Insurer’s results show profit before tax 36.4% up on last year

Barry Smith, Ageas

Ageas UK made a profit before tax of £106.7m for the first nine months of 2012, up 36.4% from £78.3m for the same period last year.

The insurer also unveiled an overall combined operating ratio of 98.6% for the period, an improvement from 99.9% for the first nine months of 2011.

General insurance GWP for the first three quarters of 2012 was £1.32bn, unchanged from the same period in 2011.

In motor, Ageas UK’s combined ratio improved to 96.7% from 98.2% in the first three quarters of 2011.

Motor income was up 15% to £489.7m for the 2012 year so far from £425.9m in the same period last year.

Household income dropped 9.7% to £209.2m, compared to £231.6m in the first nine months of 2011. In a statement, Ageas said this was due to deliberate rate increases designed to improve profits.

The insurer also said that it expected to finish its acquisition of Groupama during Q4 2012, and that it planned to increase the range and depth of its broker products.

Ageas UK chief executive Barry Smith said: “To deliver record year-to-date profit in such economically challenging conditions is very pleasing. 

“Following the significant scale change of the Ageas businesses over the past few years, growth continues in our most profitable segments. 

“When the acquisition of Groupama UK is completed, the addition of its insurance activities will ensure we can offer even greater product choice to our brokers and clients. 

“Our low cost, high service ethos remains very important to us and this focus will continue.”

Ageas expects to complete the Groupama UK acquisition in the fourth quarter of 2012.

Ageas nine-month 2012 results in £m (compared with nine-month 2011)


  • Total*:  1,535.7 (1,521.6)
  • Non-life*: 1,328.1 (1,326.9)
  • Other insurance including retail: 157.9 (163.4)
  • Life protection: 49.7 (31.3)

Profit before tax

  • Total*: 106.7 (78.3)
  • Non-life*: 92.5 (52.9)
  • Other insurance including retail: 14.5 (27.0)
  • Life protection:  0.3 (-1.6)

Ratios (%)

  • Combined ratio*: 98.6 (99.9)

*=including Tesco Underwriting