Belgian insurance group Fortis (FOR.BR) took a major step in its restructuring on Thursday, returning to profit in its core business and setting a date for the results of a key strategic review.
Highlights :
- Insurance net profit of EUR 228 million; negative impact of market on investment portfolio of EUR 84 million netof- tax, compensated by a EUR 94 million tax recovery in Belgium
- Group net profit of EUR 886 million of which General net profit of EUR 658 million; EUR 835 million net positive result on transaction related events and a EUR 301 million net-of-tax charge for legal dispute with Fortis Capital Company Ltd
- Total gross inflow, including non-consolidated joint ventures at 100%, stable at EUR 7.9 billion; inflow on a consolidated basis EUR 5.9 billion (down 6%)
- Capital position further strengthened; Total insurance solvency ratio of 229%
CEO Bart De Smet said: ’The first half of 2009 was marked by the closing of the transactions with BNP Paribas, the Belgian State and Fortis Bank,representing a new start for Fortis as a pure insurance company. Our results benefited from a number of exceptional items related to these transactions but I’m also pleased to report that our insurance operations performed well in what were sometimes difficult markets, with inflow levels in line with the same period last year. For the entire year, and based on the most recent data, we expect our inflow levels to be at least in line with last year. Several commercial campaigns were rolled out in a number of countries in support of efforts to increase inflows, and resulted in a strengthening of our main market positions, an illustration of the resilience of our franchise. Nevertheless, we expect the market environment to remain challenging with an economic situation impacting customer behaviour across Life and Non-Life businesses. As in the past, we remain vigilant and disciplined towards our business performance. As previously announced, we are currently conducting a strategic review, focusing on our insurance activities and the balance sheet structure, the conclusions of which will be communicated on 25 September. In conclusion, we continue to leverage the full potential of the
new Fortis
