Ageas Reports Mid- to High-Single-Digit Drop in Net Income

Ageas has reported a sharp rise in net income during the fourth quarter, ahead of our expectations, moving net profit from EUR 567 million to EUR 871 million between the nine-month and full-year points. Both numbers exclude the impact of the relative performance note. This is ahead of our EUR 729.1 million full-year estimate. However, this is an 8% fall versus the prior year's EUR 945 million, again excluding the relative performance note. The strongest reporting is within Ageas’s home market nonlife, which according to management is because of favourable claims experiences in motor and household. The main detractor is Asia, with the fall in equity markets meaning impairments and a continual drop in that regional discount curve. Management is proposing a EUR 1.50 dividend per share taking the full amount to EUR 3.00 over the year.