Inflation and volatility in the Chinese stock market are hurting Ageas’ earnings. But the insurance company continues its commercial growth.
Agea’s insurance company
publishes its quarterly results. Earnings are affected by inflation and volatility in the stock markets in China. Net income amounted to 141 million euros in the third quarter, representing a -12% year-on-year decrease. This effect was expected since result warning released at the end of October by Ageas.
The impact of inflation and the instability of the Chinese stock market is particularly sensitive in the Asian market, where the group saw its profits melt by -95% to reach 5.4 million euros. In the European market, profit fell by -52% to 21 million euros. In Belgium, the decline is less significant: – 8% to 89 million euros. “Inflation in Belgium comes with a delayed effect. In addition, most of our insurance products are automatically revised according to inflation, which allows us to better absorb its impact”, explains Hans De Cuyper, CEO of ‘Ages.
This pressure on profits did not prevent Ageas from achieving an increase in turnover. In the first nine months of the year, the group’s intake increased by 3%. It is 13 billion euros. In Asia, growth was strong: inflows increased by +16% in the third quarter. In non-life insurance, the +25% increase is “supported by the easing of previous restrictions linked to the pandemic”, explains Ageas in its press release.
In Belgium, non-life premium income increased by +4%, driven by home and car insurance products. Life insurance inflows fell “due to lower volumes in savings products, partially offset by an increase in group life insurance products,” says Ageas.