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Analysis of Ageas share price

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The banking and insurance sectors are undoubtedly the most popular sectors for stock market investors because of their high liquidity and volatility. This is why we are going to take a closer look at the European share price of Ageas today. Below you will find some information about this company and a historical analysis of the share price on the market.

Elements that can influence the price of this asset:

Analysis N°1

Ageas has a long track record in its field of activity. It should therefore be able to repeat its past activities and to put in place an objective rationalisation of its activities.

Analysis N°2

We also know that the group is developing strongly in emerging Asian markets such as China and India. If Ageas continues on this path, it is likely that its revenues will increase rapidly in the medium term.

Analysis N°3

Finally, Ageas offers stock market investment contracts among its various products. The recent improvement in the performance of the various stock markets could prove to be a real opportunity for the group.

Analysis N°4

The ability of the Ageas Group to develop outside Europe will be a key issue for its future. The company still derives the majority of its revenues from this region, which presents a major risk of exposure to a possible return of the economic crisis of recent years.

Analysis N°5

Finally, the insurance sector could undergo a lot of changes in Europe over the next few years, on the one hand because of the new rules imposed by the Basel II agreements on solvency, but also because of increasingly important competition.

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General presentation of Ageas

The Ageas Group is a well-known Belgian group in the global insurance business. As one of the 20 largest European insurers, it generates most of its turnover in Europe and Asia.

To develop its business, the group has developed partnerships in Belgium, the United Kingdom, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India and Thailand. It is better known under the name "AG Insurance".

Ageas' share price is currently listed on compartment A of the Euronext Brussels market and is included in the calculation of the Euronext 100 stock market index.

Analysis of Ageas share price
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The major competitors of Ageas

The Ageas Group is active as an insurer in Europe and around the world. It therefore faces strong competition and is struggling to make a place for itself on the market against large, specialised companies with real strengths. In order to invest wisely in this share price on the stock market, it is therefore imperative to know the positioning of its main competitors and to include their results and news in your analysis.

Generali 

in Italy, is in third place.

China Life

It is followed by China Life Insurance in 4th position.

Other competitors

Next are American International Group, Nippon Life Insurance Company in Japan, Prudential in the UK, Zurich Financial Services in Switzerland, CNP Assurances in France and Aviva in the UK.


The major partners of Ageas

Ageas has also developed a number of well thought-out partnerships to expand its market presence. Here are a few examples.

BGL BNP Paribas

In 2011, the Ageas Group and BGL BNP Paribas, which were both equal shareholders in Fortis Luxembourg, entered into a partnership with BNP Paribas Cardif, enabling the new company to sell life insurance and pension products on the Luxembourg market.

Avenir France

In 2013, the Ageas France group and the Avenir France group signed a capital and commercial partnership. As a result, Avenir Finance Gestion Privée integrated the activities of the Ageas France network in exchange for 35% of its capital. Ageas subsequently exercised its call option and increased its stake in Sicavonline from 35 to 49%. This share will subsequently be increased to 65%.

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Positive factors for Ageas shares
The factors in favour of a rise in the Ageas share price:

One of the Ageas Group's greatest strengths is its long experience in the insurance business. The Ageas Group has over 180 years of experience in this sector, making it one of the oldest and strongest companies in the market. Of course, Ageas has developed its activities worldwide over the years and is now an international company.

The company's strategy of diversifying its activities is also noteworthy. Indeed, instead of being satisfied with a single insurance activity, Ageas covers all the distribution channels in this sector. Its activities cover the entire insurance and provident chain, from bancassurance to direct sales channels. This strong diversification is a real advantage for the company, which limits its exposure to a single channel.

Shareholders, investors and analysts also point to Ageas' financial position as a sign of strength.

From an Ageas branding perspective, it is also a very popular brand that appeals to the general public, not least because of its emphasis on corporate responsibility in terms of charity work and the efficient use of environmental resources. In these times of focus on ecology, this is of course an undeniable asset.

Finally, the Ageas Group is also an international branch network with no less than 11,000 employees in various countries. This workforce is also a strength for the company in terms of its growth capabilities.

Negative factors for Ageas shares
The factors in favour of a drop in the Ageas share price:

First of all, it should be noted that the Ageas Group has inherited certain problems from its predecessors. These problems may indeed present certain risks to the Group's general account. It is therefore likely that the company will be directly impacted by this problem financially.

While we have highlighted Ageas' interesting international development as one of the Group's strengths, it is also important to know that the majority of the Group's activities remain in Europe. The majority of Ageas' revenues are generated in this geographical area, which naturally increases the risk of exposure, particularly in times of economic crisis or a fall in purchasing power.

Finally, and still regarding the disadvantages of this group, we can talk about the operating costs of the Ageas company. For several years now, these costs have been increasing, which has led to a deterioration in the group's margins. It goes without saying that this weighs on the company's ability to grow in the long term.

As we have just seen, Ageas' future is far from guaranteed and, when carrying out your fundamental analysis, you should take into account both the group's strengths and weaknesses and moderate your judgement as to the group's capacity for growth and therefore the evolution of its share price.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.
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