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FORTIS: Fortis: Results full year 2008

^{Published on 2009-03-30 23:45:33, Last Modified on 2009-03-30 23:46:22 - Market Wire}
 

BRUSSELS, BELGIUM--(Marketwire - March 31, 2009) -

 Press release Brussels/Utrecht, 31 March 2009 Results full year 2008 

Full year net profit of operating insurance activities EUR 6 million, including EUR 639 million negative impact of investment portfolio

Net result for 2008 EUR 28.0 billion negative, including EUR 27.4 billion loss on discontinued operations and EUR 0.6 billion loss of General

* Fortis Insurance Belgium

- Net profit of EUR 6 million, including EUR 534 million net-of-tax negative impact of investment portfolio

- Total gross inflow EUR 6.3 billion;

- 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 EUR 37.3 billion reduced due to sales and lower value of equity investments

* Fortis Insurance International

- Net result break-even, including EUR 105 million net-of-tax negative impact of investment portfolio

- Total gross inflow at consolidated companies EUR 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 EUR 9.4 billion, with reduced exposure to equities

* General

- Net loss of EUR 629 million due to net interest charges at holding level and a one-off EUR 295 million loss on currency transactions

* Discontinued operations (operational result and result on sale)

- Sale of banking activities resulted in a loss of EUR 29.4 billion in 2008

- Sale of Dutch insurance activities generated a profit of EUR 2.0 billion in 2008

* Capital position

- Core equity EUR 7.9 billion

- Solvency ratio total insurance activities 202%; required regulatory minimum for insurance activities EUR 2.5 billion

- Tangible net equity of EUR 6.0 billion

* Pro forma financial position (assuming approval of transactions by shareholders on 8 and 9 April)

- Pro forma net cash of General EUR 3.3 billion

- Pro forma shareholders' equity EUR 7.5 billion

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 EUR 14.6 billion 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."

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

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