ageas (AGS) H2 2018 earnings summary

Executive summary

• FY 2018 net profit rose to EUR 809m from EUR 623m; strong Non-Life performance and lower General Account losses offset weaker Life results amid lower investment gains and equity impairments.

• Five of six Ambition 2018 targets were achieved; operations were positioned to enter the Connect21 strategic period.

Financial highlights

• Gross inflows reached EUR 34.375bn, up 2%; net profit was EUR 809m, with insurance net profit of EUR 797m and General Account net profit of EUR 12m.

• EPS was EUR 4.11, up 33%; shareholders’ equity was EUR 9.411bn, down 2%, and equity per share was EUR 48.42.

• Net investment capital gains moved from EUR 204m in FY 2017 to a EUR 52m loss in FY 2018; lower gains and impairments reduced support by EUR 256m.

• Life technical liabilities were EUR 73.4bn, down from EUR 74.7bn, mainly reflecting the Luxembourg disposal; operational free capital generation was EUR 629m.

Outlook and guidance

• Operational free capital generation was described as in line with FY guidance; the EUR 500–540m Solvency-scope guidance included EUR 99m of upstream dividends from non-European partnerships.

• Closing of the announced 40% RSGI stake acquisition in India was expected in H1; net cash impact was estimated at EUR 186m based on the stated FX date.

• Execution of the Connect21 strategic period was the next priority after five of six 2018 ambitions were reached.