From market expansion to digital transformation: Ageas Europe's 2024 journey

2024 was a year in which we saw continued progress in our Europe segment in the UK, Portugal and Türkiye. From growing market shares and solidifying our technical and operational capabilities to extending our reach and impact on customers. The region also led the way in inspiring innovations and initiatives across the wider Group, sharing expertise especially in Customer Experience (CX) and Health, allowing other entities to fast-track best practices into their own markets.

Ageas UK leads the way in personal lines insurance and realises remarkable growth

For the UK, named Personal Lines Insurer of the Year for the second consecutive year, 2024 was a year of strong profitable growth and the addition of almost half 300,000 new customers to our portfolio. In what is a highly regulated and competitive market, our growth rate of 20% is more than just adding more business, it is about making the right decisions at the right time and in a way that also protects the end customer from unexpected shocks. The 2024 performance reflects the prompt action taken by Ageas UK on repricing the motor and household books when claims and inflation trends emerged.

In 2024 Ageas also explored opportunities to participate in market consolidation. Capitalising on an already strong position in the over 50’s segment, and in line with the Group’s decision to elevate its focus on solutions for the Ageing segment, Ageas signed the acquisition of AICL and entered into a 20-year exclusive partnership agreement with Saga Services Limited for the distribution of personal lines Motor and Home insurance products to Saga's customers. This transaction allows Ageas to grow scale in a segment of the market with privileged access to a recognised brand as well as pricing, underwriting and claims data. Ageas strives to continue to be recognised as “expert” for this segment expecting it to further expand its position going forward in a part of society which is expected to grow.

Ageas UK focused its attention on improvements to its core infrastructure and went live in December with its first customers on a new digital insurance software platform, completing the first step of a significant re-platforming exercise. This will significantly increase efficiency and agility in terms of new product design and CX. As the Group’s Centre for Excellence in CX, the UK has continued to set high standards, inspiring the whole Group to aspire top quartile positions.

Ageas Portugal marks 2024 with robust growth and excels in health and life insurance

In Portugal, 2024 marked 20 years of partnership with bank partner Millennium BCP. This important partnership continues to deliver excellent results with this year a very robust growth in traditional life products, allowing it to outperform the market with 98% growth in new production vs. 38% for the market as of October. While continuing to grow the Life book, we will also be keeping a close eye on opportunities to improve our position in the Non-Life sector where there is still room to do more.

Portugal remains our Centre of Excellence in Health with around 30% market share and No.2 position. We have managed to restore profitability compared to 2023 thanks to initiatives which range from re-pricing to co-payment structures. In addition, we continued to expand our positioning in the wider health ecosystem: Médis went live with a digital wallet and marketplace on the Médis health app and we have continued to develop our primary care network with the acquisition of OneClinics, a physiotherapist network, adding to the range of specialist clinics already active across other health disciplines.

Ageas Portugal initiated a modular IT replatforming programme which over time will improve the base infrastructure across the entire business allowing it to increase efficiency and agility by creating a modern infrastructure capable of supporting digital growth. First steps in this replatforming effort were realised with pet insurance and a selection of health products going live respectively for the agents and direct distribution channels in 2024.

After 8 successful years, CEO Steven Braekeveldt stepped down as CEO passing the baton to Luis Menezes, a Portuguese national with CEO experience in the health sector within an international group (Unilabs). Taking advantage of the Group’s vast talent pool, Evan Waks was appointed CFO, transferring from Ageas UK where he had been Chief Risk Officer.

In Türkiye: operational excellence and strategic advancements in life, pensions, and health insurance

In reflecting on our performance in Türkiye it is impossible to do so in isolation of the macroeconomic situation of the country. The impact is felt by businesses and customers who face sometimes difficult financial choices. The consistent monetary approach by the Turkish Central Bank over the past two years is bringing with it some signs of stability translating to an improvement in the country rating, with inflation gradually reducing.

The business in Türkiye showed strong operational performance in Life insurance and Pensions, two of the fastest growing segments of the market, reaching top 2 positions in these segments. 2024 also saw the appointment of Firat Kuruça as CEO of our two partnerships with the Sabanci group, AgeSa and Aksigorta, replacing Ugur Gulen who provided remarkable leadership to Aksigorta for almost 16 years. The decision to appoint one CEO for both entities in Türkiye reflects a desire to explore operational synergies between the two companies and to look for ways to work even more collaboratively, capitalising on the strengths of both.

In 2024 our Turkish partnership also acquired a license to operate a newly established health insurer, MediSa, a greenfield initiative offering customers a 360-degree healthcare experience that combines digital healthcare and insurance expertise.

Focus on innovation, adaptation and growth

As we look forward to Elevate27 many of the key priorities already play directly to strengths that exist in Europe particular around ageing where in all our countries we are considered a reference in this segment through our leadership positions in Pensions in Portugal and Türkiye and in the over 50’s segment in the UK.

The usage of Data, AI and Gen AI will of course be gamechangers which is why our ongoing mission to upgrade our core technology platforms is so critical and will continue apace. The exponential growth of AI and Data as well as computer power, will open opportunities to adapt our business models to provide more efficient and customer friendly insurance solutions.

Challenges lie ahead, some stimulated by the macroeconomy and emerging regulations, some reflecting changing customer behaviours requiring a higher degree of personalisation, and others by fast growing developments in technology demanding strong infrastructures and a continuing focus on the adoption of digital innovations. We are preparing to stay ahead of the curve and grasp opportunities to grow which Elevate27 will help us embrace and leverage over the coming years.

You are reading an article that is part of our Annual Report 2024.