ageas (AGS) H2 2013 earnings summary

Executive summary

• FY13 insurance net result rose 5% to €654m; Group net profit fell 23% to €570m, including a Q4 RPN revaluation impact.

• Gross inflows increased 9% to €23.2bn; Q4 was affected by weaker Non-Life results.

• Balance sheet remained strong: insurance solvency 207%, Group solvency 214%, and shareholders’ equity €8.5bn, or €37.65 per share.

Financial highlights

• Insurance net result was €654m versus €624m in FY12; net result from the General Account was a loss of €85m versus income of €119m.

• Group net profit was €570m versus €743m; EPS was €2.49 versus €3.13.

• Gross inflows reached €23.22bn versus €21.27bn, including €12.19bn from non-consolidated partnerships versus €10.22bn.

• Shareholders’ equity declined to €8.525bn from €9.799bn, reflecting lower unrealized gains, shareholder returns and the put option.

Outlook and guidance

• Non-Life combined ratio objective was 97% in the current low-interest-rate environment; FY13 result was 98.6%.

• FY13 Insurance ROE was 8.3% versus the >11% target; excluding unrealized gains/losses, ROE was 10.4%.

• Guaranteed Life operating margin exceeded the 85–90 bps target range; Unit-Linked margin was affected by one-offs in Asia.