Net profit for the first nine months of 2020 up by 13% to €877.3m compared to 9M 19
Ageas has reported a 25% decline in its net profit for the third quarter of 2020 (Q3 2020) at €202.7m compared to €271.3m made in the same quarter of 2019.
In the previous quarter, the Belgian insurance group reported a net profit of €339.4m. For the first quarter of the year, the net profit was €451.6m.
Ageas’ net profit for the first nine months of 2020 (9M 20) stood at €993.7m, a 13% increase compared to €877.3m reported in 9M 19.
The earnings per share of the insurer in 9M 20 moved up by 16% from €4.54 in 9M 19 to €5.28.
In its life insurance business, the Belgian group had a 36% fall in its net profit at €116.3m in Q3 2020 compared to €182m in the same quarter in the previous year.
For 9M 20, the life insurance unit’s net result was down by 36% as well, at €426m, compared to €667.1m reported in 9M 19. The net result was affected by the impact caused by the Covid-19 pandemic on the investment result, said the Belgian insurer.
In the non-life business, Ageas’ net profit increase by 51% to €129.9m in Q3 2020 compared to €86.3m made in Q3 2019.
For 9M 20, the net profit made by the non-life unit was €311.1m, which is an increase of 54% compared to €202.1m in 9M 19.
The insurer attributed the increase in non-life net profit for 9M 20 to a robust performance across all segments and also a lower claims frequency. These made up for the impact of the adverse weather conditions in Belgium and the UK, said the company.
Ageas CEO Hans De Cuyper said: “The third quarter saw inflows increase in most segments and an improved underlying operational performance in both Life and Non-Life. Specific impairments on equity in Asia and lower recurring investment income from dividends and real estate revenues resulted in slightly lower insurance net profits.
“Year-to-date profits as well as our solvency and cash position remain strong. Consequently, and assuming no material impact from the financial markets in the last weeks of the year, we remain confident that we will be able to achieve a result close to our initial guidance.”
Last month, Ageas’ UK subsidiary signed a deal worth around £125m to sell its stake of 50.1% in Tesco Underwriting to its joint venture partner Tesco Personal Finance (Tesco Bank).