Company Reports

For the first half of 2026, Ageas delivered a broad-based beat versus company-compiled consensus, with earnings that look ahead of our full-year forecast. However, operating capital generation continues to be a concern for us and, we think, the market.

On Aug. 3, Ageas announced the divestment of its 30.95% stake in Etiqa, or Malayan Banking Berhad, to Maybank for a cash consideration of EUR 1.1 billion.

Ageas would do well to take a leaf out of other midsize European multiline books by clearing up its financial statements and concentrating on core markets. Ageas has strength in its domestic market, Belgium, evolving to be the market leader, and is a dominant force in long-term savings. Its strategy in this line is to continue with the ongoing shift to unit-linked products that are lower margin but capital-light. This is probably one of the reasons behind the company’s gradual improvement in return on equity. Investments have played a part in improving customer service and protection that can be sold with savings products, and this creates a stickier set of customers and products. These investments have oriented around improving standards of underwriting, and despite raising expenses, the net effect in nonlife insurance has been positive. Ageas has a leading health insurance business with expenditure on health in Belgium being one of the highest in Europe. The firm targets price stability and ambulatory care services.

Ageas would do well to take a leaf out of other midsize European multiline books by clearing up its financial statements and concentrating on core markets. Ageas has strength in its domestic market, Belgium, evolving to be the market leader, and is a dominant force in long-term savings. Its strategy in this line is to continue with the ongoing shift to unit-linked products that are lower margin but capital-light. This is probably one of the reasons behind the company’s gradual improvement in ROEs. Investments have played a part in improving customer service and protection that can be sold with savings products, and this creates a stickier set of customers and products. These investments have oriented around improving standards of underwriting, and despite raising expenses, the net effect in nonlife insurance has been positive. Ageas has a leading health insurance business with expenditure on health in Belgium being one of the highest in Europe. The firm targets price stability and ambulatory care services.

With the UK changing prime minister for the seventh time in 10 years and it looking increasingly likely Andy Burnham will be the leader of the Labour Party and prime minister, transport—one of his key areas of focus as mayor of Manchester—could continue as an area of focus.

Ageas would do well to take a leaf out of other midsize European multiline books, clear up its financial statements, and concentrate on core markets. Ageas has strength in its domestic market, Belgium, evolving to be the market leader, and is a dominant force in long-term savings. Its strategy in this line is to continue with the shift to unit-linked products that are capital-light despite lower margins. This is probably one of the reasons behind the company’s gradual improvement in ROEs. Investments have played a part in improving customer service and protection products that can be sold with savings products, and this creates a stickier set of products and customers. These investments have been oriented around improving standards of underwriting, and despite raising expenses, the net effect in nonlife insurance has been positive. Ageas has a leading health insurance business with expenditure on health in Belgium being one of the highest in Europe. The firm targets price stability and ambulatory care services.

For the full year 2025, Ageas has delivered good operational results. However, the company's performance looks lackluster with regard to the generation of operational capital. The results build on a good first half and are underpinned by a period of acquisitions.

Ageas would do well to take a leaf out of other midsize European multiline books, clear up its financial statements, and concentrate on core markets. Ageas has strength in its domestic market, Belgium, evolving to be the market leader, and is a dominant force in long-term savings. Its strategy in this line is to continue with the ongoing shift to unit-linked products that are capital-light despite lower margins. This is probably one of the reasons behind the company’s gradual improvement in ROEs. Investments have played a part in improving customer service and protection products that can be sold with savings products, and this creates a stickier set of products and customers. These investments have oriented around improving standards of underwriting, and despite raising expenses, the net effect in nonlife insurance has been positive. Ageas has a leading health insurance business with expenditure on health in Belgium being one of the highest in Europe. The firm targets price stability and ambulatory care services.

For Jan. 1 reinsurance renewals, Ageas reported that insurance-linked securities and reinsurance capital supply are significantly higher than demand, particularly for natural catastrophe reinsurance.

While looking at dividends for 2025, when we published our European Insurance Dividends report on June 30, we picked out Admiral, Munich Re, and Scor. We also highlighted Ageas as holding potential to outperform.

For first-half 2025, Ageas has delivered a convincing beat versus company-compiled consensus with EUR 734 million in net operating profit. This positions Ageas well versus the EUR 1.30 billion to EUR 1.35 billion 2025 target that we think should equate to more than EUR 1.1 billion net profit.

In our look into European dividends for companies and stocks we prefer for 2025 earnings, we like Admiral, Munich, and Scor, but we prefer Scor over Munich based on its price/fair value ratio. We also think there is potential in Ageas.

Ageas would do well to take a leaf out of other midsize European multiline books, clear up its financial statements, and concentrate on core markets. Ageas has strength in its domestic market, Belgium, evolving to be the market leader and is a dominant force in long-term savings. Its strategy in this line is to continue with the ongoing shift to unit-linked products that are capital-light despite lower margins. This is probably one of the reasons behind the company’s gradual improvement in ROEs. Investments have played a part in improving customer service and protection offerings that can be sold into savings products, and this creates a stickier set of products and customers. These investments have oriented around improving standards of underwriting, and despite raising expenses, the net effect in nonlife insurance has been positive. Ageas has a leading health insurance business with expenditure on health in Belgium being one of the highest in Europe. The firm targets price stability and ambulatory care services.

Ageas would do well to take a leaf out of other mid-sized European multi-line books, clear up its financial statements and concentrate on core markets. Ageas has strength in its domestic market Belgium, evolving to be the market leader and is a dominant force in long-term savings. Its strategy in this line is to continue with the ongoing shift to unit-linked products that are capital-light despite lower margins. This is probably one of the reasons behind the company’s gradual improvement in ROEs. Investments have played a part in improving customer service and protection offerings that can be sold into savings products, and this creates a sticker set of products and customers. These investments have oriented around improving standards of underwriting, and despite raising expenses the net effect in nonlife insurance have been positive. Ageas has a leading health insurance business with expenditure on health in Belgium being one of the highest in Europe. The firm targets price stability and ambulatory care services.

Ageas has announced the acquisition of Esure in the UK. The deal comes on the back of Ageas' announcement to acquire Saga home and motor personal lines in mid-December last year.

With net operating profit of EUR 1.240 billion, Ageas delivered earnings for full-year 2024 that are fairly in line with company-compiled consensus. However, we think the price of the CASHES has continued to climb with the price of Ageas' shares, and this is clouding the business.

Ageas is an improving business. However, it would do well to take a leaf out of other mid-sized European multiline books, clear up its financial statements, and concentrate on core markets. Ageas has clear strength in its domestic market Belgium, evolving to be the market leader and is a dominant force in long-term savings. Its strategy in this line is to continue with the ongoing shift to unit-linked products that are capital-light despite lower margins. This is probably one of the reasons behind the company’s gradual but upward improvement in ROEs. Investments have played a decent part in improving customer service and protection offerings that can be sold into savings products, and this creates a sticker set of products and customers. These investments have oriented around improving standards of underwriting, and despite raising expenses the net effect in nonlife insurance have been positive. Ageas has a leading health insurance business with expenditure on health in Belgium being one of the highest in Europe. The firm targets price stability and ambulatory care services.

Ageas' financial statements still incorporate legacy financial instruments after it was spun out of Fortis Bank. Fortis Bank's failed takeover of ABN Amro occurred over 10 years ago, but these legacy issues are still hurting Ageas and hitting its value.

Ageas reported pretty decent results for the first half of 2024, delivering ahead of Impact24 targets. The domestic business has performed steadily, delivering a 5% rise in net inflows, with strength coming from nonlife and a combined ratio of 91.7%, considerably better than the 95% group operating target. Domestic guaranteed life and unit-linked margins were also considerably better than Impact24 targets. In the Europe business, inflows rose by double digits, with life inflows the strongest in Portugal and Turkey, and nonlife benefiting from a rate increase. The net operating result for Asia has dropped off as business in China works through a regulation cycle. Here, some limitations are being placed around participating bonusses, lowering customer expectations and demand. From Sept. 1, rate reductions are being put through for nonparticipating products from 3.0% to 2.5%; participating products are coming down from 2.5% to 2.0% on Oct. 1; universal life from 2.0% to 1.5% on Oct. 1. Further, the regulator is requesting the China Insurance Association come up with a dynamic price adjustment mechanism linked to 10-year bond yields and the five-year loan prime rate; and it also requested companies look at their product mix and introduce a greater proportion of participating and universal life. The business is busy training agents to deal with this transition. The short-term impact is likely to be lower sales.

In May, Ageas announced it agreed to subscribe to the capital increase of China Taiping Insurance Holdings subsidiary Taiping Pension Co for a total of EUR 137 million. After close of this transaction, Ageas held 10% of the larger capital base and it is a relatively small amount in the grand scheme of things. The capital increase enables Ageas to continue to invest in the growing demand for personal pension products in China. Our fair value estimate for Ageas is EUR 63.5 per share with a no-moat rating.