Ageas SA announced that they will return an additional EUR200 million euros or US$264 million to its investors through a buyback deal. Ageas is currently the majority owner of Belgium's largest life insurer. The company reported that they have exceeded profit expectations for the second quarter of the year.
Ageas' insurance profits rose 16% to EUR171.9 million due to the lower taxation of investment returns in Belguim and the property gains in Turkey. The net income of Ageas, which was estimated at EUR178.6 million, surpassed the average estimate of EUR155.4 million. The company's net income included the EUR42 million sale of Royal Park Investment. Ageas plans to start buying back an estimated EUR200 million worth of stock, along with the distribution of EUR 1per share to be paid in December.
Analyst at ING Bank NV in Amsterdam Albert Ploegh wrote in a statement that he wrote to clients, "Given the size of the cash balance, we expect a further return of capital. Ageas's shares continue to trade at a large discount to book and the self-imposed return hurdle on future investments of at least 11 percent means there is no straightforward attractive alternative."
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