Ageas reports loss but strong growth in UK
BELGIAN-based insurer Ageas yesterday recorded a net loss of €84m (£67m) for the first quarter, mainly as a result of outstanding issues stemming from its former identity as part of failed bank Fortis.
The loss was less than analysts had expected, and the firm’s insurance division achieved a strong 15 per cent rise in net profits to €155m.
This was driven by gains in Ageas’ life assurance division, with Asian income up 22 per cent thanks to a strong performance in China and Thailand.
Meanwhile the firm’s British arm announced that income was up 11 per cent to £513.3m for the first three months of the year.
Ageas UK’s chief executive Barry Smith told City A.M. that his division has seen “significant improvements in profitability” and that he expects growth to continue.
“We’re really pleased with the ongoing success. The two standouts are continued profitability of private car insurance and [the co-venture with] Tesco moving into profit,” he said.
But there was bad news for consumers on household insurance: “There’s been a lot of claims recorded because of isolated storms and escape of water. We think that product needs to have its prices increased.”