Ageas SA (AGS.BR) Q1 2026 Earnings Call Transcript
Bullish Insurance - Diversified 51.59B Belgium
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Ageas delivered a transformational 2025 with Elevate27 milestones reached, strong Non-Life/Life performance, strategic UK and Belgium expansions, and upgraded cash/dividend targets for 2026.
⭐ Key Highlights
Elevate27 milestones achieved
Ageas completed the first year of Elevate27, upgrading financial targets twice and delivering strong group-wide growth across Life, Non-Life, and Reinsurance.
Strategic acquisitions and portfolio strengthening
Saga and esure acquisitions strengthened the UK personal lines position; AG acquisition underway to close in Q2 2026, expanding Belgium leadership and reinforcing cash-generative focus.
Excellent Non-Life performance and Swiss knife solvency
Combined ratio of 92.5% driven by strong Non-Life results across regions; solvency maintained at 211% (Solvency II) with robust capital generation.
record cash upstream and dividend up
Recurring cash upstream of EUR 949 million, above the guided EUR 850-900 million; 2026 guidance for cash upstream raised to EUR 1.2 billion; total dividend 3.75 EUR per share, up >7% year-on-year.
Reinsurance diversification and Prima outlook
Reinsurance third-party profits benefited from weather diversification; ongoing Prima/Triglav deal impacts and a plan to reduce dependence on weather through portfolio diversification.
✔Positive Signals
- Net operating result above guidance at EUR 1.655 billion with strong Non-Life performance
- Recurring cash upstream of EUR 949 million, above the guided range
- Dividend per share raised to EUR 3.75, +7% Year-over-Year
- Solvency II ratio at 211% confirms strong capital position
- Successful year of Elevate27 delivering upgraded targets and clear M&A progress
✖Negative Signals
- Prima/Triglav-related revenue and capital considerations create some near-term uncertainty
- UK Non-Life market softness and pricing volatility; reliance on esure/Saga integration for profitability
- China tax regime changes and potential future sensitivities to IFRS 17/9 transitions
- Reinsurance exposure remains sensitive to weather, though diversified; potential changes from weather-related risk
- Awaited closing of AG and integration dynamics may introduce execution risk
📊Financial Results
- Net operating result reached EUR 1.655 billion, materially above the latest guidance
- Life net operating result rose 39% YoY to EUR 1.259 billion, with strong performance in Türkiye, Portugal, and Belgium
- Combined ratio at 92.5% driven by Non-Life strength; weather effects benign in Belgium
- Recurring cash upstream of EUR 949 million, up 18% YoY and above the guided EUR 850-900 million
- Solvency II group ratio at 211%; non-Solvency II at 244%; operational capital generation EUR 1.9 billion
🔮Future Guidance
- 2026 cash upstream expected at EUR 1.2 billion
- Dividend guidance intact at EUR 3.75 per share for 2025, with continued growth trajectory
- Upgraded holding free cash flow target to >EUR 2.6 billion and shareholder remuneration >EUR 2.2 billion for Elevate27 cycle
- AG closing anticipated in H2 2026 with impact included in guidance; potential for further synergies beyond EUR 100 million from esure by 2028
- Nominal combined ratio target for 2026 under normal catastrophe activity remains below 93% guidance
💡Interesting Insights
- substantial shift toward participating products (70-80% of annual premium equivalents) with implications for margins and automatic rate mechanisms in China
- cash pooling capability provides liquidity flexibility and reduces the need for high local buffers, impacting future capital management strategy
Detailed Analysis
AI-generated summary of Ageas SA earnings call transcript.
In 2025, Ageas completed the first year of its Elevate27 strategy, delivering robust growth across Life, Non-Life, and Reinsurance, supported by Saga and esure integrations in the UK and full ownership of AG in Belgium. The group achieved an excellent Non-Life result with a combined ratio of 92.5% and a Life NOI of EUR 1.259 billion, aided by a one-off EUR 300 million Chinese deferred tax benefit. Cash upstream reached EUR 949 million, surpassing guidance, with 2026 guidance set at EUR 1.2 billion. The Board proposed a dividend of EUR 3.75 per share, reflecting over 7% growth, and the group maintained a strong solvency position (211% Solvency II). Ageas also accelerated its M&A journey, with AG closing expected in H2 2026 and continued synergies from esure exceeding EUR 100 million by 2028.
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