€6m insurance profit in Belgium swallowed by €28bn loss

Troubled European insurer Fortis announced full year net profit of operating insurance activities of €6m, including €639m of investment losses but its banking disaster turned in an overall €28.0bn loss.

All its insurance profit was made in Belgium with the rest of the world only breaking even.

Fortis UK

  • GWP € 954m down from €1,107m
  • “UK’s premiums remained stable in constant exchange rates, due to an increased focus on profitability,” company said.

Fortis Insurance Belgium

  • Net profit of €6m, including €534m net-of-tax negative impact of investment portfolio
  • Total gross inflow €6.3bn
  • Life gross inflow down 22%, due to difficult environment and uncertainty surrounding Fortis
  • Non-Life gross written premiums up 7%, outperforming the Belgian market
  • Risk profile of investment portfolio of €37.3bn reduced due to sales and lower value of equity investments

Fortis Insurance International

  • Net result break-even, including €105m net-of-tax negative impact of investment portfolio
  • Total gross inflow at consolidated companies €5.3 billion
  • Life consolidated gross inflow up 5% with Portugal, Turkey and Hong Kong main contributors
  • Non-Life gross written premiums up 2% in constant exchange rates Investment portfolio at €9.4bn, with reduced exposure to equities

CEO Karel De Boeck: "The operational results of our insurance companies were satisfactory taking into consideration the market turbulence and the uncertainty surrounding Fortis. Total gross inflows were €14.6bn despite challenging market conditions. The solvency ratios remained very strong. It is now important to focus on the future. The new improved deal will provide a strong foundation for the future. That future will include a careful review of the various options available to ensure that capital is employed effectively, including organic growth, acquisitions and the return of capital to shareholders.”