ageas (AGS) H2 2019 earnings summary

Executive summary

• FY 2019 net result reached a record €979m, versus €809m in FY 2018; operational Non-Life performance and exceptional contributions in Asia supported the result.

• Inflows rose 11% scope-on-scope to €35.9bn; the proposed gross dividend was €2.65/share, up 20% YoY.

• Five of six Connect21 targets were reached; the combined ratio was 95.0% and Solvency II ratio 217%.

Financial highlights

• FY inflows increased 4% reported to €35.9bn; scope-on-scope growth was 11%.

• Shareholders’ equity increased to €11.2bn from €9.4bn, supported by net result and positive financial-market impacts; equity/share rose to €58.89 from €48.42.

• FY net realised capital gains were €275m versus a €49m net loss in FY 2018; gains included impairments and related profit-sharing changes, net of tax.

• Life technical liabilities reached €159.6bn, up 3% excluding shadow accounting effects; inflows increased across most regions.

Outlook and guidance

• Connect21 targets included a combined ratio below 96%, dividend payout of at least 50%, Solvency II ratio of 175%, guaranteed Life margins of 85–95 bps and EPS CAGR of 5–7%; five of six targets were reached in 2019.

• The proposed FY 2019 gross dividend of €2.65/share represented a 58% payout and was 20% above the prior-year €2.20/share.

• Claims validation and payments under the legal settlement were expected to continue during 2020.