According to Ageas, the decline in its Q4 2019 net profit is primarily due to the RPN(i) revaluation over the quarter
Ageas net profit for Q4 2019 drops 34%. (Credit: Pixabay/mohamed Hassan)
Ageas has reported a 34% drop in its net profit for the fourth quarter of 2019 at €101.2m compared to €153.5m made in the same quarter of 2018.
The Belgian insurance group attributed the decline in its Q4 2019 net profit primarily on the RPN(i) revaluation over the quarter, which offset the earlier gains. The negative impact of the revaluation of the RPN(i) liability in the reported quarter was €106m compared to a positive impact of €32m in Q4 2018.
In the UK, the net result came down by 89% from €25.3m in Q4 2018 to €2.8m, which also attributed to the reduced net profit of the group in the reported quarter, said the insurance company.
In Belgium, the group’s net profit was up by 12% to €121.8m compared to €109.1m reported in Q4 2018, which was attributed to a strong underwriting result and backed by real estate returns.
In Asia, Ageas’ Q4 2019 net profit was €72m compared to a net loss of €40.8m reported in the same quarter in the year before.
The life insurance unit of the Belgian company increased its net profit from €44.8m in Q4 2018 to €173.6m, driven by Asia and Belgium. However, the non-life business had a 32% drop in its net profit at €59.8m in the reported quarter compared to €88.2m made in the corresponding quarter in 2018. The insurer blamed the lower Q4 non-life net result on the challenging UK motor market.
Ageas also reported a 21% increase in its net profit for the full year 2019 at €979.2m compared to €809.1m in the full year 2018. The insurance group attributed the growth to the steady contribution made by its Belgian business, a strong result of the Asian Life operations, and also the operating performance in non-life in Continental Europe.
Ageas CEO comments on the Q4 2019 and FY 2019 results
Ageas CEO Bart De Smet said: “Connect21, our new strategic plan took an excellent start achieving all targets but one, where we are closing the gap. Based on these accomplishments, our solid balance sheet and our capacity to generate cash, the Board of Ageas proposes to increase the dividend significantly to EUR 2.65.
“The direct impact of insurance claims related to the 2019-nCoV is expected to be limited. However, the indirect impact coming from the economic slowdown and the volatility in financial markets and interest rates could influence our Asian commercial activity and results.”