ageas AGS.VI
What does ageas do?
ageas is an internationally active insurance group headquartered in Brussels. The company offers life and non-life insurance, including accident, health, motor, and fire insurance as well as cover against other property damage. It also provides pension products and reinsurance. Customers include private individuals as well as small, medium-sized, and large businesses. Distribution runs mainly through independent brokers and bank channels.
Reporting is divided into the segments Belgium, Europe, Asia, Reinsurance, and General Account. ageas earns money from premium income, investment income, and commissions. In terms of competitive positioning, the group relies on partnerships with banks and distribution partners and on regional diversification between Europe and Asia, where business is partly conducted through equity stakes and joint ventures with local partners. Market position differs by country and line of business; in Belgium the company is well established.
Score profile
Rank vs. Insurance - Diversified (9 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, ageas ranks in the middle in the group Insurance - Diversified (5.6/10). On growth, the company ranks above average in the group Insurance - Diversified (7.8/10). On valuation (higher = cheaper), the stock ranks above average in the group Insurance - Diversified (7.0/10). On financial strength, ageas ranks above average in the group Insurance - Diversified (7.2/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Trailing P/E | 8.2x | 12.5x | better than 83 % |
| PEG ratio | 1.5x | 1.2x | better than 39 % |
| EV/EBITDA | -0.6x | 5.4x | better than 0 % |
| Price/sales | 1.6x | 1.5x | better than 28 % |
| Price/book | 1.6x | 1.7x | better than 56 % |
| Revenue growth | 27.5% | 11.2% | better than 94 % |
| Earnings growth | 17.3% | 16.1% | better than 61 % |
| Gross margin | 27.2% | 26.6% | better than 61 % |
| Operating margin | 6.8% | 13.7% | better than 17 % |
| Net margin | 17.7% | 11.8% | better than 72 % |
| Return on equity | 19.8% | 18.7% | better than 72 % |
| Debt/equity | 78.3% | 33.2% | better than 6 % |
| Current ratio | 6.0x | 1.8x | better than 81 % |
| Free cash flow yield | -13.2% | 5.3% | better than 6 % |
| Dividend yield | 5.7% | 2.8% | – |
| Payout ratio | 38.6% | 35.7% | – |
| Beta | 0.60 | 0.47 | – |
Valuation: what is ageas worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give ageas a model range of 81.50 EUR to 81.50 EUR per share.
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Premium volume in life and non-life insurance depends on insurance demand, price levels, and the strength of distribution partners.
- Investment income significantly shapes earnings and depends on the interest rate environment and capital market performance.
- Underwriting profitability results from claims experience, cost discipline, and risk selection, particularly in motor, fire, and health lines.
Risks
- Fluctuating interest rates and market values can weigh on investment results, capital position, and the valuation of long-term benefit obligations.
- Natural disasters, large losses, and adverse claims development can significantly impair underwriting results in the non-life lines.
- Regulatory capital requirements and reliance on partnerships and equity stakes in Asia pose risks to earnings and to the group's ability to control and steer these businesses.
What to look for with ageas
In non-life insurance, the combined ratio shows whether underwriting business is profitable, complemented by the solvency ratio as a measure of capital strength.