Executive summary 

Another profitable performance despite impact of June flash floods and storms

  • Net profit of GBP 27.1 million compared to a profit of GBP 29.5 million (6M 2015).
  • Combined ratio of 100.1% (6M 2015: 98.6%). 2.0% impact of June flash floods and storms.

 5% growth in Gross Written Premium (GWP) driven by Motor book

  • GWP increased to GBP 922.3 million (6M 2015: GBP 881.3 million).

Well capitalised business 

  • Solvency strength maintained under the new Solvency II regime.
  • Ageas Insurance rated Standard and Poor’s A / Stable outlook and Fitch A+ Strong.

Andy Watson, Chief Executive of Ageas UK commented:

 “Despite the impact of the flash floods and storms in June, and the weather related claims in the first quarter, we’ve continued to deliver a strong and profitable performance predominantly as a result of further increasing the number of Motor customers we insure year on year. We’re also pleased to see the benefit of new schemes in the broker channel in both Household and Commercial lines.

 “Our strategy is very much centred on the customer and we continue to challenge ourselves to come up with innovative ways of meeting their needs. Last week we announced the launch of Back Me Up, a new and disruptive digital proposition designed by millennials for millennials. This is an exciting extension to our direct brands, responding to the latest trends within this age group and further extending our footprint.

 “Furthermore, we are delighted that we have once again been awarded ‘ServiceMark’ accreditation by the Institute of Customer Service. This is a true measure of the effort the team at Ageas put in to ensuring our customers are at the heart of everything we do.”

Business update

Ageas is focused on the needs of the customer, while committed to delivering profitable returns through a clear and consistent multi-distribution strategy with brokers, partners and through its direct brands.

 Building on this strategy, Ageas recently launched a new app-based proposition targeted at 17-49 year olds. Aligned with Ageas’s approach to be closer to the customer, Back Me Up has been created by millennials and is simple to use with no annual contract, no penalty fees, and the choice to switch possessions in and out to protect what matters most to them.


Ageas has reported a UK net profit of GBP 27.1 million, down on the same period last year (6M 2015: GBP 29.5 million). The year on year decrease was the result of flash floods and storms in June, and weather related claims in the first quarter, compared with benign weather in the first half of 2015. The result also includes Ageas’s 50.1% share of the net result of Tesco Underwriting, the Motor and Home insurance partnership with Tesco Bank, which increased to GBP 3.4 million (6M 2015: GBP 3.2 million).  

Ageas’s consolidated UK combined ratio rose to 100.1% (6M 2015: 98.6%), which includes a 2.0% impact from the June flash floods and storms. Motor continued to improve year on year to 97.9% (6M 2015: 103.2%), driven by price increases and a lower expense ratio. The Household combined ratio was 101.7% (6M 2015: 87.0%) reflecting the weather-related claims. The combined ratio of Commercial lines and Special Risks was 107.7%versus 97.9% at 6M 2015 (the Commercial lines ratio including Commercial Motor at 6M 2016 was 96.0%). This reflects significant prior year releases in 2015, compared to 2016, and the performance of an MGA scheme that was put into run-off in the second quarter of 2016.


Gross Written Premiums (GWP) including Tesco Underwriting increased to GBP 922.3 million (6M 2015: GBP 881.3 million), reflecting volume growth in Personal Motor as the market continued to harden and where Ageas now covers 3.8 million Personal Motor policies.  Excluding Tesco Underwriting, Ageas’s Motor (Private Car and Commercial Motor) GWP increased to GBP 453.9 million (6M 2015: GBP 413.4 million), while Household GWP was up slightly at GBP 157.6 million (6M 2015: GBP 153.1 million) driven by the performance of new schemes. 

Commercial and Special Risks GWP was up at GBP 93.3 million (6M 2015: GBP 89.1 million) reflecting the contribution of new broker deals announced in the first quarter 2016 with Towergate and Arista, and Darwin Clayton.

Tesco Underwriting GWP remained flat during the period at GBP 199.6 million (6M 2015: GBP 199.7 million).

Ageas UK results summary:

 Table showing Ageas UK first half 2016 financial results summary

* Commercial lines including Commercial Motor total combined ratio of 96.0%.