UK business shows improved ratios even as inflows decline
Ageas UK reported pretax profit of €34.7m for the year to December, compared with a prior year loss of €184.6m.
Gross inflows during the year were €2.0bn, down from €2.2bn, and the UK business reported its combined ratio improving to 103.2% from 112.2%.
The overall underwriting result was a loss of €48.5m, an improvement from 2016’s loss of €195.4m.
The company highlighted a residual impact of the Ogden rate cut of €46m, and said that without the Ogden cut, its combined ratio would have been below breakeven at 99.5%.
Motor inflows fell to €1.0bn from €1.1bn in what the company described as “a volatile and unpredictable post Ogden market”. The net underwriting result for motor showed a loss of €24.7m against a prior year loss of €167.7m
Ageas said the decline reflected “a clear pricing discipline, focussing on restoring the profitability of the motor portfolio”. In Motor the combined ratio improved to 102.6% (116.5%); excluding Ogden to 98.7% (101.5%).
Household inflows fell to €360m from €393m. The combined ratio for Household deteriorated marginally over the period to 99.5% (vs. 98.2%).
Net profit improved to €29m from a loss of €156m The UK consolidated net result improved to EUR 29 million compared to a loss of EUR 156 million. Inflows for Tesco Underwriting fell to €442m from €483m. The combined ratio of Tesco Underwriting improved to 95.3% (114.4%), supported by lower expenses, strong current year profitability and positive prior year claims development. The net result of Tesco Underwriting amounted to a profit of €13m against a prior year loss of €21m.