Insurance results affected by adverse financial markets
Strong operational improvement in Non-Life
- Insurance net result at EUR 313 million negative (vs. EUR 391 million positive in 2010), including total net impairment charges of EUR 908 million and partly offset by realized capital gains of EUR 167 million
- Life net result at EUR 425 million negative (vs. EUR 377 million positive in 2010), including impairment charges of EUR 871 million , partly offset by net realized capital gains
- Non-Life net result increased to EUR 82 million (vs. EUR 2 million in 2010)
Operating performance improved; Group combined ratio at 101.1% vs. 107.3%
- Group inflows at EUR 17.2 billion, -4%
- Life inflows down 13%, at EUR 12.3 billion, market shares stable;
- Non-Life inflows up 31%, at EUR 4.9 billion, growth across all segments;
- Funds under management scope-on-scope stable at EUR 70.6 billion
Group net result at EUR 578 million negative
- General Account at EUR 265 million negative, including EUR 215 million impact legacies
Resilient balance sheet
- Shareholders' equity at EUR 7.8 billion, EUR 3.23 per share, -1%
- Insurance solvency at 207%; Group solvency ratio at 237%
Proposed gross cash dividend at EUR 8 eurocent per share, stable on 2010
CEO Bart De Smet said:
"2011 has been marked by a tough financial environment. Our results were severely impacted by impairment charges on Greek sovereigns, equities and on goodwill related to the Hong Kong activity. In Non-Life, our UK activities reported impressive growth. However, our operational results showed good improvement, in particular in the UK. Combined ratios improved across all segments, underscoring the importance of our strategic choice for a balanced portfolio of activities. In Life, our inflows in Europe declined following the challenging market circumstances and increased competition. In Asia the outstanding inflow levels of 2010 have been repeated. Our capital position and shareholders' equity per share showed resilience, despite the volatility in the market.
The General Account remained volatile as a result of the valuation of the various legacy issues including the Tier 1 Debt Securities. The recently concluded transaction with BNP Paribas with respect to the CASHES and the Tier 1 Debt Securities will result in a reduction of the RPN(I) volatility going forward and is evidence of our determination to solve legacy issues. As a result of the settlement, our net cash position is expected to double to around EUR 1.3 billion.
Ageas executed a EUR 250 million share buy-back programme, announced in August last year which has been completed at the start of 2012. In addition, Ageas's Board has decided to propose for approval by the shareholders a gross cash dividend of 8 eurocent per share for 2011. This dividend proposal reflects our strong belief in the strength of the company and in the underlying profitability of our business."
