Event in Progress:
Discover the latest content that has just been published on Research Tree
We publish our new Ageas IFRS 17 model and reaffirm our BUY recommendation. Transitioning from the previous accounting standards to the new IFRS 17 framework is expected to drive up the projected profits. Ageas maintains a strong presence in the Asian market, with several JVs. These Asian investments collectively contribute a substantial proportion, approximately 45%, of the company’s operating profit. We expect this contribution to continue to grow, driven by the different growth dynamics in A
Companies: Ageas (AGS:EBR)ageas SA/NV (AGS:BRU)
AlphaValue
Ageas’ results were mostly driven by the volatile Chinese business and a strong Non-Life segment. Nevertheless, in China, we noted the absence of a dividend remitted in H1 23, a delay that has affected several Chinese state-owned enterprises. It is important to be aware that the annual cash dividend for the year is unlikely to be affected, as these dividends are scheduled for H2. But this delay serves as a reminder that careful evaluation is necessary when valuing the Chinese segment.
Ageas released a surprising set of Q3 22 results in our view. Although it was negatively impacted by market turmoil in Asia and high inflation in the UK and Turkey, Ageas had warned about these effects a few days ago. Embedding these factors into the consensus (which had been published before the warning), Ageas would have beat estimates.
Ageas released a very strong set of Q2 results. Carried by Belgium and Asia, the firm beat market expectations. On a HY basis, Ageas remains in line with our expectations. Prospects for additional share buybacks have been tempered but we expect a dividend towards the high-end of the guidance.
Ageas’ Q1 22 results yielded mixed feelings. On the one hand, P&C has been surprisingly good but could revert to lower levels, we believe. On the other hand, Asia has been disappointing and could remain disappointing for quite some time considering the local context. Solvency improved and the trend could offer perspectives of shareholder rewards.
Ageas’ Q3 results have been surprisingly strong, beating by far consensus estimates. However, the deteriorating solvency ratio coupled with guidance left unchanged, while the insurer could have shown more optimism over the year-end result, leaves a glimpse of potential worries.
Ageas’ H1 21 results are not what we would have expected. Asia’s Life business came in disappointing and Non-life is expected to be heavily impacted in the next quarter. But, overall, the outlook remains the same and the €150m share buy-back will cheer investors up. Tough times to go through but we remain positive in the medium term.
Ageas’ performance for the first quarter of the year is very positive. We believe the worst turmoils to be past (Turkey FX impact, COVID-19 claims and high volatility on the markets) and, coupled with the recovery in economies and strong capital generation, we see the rest of 2021 as looking better than expected.
Ageas released net profit at €1,141m. The Non-Life business contributed significantly to this performance (up 49% to €391m), while the Life divisions suffered and posted a 32% drop to €569m. We appreciate the resilient top line and the €2.65 to be distributed per share. Ageas also announced the acquisition of a 40% stake in the Turkish Life insurance and pensions company AvivaSA for €142m. The insurer enters a new market, with rapid growth and without problems of low interest rates.
Despite the pandemic, Ageas was very active during 2020 to reinforce its positions in existing markets and to clean its balance sheet. There are no fears about the capacity of the insurer to generate cash and to distribute a dividend for 2020 earnings.
Q2 20 net profit stood at €339m, -4% yoy. H1 earnings increased by 31% to €791m thanks to the FRESH operation in Q1 (€332m). Pressures continued on the Life business (-36% in net result to €309m), contrary to Non-Life’s earnings (+56% to €181m) thanks to lower claims in Motor and Accident & Health segments. The Solvency II ratio was 192%. The insurer announced the distribution of an interim dividend of €2.38/share. Resilient performance from the Belgian company.
Companies: ageas SA/NV
The solid net profit (€452m, up 80% yoy) was the result of the operation on FRESH securities. The pandemic hit the insurance result, which dropped by 56% to €113m. The operating margin in the Life business declined and the high combined ratio (99.7%) resulted from bad weather conditions. The resilient Solvency II ratio (193% on 30 April) sustains the intention of management to distribute an intermediary dividend of €2.38/share later in 2020, to reach the initially announced dividend of €2.65/sha
Ageas reported a FY 19 net income of €979m, up 21% yoy. The Q4 was difficult with a 34% drop in the net result to €102m. Earnings were driven by Life operations (up 65% yoy to €841m). By market, Belgium and Asia contributed up to 96% of the group’s net result. The Solvency II ratio stood at 217.3%, but it does not include the impact of the transaction on Fresh securities (-12%). The proposed dividend exceeded estimates at €2.65/share.
Ageas posted a 4% increase in 9M inflows to €11,680m. The growth of the top line was driven by Non-Life business (+7% to €3,453m in 9M), while the Life operations were behind the better net result (+44% to €667m in 9M). Asia and Belgium were the main contributors to the group’s profits (>85%). The Solvency II ratio stood at 199%. The results were slightly better than expected, but we prefer to remain cautious given the possible adverse weather conditions in Q4.
Ageas posted an 4.4% increase in its inflows to €21,018m thanks to both the Life and Non-Life branches. The net result was up 37.3% to €354m, driven by an excellent Q2 for the Life business which recovered after a difficult Q1 19. The General Account released a positive result (€5m). The Solvency II ratio stood at c. 201%. We will be revising up our estimates for the full year.
Research Tree provides access to ongoing research coverage, media content and regulatory news on ageas SA/NV. We currently have 59 research reports from 3 professional analysts.
Companies: Plus500 Ltd.
Liberum
Tatton, the leading on-platform discretionary fund manager (DFM) and IFA support services Group has released a trading update ahead of its results to 31 March 2024, due on 18 June 2024.
Companies: Tatton Asset Management Plc
Zeus Capital
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
Ondo InsurTech has released a brief post-YE update revealing its good progress continued through 2H24 and consequently FY24 will be in line with market expectations.
Companies: Ondo Insur Tech PLC
Dowgate Capital
Foxtons Group plc first quarter revenue rose 9% to £35.7m (1Q23: £32.9m) with growth delivered across all business segments. Trading is in line with management's expectations.
Companies: Foxtons Group Plc
BRWM’s managers: we see all the classic signs of high commodity prices...
Companies: Blackrock World Mining Trust PLC
Kepler | Trust Intelligence
Companies: discoverIE Group PLC (DSCV:LON)LendInvest PLC (LINV:LON)
Cavendish
The refinancing of a £135m revolving credit facility and the extension of a similar £70m facility gives NESF firepower as development opportunities for new solar are especially attractive thanks to lower module prices in Europe. They give the fund key financial flexibility at a critical time as it pursues its capital recycling programme.
Companies: NextEnergy Solar Fund Ltd
Longspur Clean Energy
Foxtons Group’s Q1 revenue grew by 9%, supported by growth in all three divisions as the strategic initiatives continue to gain significant momentum, driven by investment in staff, best-in-class bespoke IT and data platforms. This implies that Foxtons’ medium-term targets are now coming into focus. Market share is being gained in all divisions, which puts Foxtons in a good position as the sales market stabilises. We maintain our valuation of 132p/share and believe that if interest rates stabilis
Edison
NextEnergy Solar Fund (NESF) is almost 10 years old. Since launch, it has built a £1.2bn, 933MW portfolio of 100 operating solar assets, powering the equivalent of over 330,000 homes, declared dividends totalling £333m, and avoided the emission of about 2.2 Mt CO2e. NESF is on track to pay 8.35p in dividends, with forecast dividend cover of about 1.3x. Share price weakness that has afflicted the whole sector means that dividend translates to a yield of 11.1%, one of the highest in its sector, a
QuotedData
Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol
Companies: NBPE ICGT ARBB RECI CLIG HAT AVO VTA APAX
Companies: UTL ASC DNLM BWNG MONY DFS BOO
Shore Capital
Companies: M Winkworth plc
Artificial intelligence (AI) is a double-edged sword in cybersecurity. Whilst new AI models, architectures, and innovations are emerging to protect the security posture of organisations, attackers are also benefiting from deepfakes, sophisticated phishing, and automation of malicious codes. To ensure the impact of AI on cybersecurity to be a net-positive, we need to pit good AI against bad AI. Point solutions enhanced with machine learning: Global cybersecurity has been built with point soluti
Companies: EPIC DARK TIDE IGP IOM NCC CHRT CNS CLCO TERN SWG CCS SYS BVC
Hybridan
Vp’s full year update highlights sector-leading results, once again benefiting from the diversity of its end markets and the quality of its specialist businesses. With results expected to be broadly in line with expectations, we trim our FY24 PBT forecast by c.5% to £39.0m, a shade below the FY23 outturn (£40.2m). We consider this an impressively resilient performance set against a mixed market backdrop. Under new leadership, a strategic refresh is underway and management is confident in long
Companies: Vp plc
Equity Development
Share: