Our H1 2019 Financial Results

We have today reported our financial results to the market, so here is a flavour of how the first half of 2019 is looking for Ageas.

Our results in summary

• Profit up in the first half of 2019 to £45.4million (HY 2018: £26.8million) reflecting a one-off Ogden rate benefit and benign weather
• Combined ratio improved to 96.9% (HY 2018: 99.0%)
• Gross inflows are down at £769million (HY 2018: £810million) as a result of deliberate actions to improve profitability, but this gap is narrowing especially in Motor and with new deals to come to fruition in the second half of 2019

The Ogden impact

We held firm on our reserving assumptions in anticipation of the Ogden rate change and as a result have now realised the one-off benefit following the decision by the Lord Chancellor to set this at -0.25%.

We have continually and tirelessly lobbied for a reformed, modern process to setting the Discount Rate, working with Government, Parliament and wider stakeholders to create a fairer system for claimants, motorists and taxpayers.

While this is an improved rate, we are disappointed with the outcome of this first review which remains extremely prudent, resulting in over-compensation.

Sadly, as a result, customers can expect to see price increases across the industry.

New deals

As part of our growth plans in the intermediated channel, we recently announced a new three year deal with Marmalade offering flexible products to young drivers. We also announced a new five year deal with Darwin Clayton delivering specialist cover across a number of trade sectors including interior contractors, security, cleaning / facilities management and recruitment.

Over the coming months we will be announcing a number of other new deals across both personal and commercial lines, which are testament to the strong relationships we hold in the market, and our appetite to grow with you.

As we look ahead, we aim to maintain the momentum on our plans to grow across our channels, while modernising our business through improved digital and data developments that will enhance our overall customer experience. I look forward to sharing more updates with you as the year progresses.

Thank you for your continued support.

Andy Watson

CEO, Ageas UK