Analyst Note| Henry Heathfield, CFA |
Ageas has reported results for the full last year. The market does not particularly like these numbers as the business appears under pressure. However, that pressure is not broad. If we look at what can be thought of as the core of Ageas, the results do not look that bad. The bottom line is ahead of our expectations but that is due to a nonrecurring gain. Excluding this addition, net income attributable to shareholders came in at EUR 809.0 million, below our estimate of EUR 994.0 million. We believe a lot of the miss today versus market expectations is due to market losses and discount rates in Asia. We won’t be revising our EUR 45.0 fair estimate for the time being and we also maintain our no moat rating. Numbers today include a proposed EUR 2.65 dividend representing a 56% payout. On a share price today of EUR 46.6 that’s a 570-basis-point yield.