Ageas global performance hit as UK operations swing into the red

The government is considering changing the Ogden rate – the amount by which insurers discount expected future payouts on personal injury and fatal accident policies.The rate has been at 2.5 per cent since 2001 and given the current lower for longer interest rate environment there have been calls to reduce the rate, a move that could cost insurers hundreds of millions of pounds by increasing the amount that needs to be allocated to cover future losses.Read more: Ageas UK improves combined ratio despite declining profitsIn November, Ageas revealed plans to close its Kwik Fit insurance services operations in Scotland. The move was confirmed last month with 521 jobs set to be lost.Shares in Ageas, which is Belgium’s largest insurer and listed on the Brussels stock exchange, fell nearly five per cent following the results announcement. Read more: RSA shares rise at the open as it disposes of £834m “book of nasties”Exceptional charges in the UK totalled €113m: the previously announced closure of its Glasgow office cost €27m, “exceptional underwriting losses” costing €25m and €55m of losses booked on the anticipation of changes to the Ogden discount rate.Ogden changes UK operations swung from black to red, posting a €56m loss in 2016, compared with a €30m profit 12 months before.“2016 has been an eventful year for Ageas,” said chief executive Bart De Smet. He added: Insurance giant Ageas today revealed profits had tumbled over the last year with losses spiralling in the UK while the firm works through a painful restructuring and prepares for regulatory changes.The net result of the Belgium-headquartered group plummeted to €127m (£108m), down from €770m.  Wednesday 15 February 2017 1:24 pm Ageas global performance hit as UK operations swing into the red whatsapp With the exception of the UK, [Ageas has] achieved very good results. In the UK a number of exceptional events forced the group to take significant one-off charges for restructuring and reserve strengthening partly in anticipation of changing regulations. Share whatsapp Oliver Gill More From Our Partners Porsha Williams engaged to ex-husband of ‘RHOA’ co-star Falynn Guobadiathegrio.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgLA news reporter doesn’t seem to recognize actor Mark Currythegrio.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFans call out hypocrisy as Tebow returns to NFL while Kaepernick is still outthegrio.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFort Bragg soldier accused of killing another servicewoman over exthegrio.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comMan on bail for murder arrested after pet tiger escapes Houston homethegrio.com‘The Love Boat’ captain Gavin MacLeod dies at 90nypost.comKansas coach fired for using N-word toward Black playerthegrio.comPuffer fish snaps a selfie with lucky divernypost.comColin Kaepernick to publish book on abolishing the policethegrio.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.com

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