Fortis international GI arm COR worsens to 107.8% in 2009
jonathan swift Postonline
Fortis Insurance this morning recorded an overall net profit EUR 456m, although its non life business net profit of EUR 74m, was negatively impacted by higher claims in Belgium and the UK.
Total gross inflow at Fortis Insurance International [which covers the UK business], including non-consolidated partnerships at 100%, amounted to EUR 8.9bn, up 7% compared to 2008. Life inflows were EUR 7.4bn and non-life EUR 1.5 bn.
Fortis noted the UK non-life activities recorded a 6% increase in inflows at constant exchange rates, but slightly below 2008 levels at current exchange rates, due to unfavourable currency rates.
It added: "Net profit of FII after minority interests was EUR 90m compared to a zero result in 2008. The net profit attributable to minority interests amounted to EUR 51m, essentially driven by the net profit in Portugal.
"The net contribution of the non-life activities suffered from the lower contribution of the UK motor business mainly due to a higher frequency of bodily injury claims. This contributed to a combined ratio for FII of 107.8% in 2009 compared to 98.4% in 2008.
"FII's net result was marked by a strong second half with a net profit of EUR 57m driven by better investment margins, the absence of investment losses and a net positive one-off result of EUR 15m."
CEO Bart De Smet commented: "The past year has been one of significant change for our company. We made a number of important decisions regarding the future development of the company and ended the year in a more stable and much stronger position. In a still difficult context we managed to maintain the value of our commercial franchise and even strengthened our position in our most important markets across Europe and Asia.
"In 2009 and until today the market environment remained unpredictable and challenging. Our solid financial results and our robust capital position are a strength in times of volatile financial markets. In non-life, we took a number of measures to improve our operational performance. 2010 will be another important year during which we will focus on the development of our insurance activities in the interest of the long term future of our company.
"The steps taken so far combined with the drive and commitment of our colleagues will ensure that we are well placed to face any future challenges as we are all driven by the same objective : Create sustainable value for all our stakeholders."
Fortis Insurance this morning recorded an overall net profit EUR 456m, although its non life business net profit of EUR 74m, was negatively impacted by higher claims in Belgium and the UK.
Total gross inflow at Fortis Insurance International [which covers the UK business], including non-consolidated partnerships at 100%, amounted to EUR 8.9bn, up 7% compared to 2008. Life inflows were EUR 7.4bn and non-life EUR 1.5 bn.
Fortis noted the UK non-life activities recorded a 6% increase in inflows at constant exchange rates, but slightly below 2008 levels at current exchange rates, due to unfavourable currency rates.
It added: "Net profit of FII after minority interests was EUR 90m compared to a zero result in 2008. The net profit attributable to minority interests amounted to EUR 51m, essentially driven by the net profit in Portugal.
"The net contribution of the non-life activities suffered from the lower contribution of the UK motor business mainly due to a higher frequency of bodily injury claims. This contributed to a combined ratio for FII of 107.8% in 2009 compared to 98.4% in 2008.
"FII's net result was marked by a strong second half with a net profit of EUR 57m driven by better investment margins, the absence of investment losses and a net positive one-off result of EUR 15m."
CEO Bart De Smet commented: "The past year has been one of significant change for our company. We made a number of important decisions regarding the future development of the company and ended the year in a more stable and much stronger position. In a still difficult context we managed to maintain the value of our commercial franchise and even strengthened our position in our most important markets across Europe and Asia.
"In 2009 and until today the market environment remained unpredictable and challenging. Our solid financial results and our robust capital position are a strength in times of volatile financial markets. In non-life, we took a number of measures to improve our operational performance. 2010 will be another important year during which we will focus on the development of our insurance activities in the interest of the long term future of our company.
"The steps taken so far combined with the drive and commitment of our colleagues will ensure that we are well placed to face any future challenges as we are all driven by the same objective : Create sustainable value for all our stakeholders."
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