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ageas (AGESY)
OTHER OTC:AGESY
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ageas
(OTC:AGESY)
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Rating:73Outperform
Price Target:
$75.00
▲(7.73% Upside)
Ageas's overall stock score is driven by strong earnings call results and attractive valuation metrics. The company's financial performance is solid, with notable improvements in revenue and profitability. Technical analysis indicates some short-term bearish signals, but the stock's valuation and positive earnings outlook provide a strong foundation for future growth.
Positive Factors
Revenue Growth
Ageas's strong revenue growth indicates effective business strategies and expanding market presence, supporting long-term sustainability.
Strategic Shift in Asia
The strategic shift in Asia enhances capital efficiency and reduces interest rate sensitivity, strengthening Ageas's competitive position in a key growth region.
Solvency and Capital Resilience
A strong solvency position ensures financial stability and the ability to withstand market fluctuations, supporting long-term operational resilience.
Negative Factors
Challenges in U.K. Market
Persistent pricing challenges in the U.K. market could impact profitability and require strategic adjustments to maintain competitive advantage.
Impact of Foreign Exchange
Foreign exchange impacts on earnings can introduce volatility, complicating financial planning and potentially affecting long-term profitability.
Higher Tax Rate in China
Higher tax rates in China may reduce net income from a key growth region, impacting overall profitability and strategic financial planning.
ageas (AGESY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.85B
Dividend Yield4.98%
Average Volume (3M)2.61K
Price to Earnings (P/E)10.5
Beta (1Y)0.30
Revenue Growth-1.56%
EPS Growth8.97%
CountryUS
Employees16,797
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)4.62
Shares Outstanding198,938,300
10 Day Avg. Volume0
30 Day Avg. Volume2,608
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)1.11
Price to Sales (P/S)1.01
P/FCF Ratio13.37
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue1.40
Enterprise Value/Gross Profit1.40
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ageas Business Overview & Revenue Model
Company Descriptionageas SA/NV, together with its subsidiaries, engages in insurance business in Europe and Asia. The company primarily offers property, casualty, and life insurance products, as well as pension products; and reinsurance products. Its life insurance products include risks related to the life and death of individuals; and non-life insurance products comprise accident and health, motor, fire, and other insurance products, as well as other damages to property covering the risk of property losses or claims liabilities. The company serves private individuals, as well as small, medium-sized, and large companies through independent brokers and the bank channels. ageas SA/NV was founded in 1824 and is headquartered in Brussels, Belgium.
How the Company Makes MoneyAgeas generates revenue through multiple streams, primarily from premiums collected from its insurance policies. The company earns money by underwriting various types of insurance products, charging premiums based on risk assessment and policy terms. In addition to premium income, Ageas also generates revenue from investment income derived from its portfolio of investments, including bonds, equities, and real estate assets. Significant partnerships with banks and financial institutions enhance its distribution capabilities, allowing for cross-selling of insurance products. Furthermore, Ageas benefits from economies of scale and operational efficiencies, which contribute positively to its profitability.
ageas Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong financial performance, increased cash upstream, and upgraded targets reflecting Ageas's robust business strategy. However, there are some challenges, particularly in the U.K. market and tax considerations in China.Q2-2025 Updates
Positive Updates
Strong Start to New Strategy
Ageas reported a solid growth with inflows up by 4% at constant FX, thanks to outstanding commercial momentum in Life. The company delivered a strong net operating result of EUR 734 million, driven by a Non-Life combined ratio of 92.1% and favorable tax conditions in China.
Increase in Cash Upstream and Dividend
Ageas expects cash upstream for 2025 to be EUR 940 million, a 17% increase from 2024. An interim dividend of EUR 1.5 per share will be paid in December, reflecting the company's strong cash position and commitment to shareholder returns.
Upgrade in Financial Targets
The company increased its holding free cash flow target to more than EUR 2.3 billion and shareholder remuneration target to more than EUR 2 billion, driven by strong business results and positive outlook.
Successful Strategic Shift in Asia
In Asia, growth reflected a strategic shift from nonparticipating to participating products, especially in China, which is more capital efficient and less interest rate sensitive.
Solvency and Capital Resilience
Ageas reported a solvency position of 240% at the end of H1 2025, and the pro forma Solvency II ratio including acquisitions would stand at 205%, well above the neutral solvency level of 175%.
Negative Updates
Challenges in U.K. Non-Life Market
Ageas experienced pricing headwinds in the U.K. motor business with market premiums dropping by 8% in motor and 6% in household, compounded by persistent claims inflation.
Impact of Foreign Exchange on Life CSM
The Life Contractual Service Margin (CSM) was adversely affected by foreign exchange, impacting the overall earnings.
Higher Tax Rate Expectations in China
The effective tax rate in China is expected to be 25% for the full year, driven by adjustments in the valuation interest rate, potentially impacting future profitability.
Company Guidance
During the Ageas conference call, guidance for the fiscal year 2025 was provided, highlighting several key metrics. Ageas reported a strong start under its new strategy, Elevate27, with a 4% increase in inflows at constant FX, driven by a robust performance in the Life segment. The company achieved a combined ratio of 92.1% and a net operating result of EUR 734 million, adjusting to EUR 665 million when accounting for low tax rates in China and favorable weather impacts. Looking ahead, Ageas raised its full-year net operating result guidance to between EUR 1.3 billion and EUR 1.350 billion, incorporating esure's contribution. The guidance assumes a corporate tax rate of 25% in China for the year. Ageas's operational capital generation reached EUR 1.1 billion, and the company anticipates a cash upstream of EUR 940 million for 2025, up 17% from the previous year. Additionally, Ageas plans to distribute an interim dividend of EUR 1.5 per share in December. The company's solvency position remains strong, with a pro forma Solvency II ratio of 205% after accounting for the acquisition of esure and Saga. With these results, Ageas increased its holding free cash flow target to over EUR 2.3 billion and shareholder remuneration targets to more than EUR 2 billion for the Elevate27 cycle.ageas Financial Statement Overview
Summary
Ageas has shown commendable improvements across its financial statements. The income statement reflects strong revenue and profitability growth, while the balance sheet maintains a stable leverage position. The cash flow statement highlights improved cash generating abilities, although there is room for further optimization. The company is well-positioned for future growth, though it should remain vigilant in managing leverage and enhancing cash flow efficiency.Income Statement
The company demonstrated solid revenue growth of 12.62% from 2023 to 2024, reversing a prior declining trend. Gross profit margin remained high at 100%, indicating efficiency in cost management. Net profit margin improved to 13.19% in 2024 from 12.66% in 2023, showcasing enhanced profitability. However, the company experienced fluctuations in EBIT and EBITDA margins, with the latter increasing significantly to 25.61% in 2024 from 7.40% in 2023. Overall, the income statement reflects a positive trajectory in revenue and profitability with some volatility in operational efficiency.75
Positive
Balance Sheet
The company's balance sheet shows a moderate debt-to-equity ratio of 0.61 for 2024, indicating manageable leverage levels. Return on equity increased to 14.42% in 2024, reflecting improved returns for shareholders. However, the equity ratio decreased slightly to 7.87%, suggesting a marginally higher reliance on debt financing. While the balance sheet is stable, there is a cautious note on the declining equity base relative to total assets.65
Positive
Cash Flow
The company reported a substantial improvement in free cash flow, turning positive to 642 million in 2024 from negative in 2023, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio increased to 0.93, reflecting better cash conversion. However, the free cash flow to net income ratio of 0.57 suggests room for improvement in translating earnings into free cash flow. The overall cash flow position has strengthened, but the company should focus on sustaining this positive trend.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.61B | 8.48B | 7.88B | 4.89B | 12.91B | 11.57B |
| Gross Profit | 8.61B | 8.48B | 6.94B | 2.82B | 11.69B | 10.43B |
| EBITDA | 0.00 | 2.17B | 2.04B | 2.03B | 2.19B | 2.50B |
| Net Income | 1.15B | 1.12B | 953.00M | 1.10B | 845.00M | 1.14B |
Balance Sheet | ||||||
| Total Assets | 99.48B | 98.45B | 96.69B | 100.30B | 111.14B | 111.42B |
| Cash, Cash Equivalents and Short-Term Investments | 60.51B | 58.96B | 58.78B | 42.14B | 57.19B | 61.22B |
| Total Debt | 5.25B | 4.75B | 4.58B | 4.44B | 4.73B | 4.71B |
| Total Liabilities | 90.34B | 89.66B | 88.19B | 91.67B | 96.97B | 97.64B |
| Stockholders Equity | 8.08B | 7.75B | 7.42B | 6.97B | 11.91B | 11.55B |
Cash Flow | ||||||
| Free Cash Flow | 1.58B | 642.00M | -115.00M | -752.00M | -1.21B | -1.69B |
| Operating Cash Flow | 1.83B | 1.04B | 124.00M | -588.00M | -1.06B | -1.33B |
| Investing Cash Flow | -412.00M | 93.00M | 1.35B | 1.03B | 1.44B | 635.00M |
| Financing Cash Flow | -60.00M | -952.00M | -868.00M | -1.13B | -684.00M | -804.00M |
ageas Technical Analysis
Positive
69.62
Price Trends
68.59
Positive
67.52
Positive
66.09
Positive
Market Momentum
0.45
Negative
60.38
Neutral
99.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGESY, the sentiment is Positive. The current price of 69.62 is below the 20-day moving average (MA) of 69.81, above the 50-day MA of 68.59, and above the 200-day MA of 66.09, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 99.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGESY.
ageas Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $37.63B | 10.14 | 21.66% | 1.55% | 7.11% | 22.52% | |
75 Outperform | $20.81B | 13.79 | 13.74% | 3.44% | 12.33% | ― | |
73 Outperform | $13.85B | 10.47 | 14.29% | 4.98% | -1.56% | 8.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $11.65B | 8.60 | 14.42% | 5.77% | -6.19% | ― | |
64 Neutral | $40.40B | 13.42 | 7.68% | 2.02% | -23.02% | 52.43% | |
40 Underperform | $13.30B | -16.76 | -41.33% | 2.15% | 7.70% | -155.12% |
* Financial Sector Average
AGESY
ageas
71.32
22.72
46.76%
AEG
Aegon
7.79
1.74
28.76%
AIG
American International Group
74.88
3.31
4.63%
HIG
Hartford Insurance
135.06
24.63
22.30%
PFG
Principal Financial
94.72
16.78
21.53%
EQH
Equitable Holdings
46.40
-6.24
-11.85%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.