Ageas UK reports rise in profits

Insurance provider Ageas UK, today released its half year report showing an increase on year on year profits, helped by better weather conditions and an improved Commercial result.

The group reported a net profit of GBP 29.5 million compared to a profit of £25.3 million (6M 2014) and an overall combined ratio improved to 98.3%

The total income reflects the current market conditions where average premiums remain low.

Breakdown

  • Total income: GBP 961.0 million (6M 2014: GBP 1,024.9 million)
  • Total Non-Life Gross Written Premiums (GWP): GBP 881.3 million (6M 2014: GBP 940.4 million)
  • Total inflows from Retail business: GBP 79.8 million (6M 2014: GBP 84.6 million)

Ageas also reported that strong capital positions were maintained in Ageas Insurance and Tesco Underwriting. The Motor and Household insurance partnership with Tesco Bank, of which 50.1 per cent is owned by Ageas, generated GWP of £199.7 million during the period (6M 2014: GBP 222.8 million). Competitive market conditions led to lower new business and average premiums across both Motor and Household in the first six months.

The net result of Ageas’s interest in Tesco Underwriting was a profit of £3.2 million (6M 2014: loss of GBP 1.4 million).

Announcing the half year 2015 results, Andy Watson, chief executive of Ageas UK commented,

‘As we’ve progressed through the first half of 2015, we’ve continued to deliver a profitable performance largely driven by the positive impact from the benign weather in the first quarter as well as our improved Commercial lines result linked to our disciplined approach.’

‘Competitive conditions have continued in both the Home and Motor markets as a result of low average market premiums. It’s pleasing to see a much needed upward trend in Motor prices over the last quarter, a trend that is long overdue.’

‘During the first half of the year we have continued to run two very major change programmes. Within our insurance business, we are nearing completion of our integration programme. And within Ageas Retail, we continue to focus on our strategy of simplification and are making good progress with this.’