Ageas UK results reflect evolving motor market and significant weather events

COR improves despite weather events as a result of lower motor claims frequency


Income improved in household and commercial as a result of new deals

  • Income down slightly at £1.4bn reflecting reduced volumes from the Tesco Underwriting divestment in the final quarter.
  • The small change in income also reflects lower mobility on volumes, reduced motor pricing during the lockdown, and motor pricing discipline applied at the start of 2020 linked to claims inflation.
  • Growth in Household and Commercial lines was driven by new deals in the broker household market; and growth in non-motor Commercial lines schemes.

Improved COR due to lower motor claims frequency, offset by weather event claims in household and commercial

  • The full year net result of £58m and 95.2% COR reflects the lower frequency of motor claims as a result of less traffic on the roads, which offset the multiple weather events during the year.
  • The motor market continues to evolve with underlying uncertainties reflecting claims inflation and expected future liabilities with post-Brexit and post-pandemic impact on claims costs.
  • Claims volumes in household increased because of severe weather in February, August and December. This was particularly noticeable compared to the benign weather of 2019.

Results summary

 In GBP million FY '20 FY '19 Change
Net result £58m £60m -3%
Gross income £1,484m £1,517m -2%
Combined ratio 95.2% 98.7%  

2019 result reflects a one-off benefit following the Ogden Personal Injury Rate adjustment

 Ageas UK entities Motor Household Travel & Other Total
In GBP million FY '20 FY '19 FY '20 FY '19 FY '20 FY '19 FY '20 FY '19
Gross inflows non-life 743.8 778.5 302.6 275.2 182.8 152.9 1,229.2 1,206.6
Combined ratio 91.1% 101.5% 99.4% 86.9% 105.7% 104.3% 95.2% 98.7%

In 2019 a new internal reinsurance programme became operational at Ageas Group, impacting combined ratio and Non-Life net result. In 2020 the cession rate of the internal Quota Share and the Loss Portfolio agreements has increased from 30% to 40% The combined ratio including the effect of the new internal reinsurance agreement stood at 95.4%.

For the people in the pandemic

  • Ageas continued to offer its full range of services throughout the pandemic, maintaining a high-quality service to its customers, evidenced by its strong Net Promoter Score and Net Ease Score.
  • Vulnerable customers, including key workers, have their claims prioritised to ensure their homes are secure or they are kept mobile during the lockdown restrictions.
  • Reflecting the needs of customers, flexible cover and payment options were put in place including waiving midterm adjustment and cancellation fees, offering payment deferrals to support customers in financial difficulty, and providing refunds on annual travel insurance policies.
  • No Ageas employees have been furloughed during the lockdown periods and Ageas has not benefited from any of the Government schemes.
  • Ageas UK has provided financial support for local communities and charities including Age UK, Rays of Sunshine, The COVID-19 Support Fund, and the Chelsea & Westminster Hospital COVID-19 treatment trials.

Ant Middle, Chief Executive of Ageas UK commented:

It’s impossible for us to look at our 2020 performance without considering the impact of the pandemic on our customers and our employees. I have been pleased with the dedication, energy and care that our employees have shown in adapting to the various challenges throughout the pandemic and their continued commitment to understanding and responding to the needs of our customers.

We have returned a resilient financial result in the context of the current climate, with reduced motor claims frequencies offsetting the major weather events experienced throughout the year. Reported income reflects the anticipated divestment of our share in Tesco Underwriting and the effects of the pandemic, alongside our disciplined and responsive underwriting throughout the year. We are also pleased to see the positive impact of our trading with a wide range of brokers throughout the year, which underlines the enduring strength of these relationships no matter what the challenges.

As we face into another year of uncertainty, we are confident that we have a solid foundation on which to build. We enjoy strong relationships with brokers, the commitment of our employees, and exciting plans for the future development of Ageas in the UK.