Core Insights - Ageas reported strong financial results for the full year 2025, highlighting a transformational year for the company [1][2] - The company achieved a 9% increase in inflows, with a notable 33% rise in net operating results, reaching EUR 1.65 billion [1][2] - Ageas proposed a gross cash dividend of EUR 3.75, reflecting its commitment to shareholders [1][2] Financial Performance - Total inflows reached EUR 19.6 billion, marking a 9% increase compared to 2024 [1] - The net operating result was EUR 1.65 billion, up 33% from the previous year [1] - Free cash flow amounted to EUR 774 million, representing a 19% increase year-over-year [1] - The proposed gross cash dividend for 2025 is EUR 3.75, a 7% increase from 2024 [1] Strategic Developments - The acquisition of esure positioned Ageas as the 3rd largest personal lines insurer in the UK, while full ownership of Belgium's leading insurer AG was secured [2] - The Elevate27 strategy gained momentum, allowing the company to raise financial targets twice during the year [2] - Key strategic initiatives included a focus on ageing, SMEs, and enhanced use of Data & AI [2] Sustainability and ESG Performance - Ageas made significant progress in sustainability, earning positive recognition from employees and customers [2] - The company ranks in the top quartile with three of the five ESG rating agencies it engages with [2] - The portfolio of sustainable products continued to grow, reflecting the trust of customers and employees [2]

Group 1 - Ageas updates its Net Operating Result guidance for the full year 2025, expecting it to range between EUR 1.6 billion and EUR 1.65 billion, an increase from the previous guidance of EUR 1.3 billion to EUR 1.35 billion [2] - The positive adjustment is attributed to a one-off impact on deferred taxes resulting from the transition to IFRS17/9, as announced by the Chinese Ministry of Finance and the State Administration of Taxation [1][2] - Ageas's Chinese joint venture, Taiping Life, will benefit from this update, contributing to the improved financial outlook for the company [2] Group 2 - Ageas is a Belgian international insurance group with a 200-year heritage, offering both Life and Non-Life insurance products [3] - The company operates in Europe and Asia, with significant market presence in countries such as Belgium, the UK, Portugal, China, and Malaysia, among others [3] - Ageas reported annual inflows of EUR 18.5 billion in 2024 and employs approximately 50,000 people [3]

Group 1 - Ageas announced the repurchase of 740,476 own shares from its indirect subsidiary Ageasfinlux S.A. on December 31, 2025, after market close [1] - The shares were repurchased at a price of EUR 59.80 per share, which was the closing price on the day of the transaction [2] - The purpose of the share buy-back is to complete the unwind of the FRESH securities that were repurchased from the market [2] Group 2 - Ageas is a Belgian-rooted international insurance group with a history of 200 years, offering both Life and Non-Life insurance products [3] - The company operates in Europe and Asia, which are significant markets in the global insurance sector, and ranks among the market leaders in the countries where it operates [3] - Ageas reported annual inflows of EUR 18.5 billion in 2024 and employs approximately 50,000 people [3]

Core Insights - Karolien Gielen will succeed Filip Coremans as Managing Director Asia and Business Development effective February 1, 2026, after Coremans' 23-year tenure at Ageas [1] - The combination of the roles of Managing Director Asia and Business Development aims to strengthen collaboration between the Regional Office Asia and the Corporate Centre in Brussels [2] - Filip Coremans has been pivotal in Ageas's growth, particularly in Asia, and has contributed significantly to the company's success, including the Fortis Settlement [3] Company Overview - Ageas is a Belgian-rooted international insurance group with a 200-year heritage, offering both Life and Non-Life insurance products and engaged in reinsurance activities [4] - The company operates in Europe and Asia, which are major parts of the global insurance market, with successful businesses in multiple countries including Belgium, the UK, and various Asian nations [4] - Ageas employs approximately 50,000 people and reported annual inflows of EUR 18.5 billion in 2024 [4]

Core Insights - The Zacks Rank system focuses on earnings estimates and revisions to identify winning stocks, with value investing being a popular method for finding strong stocks in various market conditions [1] - The Style Scores system allows investors to find stocks with specific traits, particularly in the "Value" category, where stocks with "A" grades and high Zacks Ranks are considered top value stocks [2] Company Analysis: Ageas (AGESY) - Ageas (AGESY) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [3] - The stock's Forward P/E ratio is 8.15, which is lower than the industry average of 8.89, with a historical range between 5.91 and 8.54 over the past 52 weeks [3] - Ageas's P/B ratio stands at 1.44, significantly lower than the industry average of 2.58, with a historical range from 0.94 to 1.54 [4] - These valuation metrics suggest that Ageas is likely undervalued, supported by a strong earnings outlook, making it an impressive value stock at present [5]

Core Viewpoint - Ageas has agreed to acquire the remaining 25% stake in AG Insurance from BNP Paribas Fortis for €1.9 billion ($2.3 billion), aiming to enhance its Elevate27 strategy and achieve full ownership of AG Insurance [1][2]. Group 1: Acquisition Details - The acquisition allows Ageas to operate as a fully integrated insurer in Belgium, covering both life and non-life sectors [2]. - The transaction includes a renewed bancassurance partnership with BNP Paribas, confirming BNP Paribas as the main shareholder and partner of Ageas [2][3]. - Ageas plans to finance the acquisition through a mix of equity placement, existing cash, credit facilities, and debt market options [4]. Group 2: Financial Implications - The equity placement involves issuing 18.5 million shares at €60 per share to BNP Paribas Cardif, contributing €1.1 billion to the financing [4][5]. - Following the acquisition, BNP Paribas Cardif's shareholding in Ageas is expected to rise from 14.9% to 22.5% [5]. Group 3: Future Partnerships - AG Insurance and BNP Paribas Fortis have extended their bancassurance cooperation for another 15 years, starting in 2027 [5]. - The partnership will also enhance investment management collaboration between AG Insurance and BNP Paribas Asset Management [6]. Group 4: Regulatory and Governance Aspects - Completion of the transaction is subject to regulatory approval and is expected in the second quarter of 2026 [6]. - BNP Paribas will have the right to nominate one member to the Board of Directors of both Ageas and AG Insurance, linked to the bancassurance partnership [4].

Group 1 - BNP Paribas is selling its 25% stake in AG Insurance to Ageas as part of a two-pronged deal [1]

Summary of the Conference Call Company and Industry - **Company**: Ageas - **Industry**: Insurance, specifically focusing on the Belgian insurance market Key Points and Arguments 1. **Acquisition Announcement**: Ageas will acquire full ownership of AG Insurance, a significant milestone following the acquisition of E-Sure earlier this year, which will reshape the group [3][4] 2. **Support from BNP Paribas**: BNP Paribas has increased its shareholding in Ageas and reaffirmed its long-term distribution agreement for AG's products in Belgium, indicating strong support for Ageas's strategic focus [4][11] 3. **Market Leadership**: AG Insurance is the market leader in Belgium, holding the top position in both life and non-life insurance, serving half of Belgium's families and a third of its companies [5][6] 4. **Financial Performance**: AG has consistently delivered profitable growth, with a robust solvency ratio and stable margins, managing assets worth EUR 72 billion [6][7] 5. **Impact of Acquisition**: The acquisition is expected to increase the group net operating result by EUR 160 million to EUR 175 million and enhance the reinsurance segment by EUR 15 million [7][9] 6. **Cash Flow and Shareholder Remuneration**: The transaction is projected to boost holding free cash flow by 13% over the Elevate 27 cycle and increase cash flow per share by approximately 7%-8% [9][12] 7. **Strategic Flexibility**: Full ownership of AG Insurance will provide Ageas with strategic flexibility and strengthen its foundation, allowing for better leverage of distribution and operational expertise [6][9] 8. **Long-term Partnerships**: A 15-year renewable bancassurance agreement with BNP Paribas Fortis will further solidify the collaboration between the leading bank and insurer in Belgium [10][34] 9. **Financial Targets Upgrade**: The acquisition allows Ageas to upgrade its financial targets for the Elevate 27 strategy, projecting earnings per share to rise to EUR 8 to EUR 8.5 by the end of 2027 [12][49] 10. **Future Growth and Investments**: The additional cash flows from AG Insurance will support future growth initiatives and shareholder remuneration, with a commitment to a 6% to 8% annual dividend growth [12][13] Other Important but Possibly Overlooked Content 1. **Cash Fungibility**: The acquisition will enable cash pooling at a group level, allowing for more flexible cash management and reducing the need for individual cash guardrails for each entity [19][32] 2. **M&A Opportunities**: Ageas remains open to in-market consolidation opportunities and has a debt capacity of EUR 700 million to EUR 800 million for potential acquisitions [20][29] 3. **Market Conditions**: The Belgian life insurance market is expected to grow, particularly in group life, driven by salary inflation and government promotion of second-pillar pensions [47] 4. **CASHES Complexity**: The relationship with BNP Paribas Fortis regarding the CASHES transaction remains complex and has not been addressed in the current acquisition discussions [36][45] This summary encapsulates the critical insights from the conference call, highlighting Ageas's strategic moves, financial expectations, and market positioning.

Transaction Overview - Ageas will acquire 100% ownership of AG Insurance from BNP Paribas Fortis for EUR 1.9 billion[4] - The transaction will be financed via an equity placement of 18.5 million shares at EUR 60 per share, totaling EUR 1.11 billion, along with existing cash and financing facilities[4] - The closing is subject to regulatory approval and is expected in Q2 2026[4] Strategic Rationale - The acquisition offers strategic flexibility and strengthens Ageas' position for potential future inorganic growth opportunities[22, 25] - It allows for further leveraging of AG Insurance's distribution, technical, and operational expertise to deepen group synergies[25] - The deal re-confirms the long-term nature of the bancassurance distribution agreement with BNP Paribas Fortis and deepens collaboration on investments[8, 25, 41] Financial Impact - The transaction is expected to deliver an attractive levered Return on Invested Capital (ROIC) of 15-16%[26, 40] - It is projected to increase HFCF (Holding Free Cash Flow) per share by 7-8% by 2027[26, 33] - The acquisition is expected to provide an immediate uplift of EUR 160-175 million from Belgium and EUR 15 million from the Reinsurance segment starting in 2028[33] Partnership with BNP Paribas - BNP Paribas will maintain a significant stake in Ageas, with a shareholding cap of 25%-1[52] - The partnership is governed by a Relationship Agreement with a 5-year duration and automatic renewal[52] - BNP Paribas supports Ageas' future growth as an independent and autonomous group[52] Elevate27 Targets - The transaction leads to an upgrade of Elevate27 financial targets, including an increase in HFCF and shareholder remuneration[26, 53, 59, 60] - The shareholder remuneration is expected to increase by +10%[60] - HFCF is expected to increase by +13%[59]

Transaction Overview - BNP Paribas agrees to sell a 25% stake in AG Insurance to Ageas for €1.9 billion [1] - BNP Paribas will buy a holding worth €1.1 billion in Ageas in return [1] Financial Implications - Ageas will pay €1.9 billion to acquire the 25% stake in AG Insurance [1] - BNP Paribas will receive a holding in Ageas valued at €1.1 billion as part of the transaction [1]