Ageas further reduces its exposure to Southern European countries
(Thomson Reuters ONE) -
In the context of ongoing uncertainties in the financial markets, Ageas has
continued to reduce the concentration on Southern European countries of its
investment portfolio.
On 12 May, Ageas disclosed its sovereign exposures as of 10 May 2010. Between 10
May and 21 May, Ageas has sold additional Southern European government bonds for
a total amount of EUR 4.8 billion (at historical/amortized cost) broken down as
follows: Greece - EUR 1.7 billion, Italy - EUR 2.1 billion, Portugal - EUR 0.9
billion and Spain - EUR 0.1 billion.
Since the end of last year, net sales of these bonds amount to:
· Greece: EUR 2.1 billion
· Italy: EUR 4.8 billion
· Portugal: EUR 1.7 billion
· Spain: EUR 0.2 billion
· Total: EUR 8.8 billion
As of 21 May 2010, the total exposure of Ageas to the above-mentioned countries
is as follows (at historical/amortized cost):
· Greece: EUR 2.2 billion
· Italy: EUR 3.8 billion
· Portugal: EUR 1.3 billion
· Spain: EUR 1.8 billion
· Total: EUR 9.1 billion
The vast majority of the Portuguese government bonds are held by the Portuguese
company Milleniumbcp Fortis, a 51/49 partnership between Ageas and Milleniumbcp.
The remaining exposure to Southern European governments essentially relates to
the investment portfolio of AG Insurance.
The total exposure to government bonds amounts to EUR 33.3 billion (including
EUR 1.2 billion unrealized capital gains) on a total investment portfolio of
approximately EUR 60 billion.
Proceeds of these sales have been reinvested predominantly in government bonds
of Belgium, Germany, the Netherlands and France and to a lesser extent in
corporate bonds. As a result, Ageas's investment portfolio reflects a more
balanced geographical exposure within the EU and it continues to mirror the
long-term nature of its liabilities. The majority of assets are invested in
fixed income securities with high ratings and relative long-term durations.
The rebalancing of the portfolio has resulted in both capital gains and losses.
The gross impact of these sales will be mitigated by, among others, taxation
effects and the respective share Ageas has in the operating companies. The
one-off negative impact on net profit until 21 May is estimated to be in the
range of EUR 55-65 million. The recurrent impact on net profit from the loss of
yield as a result of these sales will be mitigated through further rebalancing
of the investment portfolio going forward.
Bart De Smet, CEO Ageas, commented: "At the end of last year we decided to
gradually reduce our exposure to Southern European countries subject
to opportunities and liquidity in the market. Due to increased market
uncertainties, we chose to accelerate the rebalancing of our portfolio in the
second quarter. As the markets evolve, Ageas will continue to reassess the
risk-reward profile of available asset classes and opportunities taking into
account the long-term nature of our liabilities. We also welcome the earlier
decision of S&P to reaffirm the ratings of Ageas and its operating companies.
We believe investors and customers can take comfort from these actions and our
continued very strong solvency and liquidity position in these times of
uncertainty and volatility in the markets. Our solid basis will allow us to
continue to develop our strategy as a top class insurance company in Europe and
Asia."
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|Ageas is an international insurance company with a heritage spanning more than|
|180 years. Ranked among the top 20 insurance companies in Europe, Ageas has|
|chosen to concentrate its business activities in Europe and Asia, which|
|together make up the largest share of the global insurance market. They are|
|grouped around four segments: Belgium, United Kingdom, Continental Europe and|
|Asia. It is an undisputed leader in the Belgian market for individual life and|
|employee benefits, as well as a leading non-life player, through AG Insurance.|
|Internationally Ageas has a strong presence in the UK, where it is the third|
|largest player in private car insurance. The company also has subsidiaries|
|in France, Germany, Turkey, Ukraine and Hong Kong. Ageas has a track record in|
|developing partnerships with strong financial institutions and key|
|distributors in different markets around the world and successfully operates|
|partnerships in Luxembourg, Italy, Portugal, China, Malaysia, India and|
|Thailand. Ageas employs more than 11,000 people and has annual inflows of|
|almost EUR 16 billion. |
| |
| |
|Press contact |
|+32 (0)2 565 22 66 |
| |
|Investor Relations |
|Brussels |
|+32 (0)2 565 53 78 |
|Utrecht |
|+31 (0)30 226 65 66 |
| |
| |
| |
| |
| |
| |
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[HUG#1419079]
Pdf version press release: http://hugin.info/134212/R/1419079/369266.pdf
Unternehmensinformation / Kurzprofil:
Datum: 27.05.2010 - 07:32 Uhr
Sprache: Deutsch
News-ID 21517
Anzahl Zeichen: 0
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Town:
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Kategorie:
Business News
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"Ageas further reduces its exposure to Southern European countries"
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