(EPMFN) Ageas performed slightly stronger in the first half of 2024 than in the same period last year, while analysts had expected slightly lower earnings. That was evident in the figures the insurer published on Wednesday, as it also introduced a new share buyback program.
In a statement, CEO Hans De Kuyper spoke of “excellent performance in non-life segments and strong growth in life insurance, driven by a strong increase in premium income in Asia and a strong recovery in Europe.”
In the first half of 2024, Ageas recorded a net operating result of €613 million. This was €611 million a year earlier. Analysts’ consensus forecast was a decline to €575 million.
Ageas generated €1.2 billion of operating capital, approximately €0.2 billion more than a year ago.
Ageas generated net income of €642 million and a return on equity of 16.4 percent. In the first half of 2023, net income was €531 million with a return of 16.9 percent.
The solvency ratio fell year-on-year from 220 percent to 219 percent. It was 217 percent at the end of 2023. Analysts had expected 214 percent.
Ageas also announced a new share buyback programme of €200 million on Wednesday, “given the continued strength of the capital structure, cash position and high free operating capital,” according to the insurer.
In addition, Ageas will pay an interim cash dividend of €1.50 per share.
Investors have been considering a share buyback programme, after Ageas’ insurance subsidiary AG recently announced it had repaid €450 million in bonds. According to Ageas, this repayment was necessary before the private equity purchase.
Expectations
Ageas reiterated its 2024 outlook on Wednesday, implying a net operating result of between €1.2 billion and €1.25 billion.
Source: ABM Financial News
ABM Financial News is a resource for stock market news, video and data, both for trading platforms and real-time trading rooms and for online and offline media publications. The information contained in this article is not intended to constitute professional investment advice or a recommendation to make specific investments.
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