In This Article:
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ageas SA/ NV (AGESF) reported a 10% increase in inflows for 2024, driven by strong growth in non-life segments, particularly in the UK and Portugal.
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The company achieved a net operating result of 1.24 billion, reaching the upper half of their guidance range.
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Operational capital generation reached an exceptionally strong 2.2 billion, exceeding the 2 billion mark for the first time.
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The board proposed a total gross cash dividend of 3.50 per share, reflecting an 8% growth over 2024.
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Ageas SA/ NV (AGESF) successfully completed its Impact 24 growth strategy, establishing a solid foundation for its next strategic plan, EA 27.
Negative Points
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The attritional loss ratio in Belgium's PNC segment deteriorated in the second half of 2024, partly due to one-off adjustments from updated indicative tables.
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Higher effective tax rates impacted the net operating results, particularly in China where deferred taxes were elevated.
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The cash generation from China was lower year-on-year due to low interest rates, which may continue to be a headwind in 2025.
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Interest rate decreases in China could negatively impact investment results, posing a challenge to maintaining EPS targets.
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The solvency ratio for non-Solvency II scope companies showed volatility, influenced by asset management actions in China.
Q & A Highlights
Q: Can you explain the deterioration in the attritional loss ratio in Belgium's PNC segment in the second half of 2024 and comment on the competitive dynamics in the Belgian PNC market? Also, regarding Asia, should we expect tax rates to normalize in 2025, and how much of the cash guidance for 2025 is expected to come from Asia? A: The deterioration in the PNC combined ratio in Belgium was due to a one-off adjustment related to the updated indicative tables for lump sum settlements in motor business. This adjustment was slightly higher than expected. As for Asia, we anticipate tax rates to return to normal levels in the long term, around 2026-2027. For 2025, we expect the tax rate to be closer to China's corporate tax rate of 25%. Regarding cash generation, Asia is expected to contribute between 850 million and 900 million, with China accounting for about 10% of the total upstreaming.
Q: China's cash generation was lower in 2024 compared to 2023 due to low interest rates. Should we expect this trend to continue in 2025? A: We do not have final numbers yet, but we expect a stable dividend in the short term and a rising dividend in the mid to long term. China currently represents only 10% of our total cash generation, so it is not significantly material. We expect the trend to follow the previously announced trajectory.