Insurance Europe
Resilient performance despite lower net profit
Key points
- Investment losses across asset classes negatively impacted results
- Strong performance Central Europe
- Major drive for cost containment and capital efficiency in the Benelux
- Favourable long-term prospects, despite market turmoil
Insurance Europe delivered a resilient performance in 2008, especially in Central Europe. However, like others in the life insurance industry, Insurance Europe was affected by the global financial turmoil. The lower net result was mainly due to negative revaluations of real estate and private equity investments. The business responded to the difficult financial and economic climate by focusing on efficiency and de-risking its balance sheet. With a range of products designed to meet the needs of customers throughout their lives, Insurance Europe continues to be well positioned to take advantage of long-term trends.
Profit and loss account (underlying)
| in EUR million | 2008 | 2007 | change |
|---|---|---|---|
| Premium income | 10,194 | 10,253 | –0.6% |
| Operating expenses | 1,764 | 1,726 | 2.2% |
| Underlying result before tax | 651 | 1,840 | –64.6% |
| Total result before tax* | 651 | 2,300 | –71.7% |
- *
- Total result before tax is defined as underlying result before tax including divestments and special items.
Key figures
| 2008 | 2007 | |
| Value of new life business (EUR million) | 397 | 400 |
| Internal rate of return | 17.1% | 15.8% |
| New sales (EUR million) | 1,010 | 969 |
| Economic Capital (EUR billion) | 3.0 | 5.9 |
- *
- Bulgaria, the Czech Republic, Greece, Hungary, Poland, Romania, Russia, the Slovak Republic, Spain and Turkey.
