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Research Tree provides access to ongoing research coverage, media content and regulatory news on Ageas. We currently have 11 research reports from 1 professional analysts.
Insurance’s net profit in 9M 17 stood at €685m, down 15% yoy, despite a good Q3 (up 23% at €241m) excluding the divestment in Hong Kong. Taking this divestment into account, the 9M 17 net insurance result amounted to €803m (€212m in Q3 17). Life’s net profit reached €473m, down 24% yoy (€161m in Q3 17, +36% yoy) but this includes the impact of the Hong Kong sale. Non-Life insurance’s net profit stood at €212m vs. €181m a year before (€80m in Q3 17, +3% yoy). Group inflows including the non-consolidated partnerships at 100% reached €27,062m, up 10% yoy (€6,596m in Q3 17, +4% yoy), of which €22,353m was related to the Life business, +13% yoy (€5,153m in Q3 17, +6% yoy) and €4,709m related to the Non-Life division, -2% yoy (€1,443m in Q3 17, -4% yoy). The group’s combined ratio stood at 94.9% (vs. 97% in 9M 16). The General Account recorded a net loss of €326m vs. €-685m a year before (€-165m in the Q3 17 vs. €-11m in Q3 16). The group’s 9M 17 net result amounted to €360m vs. €118m in September 2016 (€76m in Q3 17 vs. €185m in Q3 16). The Solvency II ratio stood at 194%. The General Account’s net cash position reached €1,691m at the end of 9M 17.
H1 17 insurance net profit stood at €445m, up 12% yoy, excluding the divestment from Hong Kong. Taking this operation into account, the H1 17 net insurance result declined by 45% yoy (€222m in the Q2 217, -45% yoy). Life’s net profit reached €312m, down 38% yoy (€144m in the Q2 17, -60% yoy) but this includes the impact of Hong Kong sales of €212m. Non-Life insurance’s net profit stood at €132m vs. €103m a year before (€78m in the Q2 17, +70% yoy). Group inflows including the non-consolidated partnerships at 100% reached €20,466m, up 12% yoy (€7,793m in the Q2 17, +8% yoy), of which €17,199m was related to the Life business, +14% yoy (€6,279m in the Q2 17, + 11% yoy) and €3,266m related to the Non-Life division, -2% yoy (€1,514m in the Q2 17, -4% yoy). The group’s combined ratio stood at 95.6% (vs. 101% in H1 16). The General Account recorded a net loss of €161m vs. €-675m a year before (€-49m in the Q2 17 vs. €159m in the Q2 16). The group’s H1 17 net result amounted to €284m vs. €-67m in June 2016 (€173m in the Q2 17 vs. €566m in Q2 16). The Solvency II ratio stood at 193%. The General Account’s net cash position reached €1,623m at the end of H1 17. The Board decided to continue the buy-back of shares by launching a new €200m programme. Please note that during the last 6 years, the insurer has bought back the equivalent of 22% of the outstanding shares.
Q1 17 insurance net profit stood at €222m, up 10.0% yoy. Life’s net profit reached €168m (17.3% yoy). Non-Life insurance’s net profit stood at €54m vs. €57m a year before. Group inflows including the non-consolidated partnerships at 100% reached €12,672m (up 14% yoy), of which €10,921m was related to the Life business (+16.1% yoy) and €1,751m related to the Non-Life division (up 1% relative to Q1 16). The group’s combined ratio stood at 98.3% (vs. 97.8% in Q1 16). The General Account recorded a net loss of €112m. The group’s Q1 17 net result amounted to €110m. Shareholders’ equity amounted to €9,325m. The Solvency II ratio stood at 177%. By segment, the solvency ratio amounted to 235% for Belgium, 109% for the UK, 136% for Continental Europe and 213% for Reinsurance. The General Account’s net cash position reached €1,836m by the end of Q1 17.
Ageas’s FY 16 insurance net profit stood at €821.2m, up 8.7% relative to 2015, but the Q4 16 was difficult with just €17.9m, a drop of 87.4% yoy. FY 16 Life net profit reached €703.6m (+22.8% yoy). The last quarter of the year recorded a decrease of 44.8% to €81.1m. Non-Life & Other Insurance net profit stood at €117.6m, down by 35.5% yoy. Q4 16 was difficult with a loss of €-63.2m. Group inflows (including the non-consolidated partnerships at 100%) reached €31,653m, up 6.2% yoy, of which €25,368m related to the Life business (+7.9% yoy) and €6,285m related to the Non-Life division, flat relative to 2015. The group’s combined ratio stood at 98.7% (vs. 96.9% in 2015). ROE was 12% vs. 11% in 2015 (excluding unrealised gains and losses). The General Account recorded a loss of €-693.9m vs. a net profit of €15.1m in 2015. The group’s net profit decreased by 16.5% to €127.1m. Shareholders’ equity amounted to €9,656m. The insurance solvency ratio and group solvency stood at 182.3% and 194.7%, respectively. The General Account’s net cash position reached €1,942m by the end of 2016 vs. €1,604m the year before. The proposed 2015 gross cash dividend is €2.1 per share, of which an exceptional dividend of €0.4 per share is related to the capital gain on the Hong Kong divestment.
9M 16 insurance net profit stood at €803m, up 31% year-on-year. The operating result of Life’s consolidated entities increased by 14% to €437m (+16% in Q3 to €112m) and net profit reached €622m (+46% yoy) with an excellent Q3 to €118m. 9M 16 Non-Life insurance’s net profit stood at €181m vs. €187m a year before. The Q3 15 recorded an 18% increase to €77m. Group inflows including non-consolidated partnerships at 100% reached €24,692m (up 8% yoy), of which €19,865m was related to the Life business (+11% yoy) and €4,826m was related to the Non-Life division, i.e. stable relative to the same period in 2015. The group’s combined ratio stood at 97% (vs. 95.1% in 9M 15). The General Account recorded a net loss of €686m (vs. a net loss of €14m in 9M 15). In Q3, the net result was negative (€-11m). Shareholders’ equity amounted to €10,451m. The insurance solvency ratio and the group solvency ratio stood at 181% and 199%, respectively. The General Account’s net cash position reached €1,957m by the end of 9M 16.
Q1 16 insurance net profit stood at €201m, up 1.5% yoy. Life’s net profit reached €143m (-3% yoy). Non-Life Insurance’s net profit stood at €57m vs. €50m a year before. Group inflows including the non-consolidated partnerships at 100% reached €11,111m (up 11% yoy), of which €9,377m related to the Life business (+14% yoy) and €1,734m related to the Non-Life division (steady relative to Q1 15). The group’s combined ratio stood at 97.8% (vs. 96.6% in Q1 15). The General Account recorded a net loss of €834m. The group’s Q1 16 net result amounted to €-633m. Shareholders’ equity amounted to €10,324m. The Solvency II ratio stood at 182%. The General Account’s net cash position reached €939m by the end of Q1 16 vs. €1,604 in Q4 15.
FY 15 insurance net profit stood at €755m, up 2.5% relative to 2014. FY 15 Life net profit reached €572m (+7.4% yoy), after a good Q4 15 net profit increase of 60.1% to €147m. Non-Life & Other Insurance net profit stood at €182m, down by 10.7%. The Q4 15 was difficult with a loss of €-6.1m vs. €42.7m in the same period in 2014. Group inflows including the non-consolidated partnerships at 100% reached €29,791m (up 15.5% yoy), of which €23,493m related to the Life business (+19% yoy) and €6,298m related to the Non-Life division (+4.1% yoy). The group’s combined ratio stood at 96.8% (vs. 99.6% in 2014). ROE was 7.9% (vs. 8.8% in 2014, below the 11% targeted). The General Account recorded a net profit of €15m vs. a loss of €261m. The group’s net profit increased by 61.7% to €770m. Shareholders’ equity amounted to €11,376m. The insurance solvency ratio and group solvency stood at 226% and 228%, respectively. The General Account’s net cash position reached €1,604m by the end of 2015 vs. €1,308m the year before. The proposed 2014 gross cash dividend is €1.65 per share, an increase of 6.5% compared to the previous year.
9M 15 insurance net profit stood at €613m, up 6% year-on-year. The operating result of Life's consolidated entities decreased by 12% to €382m (-32% in the Q3 to €96m) and net profit reached €425m (-4% yoy) after the 72% drop in Q3 to €43m. 9M 15 Non-Life insurance's net profit stood at €193m vs. €111m a year before. The Q3 15 recorded a 5% increase to €66m. Other business posted a loss of €5.9m. Group inflows including non-consolidated partnerships at 100% reached €22,769m (up 17% yoy), of which €17,934m related to the Life business (+21% yoy) and €4,834m related to the Non-Life division (+5% yoy). The group's combined ratio stood at 95.1% (vs. 99.6% in 9M 14). The General Account recorded a net loss of €14m (vs. a net loss of €288m in 9M14). In Q3, the net result was positive (€21m) benefiting mainly from the positive revaluation of the RPN(I). Shareholders’ equity amounted to €10,917m. The insurance solvency ratio and the group solvency ratio stood at 231% and 232%, respectively. The General Account's net cash position reached €1,406m by the end of 9M 15 vs. €1,637m in December 2014.
Ageas has agreed to sell its Life insurance business in Hong Kong to JD Capital for HKD10,688m (€1,230m). The transaction is expected to be completed within H1 16. Based on H1 15 figures and still subject to closing adjustments, the transaction is expected to have an impact on the net result of around €0.45bn at the time of closing. Management announced that despite this transaction, the company remains firmly committed to Asia and will further strengthen its business in the region by focusing on the six growth markets it is now present in through its successful JV in Malaysia, China, Thailand and India, as well as the partnerships recently established in the Philippines and Vietnam. Furthermore, Ageas continues to explore opportunities in high growth markets in the region.
H1 15 insurance net profit stood at €504m, up 48% year-on-year. The operating result of the Life consolidated entities decreased by 2% to €286m but net profit reached €382m (+34% yoy). Non-Life Insurance's net profit stood at €127.3m vs. €48.8m a year before. Other business posted a loss of €5.6m. Group inflows including non-consolidated partnerships at 100% reached €16,617m (up 21% yoy), of which €13,326m related to the Life business (+25% yoy) and €3,291m related to the Non-Life division (+5% yoy). The group's combined ratio stood at 95.2% (vs. 102% in H1 14). The General Account recorded a net loss of €34.6m (vs. a net loss of €309.2m in H1 14). Shareholders’ equity amounted to €11,109m. The insurance solvency ratio and the group solvency ratio stood at 234% and 235%, respectively. The General Account's net cash position reached €1,508m by the end of H1 15 vs. €1,637m in 2014. A new share buy-back programme of €250m will be launched on 17 August 2015.
China's stock markets are plunging. Three difficult weeks have resulted in a loss of $3,000bn. The country of 90 million retail investors has begun to fear of the bursting of the equity bubble after months of rallying. Like other European players, Ageas is present in China through a JV. The Asian region is a key business area for the insurer, which had decided to deploy more capital in emerging markets in general, and in China in particular. With the current events, the Belgian insurer is likely to have some concerns about its Asian operations.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Ageas. We currently have 11 research reports from 1 professional analysts.
|12Dec17 07:30||GNW||Amended Fortis settlement agreement reached|
|04Dec17 16:40||GNW||Ageas reports on the progress of share buy-back programme|
|27Nov17 16:40||GNW||Ageas reports on the progress of share buy-back programme|
|20Nov17 16:40||GNW||Ageas reports on the progress of share buy-back programme|
|13Nov17 16:40||GNW||Ageas reports on the progress of share buy-back programme|
|08Nov17 06:30||GNW||Ageas reports 9M 2017 result|
|06Nov17 16:40||GNW||Ageas reports on the progress of share buy-back programme|
e il futuro
Companies: ABBY BDEV BWY BKG BVS CRN CSP CRST GLE INL MCS PSN RDW SPR TW/ TEF WJG
In July 2017, we highlighted the progress that AIM made in the first half of the year. We are now reviewing the performance over H2 2017. The latest AIM Statistics published yesterday show that there are currently 960 companies, with 80 new issues in 2017, raising £1.58bn and secondary issues raising a further £4.7bn. However, with 102 companies cancelling their listing there was a net 22 fall in 2017 as a whole. It appears that both the trends of new issue momentum and de-listings are set to continue in 2018. In Share News & Views, we comment on APC Technology*, ECSC Group* and IG Design.
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14% rise in Group Funds under Management to US$5,329m (£3.9 billion) as Emerging Markets FUM rose 11% to £4,660m (MXEF T/R Index up 16%), Developed Market FUM rose 88% to £337m (World T/R Index up 11%), GTAA Funds rose 26% to £139m (ACWI/Barclays Global Agg Index up 7%) & Frontier Funds rose 12% to £193m (MSCI Frontier index up 12%). Developed Market, GTAA and Frontier funds are now 13% of Group FUM (June 2017: 10%). While CLIG’s Emerging Market strategies suffered £89m net outflow caused by underweight China, widening discounts, and rebalancing, CLIG’s Developed, GTAA and Frontier strategies enjoyed strong investment performance and a focused marketing which generated £151m of net inflows. >$400m pipeline of potential fund inflows is spread across all strategies with $110m of net inflows expected to be funded in the next quarter. 1H18 pre-tax profit rose 14% to £6.6m (1H17: £5.8m). The Board has declared an interim DPS of 9p (13% higher than 1H17: 8p).
Companies: City Of London Investment Group
CLIG has reported 6% FuM growth in Q2 which we believe has been driven by benchmark performance with no material net flows. Flows were positive overall in H1, but there were modest net outflows in the core EM strategy. Indication has been given that H1 PBT is expected to be in line with consensus and a 9p interim dividend is expected to be declared. We are reviewing our forecast model but do not anticipate changing our neutral HOLD stance given absence of material flow momentum. The attractive dividend yield (c.7%) provides compensation for exposure to more volatile EM assets and limited FuM growth.
Companies: City Of London Investment Group
A look back at our 2017 ideas In aggregate our analyst picks outperformed the FTSE All Share last year by 9% and the cumulative performance of our portfolio over 6 years would have given a total return of 300% (almost double the return on the FTSE All Share). In addition, many of our top-down themes played out very well such as our focus on secular growth in Tech, Life Sciences, Healthcare and Financials, an increase in M&A, our cautious stance on the Consumer and especially our bet on continued strength in the Industrials last year and solid growth in the global economy. What does 2018 have in store? We continue to play ongoing secular growth themes in Tech, Life Sciences, Healthcare and Financials. In addition, we tap into domestic areas of cyclical strength such as regional construction and house building, plus self-help initiatives and potential market share gains. We maintain a favourable view of Industrials given the global economic backdrop but think this could moderate during the year. Other changes of nuance include the potential for a better H2 in the Consumer sectors, which remain under pressure for now, and a better outlook in Media from a mini-quadrennial year in 2018.
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The word ‘disappointing’ appears often in broker/press reviews of the January renewals. Whilst apt in the context of early rate predictions, we consider the negativity to be overdone. In fact, the increases achieved were close to our expectations and the YoY price shift is positive. We are also encouraged by signs of (modestly) improving rates in Casualty and Speciality Lines. At the very least a nadir appears to have been reached. We maintain our view of a slow burn rating upturn in 2018, given the reality check on margins/loss activity.
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Allied Minds hosted an upbeat Capital Markets Day in London yesterday, where the Allied Minds team, and the CEOs of their 6 key subsidiaries presented their businesses. The 6 key subsidiaries are STT, Federated Wireless, SciFLour, BridgeSat, Precision Biopsy and Hawkeye360. Clearly within a Venture model, the winners drive the returns of the portfolio, with most of the value in VC backed business coming from about 1/3 of the portfolio, and the top 10% accounting for most of that. As an indication of CEO Jill Smith, and her teams, confidence they are now actively looking for new investments again. We retain our Buy and 210p price target.
Companies: Allied Minds
The latest Office for National Statistics (ONS) survey, ‘Ownership of UK quoted shares: 2016’, shows that retail investors are more important than most company managements realise or most capital markets professionals admit. When it is also appreciated that the data shows that retail investors set the share price for most quoted companies, most days, it becomes clear that engaging with such an audience enhances a company’s standing, whilst ignoring them courts disaster.
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We anticipate earnings growth will accelerate in FY18 & FY19 as Park Group progressively benefits from product initiatives that have generated a strong pipeline within the Corporate division. The Consumer business continues to deliver reliable organic growth and the order book was up c.4% for 2017 with an encouraging start to 2018. A highly reliable savings product earnings stream, new product developments driving superior corporate growth and the inherent natural interest hedge all contribute to a strong investment case.
Companies: Park Group
H&T has issued a positive FY trading update. This follows the key Christmas trading period, but also an unscheduled positive update (3/11). Trading was better than expected in pawnbroking and retail over the Q4/Christmas period. H2 has benefited from a stable sterling gold price which preserved margins in gold purchasing and scrappage. The pledge book saw some modest growth and the unsecured loan book is growing strongly from a low base. We expect a c.5-10% increase in consensus PBT estimates.
Companies: H&T Group
In our third edition of Trend spotting we stick with our suggestion at the end of March to up European exposure and we review the recent market moves and macro trends. We comment on the recent strong performance of our growth, quality and momentum styles which we expect to continue and we examine what happened to sectors around the last general election period in 2015, adding some new colour.
Companies: AUG GNS IQE NTG SDL SPH SDY TRI VEC XAR GHT BOY CRW EMIS VCT ECK GLE GHH DATA AVON CHH DPH HILS SDM ZYT MUR RPS LWB EKF SUN UDG SYNT CINE DOTD MPM FUM CLIN RENE ATQT SERV ERGO BCA BUR DRV SCS JUP FDP GBG GTLY HW/ EAH SFR PHD CXENSE KNOS NETD G4M GFIN ULS RHL RAT FEN LOOP MYSL FUTR
Topic of the quarter: It’s alive! Infrastructure and assets in general have traditionally been built to provide a fixed service and are maintained and renovated to a fixed schedule – dead and dumb. Technology will completely change this. Sensors and wireless networks have the potential to allow assets to ‘talk’ to us. These living, smart assets will be able to tell us when they need maintenance, how efficient they are being and provide the data that will directly influence their construction, availability and use. The implications for construction costs through to operating costs and the ability to service changing user needs are very significant. The Support Services, Construction and Technology sectors need to work together to maximise this potential, recognise and harness the power of data, and invest in and embrace change. These are daunting challenges in highly competitive markets where politics play a role, different skill sets (that are currently in short supply) are needed and shareholders are looking over management's shoulders. However, the prize for those companies who get it right is significant, and the risk from not changing much greater. There are positive early signs with Crossrail providing tangible examples of Smart Infrastructure using innovative sensors.
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Henderson Far East Income’s (HFEL) lead fund manager, Mike Kerley, welcomes the resumption of earnings growth in the region after five years of stagnation. He says that attractive opportunities still abound in his favoured areas of cash-generative companies offering high dividend growth potential or high yields, with the recent rise in P/E ratios across the region only partially addressing the longstanding undervaluation versus the rest of the world. The portfolio currently has a cyclical tilt, with more in financials and consumer stocks and less in utilities and telecoms, yet HFEL still pays a high yield (currently 5.4%), fully covered by income. The fund has tended to trade at a small premium to NAV and issues shares to meet demand. The recent introduction of a tiered management fee above £400m will reduce total expenses for investors as HFEL grows.
Companies: Henderson Far East Income
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Companies: M Winkworth
The insurer has announced a higher than expected payout ratio for 2017-20, thanks to its comfortable cash position. It has revised up the remitted cash from subsidiaries from £7bn to £8bn over the 2016-18 period. We have revisited our model by increasing the dividend for 2017-19. According to our updated calculation, the total shareholders’ remuneration for this period would reach £2.7bn. Our opinion remains positive with a Buy recommendation.