant exchange rate) and to a lesser extent by Portugal. Non-Life inflows in Asia remained flat at constant exchange rates.
The Group combined ratio stood at 97.8%. Both in Belgium and the UK, the first six months of this year were marked by poor weather, impacting the Group combined ratio by some 5 pp. The operating performance in Belgium was very strong and excluding the weather impact, the combined ratio would have been at an excellent 93.1%. In the UK, part of the negative impact from the weather was compensated for by a higher positive prior year run-off. Excluding the weather impact the UK combined ratio stood at 93.5%. The combined ratio in Continental Europe, reflecting as of now only the performance of Portugal, remained strong at 91.6%.
The prior year claims ratio increased from 5.9% to 8.2%, marked by high releases in the UK partly offset by lower releases in both Belgium and Continental Europe.
The non-consolidated partnerships reported a combined ratio of 97.6% (vs.93.8%) in Tesco Underwriting (UK), 97.6% (vs. 94.2%) in Turkey (Continental Europe) and 89.9% (vs. 87.0%) in Asia.
The net result of the Non-Life activities remained strong at EUR 102 million despite the negative impact of EUR 62 million related to the adverse weather in Belgium and the UK. Last year's result included EUR 7 million contribution from Cargeas and a EUR 31 million negative impact related to Ogden. The underlying improvement in net result stems from all operating segments.
The internal Non-Life reinsurer Intreas reinsured EUR 29 million of premiums from operating companies within the Group and contributed EUR 2 million (vs. EUR 3 million) to the Non-Life net result.
Net profit EUR 220 million vs. EUR 259 million (-15%). Good net result despite impact of adverse weather events. Gross inflows EUR 3.2 billion vs. EUR 2.9 billion (+9%). Strong growth in both Life and Non-Life. Combined ratio 98.8 % vs. 90.3%. Excluding the weather events, the Combined Ratio stood at 93.1%.
| INCOME STATEMENT | |||||||
|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 |
| Gross Inflows Life | 2,109.7 | 1,891.1 | 12% | 1,196.0 | 1,018.4 | 17% | 913.7 |
| Operating result | 275.3 | 276.7 | (1%) | 96.4 | 119.6 | (19%) | 178.9 |
| Non-allocated other income and expenses | 33.0 | 34.0 | (3%) | 16.7 | 17.7 | (6%) | 16.3 |
| Result before taxation consolidated entities | 308.3 | 310.7 | (1%) | 113.1 | 137.3 | (18%) | 195.2 |
| Income tax expenses | ( 58.3 ) | ( 62.7 ) | (7%) | ( 24.9 ) | ( 34.2 ) | (27%) | ( 33.4 ) |
| Non-controlling interests | ( 69.1 ) | ( 68.3 ) | 1% | ( 26.0 ) | ( 29.4 ) | (12%) | ( 43.1 ) |
| Net result attributable to shareholders | 180.9 | 179.7 | 1% | 62.2 | 73.7 | (16%) | 118.7 |
| KEY PERFORMANCE INDICATORS BY FAMILY | GUARANTEED UNIT - LINKED |
TOTAL | ||||
|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 |
| Gross Inflows Life (consolidated entities) | 1,541.3 | 1,448.8 | 568.4 | 442.3 | 2,109.7 | 1,891.1 |
| Net underwriting Result | ( 15.9 ) | ( 21.7 ) | 17.6 | 11.2 | 1.7 | ( 10.5 ) |
| Investment Result | 273.6 | 287.2 | 273.6 | 287.2 | ||
| Operating result | 257.7 | 265.5 | 17.6 | 11.2 | 275.3 | 276.7 |
| Life Technical Liabilities | 49,567.4 | 50,699.0 | 8,364.7 | 7,672.0 | 57,932.1 | 58,371.0 |
Gross inflows were significantly up compared to last year (+12%). With a 28% increase, the Unit-Linked inflows grew considerably year on year driven by a successful sales campaign. The inflows in Guaranteed products grew by more than 6% compared to last year. The trend of the previous quarters was reversed in the bank channel, where the guaranteed interest rate was increased from 0.25% to 0.50%, and in the broker channel where AG Insurance benefitted from its strong leadership position.
The Life Technical Liabilities remained stable at EUR 58 billion compared to the end of 2017.
The operating result remained in line with last year, marked by a better underwriting performance and supported by a high investment result. The strong operating margin on Guaranteed products of 108 bps (vs. 110 bps), reflects the seasonal impact of the capital gains and high first quarter financial revenues on Real Estate. Similar to last year, the annualized impact of the capital gains is expected to level out over the remainder of the year. The Operating margin on Unit-Linked increased from 30 bps last year to 43 bps, supported by higher inflows.
The net result remained stable at EUR 181 million.
| INCOME STATEMENT | |||||||
|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 |
| Gross Inflows Non-Life | 1,078.7 | 1,032.5 | 4% | 449.9 | 437.6 | 3% | 628.8 |
| Net Earned Premium | 958.0 | 920.8 | 4% | 479.7 | 464.7 | 3% | 478.3 |
| Operating result | 64.5 | 146.1 | (56%) | 35.2 | 81.7 | (57%) | 29.3 |
| Non-allocated other income and expenses | 9.4 | 8.1 | 16% | 5.0 | 4.2 | 19% | 4.4 |
| Result before taxation consolidated entities | 73.9 | 154.2 | (52%) | 40.2 | 85.9 | (53%) | 33.7 |
| Income tax expenses | ( 19.1 ) | ( 46.5 ) | (59%) | ( 10.1 ) | ( 26.5 ) | (62%) | ( 9.0 ) |
| Non-controlling interests | ( 15.9 ) | ( 28.4 ) | (44%) | ( 8.9 ) | ( 15.7 ) | (43%) | ( 7.0 ) |
| Net result attributable to shareholders | 38.9 | 79.3 | (51%) | 21.2 | 43.7 | (51%) | 17.7 |
| KEY PERFORMANCE INDICATORS BY FAMILY | ACCIDENT & HEALTH | MOTOR | HOUSEHOLD | OTHER LINES | TOTAL | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 |
| Gross Inflows Non-Life (consolidated entities) | 295.2 | 270.8 | 325.3 | 314.0 | 346.8 | 339.3 | 111.4 | 108.4 | 1,078.7 | 1,032.5 |
| Net Earned Premiums | 254.6 | 239.2 | 293.5 | 285.4 | 306.7 | 300.3 | 103.2 | 95.9 | 958.0 | 920.8 |
| Net Underwriting result | ( 13.2 ) | 0.7 | 22.8 | 45.8 | ( 18.2 ) | 41.0 | 19.8 | 1.5 | 11.2 | 89.0 |
| Combined Ratio | 105.2% | 99.7% | 92.2% | 84.0% | 105.9% | 86.3% | 80.8% | 98.4% | 98.8% | 90.3% |
| of which Prior Year claims ratio | (9.1%) | (11.3%) | ||||||||
| Investment Result | 14.1 | 16.3 | 20.1 | 20.5 | 7.8 | 8.1 | 11.3 | 12.2 | 53.3 | 57.1 |
| Other Result | ||||||||||
| Operating Result | 0.9 | 17.0 | 42.9 | 66.3 | ( 10.4 ) | 49.1 | 31.1 | 13.7 | 64.5 | 146.1 |
| Reserves Ratio (in %) | 377% | 390% | 188% | 182% | 75% | 70% | 303% | 326% | 214% | 215% |
| Non-Life Technical Liabilities | 1,920.8 | 1,864.1 | 1,102.5 | 1,039.5 | 460.6 | 423.2 | 625.3 | 625.0 | 4,109.2 | 3,951.8 |
Gross inflows grew across all business lines (+4.0%), and were marked by a 4% increase in Motor and a +9% increase in Accident & Health which is mainly thanks to a new important public sector Heath care plan with over 100,000 insured.
The operating result decreased from EUR 146 million to EUR 65 million due to the adverse weather (-EUR 55 million) and the exceptionally strong operating result in Motor last year.
The combined ratio stood at 98.8% versus 90.3%. The change is mainly explained by adverse weather events in the first and the second quarter, primarily affecting Household. The combined ratio of Accident & Health deteriorated due to lower prior year releases.
The net result decreased from EUR 79 million last year to EUR 39 million this year because of the storms of January and May/June (impact of EUR 29 million after tax of which EUR 11 million in the second quarter) and the lower operating result in Motor.
| Net profit of EUR 31 million | vs. a profit of EUR 11 million |
|---|---|
| Gross inflows EUR 921 million | vs. EUR 1.1 billion - reflects focus on pricing and underwriting discipline in a softening motor market |
| Combined ratio 99% | vs. 105.7% - a return to pre-Ogden levels |
| INCOME STATEMENT | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 | |||
| Gross Inflows Non-Life (incl non-consolidated partnerships at 100%) | 920.8 | 1,067.9 | (14%) | 475.6 | 545.0 | (13%) | 445.2 | |||
| Gross Inflows Non-Life (consolidated entities) | 722.0 | 830.9 | (13%) | 369.9 | 419.1 | (12%) | 352.1 | |||
| Net Earned Premium | 683.7 | 762.7 | (10%) | 339.7 | 382.0 | (11%) | 344.0 | |||
| Operating result | 33.0 | 3.7 | * | 21.4 | 9.1 | * | 11.6 | |||
| Non-allocated other income and expenses | ( 0.7 ) | * | ( 0.4 ) | ( 1.9 ) | (79%) | ( 0.3 ) | ||||
| Result before taxation consolidated entities | 32.3 | 3.7 | * | 21.0 | 7.2 | * | 11.3 | |||
| Result non-consolidated partnerships | 4.5 | 7.8 | (42%) | 2.9 | 4.7 | (38%) | 1.6 | |||
| Income tax expenses | ( 6.3 ) | ( 0.3 ) | * | ( 4.1 ) | ( 1.2 ) | * | ( 2.2 ) | |||
| Non-controlling interests | ||||||||||
| Net result attributable to shareholders | 30.5 | 11.2 | * | 19.8 | 10.7 | 85% | 10.7 | |||
| XXX | ||||||||||
| KEY PERFORMANCE INDICATORS BY FAMILY | ACCIDENT & HEALTH | MOTOR | HOUSEHOLD | OTHER LINES | TOTAL | |||||
| in EUR million | HY 18 | HY 17 HY 18 |
HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | |
| Gross Inflows Non-Life (consolidated entities) | 18.4 | 17.9 461.0 |
536.4 | 159.6 | 183.0 | 83.0 | 93.6 | 722.0 | 830.9 | |
| Net Earned Premiums | 15.0 | 14.9 430.1 |
480.2 | 159.9 | 175.9 | 78.7 | 91.7 | 683.7 | 762.7 | |
| Net Underwriting result | ( 1.3 ) | ( 0.7 ) 40.3 |
( 29.5 ) | ( 25.7 ) | 0.6 | ( 6.7 ) | ( 13.5 ) | 6.6 | ( 43.1 ) | |
| Combined Ratio | 108.5% | 104.6% | 90.6% | 106.1% | 116.1% | 99.7% | 108.6% | 114.8% | 99.0% | 105.7% |
| of which Prior Year claims ratio | (9.1%) | 0.9% | ||||||||
| Investment Result | 0.2 | 0.4 19.2 |
33.5 | 3.1 | 5.7 | 3.9 | 7.2 | 26.4 | 46.8 |
Other Result Operating Result ( 1.1 ) ( 0.3 ) 59.5 4.0 ( 22.6 ) 6.3 ( 2.8 ) ( 6.3 ) 33.0 3.7 Reserves Ratio (in %) 63% 62% 234% 224% 94% 83% 252% 231% 200% 189% Non-Life Technical Liabilities 18.8 18.6 2,016.4 2,147.5 300.0 293.4 397.2 423.6 2,732.4 2,883.1
Gross Inflows, including Tesco Underwriting Ltd, decreased to EUR 920 million (vs. EUR 1.1 billion). This reduction reflects the continuation of our robust approach to pricing and underwriting discipline in a softening market environment.
Motor inflows reduced to EUR 461 million (vs. EUR 536 million). The personal lines Motor market continues to be very soft with average premiums reducing and, to a certain extent, disrupted by the continued uncertainty around the timing and quantum of any future change to the Ogden discount rate. This has resulted in lower than expected volumes.
Household inflows fell back to EUR 160 million (vs. EUR 183 million) continuing to reflect our exit from underperforming schemes. Inflows in Other lines stood at EUR 83 million (vs. EUR 94 million). Encouraging progress is being made in specific targeted SME segments.
Inflows for Tesco Underwriting reduced to EUR 199 million (vs. EUR 237 million) due to the market challenges alluded to above.
The combined ratio improved to 99.0% (vs. 105.7%), driven by an exceptionally strong Motor performance, somewhat offset by the impact of weather events in household.
The Motor book is performing exceptionally well, continuing the trend from the first quarter: a strong loss ratio, robust current year performance and positive prior year development as a result of fewer large losses resulted in a combined ratio of 90.6% (vs. 106.1%).
The combined ratio for Household was affected by the poor weather in March and May. Together, this had a negative impact of 20.3% on the Household combined ratio at 116.1% (vs 99.7%). Should no further major weather events occur this year, the ratio will approach more normal levels.
The combined ratio of Tesco Underwriting fell back to 97.6% (vs. 93.8%), reflecting the weather events.
The UK consolidated net result improved to EUR 31 million compared to EUR 11 million. As was the case for the first quarter, exceptional items such as poor weather, higher prior year development, and Ogden in 2017, will continue to affect the net result and prior year comparison.
The net result of Tesco Underwriting amounted to EUR 5 million (vs. EUR 8 million) reflective of the poor weather in March and May.
Next to the broker and partnership channels, Ageas products in the UK are now also directly available to the customer under the Ageas brand. This is a further part of our already communicated strategy to rebalance our channel mix.
| Net profit EUR 53 million | vs. EUR 58 million, up 3% when excluding Italy's EUR 7 million contribution in 2017, driven by excellent Non-Life performance. |
|---|---|
| Gross inflows EUR 2.7 billion | vs. EUR 3.0 billion down 8% scope-on-scope with solid growth in Non-Life although not compensating for lower inflows in Life. |
| Combined ratio 91.6% | vs. 90.5%. Combined ratio remains at an excellent level. |
| INCOME STATEMENT | |||||||
|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 |
| Gross Inflows Life (incl non-consolidated partnerships at 100%) | 2,003.5 | 2,301.8 | (13%) | 952.3 | 1,301.6 | (27%) | 1,051.2 |
| Gross Inflows Life (consolidated entities) | 817.0 | 1,002.9 | (19%) | 378.2 | 477.5 | (21%) | 438.8 |
| Operating result | 53.2 | 60.1 | (11%) | 28.8 | 31.8 | (9%) | 24.4 |
| Non-allocated other income and expenses | ( 1.1 ) | ( 6.8 ) | (84%) | ( 1.0 ) | ( 5.0 ) | (80%) | ( 0.1 ) |
| Result before taxation consolidated entities | 52.1 | 53.3 | (2%) | 27.8 | 26.8 | 4% | 24.3 |
| Result non-consolidated partnerships | 4.9 | 7.9 | (38%) | 3.2 | 4.1 | (22%) | 1.7 |
| Income tax expenses | ( 12.7 ) | ( 16.2 ) | (22%) | ( 7.2 ) | ( 8.9 ) | (19%) | ( 5.5 ) |
| Non-controlling interests | ( 15.4 ) | ( 14.6 ) | 5% | ( 7.7 ) | ( 6.4 ) | 20% | ( 7.7 ) |
| Net result attributable to shareholders | 28.9 | 30.4 | (5%) | 16.1 | 15.6 | 3% | 12.8 |
| XXX |
| KEY PERFORMANCE INDICATORS BY FAMILY | GUARANTEED | UNIT - LINKED | TOTAL | |||
|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 |
| Gross Inflows Life (consolidated entities) | 533.3 | 420.4 | 283.7 | 582.5 | 817.0 | 1,002.9 |
| Net underwriting Result | 9.0 | 14.8 | 5.3 | 6.5 | 14.3 | 21.3 |
| Investment Result | 39.5 | 37.8 | ( 0.6 ) | 1.0 | 38.9 | 38.8 |
| Operating result | 48.5 | 52.6 | 4.7 | 7.5 | 53.2 | 60.1 |
| Life Technical Liabilities | 8,559.4 | 8,322.1 | 7,651.9 | 7,537.2 | 16,211.3 | 15,859.3 |
Gross inflows including non-consolidated partnerships at 100% reached EUR 2 billion, down 13% compared to last year. This was due to lower Unit-Linked inflows in France and Portugal, and lower sales in Luxembourg resulting from volatility in High Net Worth business. Unit-Linked inflows represented 53% of total Life inflows.
In Portugal, gross inflows reached EUR 646 million or 16% below last year's inflows, as a result of the lower appetite for closed Unit-Linked products due to less attractive yield expectations following lower Portuguese bond yields and new European legislation. The bancassurance channel (Ocidental) was the main contributor with EUR 599 million.The agency channel (Ageas Seguros) accounted for EUR 47 million (vs. EUR 45 million last year).
Gross inflows in France reached EUR 171 million, 2% higher than last year when corrected for the large single premium in 2017. This is mainly related to the continued strong sales in the broker network (+7%). The business mix continues to be oriented towards Unit-Linked products (52%).
Sales in Luxembourg declined 9% and reached EUR 1.2 billion. Sales in the High-Net-Worth business, although increasing at slower pace than in the 1st quarter, were extremely good in France and Italy and represented 78% of inflow. Unit-Linked represented 66% of the total inflows.
Life Technical Liabilities of the consolidated entities remained flat at around EUR 16 billion. The non-consolidated Life Technical Liabilities in Luxembourg increased by 3% from EUR 22.1 billion at year-end 2017 to EUR 22.8 billion. Unit-Linked represented 60% of total reserves.
The operating result decreased by 11% to EUR 53 million, mostly as a result of lower sales in Unit-Linked and a decrease in net underwriting result in the Guaranteed business. As a consequence, the operating margin on Guaranteed products, although still strong, decreased from 133 bps to 121 bps. On Unit-Linked products, the margin stood at 12 bps (vs. 20 bps).
The net profit stood at EUR 29 million compared to EUR 30 million last year due to the lower operating margin in the consolidated companies and the negative impact of the fair value adjustments on assets classified as 'Held For Trading' in Luxembourg.
| INCOME STATEMENT | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 | ||||
| Gross Inflows Non-Life (incl non-consolidated partnerships at | |||||||||||
| 100%) | 682.0 | 714.6 | (5%) | 298.8 | 330.6 | (10%) | 383.2 | ||||
| Gross Inflows Non-Life (consolidated entities) | 343.9 | 430.8 | (20%) | 159.5 | 203.1 | (21%) | 184.4 | ||||
| Net Earned Premium | 291.8 | 375.0 | (22%) | 148.0 | 191.0 | (23%) | 143.8 | ||||
| Operating result | 27.1 | 42.3 | (36%) | 11.9 | 20.4 | (42%) | 15.2 | ||||
| Non-allocated other income and expenses | ( 2.3 ) | ( 2.0 ) | 15% | ( 1.0 ) | ( 0.1 ) | * | ( 1.3 ) | ||||
| Result before taxation consolidated entities | 24.8 | 40.3 | (38%) | 10.9 | 20.3 | (46%) | 13.9 | ||||
| Result non-consolidated partnerships | 6.1 | 6.8 | (10%) | 2.5 | 3.8 | (34%) | 3.6 | ||||
| Income tax expenses | ( 6.8 ) | ( 12.2 ) | (44%) | ( 3.2 ) | ( 6.2 ) | (48%) | ( 3.6 ) | ||||
| Non-controlling interests | ( 7.0 ) | * | ( 3.6 ) | * | |||||||
| Net result attributable to shareholders | 24.1 | 27.9 | (14%) | 10.2 | 14.3 | (29%) | 13.9 | ||||
| XXX | |||||||||||
| KEY PERFORMANCE INDICATORS BY FAMILY | ACCIDENT & HEALTH | MOTOR | HOUSEHOLD | OTHER LINES | TOTAL | ||||||
| in EUR million | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | |
| Gross Inflows Non-Life (consolidated entities) | 177.3 | 204.4 | 104.6 | 134.3 | 50.0 | 65.6 | 12.0 | 26.5 | 343.9 | 430.8 | |
| Net Earned Premiums | 155.2 | 182.7 | 92.7 | 121.4 | 37.3 | 50.8 | 6.6 | 20.1 | 291.8 | 375.0 | |
| Net Underwriting result | 18.0 | 19.3 | ( 0.5 ) | ( 2.8 ) | 7.2 | 11.8 | ( 0.1 ) | 7.3 | 24.6 | 35.6 | |
| Combined Ratio | 88.4% | 89.4% | 100.6% | 102.3% | 80.8% | 76.7% | 100.8% | 63.8% | 91.6% | 90.5% | |
| of which Prior Year claims ratio | (4.2%) | (6.6%) | |||||||||
| Investment Result | 1.5 | 2.9 | 1.8 | 2.2 | 0.6 | 0.7 | 0.6 | 1.6 | 4.5 | 7.4 | |
| Other Result | ( 0.2 ) | 1.5 | ( 0.7 ) | ( 2.2 ) | ( 1.0 ) | ( 0.2 ) | ( 0.1 ) | 0.2 | ( 2.0 ) | ( 0.7 ) | |
| Operating Result | 19.3 | 23.7 | 0.6 | ( 2.8 ) | 6.8 | 12.3 | 0.4 | 9.1 | 27.1 | 42.3 | |
| Reserves Ratio (in %) as reported | 147% | 180% | 143% | 186% | 115% | 116% | 433% | 466% | 148% | 188% | |
| Reserves Ratio (in %) excl. Cargeas | 147% | 158% | 143% | 150% | 115% | 102% | 433% | 472% | 148% | 155% |
Scope change: Cargeas sold end December 2017
Gross Inflows including non-consolidated partnerships at 100% reached EUR 682 million, up 13% when excluding Italy that was sold at the end of last year and accounted for EUR 111 million. At constant exchange rates gross inflows were up 28%. This strong increase is the result of the good commercial performance in all entities.
In Portugal sales amounted to EUR 344 million (vs. EUR 319 million) up 8% in line with market growth. Both Ocidental and Ageas Seguros contributed to the strong commercial performance. In Ocidental, the 9% growth was mainly realised in Health Care, representing 63% of inflows. Ageas Seguros achieved total inflows of EUR 151 million or plus 6% compared to last year.
Inflows in Turkey increased by 50% at constant exchange rate (+19% in EUR). The growth trend seen in previous quarter continued although at a slower pace and was supported by all lines of business, and more specifically by Motor.The company outperformed the market and maintained its number 3 position with a market share of 7.8%.
The operating result stood at EUR 27 million, plus 17% when excluding the EUR 19 million contribution from Italy last year. The operating result (only including Portuguese activities) increased thanks to an excellent commercial performance and a continued strong combined ratio of 91.6%.
The net result, amounted to EUR 24 million, up 16% scope-on-scope, Italy contributing EUR 7 million in the first 6 months of 2017. This result, despite being hampered by a negative exchange rate, reflects the excellent performance in both Portugal and Turkey.
Net profit EUR 170 million vs. EUR 113 million (+50%). Strong performance compared to last year driven by an exceptionally high first quarter result in China.
Gross Inflows EUR 13.3 billion vs. EUR 13.5 billion (-1%). Strong new business catch-up in China in the second quarter and significantly higher renewals across the region.
| INCOME STATEMENT | |||||||
|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 |
| Gross Inflows Life (incl non-consolidated partnerships at 100%) | 12,883.8 | 13,007.0 | (1%) | 4,699.0 | 3,958.9 | 19% | 8,184.8 |
| Gross Inflows Life (consolidated entities) | * | * | |||||
| Operating result | * | * | |||||
| Non-allocated other income and expenses | ( 12.9 ) | ( 14.2 ) | (9%) | ( 6.7 ) | ( 7.4 ) | (9%) | ( 6.2 ) |
| Result before taxation consolidated entities | ( 12.9 ) | ( 14.2 ) | (9%) | ( 6.7 ) | ( 7.4 ) | (9%) | ( 6.2 ) |
| Result non-consolidated partnerships | 176.4 | 116.1 | 52% | 49.8 | 62.2 | (20%) | 126.6 |
| Income tax expenses | * | * | |||||
| Non-controlling interests | |||||||
| Net result attributable to shareholders | 163.5 | 101.9 | 60% | 43.1 | 54.8 | (21%) | 120.4 |
Gross inflows at 100% amounted to EUR 12.9 billion, down 1% (+2% at constant exchange rates). Inflows remained stable despite significant drop in single premium.
New business premiums in Asia decreased at constant exchange rates to EUR 3.9 billion (-38%) mainly due to the discontinuation of single premium products following regulatory changes in China. This was more than compensated for by significantly higher renewals, up to EUR 9.0 billion or +41% at constant exchange rates. Regular premiums sales, although growing strong in the second quarter (+45%), decreased to EUR 3.0 billion (-12%).
In China, the inflows amounted to EUR 11.0 billion, up year-on-year 3% at constant exchange rates. The strong increase in renewals (+49% at constant exchange rate) to EUR 7.7 billion with persistency levels at industry-leading standards, was more than compensating for the lower new business premiums, which caught up strongly in the second quarter. Over the first six months, new business decreased to EUR 3.3 billion (-40% at constant exchange rates), of which EUR 2.8 billion in regular premiums. Excluding discontinued single premium sales in the bank channel, total inflows increased by 26% year-on-year. New business through the agency channel decreased by 9% at constant exchange rate amounting to EUR 2.3 billion.
Thailand's inflows were down 13% to EUR 1.3 billion at constant exchange rates. Inflows were marked by a 4% growth in renewal premiums to EUR 1.0 billion while new business decreased by 46% as the market continues to adjust to a stricter regulatory context in the banca channel.
Inflows in Malaysia amounted to EUR 440 million, up 31% at constant exchange rates, reflecting strong growth in new business amounting to EUR 267 million (+58% at constant exchange rate) and a slightly higher renewal business (+3% at constant exchange rate).
Inflows in India stood at EUR 118 million up 9% at constant exchange rates, supported by a 35% growth in renewal premiums.
Vietnam continued its strong sales with inflows amounting to EUR 15 million. Inflows in the Philippines stood at EUR 10 million, reflecting a 116% growth in new business.
Technical Liabilities at constant exchange rates (at 100%) increased 10% compared to the end of last year to EUR 62.5 billion, following strong persistency.
Total net profit in Asia amounted to EUR 164 million (vs. EUR 102 million). This exceptionally high result is mainly attributable to China where first quarter net profit benefited from a positive evolution in the interest rate, partially offset by equity impairments following the negative development of the China equity market during the second quarter.
Regional headquarters costs amounted to EUR 13 million (vs. EUR 14 million).
| INCOME STATEMENT | |||||||
|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 |
| Gross Inflows Non-Life (incl non-consolidated partnerships at 100%) | 450.4 | 450.8 | (0%) | 204.6 | 201.0 | 2% | 245.8 |
| Gross Inflows Non-Life (consolidated entities) | |||||||
| Net Earned Premium | |||||||
| Operating result | |||||||
| Non-allocated other income and expenses | |||||||
| Result before taxation consolidated entities | |||||||
| Result non-consolidated partnerships | 6.5 | 11.2 | (42%) | 3.1 | 6.8 | (54%) | 3.4 |
| Income tax expenses | |||||||
| Non-controlling interests | |||||||
| Net result attributable to shareholders | 6.5 | 11.2 | (42%) | 3.1 | 6.8 | (54%) | 3.4 |
Gross inflows slightly up at constant exchange rates, amounted to EUR 450 million.
Malaysia inflows amounted to EUR 290 million (+1% at constant exchange rates). Higher sales in Fire (+14% at constant exchange rates) and Personal Accident business (+10% at constant exchange rates) were partly offset by lower sales in Motor and Marine, Aviation and Transport (MAT).
Inflows in Thailand stood at EUR 160 million (stable at constant exchange rate).
The net result fell back to EUR 7 million (vs. EUR 11 million) due to lower investment income. The combined ratio however remained solid at of 89.9% (vs. 87.0%).
| Net profit EUR 2 million | vs. EUR 3 million, impacted by a large claim in Portugal and negative premium adjustments. |
|---|---|
| Gross inflowsEUR 29 million | vs. EUR 24 million, mainly from consolidated Non-Life entities in Europe. |
Combined ratio 91.3% vs. 77.7%
| INCOME STATEMENT | |||||||
|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 |
| Gross Inflows Non-Life (incl non-consolidated partnerships at 100%) |
29.3 | 24.2 | 21% | 14.3 | 13.5 | 6% | 15.0 |
| Gross Inflows Non-Life (consolidated entities) | 29.3 | 24.2 | 21% | 14.3 | 13.5 | 6% | 15.0 |
| Net Earned Premium | 15.1 | 10.9 | 38% | 7.6 | 6.9 | 10% | 7.5 |
| Operating result | 1.3 | 2.4 | (46%) | ( 0.1 ) | 2.5 | * | 1.4 |
| Non-allocated other income and expenses | 0.8 | 0.7 | 14% | 0.4 | 0.3 | 33% | 0.4 |
| Result before taxation consolidated entities | 2.1 | 3.1 | (32%) | 0.3 | 2.8 | (89%) | 1.8 |
| Income tax expenses | * | * | |||||
| Non-controlling interests | |||||||
| Net result attributable to shareholders | 2.1 | 3.1 | (32%) | 0.3 | 2.8 | (89%) | 1.8 |
| ACCIDENT & HEALTH | MOTOR | HOUSEHOLD | OTHER LINES | TOTAL | |||||
|---|---|---|---|---|---|---|---|---|---|
| HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 |
| 0.3 | 3.4 | 4.1 | 25.1 | 19.7 | 0.5 | 0.4 | 29.3 | 24.2 | |
| 0.3 | 2.6 | 3.1 | 11.7 | 7.4 | 0.5 | 0.4 | 15.1 | 10.9 | |
| 0.3 | 1.4 | 0.3 | 0.7 | 0.7 | 0.3 | 1.3 | 2.4 | ||
| 11.4% | 23.3% | 101.1% | 55.0% | 97.1% | 90.2% | (37.8%) | 22.7% | 91.3% | 77.7% |
| 10.0% | (2.3%) | ||||||||
| 0.3 | 1.4 | 0.3 | 0.7 | 0.7 | 0.3 | 1.3 | 2.4 | ||
| 102% | 531% | 182% | 88% | 75% | 128% | 3% | 91% | 114% | |
| 0.7 | 0.5 | 9.4 | 5.4 | 17.5 | 19.0 | 27.6 | 24.9 | ||
Gross inflows amounted to EUR 29.3 million (vs. EUR 24.2 million).
Net earned premiums increased to EUR 15.1°million (vs. EUR°10.9million).
The operating result stood at EUR 1.3 million (vs EUR 2.4 million) with a combined ratio of 91.3% (vs. 77.7%). The higher combined ratio is explained by higher claims, the most important one being a fire claim in Portugal, by claims provisions linked to the weather events in Belgium, and negative premium adjustments related to the stop-loss reinsurance programme in the UK.
Intreas's net result for the first six months amounted to EUR 2.1 million (vs. EUR 3.1 million).
The Non-Life Technical Liabilities (after reinsurance) amounted to EUR 25.1 million (vs. EUR 14.5 million).
Net loss of EUR 34 million vs. net loss of EUR 161 million.
Total Liquid Assets EUR 1.8 billion EUR 0.9 billion of which ring-fenced for the Fortis settlement.
Strategic development Put option on AG Insurance expired (press release 2/7/2018)
| INCOME STATEMENT | |||||||
|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 |
| Net interest Income | 1.6 | 2.6 | ( 38 %) | 0.5 | 1.1 | ( 55 %) | 1.1 |
| Unrealised gain (loss) on RPN(I) | 8.6 | ( 121.9 ) | * | 47.0 | ( 26.4 ) | * | ( 38.4 ) |
| Result on sales and revaluations | 2.7 | ( 0.6 ) | * | ( 0.8 ) | ( 0.3 ) | * | 3.5 |
| Share in result of associates | ( 0.2 ) | 1.1 | * | 0.1 | ( 0.3 ) | * | ( 0.3 ) |
| Other income | 0.7 | 0.1 | * | 0.7 | 0.1 | * | - |
| Total income | 13.4 | ( 118.7 ) | * | 47.5 | ( 25.8 ) | * | ( 34.1 ) |
| Change in impairments and provisions | ( 0.2 ) | 0.1 | * | ( 0.2 ) | 0.2 | * | - |
| Net revenues | 13.2 | ( 118.6 ) | * | 47.3 | ( 25.6 ) | * | ( 34.1 ) |
| Staff expenses | ( 17.3 ) | ( 13.6 ) | 27 % | ( 9.8 ) | ( 6.5 ) | 51 % | ( 7.5 ) |
| Other operating and administrative expenses | ( 23.9 ) | ( 23.8 ) | 0 % | ( 16.0 ) | ( 12.3 ) | 30 % | ( 7.9 ) |
| Intercompany Staff & Other expenses | 2.0 | 2.9 | ( 31 %) | 0.7 | 1.6 | ( 56 %) | 1.3 |
| Total expenses | ( 39.2 ) | ( 34.5 ) | 14 % | ( 25.1 ) | ( 17.2 ) | 46 % | ( 14.1 ) |
| Result before taxation | ( 26.0 ) | ( 153.1 ) | 83 % | 22.2 | ( 42.8 ) | * | ( 48.2 ) |
| Income tax expenses | ( 8.1 ) | ( 7.9 ) | ( 3 %) | ( 4.6 ) | ( 6.1 ) | 25 % | ( 3.5 ) |
| Net result for the period | ( 34.1 ) | ( 161.0 ) | 79 % | 17.6 | ( 48.9 ) | * | ( 51.7 ) |
| Net result attributable to non-controlling interests | |||||||
| Net result attributable to shareholders | ( 34.1 ) | ( 161.0 ) | 79 % | 17.6 | ( 48.9 ) | * | ( 51.7 ) |
| BALANCE SHEET (MAIN ITEMS) | |||
|---|---|---|---|
| in EUR million | 30 Jun 2018 | 31 Dec 2017 | Change |
| RPN(I) | ( 439.4 ) | ( 448.0 ) | ( 2 %) |
| Royal Park Investments | 5.0 | 17.7 | ( 72 %) |
| Provision Fortis Settlement | ( 1,109.5 ) | ( 1,109.5 ) | 0 % |
The General Account first 6 months 2018 net result amounted to EUR 34 million negative compared to EUR 161 million negative. The change primarily reflects the revaluation of the RPN(I).
The RPN(I) reference amount liability decreased from EUR 448 million at year end 2017 to EUR 439 million at the end of the first half year 2018. This led to a non-cash profit of EUR 9 million over the first half year 2018. The change in the reference amount is predominantly explained by the movement of the Ageas share price from EUR 40.72 to EUR 43.21 over the same period.
Staff and other operating expenses, after recharges, increased from EUR 11 million last year to EUR 15 million related to the reorganisation of Ageas headquarters.
The total liquid assets in the General Account, including liquid assets with maturity over 1 year, amounted to EUR 1.8 billion. The EUR 0.1 billion increase compared to year-end 2017 is primarily related to the upstream of EUR 599 million dividend from the operating companies. This amount more than covers the dividend paid to Ageas's shareholders (EUR 407 million) and the holding expenses. The remaining future cash out of EUR 0.9 billion related to the Fortis settlement has been ring-fenced.
| EVOLUTION LIQUID ASSETS DURING 2018 | ||
|---|---|---|
| in EUR million | ||
| Cash | 1,741.9 | |
| Liquid assets | 36.0 | |
| Total Liquid Assets 31 December 2017 | 1,777.9 | |
| Distribution to shareholders | ||
| Dividend paid | ( 406.8 ) | |
| Share buy-back program 2017-2018* | ( 97.4 ) | |
| ( 504.2 ) | ||
| Dividend upstream, net received** | ||
| Belgium | 437.4 | |
| Continental Europe: | ||
| - Portugal | 69.0 | |
| - Turkey | 7.2 | |
| - Luxembourg | 9.0 | |
| Asia: | ||
| - Thailand | 14.0 | |
| - China | 61.9 | |
| Royal Park Investments: | 12.5 | |
| 611.0 | ||
| M&A and Capital transactions | ||
| Capital injection Vietnam | ( 4.3 ) | |
| Other (incl. regional costs CE, Asia and interest) | ( 56.2 ) | |
| Total Liquid Assets 30 June 2018 | 1,824.2 | |
| Cash | 1,822.9 | |
| Liquid assets | 1.3 |
* Total buy-back amounts to EUR 200 million, EUR 75.0 million was cash out in 2017 ** Another EUR 16 million dividend from Malaysia was received in Q3 and already recognized in the 6M Solvency II
On 30 June 2018, the put option on 25%+1 share of AG Insurance granted to BNP Parisbas Fortis has expired, without it being exercised. The liability related to this put option has disappeared from the balance sheet of the General Account without any impact on the net result.
On 13 July 2018, the Amsterdam Court of Appeal declared the amended and restated settlement agreement with respect to the civil proceedings related to the former Fortis group for events in 2007 and 2008, announced by Ageas and the claimant organisations Deminor, VEB, Stichting FortisEffect, and Stichting Investor Claims Against Fortis on 12 December 2017, binding.
This means that Eligible Shareholders are entitled to compensation for the events of 2007-2008, subject to a full release of liability with respect to these events, and in accordance with the (other) terms of the settlement agreement. It further means that Eligible Shareholders who do not opt out by the deadline (i.e. at the latest on 31 December 2018), regardless of whether or not they timely file a claim form, are, by operation of law, deemed to have granted such release of liability and to have waived any rights in connection with the events.
The claims filing period started on 27 July 2018 and will end on 28 July 2019.
The Settlement will only be final if at the end of the opt-out period (i.e. 31 December 2018), the agreed opt-out ratio is not exceeded (except if Ageas has waived its termination right). More detailed information is available on the dedicated website www.FORsettlement.com.
For the other contingent liabilities we refer to the 6M 2018 Interim Financial Statements.
Insurance Solvency IIageas ratio at 202% exceeding the 175% target. Group Solvency IIageas ratio at 211%.
Investment portfolio EUR 80.5 billion compared to EUR 80.6 billion at the end of 2017.
Strong balance sheet Shareholders' equity at EUR 9.6 billion
| 30 Jun 2018 | 31 Dec 2017 | |
|---|---|---|
| Group Solvency IIageas | 210.7% | 196.3% |
| Group Solvency IIpim | 197.2% | 190.6% |
| Insurance Solvency IIageas | 202.3% | 196.1% |
| - Belgium | 234.3% | 237.3% |
| - UK | 153.8% | 147.2% |
| - Continental Europe | 215.2% | 206.8% |
| - Reinsurance (Intreas) | 271.3% | 242.9% |
The Own funds of the insurance activities amounted to EUR 7.8 billion, EUR 3.9 billion above SCR. This led to a strong total Insurance Solvency IIageas ratio of 202%,up 6pp compared to the end of last year.
The good operational half year in the Solvency IIageas scope companies more than covers the accrual of the expected dividend related to the IFRS result over the period and this despite the negative impact from the weather events in Belgium and the UK. The Insurance Solvency IIageas ratio improvement was also supported by the increased fungibility of Own Funds as a result of the obtaining of a license to run reinsurance activities. The Insurance Solvency ratios have increased in each of the segments, mainly driven by the good operational performance.
The Group Solvency IIageas ratio increased 15% to 211%. In addition to the improvement at the Insurance level, the Group Solvency ratio was impacted by the ongoing share buy-back programme (-2pp) and the expiration of the put option granted to BNP Paribas Fortis (+7pp). The disappearance of the liability and the reversal of the third party interest in the free surplus of our Belgian operations related to the expiration of the put option led to the 7pp positive impact.
The good operational results have generated an operational free capital over the first six months of EUR 392 million. This amount includes EUR 99 million dividend upstream from the Non-European non-consolidated participations and EUR 62 million negative impact related to weather events in Belgium and the UK.
Total shareholders' equity decreased from EUR 9.6 billion or EUR 48.30 per share at the end of 2017 to EUR 9.3 billion or EUR 47.29 per share. This decrease was due to the impact of the expiration of the put option granted to BNP Paribas Fotis. The disappearance of the liability and the derecognition of the non-controlled participation in the equity of our Belgian operations in the balance sheet as a result of the expiration the put option, decreased the Group Shareholders' equity by EUR 0.3 billion. The payment of the dividend (EUR 0.4 billion) and the ongoing share buy-back programme (EUR 0.1 billion) also had a negative impact on the shareholders equity whereas the result of the period (EUR 0.4 billion) had a positive impact.
Ageas's investment portfolio at the end of the second quarter 2018 amounted to EUR 80.5 billion compared to EUR 80.6 billion at the end of 2017. The unrealised gains and losses on the total 'available for sale' investment and real estate portfolio amounted to EUR 8.7 billion compared to EUR 9.3 billion at the end of 2017. The unrealised capital gains on the 'Held to Maturity' portfolio were at EUR 2.1 billion compared to 2.2 billion end 2017. Asset allocation remained relatively stable over the first half-year.
| Ageas's part in inflows | Inflows calculated on the basis of Ageas's pro rata ownership in its operating companies. |
|---|---|
| Claims ratio | Cost of claims, net of reinsurance, as a percentage of net earned premiums. |
| Combined Ratio | Insurer's total expenses as a percentage of net earned premiums. This is the sum of the claims ratio and the expense ratio (see separate definitions). |
| Current year claims ratio | Cost of claims relating to the current year as a percentage of net earned premiums. |
| Expense ratio | Expenses as a percentage of net earned premiums. Included in expenses are internal costs of claims handling and commissions, net of reinsurance. |
| Gross inflows | Sum of gross written premiums of insurance contracts and amounts received from investment contracts without DPF (Discretionary Participation Features). |
| Guaranteed products | Family of products including Traditional products, Savings products and Group Life products. Traditional products typically are protection based while Savings products mostly consist of products with a minimum guaranteed interest rate. Group Life products are offered by an employer or large-scale entity to its workers or members and can have various characteristics. |
| Investment margin | For Life the annualised investment result divided by the average net Life insurance liabilities during the reporting period. For Non-Life the investment result divided by the net earned premium. |
| Investment result | Sum of investment income and realised capital gains or losses on assets covering insurance liabilities, after deduction of related investment expenses. Life investment result is also reduced by the amount allocated to the policyholders as technical interest and profit sharing. The investment result in Accident & Health (part of Non-Life) is also reduced by the technical interest that has been accrued to the insurance liabilities. |
| Net earned premiums | Written premiums of Non-Life covering the risks for the current accounting period, netted for the premiums paid to reinsurers and the change in unearned premiums reserves. |
| Net realised capital gains or losses | Realised results, after tax, on the sale of investments in financial instruments, associates, investment property and property for own use. Impairment charges and the related changes in profit sharing are also reported under this heading. |
| Net underwriting margin | For Life the net annualised underwriting result divided by the average net Life insurance liabilities during the reporting period. For Non-Life the net underwriting result divided by the net earned premium. |
| Net underwriting result | The difference between the earned premiums and the sum of the actual claim payments and the change in insurance liabilities, all net of reinsurance. The result is presented after deduction of allocated claim handling expenses, general expenses and commissions net of reinsurance. |
| Operating Margin | For Life the annualised operating result of the period divided by the average net Life insurance liabilities. For Non-Life the operating result divided by the net earned premium. |
| Operating result | Sum of net underwriting result, investment result and other result allocated to the insurance and/or investment contracts. The difference between operating result and result before taxation consists of all income and costs not allocated to the insurance and/or investment contracts and thus not reported in the operating result and result from non-consolidated partnerships. |
| Other margin | Other result divided by the net earned premium. |
| Other result | Results from other activities not allocated to net Underwriting result or Investment result. |
| Prior year claims ratio | Claims ratio (net) relating to prior underwriting years. |
| Reserve ratio (%) | Non-Life gross insurance liabilities divided by the annualised net earned premiums. |
| Return on equity (ROE) | Net result as a percentage of average shareholders' equity (without unrealised capital gains & losses). |
| Shadow accounting | Under IFRS 4 unrealised gains or losses on assets covering the insurance liabilities can be recognised in the measurement of the insurance liabilities in the same way as realised gains or losses. The adjustment to the insurance liabilities is recognised in other comprehensive income if the unrealised gains or losses are also recognised in other comprehensive income. |
| Solvency II ageas ratio | Solvency II ratio calculated by taking the Solvency II PIM ratio and (1) replacing the spread risk treatment by fundamental spread risk on both government and corporate bonds, (2) applying an Internal Model for AG Real Estate while (3) excluding the impact of transitional measures. |
| Technical liabilities | Insurance liabilities or the obligations the insurer has towards its policyholders, based on the terms of the contracts. |
| Unit-Linked products | Unit-Linked products are a type of Life insurance contracts where the investments are held on behalf of the policyholder and the investment risk is born by the policyholder. |
Please note that the historical segment information and key performance indicators by segment, together with more detailed and historical margin information can be downloaded on ageas.com (Investors/Reporting Centre).
| in EUR million | 30 June 2018 | 31 December 2017 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 2,315.6 | 2,552.3 |
| Financial investments | 62,944.6 | 63,372.8 |
| Investment property | 2,882.8 | 2,649.1 |
| Loans | 9,572.1 | 9,416.0 |
| Investments related to unit-linked contracts | 16,025.8 | 15,827.3 |
| Investments in associates | 3,010.0 | 2,941.6 |
| Reinsurance and other receivables | 2,138.0 | 2,185.9 |
| Current tax assets | 136.3 | 40.0 |
| Deferred tax assets | 151.9 | 149.7 |
| Accrued interest and other assets | 1,577.6 | 1,857.8 |
| Property, plant and equipment | 1,235.6 | 1,183.9 |
| Goodwill and other intangible assets | 1,122.8 | 1,122.6 |
| Assets held for sale | 41.8 | |
| Total assets | 103,113.1 | 103,340.8 |
| Liabilities | ||
| Liabilities arising from life insurance contracts | 27,200.4 | 27,480.8 |
| Liabilities arising from life investment contracts | 30,918.3 | 31,350.6 |
| Liabilities related to unit-linked contracts | 16,016.6 | 15,816.2 |
| Liabilities arising from non-life insurance contracts | 7,713.1 | 7,575.0 |
| Subordinated liabilities | 2,275.5 | 2,261.3 |
| Borrowings | 2,269.1 | 1,969.3 |
| Current tax liabilities | 52.2 | 72.6 |
| Deferred tax liabilities | 1,153.9 | 1,054.9 |
| RPN(I) | 439.4 | 448.0 |
| Accrued interest and other liabilities | 2,256.9 | 2,412.1 |
| Provisions | 1,175.0 | 1,178.1 |
| Liabilities related to written put options on NCI | 115.2 | 1,559.7 |
| Total liabilities | 91,585.6 | 93,178.6 |
| Shareholders' equity | 9,309.8 | 9,610.9 |
| Non-controlling interests | 2,217.7 | 551.3 |
| Total equity | 11,527.5 | 10,162.2 |
| Total liabilities and equity | 103,113.1 | 103,340.8 |
| in EUR million | |||||||
|---|---|---|---|---|---|---|---|
| HY 18 | HY 17 | Change | Q2 18 | Q2 17 | Change | Q1 18 | |
| Income | |||||||
| - Gross premium income | 4,335.4 | 4,271.1 | 2 % | 2,079.0 | 2,018.7 | 3 % | 2,256.4 |
| - Change in unearned premiums | ( 92.4 ) | ( 117.7 ) | ( 21 %) | 48.1 | 36.6 | 31 % | ( 140.5 ) |
| - Ceded earned premiums | ( 122.2 ) | ( 125.1 ) | ( 2 %) | ( 57.0 ) | ( 55.4 ) | 3 % | ( 65.2 ) |
| Net earned premiums | 4,120.8 | 4,028.3 | 2 % | 2,070.1 | 1,999.9 | 4 % | 2,050.7 |
| Interest, dividend and other investment income | 1,354.3 | 1,400.6 | ( 3 %) | 690.3 | 719.7 | ( 4 %) | 664.0 |
| Unrealised gain (loss) on RPN(I) (incl. settlement on RPN(I)/CASHES) | 8.6 | ( 121.9 ) | * | 47.0 | ( 26.4 ) | * | ( 38.4 ) |
| Result on sales and revaluations | 153.8 | 147.9 | 4 % | 43.4 | 25.7 | 69 % | 110.4 |
| Investment income related to unit-linked contracts | ( 31.9 ) | 400.5 | * | 139.5 | 188.9 | ( 26 %) | ( 171.4 ) |
| Share in result of associates | 207.2 | 149.0 | 39 % | 67.3 | 79.0 | ( 15 %) | 139.9 |
| Fee and commission income | 162.0 | 169.3 | ( 4 %) | 70.8 | 84.8 | ( 17 %) | 91.2 |
| Other income | 108.2 | 52.8 | * | 67.5 | 21.7 | * | 40.7 |
| Total income | 6,083.0 | 6,226.5 | ( 2 %) | 3,195.9 | 3,093.3 | 3 % | 2,887.1 |
| Expenses | |||||||
| - Insurance claims and benefits, gross | ( 3,862.3 ) | ( 3,938.9 ) | ( 2 %) | ( 1,933.2 ) | ( 1,782.6 ) | 8 % | ( 1,929.1 ) |
| - Insurance claims and benefits, ceded | 33.0 | 254.9 | ( 87 %) | 12.4 | ( 2.2 ) | * | 20.6 |
| Insurance claims and benefits, net | ( 3,829.3 ) | ( 3,684.0 ) | 4 % | ( 1,920.8 ) | ( 1,784.8 ) | 8 % | ( 1,908.5 ) |
| Charges related to unit-linked contracts | ( 13.3 ) | ( 427.5 ) | ( 97 %) | ( 157.4 ) | ( 212.1 ) | ( 26 %) | 144.1 |
| Finance costs | ( 58.7 ) | ( 59.3 ) | ( 1 %) | ( 30.6 ) | ( 22.0 ) | 39 % | ( 28.1 ) |
| Change in impairments | ( 18.2 ) | ( 7.0 ) | * | ( 8.7 ) | ( 3.0 ) | * | ( 9.5 ) |
| Change in provisions | ( 0.1 ) | 0.6 | * | 0.3 | 1.0 | ( 70 %) | ( 0.4 ) |
| Fee and commission expense | ( 536.1 ) | ( 575.2 ) | ( 7 %) | ( 252.5 ) | ( 273.6 ) | ( 8 %) | ( 283.6 ) |
| Staff expenses | ( 408.0 ) | ( 410.0 ) | ( 0 %) | ( 207.8 ) | ( 203.4 ) | 2 % | ( 200.2 ) |
| Other expenses | ( 566.4 ) | ( 516.4 ) | 10 % | ( 328.2 ) | ( 283.8 ) | 16 % | ( 238.2 ) |
| Total expenses | ( 5,430.1 ) | ( 5,678.8 ) | ( 4 %) | ( 2,905.7 ) | ( 2,781.7 ) | 4 % | ( 2,524.4 ) |
| Result before taxation | 652.9 | 547.7 | 19 % | 290.2 | 311.6 | ( 7 %) | 362.7 |
| Income tax expenses | ( 111.3 ) | ( 145.8 ) | 24 % | ( 54.1 ) | ( 83.1 ) | 35 % | ( 57.2 ) |
| Net result for the period | 541.6 | 401.9 | 35 % | 236.1 | 228.5 | 3 % | 305.5 |
| Attributable to non-controlling interests | 100.4 | 118.3 | ( 15 %) | 42.6 | 55.1 | ( 23 %) | 57.8 |
| Net result attributable to shareholders | 441.2 | 283.6 | 56 % | 193.5 | 173.4 | 12 % | 247.7 |
| Per share data (EUR) | |||||||
| Basic earnings per share | 2.23 | 1.40 | 1.25 | ||||
| Diluted earnings per share | 2.23 | 1.39 | 1.25 |
| KEY FIGURES PER REGION at 100 % | Gross Inflows Life | Gross Inflows Non-Life | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in EUR million | HY 18 | HY 17 | Q2 18 | Q2 17 | HY 18 | HY 17 | Q2 18 | Q2 17 | HY 18 | HY 17 | Q2 18 | Q2 17 |
| Belgium | 2,109.7 | 1,891.1 | 1,196.0 | 1,018.4 | 1,078.7 | 1,032.5 | 449.9 | 437.6 | 3,188.4 | 2,923.6 | 1,645.9 | 1,456.0 |
| United Kingdom | 920.7 | 1,067.9 | 475.5 | 545.0 | 920.7 | 1,067.9 | 475.5 | 545.0 | ||||
| Consolidated entities | 722.0 | 830.9 | 369.9 | 419.1 | 722.0 | 830.9 | 369.9 | 419.1 | ||||
| Non-consolidated partnerships at 100% |
198.7 | 237.0 | 105.6 | 125.9 | 198.7 | 237.0 | 105.6 | 125.9 | ||||
| Tesco | 198.7 | 237.0 | 105.6 | 125.9 | 198.7 | 237.0 | 105.6 | 125.9 | ||||
| Continental Europe | 2,003.4 | 2,301.8 | 952.1 | 1,301.6 | 682.0 | 714.6 | 298.9 | 330.6 | 2,685.4 | 3,016.4 | 1,251.0 | 1,632.2 |
| Consolidated entities | 817.0 | 1,002.9 | 378.2 | 477.5 | 343.9 | 430.8 | 159.5 | 203.1 | 1,160.9 | 1,433.7 | 537.7 | 680.6 |
| Portugal | 646.4 | 765.1 | 296.5 | 386.8 | 343.9 | 319.3 | 159.5 | 144.5 | 990.3 | 1,084.4 | 456.0 | 531.3 |
| France | 170.6 | 237.8 | 81.7 | 90.7 | 170.6 | 237.8 | 81.7 | 90.7 | ||||
| Italy | 111.5 | 58.6 | 111.5 | 58.6 | ||||||||
| Non-consolidated | ||||||||||||
| partnerships at 100% | 1,186.4 | 1,298.9 | 573.9 | 824.1 | 338.1 | 283.8 | 139.4 | 127.5 | 1,524.5 | 1,582.7 | 713.3 | 951.6 |
| Turkey (Aksigorta) | 338.1 | 283.8 | 139.4 | 127.5 | 338.1 | 283.8 | 139.4 | 127.5 | ||||
| Luxembourg (Cardif Lux Vie) | 1,186.4 | 1,298.9 | 573.9 | 824.1 | 1,186.4 | 1,298.9 | 573.9 | 824.1 | ||||
| Asia | 12,883.8 | 13,007.0 | 4,699.1 | 3,958.9 | 450.4 | 450.7 | 204.5 | 200.9 | 13,334.2 | 13,457.7 | 4,903.6 | 4,159.8 |
| Non-consolidated | ||||||||||||
| partnerships at 100% | 12,883.8 | 13,007.0 | 4,699.1 | 3,958.9 | 450.4 | 450.7 | 204.5 | 200.9 | 13,334.2 | 13,457.7 | 4,903.6 | 4,159.8 |
| Malaysia | 440.1 | 338.3 | 221.5 | 169.4 | 290.1 | 287.3 | 126.0 | 124.8 | 730.2 | 625.6 | 347.5 | 294.2 |
| Thailand | 1,317.1 | 1,540.2 | 648.6 | 801.6 | 160.3 | 163.4 | 78.5 | 76.1 | 1,477.4 | 1,703.6 | 727.1 | 877.7 |
| China | 10,982.5 | 11,000.4 | 3,776.2 | 2,943.9 | 10,982.5 | 11,000.4 | 3,776.2 | 2,943.9 | ||||
| Philippines | 10.4 | 5.4 | 6.4 | 2.9 | 10.4 | 5.4 | 6.4 | 2.9 | ||||
| Vietnam | 15.4 | 1.0 | 10.3 | 0.9 | 15.4 | 1.0 | 10.3 | 0.9 | ||||
| India | 118.3 | 121.7 | 36.1 | 40.2 | 118.3 | 121.7 | 36.1 | 40.2 | ||||
| Grand Total | 16,996.9 | 17,199.9 | 6,847.2 | 6,278.9 | 3,131.8 | 3,265.7 | 1,428.8 | 1,514.1 | 20,128.7 | 20,465.6 | 8,276.0 | 7,793.0 |
| Consolidated entities | 2,926.7 | 2,894.0 | 1,574.2 | 1,495.9 | 2,144.6 | 2,294.2 | 979.3 | 1,059.8 | 5,071.3 | 5,188.2 | 2,553.5 | 2,555.7 |
| Non-consolidated | ||||||||||||
| partnerships | 14,070.2 | 14,305.9 | 5,273.0 | 4,783.0 | 987.2 | 971.5 | 449.5 | 454.3 | 15,057.4 | 15,277.4 | 5,722.5 | 5,237.3 |
| Reinsurance | 29.3 | 24.2 | 14.3 | 13.5 | 29.3 | 24.2 | 14.3 | 13.5 |
| KEY FIGURES PER REGION Ageas's part | Gross Inflows Life | Gross Inflows Non-Life | Gross Inflows Total | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in EUR million | % ownership | HY 18 | HY 17 | Q2 18 | Q2 17 | HY 18 | HY 17 | Q2 18 | Q2 17 | HY 18 | HY 17 | Q2 18 | Q2 17 | |
| Belgium | 75% | 1,582.2 | 1,418.4 | 896.9 | 763.9 | 809.0 | 774.4 | 337.4 | 328.2 | 2,391.3 | 2,192.8 | 1,234.4 | 1,092.1 | |
| United Kingdom | 821.5 | 949.6 | 422.8 | 482.1 | 821.5 | 949.6 | 422.8 | 482.1 | ||||||
| Consolidated entities | 100% | 722.0 | 830.9 | 370.0 | 419.1 | 722.0 | 830.9 | 370.0 | 419.1 | |||||
| Non-consolidated | ||||||||||||||
| partnerships | 99.6 | 118.7 | 52.9 | 63.0 | 99.6 | 118.7 | 52.9 | 63.0 | ||||||
| Tesco | 50% | 99.6 | 118.7 | 52.9 | 63.0 | 99.6 | 118.7 | 52.9 | 63.0 | |||||
| Continental Europe | 918.9 | 1,083.2 | 435.1 | 574.5 | 465.6 | 477.2 | 209.7 | 219.7 | 1,384.5 | 1,560.4 | 644.8 | 794.2 | ||
| Consolidated entities | 523.5 | 650.3 | 243.8 | 299.9 | 343.9 | 375.0 | 159.5 | 173.8 | 867.4 | 1,025.3 | 403.3 | 473.7 | ||
| Portugal | 51% - 100% | 352.9 | 412.5 | 162.1 | 209.2 | 343.9 | 319.3 | 159.5 | 144.5 | 696.8 | 731.8 | 321.6 | 353.7 | |
| France | 100% | 170.6 | 237.8 | 81.7 | 90.7 | 170.6 | 237.8 | 81.7 | 90.7 | |||||
| Italy | 50% | 55.7 | 29.3 | 55.7 | 29.3 | |||||||||
| Non-consolidated | ||||||||||||||
| partnerships | 395.4 | 432.9 | 191.3 | 274.6 | 121.7 | 102.2 | 50.2 | 45.9 | 517.1 | 535.1 | 241.5 | 320.5 | ||
| Turkey (Aksigorta) | 36% | 121.7 | 102.2 | 50.2 | 45.9 | 121.7 | 102.2 | 50.2 | 45.9 | |||||
| Luxembourg (Cardif Lux Vie) | 33% | 395.4 | 432.9 | 191.3 | 274.6 | 395.4 | 432.9 | 191.3 | 274.6 | |||||
| Asia | 3,318.4 | 3,354.0 | 1,224.9 | 1,045.0 | 113.6 | 113.2 | 50.6 | 49.9 | 3,432.0 | 3,467.2 | 1,275.5 | 1,094.9 | ||
| Non-consolidated | ||||||||||||||
| partnerships | 3,318.4 | 3,354.0 | 1,224.9 | 1,045.0 | 113.6 | 113.2 | 50.6 | 49.9 | 3,432.0 | 3,467.2 | 1,275.5 | 1,094.9 | ||
| Malaysia | 31% | 136.2 | 104.7 | 68.5 | 52.4 | 89.8 | 88.9 | 39.0 | 38.6 | 226.0 | 193.6 | 107.5 | 91.0 | |
| Thailand | 15% - 31% | 406.7 | 475.5 | 200.3 | 247.4 | 23.8 | 24.3 | 11.6 | 11.3 | 430.5 | 499.8 | 211.9 | 258.7 | |
| China | 25% | 2,734.6 | 2,739.1 | 940.2 | 733.0 | 2,734.6 | 2,739.1 | 940.2 | 733.0 | |||||
| Philippines | 50% | 5.2 | 2.7 | 3.2 | 1.4 | 5.2 | 2.7 | 3.2 | 1.4 | |||||
| Vietnam India |
32% 26% |
4.9 30.8 |
0.3 31.7 |
3.3 9.4 |
0.3 10.5 |
4.9 30.8 |
0.3 31.7 |
3.3 9.4 |
0.3 10.5 |
|||||
| Grand Total | 5,819.5 | 5,855.6 | 2,556.9 | 2,383.4 | 2,209.7 | 2,314.4 | 1,020.5 | 1,079.9 | 8,029.3 | 8,170.0 | 3,577.5 | 3,463.3 | ||
| Consolidated entities | 2,105.7 | 2,068.7 | 1,140.7 | 1,063.8 | 1,874.9 | 1,980.3 | 866.9 | 921.1 | 3,980.7 | 4,049.0 | 2,007.7 | 1,984.9 | ||
| Non-consolidated partnerships | 3,713.8 | 3,786.9 | 1,416.2 | 1,319.6 | 334.9 | 334.1 | 153.7 | 158.8 | 4,048.7 | 4,121.0 | 1,569.9 | 1,478.4 | ||
| Reinsurance | 100% | 29.3 | 24.2 | 14.3 | 13.5 | 29.3 | 24.2 | 14.3 | 13.5 |
| Key Capital Indicators | in EUR million | |||
|---|---|---|---|---|
| 30 Jun 2018 | 31 Dec 2017 | |||
| Belgium | ||||
| Shareholders' equity | 4,924.1 | 5,095.8 | ||
| Own Funds | 6,692.7 | 6,858.7 | ||
| SCR ageas | 2,856.7 | 2,890.3 | ||
| Amount of Own Funds above SCR ageas | 3,836.0 | 3,968.4 | ||
| Solvency II ageas ratio | 234.3% | 237.3% | ||
| United Kingdom | ||||
| Shareholders' equity | 856.0 | 851.5 | ||
| Own Funds | 768.0 | 761.7 | ||
| SCR ageas | 499.2 | 517.5 | ||
| Amount of Own Funds above SCR ageas | 268.8 | 244.2 | ||
| Solvency II ageas ratio | 153.8% | 147.2% | ||
| Continental Europe | ||||
| Shareholders' equity | 1,335.4 | 1,385.2 | ||
| Own Funds | 1,348.3 | 1,393.2 | ||
| SCR ageas | 626.7 | 673.7 | ||
| Amount of Own Funds above SCR ageas | 721.6 | 719.5 | ||
| Solvency II ageas ratio | 215.2% | 206.8% | ||
| Asia | ||||
| Shareholders' equity | 2,136.1 | 2,036.4 | ||
| Reinsurance | ||||
| Shareholders' equity | 113.7 | 112.5 | ||
| Own Funds | 113.1 | 116.6 | ||
| SCR ageas | 41.7 | 48.0 | ||
| Amount of Own Funds above SCR ageas | 71.4 | 68.6 | ||
| Solvency II ageas ratio | 271.3% | 242.9% | ||
| Non Transferable Own Funds | ( 1,164.3 ) | ( 1,417.0 ) | ||
| Diversification SCR ageas | ( 189.8 ) | ( 195.4 ) | ||
| Total Insurance | ||||
| Shareholders' equity | 9,365.7 | 9,481.8 | ||
| Own Funds | 7,757.8 | 7,713.2 | ||
| SCR ageas | 3,834.5 | 3,934.1 | ||
| Amount of Own Funds above SCR ageas | 3,923.3 | 3,779.1 | ||
| Solvency II ageas ratio | 202.3% | 196.1% | ||
| Solvency II pim ratio | 197.2% | 191.9% | ||
| General Account (after eliminations) | ||||
| Shareholders' equity | ( 55.9 ) | 129.1 | ||
| Own Funds | 487.6 | 160.7 | ||
| SCR ageas | 79.3 | 76.1 | ||
| Total Group | ||||
| Solvency II ageas ratio | 210.7% | 196.3% | ||
| Solvency II pim ratio | 197.2% | 190.6% | ||
| Total solvency ratio JVs not included in Group ratio | 250.8% | 260.8% |
| 30 June 2018 | |||||||
|---|---|---|---|---|---|---|---|
| in EUR million | Life | Non-life | Insurance Eliminations | Total Insurance | General Account | Group Eliminations | Total |
| Assets | |||||||
| Cash and cash equivalents | 911.9 | 396.5 | 1,308.4 | 1,007.2 | 2,315.6 | ||
| Financial investments | 55,432.0 | 7,320.9 | 62,752.9 | 200.3 | ( 8.6 ) | 62,944.6 | |
| Investment property | 2,600.6 | 282.2 | 2,882.8 | 2,882.8 | |||
| Loans | 7,906.0 | 1,057.0 | ( 37.1 ) | 8,925.9 | 1,308.2 | ( 662.0 ) | 9,572.1 |
| Investments related to unit-linked contracts | 16,025.8 | 16,025.8 | 16,025.8 | ||||
| Investments in associates | 2,582.5 | 416.0 | ( 0.3 ) | 2,998.2 | 8.0 | 3.8 | 3,010.0 |
| Reinsurance and other receivables | 425.5 | 1,884.4 | ( 428.0 ) | 1,881.9 | 261.7 | ( 5.6 ) | 2,138.0 |
| Current tax assets | 90.1 | 46.2 | 136.3 | 136.3 | |||
| Deferred tax assets | 47.2 | 104.7 | 151.9 | 151.9 | |||
| Accrued interest and other assets | 1,349.6 | 227.2 | ( 8.3 ) | 1,568.5 | 94.2 | ( 85.1 ) | 1,577.6 |
| Property, plant and equipment | 997.6 | 236.5 | 1,234.1 | 1.5 | 1,235.6 | ||
| Goodwill and other intangible assets | 837.6 | 285.2 | 1,122.8 | 1,122.8 | |||
| Total assets | 89,206.4 | 12,256.8 | ( 473.7 ) | 100,989.5 | 2,881.1 | ( 757.5 ) | 103,113.1 |
| Liabilities | |||||||
| Liabilities arising from life insurance contracts | 27,208.5 | 27,208.5 | ( 8.1 ) | 27,200.4 | |||
| Liabilities arising from life investment contracts | 30,918.3 | 30,918.3 | 30,918.3 | ||||
| Liabilities related to unit-linked contracts | 16,016.6 | 16,016.6 | 16,016.6 | ||||
| Liabilities arising from non-life insurance contracts | 7,731.4 | ( 18.3 ) | 7,713.1 | 7,713.1 | |||
| Subordinated liabilities | 1,197.3 | 527.4 | ( 37.2 ) | 1,687.5 | 1,250.0 | ( 662.0 ) | 2,275.5 |
| Borrowings | 2,038.8 | 238.5 | ( 8.2 ) | 2,269.1 | 2,269.1 | ||
| Current tax liabilities | 34.5 | 16.3 | 50.8 | 1.4 | 52.2 | ||
| Deferred tax liabilities | 946.9 | 202.5 | 1,149.4 | 4.5 | 1,153.9 | ||
| RPN(I) | 439.4 | 439.4 | |||||
| Accrued interest and other liabilities | 1,887.0 | 746.2 | ( 409.2 ) | 2,224.0 | 107.5 | ( 74.6 ) | 2,256.9 |
| Provisions | 22.9 | 31.1 | 54.0 | 1,121.0 | 1,175.0 | ||
| Liabilities related to written put options on NCI | 89.4 | 25.8 | 115.2 | 115.2 | |||
| Total liabilities | 80,360.2 | 9,519.2 | ( 472.9 ) | 89,406.5 | 2,923.8 | ( 744.7 ) | 91,585.6 |
| Shareholders' equity | 6,638.7 | 2,727.8 | ( 0.8 ) | 9,365.7 | ( 42.7 ) | ( 13.2 ) | 9,309.8 |
| Non-controlling interests | 2,207.5 | 9.8 | 2,217.3 | 0.4 | 2,217.7 | ||
| Total equity | 8,846.2 | 2,737.6 | ( 0.8 ) | 11,583.0 | ( 42.7 ) | ( 12.8 ) | 11,527.5 |
| Total liabilities and equity | 89,206.4 | 12,256.8 | ( 473.7 ) | 100,989.5 | 2,881.1 | ( 757.5 ) | 103,113.1 |
| Number of employees | 4,088 | 6,891 | 10,979 | 153 | 11,132 |
| KEY PERFORMANCE INDICATORS BY FAMILY | GUARANTEED | UNIT - LINKED | ||||
|---|---|---|---|---|---|---|
| in % of average Life Technical Liabilities (excluding non-consolidated partnerships) | HY 18 | HY 17 | HY 18 | HY 17 | ||
| BELGIUM Net underwriting margin Investment margin |
(0.07%) 1.15% |
(0.09%) 1.19% |
0.43% | 0.30% | ||
| Operating margin | 1.08% | 1.10% | 0.43% | 0.30% | ||
| CEU Net underwriting margin Investment margin |
0.23% 0.99% |
0.38% 0.95% |
0.14% (0.02%) |
0.18% 0.02% |
||
| Operating margin | 1.22% | 1.33% | 0.12% | 0.20% |
| KEY PERFORMANCE INDICATORS BY FAMILY | ACCIDENT & HEALTH | MOTOR | HOUSEHOLD | OTHER LINES | TOTAL | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| in % of Net Earned Premiums | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 | HY 18 | HY 17 |
| BELGIUM | ||||||||||
| Combined Ratio | 105.2% | 99.7% | 92.2% | 84.0% | 105.9% | 86.3% | 80.8% | 98.4% | 98.8% | 90.3% |
| Claims Ratio | 80.1% | 72.0% | 54.6% | 46.8% | 59.3% | 40.5% | 38.5% | 53.6% | 61.2% | 52.0% |
| of which Current Year claims ratio | 70.3% | 63.3% | ||||||||
| of which Prior Year claims ratio | (9.1%) | (11.3%) | ||||||||
| Net Underwriting ratio | (5.2%) | 0.3% | 7.8% | 16.0% | (5.9%) | 13.7% | 19.2% | 1.6% | 1.2% | 9.7% |
| Investment Ratio | 5.5% | 6.8% | 6.8% | 7.2% | 2.5% | 2.7% | 11.0% | 12.7% | 5.5% | 6.2% |
| Other Margin | ||||||||||
| Operating Margin | 0.3% | 7.1% | 14.6% | 23.2% | (3.4%) | 16.4% | 30.2% | 14.3% | 6.7% | 15.9% |
| Reserves Ratio | 377% | 390% | 188% | 182% | 75% | 70% | 303% | 326% | 214% | 215% |
| UK | ||||||||||
| Combined Ratio | 108.5% | 104.6% | 90.6% | 106.1% | 116.1% | 99.7% | 108.6% | 114.8% | 99.0% | 105.7% |
| Claims Ratio | 56.9% | 56.9% | 61.1% | 79.6% | 67.2% | 53.4% | 59.0% | 68.8% | 62.2% | 71.8% |
| of which Current Year claims ratio | 71.3% | 70.9% | ||||||||
| of which Prior Year claims ratio | (9.1%) | 0.9% | ||||||||
| Net Underwriting ratio | (8.5%) | (4.6%) | 9.4% | (6.1%) | (16.1%) | 0.3% | (8.6%) | (14.8%) | 1.0% | (5.7%) |
| Investment Ratio | 1.2% | 2.5% | 4.4% | 6.9% | 2.0% | 3.3% | 5.1% | 7.9% | 3.8% | 6.2% |
| Other Margin | ||||||||||
| Operating Margin | (7.3%) | (2.1%) | 13.8% | 0.8% | (14.1%) | 3.6% | (3.5%) | (6.9%) | 4.8% | 0.5% |
| Reserves Ratio | 63% | 62% | 234% | 224% | 94% | 83% | 252% | 231% | 200% | 189% |
| CEU | ||||||||||
| Combined Ratio | 88.4% | 89.4% | 100.6% | 102.3% | 80.8% | 76.7% | 100.8% | 63.8% | 91.6% | 90.5% |
| Claims Ratio | 63.9% | 64.2% | 65.7% | 73.3% | 45.8% | 46.1% | 63.0% | 8.3% | 62.1% | 61.7% |
| of which Current Year claims ratio | 66.3% | 68.3% | ||||||||
| of which Prior Year claims ratio | (4.2%) | (6.6%) | ||||||||
| Net Underwriting ratio | 11.6% | 10.6% | (0.6%) | (2.3%) | 19.2% | 23.3% | (0.8%) | 36.2% | 8.4% | 9.5% |
| Investment Ratio | 0.9% | 1.6% | 2.0% | 1.9% | 1.6% | 1.4% | 9.4% | 7.8% | 1.6% | 2.0% |
| Other Margin | (0.1%) | 0.8% | (0.8%) | (1.9%) | (2.5%) | (0.5%) | (1.5%) | 1.2% | (0.7%) | (0.2%) |
| Operating Margin | 12.4% | 13.0% | 0.6% | (2.3%) | 18.3% | 24.2% | 7.1% | 45.2% | 9.3% | 11.3% |
| Reserves Ratio as reported Reserves Ratio excl Cargeas |
147% 147% |
180% 158% |
143% 143% |
186% 150% |
115% 115% |
116% 102% |
433% 433% |
466% 472% |
148% 148% |
188% 155% |
| Reinsurance | ||||||||||
| Combined Ratio | 11.4% | 23.3% | 101.1% | 55.0% | 97.1% | 90.2% | (37.8%) | 22.7% | 91.3% | 77.7% |
| Claims Ratio | 6.8% | 19.7% | 89.2% | 45.2% | 69.1% | 55.6% | (42.4%) | 18.0% | 67.4% | 51.3% |
| of which Current Year claims ratio | 57.4% | 53.6% | ||||||||
| of which Prior Year claims ratio | 10.0% | (2.3%) | ||||||||
| Net Underwriting ratio | 88.6% | 76.7% | (1.1%) | 45.0% | 2.9% | 9.8% | 137.8% | 77.3% | 8.7% | 22.3% |
| Investment Ratio | ||||||||||
| Other Margin | ||||||||||
| Operating Margin | 88.6% | 76.7% | (1.1%) | 45.0% | 2.9% | 9.8% | 137.8% | 77.3% | 8.7% | 22.3% |
| Reserves Ratio | 102% | 503% | 182% | 86% | 75% | 128% | 4% | 91% | 114% |
The information on which the statements in this press release are based may be subject to change and this press release may also contain certain projections or other forward lookingstatements concerning Ageas. These statements are based on current expectations of the management of Ageas and are naturally subject to uncertainties, assumptions and changes in circumstances. The financial information included in this press release is unaudited.
The forward-looking statements are no guarantee of future performance and involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Ageas's ability to control or estimate precisely, such as future market conditions and the behaviour of other market participants. Other unknown or unpredictable factors beyond the control of Ageas could also cause actual results to differ materially from those in the statements and include but are not limited to the consent required from regulatory and supervisory authorities and the outcome of pending and future litigation involving Ageas. Therefore undue reliance should not be placed on such statements. Ageas assumes no obligation and does not intend to update these statements, whether as a result of new information, future events or otherwise, except as required pursuant to applicable law.
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