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Ageas SA/ NV AGS

Morningstar Rating
€42.48 +0.12 (0.28%)
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Company Report

Ageas Announced Termination of Interest in Making Offer for Direct Line

On March 22 Ageas announced it was no longer interested in making an offer for Direct Line. This follows the announcement of Direct Lines’ results last week where a new performance plan was laid out and confidence in the future value of the business was clearly communicated. This effectively raised the hurdle over which Ageas would need to demonstrate value accretion to both its own shareholders and those of Direct Line. We maintain our fair value estimates and no-moat ratings.

Price vs Fair Value

AGS is trading within a range we consider fairly valued.
Price
€42.36
Fair Value
€32.80
Uncertainty
Medium
1-Star Price
€54.57
5-Star Price
€99.31
Economic Moat
Bxzgt
Capital Allocation
Ljgd

Bulls Say, Bears Say

Bulls

Ageas has continued to gain market share in both core domestic life and savings and nonlife insurance business.

Bears

Ageas still has quite a lot of legacy finance issues that have the potential to weigh on and dilute earnings.

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News

Trading Information

Previous Close Price
€42.36
Day Range
€42.3442.80
52-Week Range
€35.6643.40
Bid/Ask
€42.30 / €42.76
Market Cap
€7.80 Bil
Volume/Avg
270,935 / 430,628

Key Statistics

Price/Earnings (Normalized)
9.60
Price/Sales
0.73
Dividend Yield (Trailing)
7.02%
Dividend Yield (Forward)
8.19%
Total Yield
7.15%

Company Profile

Ageas was spun out of Fortis during the financial crisis after a consortium including Banco Santander and Royal Bank of Scotland launched a failed bid for ABN Amro. The takeover was badly timed and ambitious, and to fund it Fortis started selling noncore divisions while writing down collateralised debt. As Fortis’ capital began to decline, the company initiated a rights issue and the long-held promised dividend was suspended. As Fortis’ share price began to decline and financial market conditions continued to worsen, with a series of leadership changes customers began to withdraw deposits. Fortis was approached by the government and sold its domestic banking operations to the Belgium government, and BNP Paribas and was asked to spin off its insurance and asset management divisions.
Sector
Financial Services
Industry
Insurance - Diversified
Stock Style Box
Mid Value
Total Number of Employees
14,673

Competitors

Valuation

Metric
AGS
AXAHY
NN
Price/Earnings (Normalized)
9.6010.2550.72
Price/Book Value
1.091.500.58
Price/Sales
0.730.890.99
Price/Cash Flow
55.4599.9416.95
Price/Earnings
AGS
AXAHY
NN

Financial Strength

Metric
AGS
AXAHY
NN
Quick Ratio
Current Ratio
Interest Coverage
7.2815.59
Quick Ratio
No chart available

Profitability

Metric
AGS
AXAHY
NN
Return on Assets (Normalized)
1.22%1.19%0.57%
Return on Equity (Normalized)
15.42%16.11%5.59%
Return on Invested Capital (Normalized)
8.53%6.80%2.26%
Return on Assets
AGS
AXAHY
NN
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Insurance - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BRK.A
Berkshire Hathaway Inc Class AKlvrttqqwVsrw$897.0 Bil
BRK.B
Berkshire Hathaway Inc Class BScxyfzxlxQfqg$882.0 Bil
ALIZY
Allianz SE ADRHzqxcvyhdCblvg$109.7 Bil
AXAHY
AXA SA ADRJwjwcvftcRbtw$81.9 Bil
ZURVY
Zurich Insurance Group AG ADRBpmwdpvqlfMllxyq$75.7 Bil
AIG
American International Group IncSgsgkwxhSnhvr$50.9 Bil
SLF
Sun Life Financial IncWbbzjgzkTvscb$30.9 Bil
AVVIY
Aviva PLC ADRCsrqxftqdSkgr$15.6 Bil
AEG
Aegon Ltd ADRJxpfnfqJhxky$10.6 Bil
AGESY
Ageas SA/ NV ADRDfjjPrvtv$8.5 Bil

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