ageas (AGS) CMD 2024 summary

Strategic direction and business focus

• Elevate27, the new three-year strategy, builds on Impact24, focusing on Europe and Asia, leveraging a diversified insurance and reinsurance portfolio, and strong local partnerships, with no plans to enter new continents except via global reinsurance.

• The group aims for market leadership in Life, Non-Life, and reinsurance, serving 47 million customers through a multi-channel network, and prioritizes technical insurance, operational excellence, and long-term partnerships.

• Strategic drivers are profitable growth, technical insurance & operational excellence, and future-proofing distribution and customer experience, enabled by tech, data, AI, and sustainability.

• Key growth areas include solutions for ageing societies, SMEs, retail P&C, health & protection, and reinsurance, aiming to outperform market growth in these segments.

• Sustainability is central, with 29% of GWP from sustainable products, €13.5bn in sustainable investments, and a net zero carbon commitment by 2050.

Financial guidance and targets

• Targets for 2024–2027 include average annual EPS growth of 6–8%, holding free cash flow over €2.2bn (25–30% growth vs. prior cycle), and shareholder remuneration above €1.9bn, with a progressive dividend policy.

• Margin expansion is expected to contribute 2–3% to EPS growth, mainly from Non-Life, with a targeted combined ratio of approximately 92% by 2027 and €75–100m in insurance result improvement.

• Asia is expected to outgrow consolidated entities, with business growth as the main driver and margin improvements offsetting lower interest rates in China.

• Capital allocation for reinsurance will increase to €250m by 2027, supporting gradual portfolio growth.

• Neutral solvency capital level of 175% is maintained, with no change to risk appetite or M&A priorities.

Operational and business model evolution

• Over 300 digital and AI initiatives are underway globally, including AI-driven claims, pricing, underwriting, fraud management, and customer service automation.

• Distribution remains omni-channel, with efforts to diversify and innovate client interaction, especially in less balanced markets.

• Non-financial targets include top quartile NPS for customers and employees, 40% women in management by 2027, and over 35% of GWP from ESG-incentivized products.

• The group invests in open, composable IT architecture, cybersecurity, and modernization to accelerate speed to market and partner integration.

• M&A strategy is disciplined, focusing on cash-generative, market-leading opportunities, with openness to in-market consolidation and a focus on capital productivity and return on capital above local cost.