As a key engine for future growth within the context of the Group’s Impact24 strategy, Ageas Re, the Group’s reinsurance arm, is all set to deliver on its growth potential following the announcement in September that it would start underwriting business with third parties. This move will allow Ageas Group to benefit from further diversification of its portfolio and business activities.
Ageas internal reinsurance activities were first launched in 2015 and have evolved over the years to an important contributor to the Group with a top line of EUR 1.6 billion and net profit of EUR 87 million in 2021, delivering also significant capital synergies for the Group.
Reinsurance gross inflows amounted to EUR 1.6 billion, of which EUR 1.4 billion was from the internal quota share agreements. Excluding last year’s reclassification of inflows from Portugal (EUR 66 million), the total reinsurance inflows increased by 1% year-on-year.
The full year result from the quota share agreements reflects the results of the ceding entities, while the total reinsurance result benefited from favourable prior year results. The Q4 net result was impacted by the quota share agreements as a result of unfavourable claims in the UK (freeze event) and Portugal (floods).
On September 8th, 2022, Ageas announced further steps in delivering against its Impact24 strategy by opening its reinsurance activity to third parties, outside its Group perimeter. The 1/1/2023 reinsurance renewals were the first ones where Ageas participated as an external reinsurer, through Ageas Re. Thanks to the significant hardening of the reinsurance market, Ageas Re benefitted from improved terms and conditions throughout its portfolio. Ageas Re successfully implemented its plan, writing premiums at the upper end of the EUR 20-30 million guidance for the 1/1 renewals. Ageas Re focused its direct reinsurance underwriting mainly on the European markets, mainly in the property and CAT segment.