AGF Net Income Up 26.7 Percent To $785 Million

March 14, 2001

French insurer AGF, which is 51 percent owned by Germany’s Allianz, had a banner year in 2000 with net income rising 26.7 percent to top € 845 million ($785 million). The group saw growth in all sectors, due in part to the continuing strength of the French economy, and to increased contributions from its operations in Spain (up 12.9 percent), Belgium (up 4.4 percent) and Holland (up 9.3 percent).

While life and health insurance contributed € 397 million ($369 million), 45.5 percent of total profits, non-life operations did almost as well. “Net income before goodwill and exceptionals was 332 million euros (+64.4%), and represented 38% of the total net income before goodwill and exceptionals of the Group’s operating companies,” said the announcement. AGF posted a robust 15.6 percent ROE for the year.

Activities from its credit insurance affiliate Euler also rose as did income from asset management and capital gains. In summing up the future AGF said, “Despite weakness in the financial markets and a slowdown in life insurance in France, since the beginning of 2001, several factors point to renewed growth in profitability for AGF in 2001. Growth is picking up in other countries, non-life insurance rates are firming, and South American subsidiaries look set to boost their contribution, following the measures implemented in 2000.”

AGF also confirmed that longtime CEO Antoine Jeancourt-Gaglignani will step down following the June 5th Board of Directors meeting. His successor is Jean-Philippe Thierry.

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