Ageas weathers declining non-life business


Motor income ticked upwards slightly but other non-life lines have fallen.

Ageas has reported an increase in profit for the first nine months of 2019.

Net profit at the insurer rose 7% to £58.2m from £54.2m over the same period in 2018, with the combined operating ratio improving to 97.0% from 97.5%

However, gross income fell 4% to £1.17bn from £1.22bn in 2018.

Andy Watson, chief executive of Ageas UK, commented: “As the year progresses we continue to deliver a resilient performance, despite a higher level of claims inflation that is consistent with that reported across the market.

“Our home book is performing well as a result of actions we have taken on underperforming schemes and is also benefitting from the benign weather in comparison to 2018.”

Ageas exited some household schemes earlier in 2019 and scaled back its broker travel business in 2018.

Excluding life business, gross income at the insurer fell from £952.5m to £929m.

The COR improved from 97.5% to 97.0%.

The largest fall in income came from accident and health and other lines, with revenue dropping from £130.4m to £115.2m.

This was closely followed by fire and other damage, where income dropped from £208.0m to £198.4m. Conversely, the COR returned to profitability, jumping from 109.2% to 90.1%.

Growth was reported in the final segment, motor, with income ticking upwards from £614.1m to £616.0m.

Watson stated: “I’m pleased to say that the large loss severity we reported in our motor book in the first half of the year has now returned to more normalised levels.”

As part of interim results published in August 2019, Ageas revealed that gross income in motor had fallen from £405.6m in H1 2018 to £403.9m in H1 2019.

“We have maintained our disciplined approach to underwriting and pricing in a dislocated motor market, which has had a natural impact on volumes,” explained Watson.

The COR has markedly worsened from 91.3% to 97.8%.

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