Insurer ASR's half-year results get boost from lower weather claims

Reuters

Insurer ASR's half-year results get boost from lower weather claims

21 ago. 2024, ore 5:29 GMT

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Posts 47% rise in half-year operating result

CEO says good weather conditions supported growth

To continue staff reductions amid Aegon Nederland integration

Maintains 2024-2026 targets

Writes through with CEO comments from interview and context

By Dimitri Rhodes and Olivier Sorgho

Aug 21 (Reuters) -Dutch insurer ASR Nederland ASRNL.AS on Wednesday reported a nearly 50% jump in half-year operating earnings with growth across the board, bolstered by lower weather-related claims and last year's acquisition of Aegon Nederland.

European insurers such as Allianz ALVG.DE and Generali GASI.MI have been facing escalating challenges as climate change intensifies, with more frequent and severe natural disasters such as floods and wildfires.

In contrast to this, ASR's property and casualty business benefited from the absence of serious storms and water damage in the first half of the year, CEO Jos Baeten said in a statement.

ASR assumes an about 30 million euro ($33.3 million) hit annually from claims related to extreme weather, Baeten told Reuters in an interview.

He also said the company was using early warning systems to help mitigate storm damages to customers' property.

ASR's half-year operating earnings rose 47% from a year earlier to 677 million euros, with significant growth across its business segments.

Baeten said ASR would continue to reduce staff until it completes integrating Aegon's AEGN.AS Dutch operations, bought in a $4.9 billion deal last year, into its main business in mid-2026.

The company has cut its workforce by 3% since the end of 2023, as it also gradually introduces artificial intelligence into its operations.

"Our current assumption is we will be able to reach our growth targets without increasing the workforce," Baeten said.

ASR reaffirmed the 2024-2026 financial targets raised in June, and said it had asked the Dutch government to reconsider its decision to not have a combined public and private sector insurance solution for damages from flooding of large rivers and lakes.

Insurance companies in Netherlands currently only cover claims related to floods in smaller, so-called secondary waterways.

($1 = 0.8998 euros)

Reporting by Dimitri Rhodes and Olivier Sorgho in Gdansk; Editing by Milla Nissi

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