Ageas Asia First Half 2016 Gross Inflows Up 12% with Sales Developed Well Across All Main Distribution Channels in the Region

HONG KONG, Aug. 10, 2016 /PRNewswire/ -- Ageas 1H 2016 results (note 1)  -- Asia Financial Highlights.

Ageas Group:
Insurance net result reflects strong operating performance and capital gain on Hong Kong sale. Group net result includes the provision for the Fortis settlement agreement. The Asian and Belgian Life business were the key drivers of the growth of inflows during the first half of 2016.

• Net Result
  • Insurance net profit up 21% to EUR 608 million versus EUR 504 million
  • General Account net result of EUR 675 million negative including the net impact EUR of 889 million of the provision for the Fortis settlement agreement
  • Capital gain of EUR 404 million on the divestment of the Hong Kong Life activities equally distributed over Insurance and General Account
  • Group net result at EUR 67 million negative versus EUR 469 million
• Inflows  
  • Group inflows (at 100%) at EUR 18.3 billion, up 10% (including 4% negative foreign exchange impact)
  • Group inflows (Ageas's part) grew 7% to EUR 7.8 billion (including 3% negative foreign exchange impact)
  • Life inflows up 13% to EUR 15 billion and Non-Life up 1% at EUR 3.3 billion (both at 100%)
• Operating Performance
  • Combined ratio at 99.0% versus 95.4% including the impact of the Brussels terrorism events (1.9%) and adverse weather events in Belgium and the UK
  • Operating Margin Guaranteed at 108 bps versus 90 bps
  • Operating Margin Unit-Linked at 28 bps versus 41 bps
  • Life Technical Liabilities of the consolidated entities at EUR 74.5 billion (+1% compared to the end of 2015)
• Balance Sheet
  • Shareholders' equity at EUR 10.3 billion or EUR 49.59 per share
  • Insurance solvency II ageas ratio at 183% and Group solvency II at 209%
  • General Account Total Liquid Assets at EUR 2.1 billion versus EUR 1.6 billion end 2015

Ageas Asia:
Continued strong growth in inflows and solid net profits in Asia.

• Net profit EUR 329 million vs. EUR 212 million (+55%); Solid results driven by strong performance in China and Thailand and supported by the capital gain on the divestment of the Hong Kong Life entity.
• Gross Inflows EUR 11.0 billion vs. EUR 9.8 billion (+12%); Excellent growth in new business and renewal premiums especially in China and Thailand.
  • China's inflows increased to EUR 8.7 billion (+17% and +23% at constant exchange rates), with new business up 21% to EUR 5.1 billion. The bank channel and particularly the strong performance of the agency channel both contributed to this growth. The agency force expanded further to almost 230,000
  • Thailand achieved solid business growth with life inflows up 4% (+12% at constant exchange rates) to EUR 1.3 billion, with strong growth in renewal premiums of 30% (at constant exchange rates) to EUR 0.8 billion following last year's growth in new business volumes and continued customer loyalty. Non-life gross inflows were up 16% at constant exchange rates to EUR 159 million with substantial growth in both Motor (+19%) and Personal Accident (+34%)
  • Life inflows in Malaysia amounted EUR 289 million, an increase of 8% at constant exchange rates. The bank channel's focus on regular premium business resulted in a better product mix with regular premiums up by 49% at constant exchange rates. Non-life inflows amounted to EUR 329 million (+4% at constant exchange rates) with growth across the major business lines.
  • India's inflows were EUR 91 million (-2% at constant exchange rates). The 33% growth reported in regular premiums within the bank channel partly offset the lower less profitable Group business.
• Strategic development: Start of sales in the Philippines and closing of the divestment of Hong Kong Life entity. License received in Vietnam on July 1^st.

Announcing the First Half Year 2016 results, Gary Crist, Chief Executive Officer of Ageas Asia commented:

"Ageas Asia's results in the first half of 2016 were very strong with net profits of EUR 329 million, an increase of 55% over the same period last year, driven by the continued strong performance mainly in China and Thailand as well as by the capital gain on the divestment of our Hong Kong life activities. Total inflows reached EUR 11.0 billion, an increase of 12%, as a result of successful sales campaigns and channel development from the 1st quarter of the year and extending into the 2nd quarter. Both new business and renewals achieved healthy growth across all distribution channels, in particular in the agency channel where new business premiums grew by 55%. The bancassurance channel remained solid at the same level as last year. While we have divested our Hong Kong life business, we had a strong start in our new joint-venture in the Philippines. In July, we obtained our insurance licence to operate a new life insurance joint-venture in Vietnam".

Please visit www.ageas.com for full details of the press release.