Ageas posts COR of 94.9% for its GI portfolio during H1 2022

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The insurer’s chief executive called this an ’exceptionally strong’ result and confirmed an interim dividend of £1.26 per share to shareholders

Insurer Ageas achieved a combined operating ratio (COR) of 94.9% across its general insurance (GI) portfolio during H1 2022, according to its half year financial results posted last week (10 August 2022).

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The firm explained that this figure had taken a five percentage point hit from the impacts of “adverse weather events” in Belgium and the UK during Q1 2022 that affected household profitability.

COR in H1 2021 sat at 93%, meaning this had deteriorated by nearly two percentage points to this year’s figure.

In Europe – which Ageas splits from its main market in Belgium within its results – COR for GI stood at 97.7%

The insurer’s GI business achieved a net profit of €179.8m (£150.4m) across all markets, a small decrease from the equivalent period in 2021 when it earnt €181.1m (£152.1m).

In its European market, Ageas achieved net profit of €67.6m (£56.8m) across GI.

GI also generated gross inflows of €1,250.2m (£1050.5m) at Ageas’ share across Europe.

Confident outlook

Hans De Cuyper, chief executive at Ageas, said: “I am very pleased that we are building further on the positive start we made at the beginning of the year with an exceptionally strong second quarter.

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“Both operationally and commercially, we performed very well across regions and product lines… We feel confident in confirming the outlook of €1bn (£840m) net profit for 2022.”

De Cuyper added that Ageas would be paying an interim dividend of €1.5 (£1.26) per share for its shareholders.

“Ageas continues to perform well in terms of its core business and, at the same time, is taking important steps in living up to its non-financial commitments under Impact24 in the field of sustainability, climate and health and wellbeing.”

Impact24 is Ageas’ long term sustainable growth strategy. In the UK this has taken the form of signing up to Flood Re’s Build Back Better scheme, which offers homeowners the opportunity to have flood resistance and resilience measures installed by their insurer if their home is damaged by flooding.