Regulated information - Ageas takes further impairment on Greek exposure impacting third quarter results
(Thomson Reuters ONE) -
Following the recent events in the financial markets, Ageas has decided to
further impair to fair value its entire exposure to Greek sovereign bonds. The
total net negative impact on the third quarter results, including an additional
impairment charge on equities, amounts to EUR 438 million. But despite these
impairments, the insurance solvency ratio remains robust at 210% at the end of
September 2011.
Ageas has decided to further impair to fair value[1] its entire exposure to
Greek sovereign bonds, including those maturing after 2020. As a result of this
decision, the gross exposure[2] to Greek sovereign bonds decreased from EUR 1.4
billion as at 30 June 2011 to EUR 0.6 billion as at 30 September 2011; the net
exposure, after non-controlling interests, went down to EUR 0.5 billion. The net
impact on the third quarter result amounts to EUR 353 million negative.
Furthermore, Ageas's net results are impacted by an additional impairment charge
on the equity portfolio of EUR 85 million, reflecting the steep decline in
equity markets.
The combined net negative impact of both charges on the third quarter results
amounts to EUR 438 million.
Notwithstanding the significant impact of these decisions, the group and
Insurance solvency ratio as well as shareholders' equity remain very solid. At
the end of September 2011 the group and insurance solvency ratio is estimated to
be at 270 % and 210% respectively, while shareholders' equity would amount to
EUR 7.9 billion or EUR 3.15 per share.
CEO Bart De Smet said: "Its continuing strong solvency and shareholders' equity
to be reported for the third quarter allow Ageas to absorb significant financial
shocks. Due to the negative impact of the impairments on our results and taking
into account the current situation in the financial markets, Ageas is however
not in a position to maintain its earlier provided outlook nor to give any
updated forecast on the expected net result for the full year. Nevertheless,
based on the strength of the balance sheet and the net cash position, and taking
into account the profitability of its insurance activities - excluding
impairments - we expect that Ageas will be in a position to propose to the
shareholders a dividend payment for the financial year 2011."[3]
Ageas will publish its full quarterly financial statements for the third quarter
on Wednesday 9 November 2011 at 7.30 CET time.
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. These are grouped
around four segments: Belgium, United Kingdom, Continental Europe and Asia and
served through a combination of wholly owned subsidiaries and partnerships with
strong financial institutions and key distributors around the world. Ageas
operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal,
Turkey, China, Malaysia, India and Thailand and has subsidiaries in France,
Germany, Hong Kong and UK. It is the market leader in Belgium for individual
life and employee benefits, as well as a leading non-life player, through AG
Insurance, and in the UK, it has a strong presence as the third largest player
in private car insurance and the over 50's market. It employs more than 13,000
people and has annual inflows of almost EUR 18 billion.
MEDIA contact
+32 (0)2 557 57 37
Investor Relations
Brussels
+32 (0)2 557 57 33
Utrecht
+31 (0)30 252 53 05
Ageas
Rue du Marquis 1 - 1000 Brussels - Belgium
Archimedeslaan 6 - 3584 BA Utrecht - The Netherlands
www.ageas.com
--------------------------------------------------------------------------------
[1] On average valued at 38% of the historical cost.
[2] All figures on total exposure are at amortized cost.
[3] As at 24 August, Ageas stated the following : "Taking into account the first
half' impairment charge related to the Greek sovereigns and barring any other
significant events outside out of our control, the financial performance of the
Insurance operations for the full year is expected to be in line with 2010."
Pdf version of the press release:
http://hugin.info/134212/R/1559246/482119.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ageas via Thomson Reuters ONE
[HUG#1559246]
Unternehmensinformation / Kurzprofil:
Datum: 28.10.2011 - 17:31 Uhr
Sprache: Deutsch
News-ID 81573
Anzahl Zeichen: 5412
contact information:
Town:
Brussel
Kategorie:
Business News
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"Regulated information - Ageas takes further impairment on Greek exposure impacting third quarter results"
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