Reduced claims volumes in second quarter offset first quarter weather impact

  • Strong second quarter net result, down overall when compared to the first half of 2019, reflecting the continued effect of the weather events early in 2020 and the positive benefit from the one-off Ogden personal injury rate adjustment in the same period of 2019.
  • COR improved over the second quarter as a result of reduced motor claims volumes but, while still sub 100%, has increased year on year as due to the Q1 2020 weather events.


Income reflects disciplined underwriting in motor, offset by growth in household and other lines

  • Motor income is down as a result of applying disciplined underwriting at the start of the year in response to claims inflation. This was followed by the need to rapidly reduce pricing at the end of the first quarter owing to the sudden decrease in mobility during the lockdown.
  • Household income benefits from new deals in the broker distribution channel, while other income reflects growth in commercial lines from new deals and increased open market sales.
  • New deals announced in the household and commercial non-motor markets – a multi-year commercial agreement with Victor Insurance and a five year deal for Land and Estates Insurance with R K Harrison, the specialist rural division of Howden UK.


Continued focus on stakeholders despite weather and pandemic challenges

    • Ageas’s commitment to broker brilliance was further enhanced by the appointment of a senior broker distribution team – Russell White, Mark Auchterlonie and Darren Whittaker.
    • Ageas remained open and maintained a high quality service to its customers throughout the lockdown, evidenced by its Net Promoter Score and Net Ease Score, with 83% of customers saying Ageas’s people are friendly and supportive and 82% saying it was ‘easy to report a claim’.
    • The claims supply chain continued to provide a high level of service to customers, with capacity continuing to match demand across all channels.
    • Vulnerable customers, including key workers, had claims prioritised to ensure their homes were secure or they were kept mobile during the lockdown restrictions.
    • 3,600 customers impacted financially and unable to meet their payments were supported with payment breaks and the option to SORN their vehicle until they needed to drive again.
    • No Ageas employees were furloughed during the lockdown period and Ageas has not benefited from any of the Government schemes.
    • During the period, Ageas UK provided financial support for communities, including Age UK, the ABI COVID-19 Support Fund, and the Chelsea & Westminster Hospital COVID-19 treatment trials.
 In GBP million H1 20H1 19Change
Results after Tax (incl. TU)  22.8 45.4  (22.6)
Gross inflows (Ageas UK only) 603.8 609.5 (5.7)
Gross inflows (incl. TU) 749.4 769.2 (19.8)
COR (Ageas UK only) 97.8% 96.9% -0.9%
COR excluding weather 93.9% 96.6% 2.7%


 Product HouseholdMotorTravel, Commercial & OtherTotal
PeriodH1 20H1 19H1 20H1 19H1 20H1 19H1 20H1 19
GWP 148.8 129.8 369.0 403.9 86.1 75.8 603.8 609.5
COR  104.1% 90.3%  89.4%  98.8% 124.9%  98.6%   97.8%  96.9%

Commenting on the performance Ant Middle, who took over as CEO Ageas UK in June, said:

2020 is proving to be a year of disruption for society as a whole and the market we operate in. I’m immensely proud of the committed  response from both our employees and broker partners to deliver continued strong service to our customers throughout this time, evidenced by some of our highest ever service and employee engagement scores. 

We do not yet know what the full impact of the pandemic will be; we have already seen significant changes to driving patterns, an increase in vulnerable road users like pedestrians and cyclists, and our homes now fulfilling the dual role of office space and living accommodation for many. This, combined with one of the deepest and most sudden recessions in living memory, will fundamentally change the way customers choose and use insurance. This brings a continued level of uncertainty for the months ahead, and therefore our focus has to remain on the active management of our business fundamentals and preparing for these unknowns.

All that said, we have a stable business with solid foundations and confidence we will emerge strongly from a challenging period for everyone. We have great people, very strong relationships with the broker market and a strong desire to positively develop the business with pace and precision.