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Fortis published net results full year 2008

April 6th, 2009

Fortis’s 2008 net result was a loss of EUR 28.0 billion compared with a profit of EUR 4.0 billion in 2007.

The loss in 2008 was due to the EUR 27.4 billion negative result of discontinued operations, caused by the loss on sale of the banking activities, partly offset by a profit on the sale of the Dutch insurance activities.

Total gross inflow of the insurance activities, including non-consolidated joint ventures, amounted to EUR 14.6 billion, 5.5% lower year-on-year.

Gross inflow of the consolidated life companies was 11% lower at EUR 8.9 billion, due to the financial turmoil, especially affecting sales in Belgium.

Gross written premiums of the consolidated non-life companies amounted to EUR 2.7 billion, up 5% in constant exchange rates. The non-consolidated joint ventures recorded a growth of 12%, to EUR 3.0 billion, driven by strong sales in China.

The insurance activities reported a total net profit of EUR 6 million, including a negative impact from write-downs on the investment portfolio of EUR 639 million net-of-tax.

Pro forma net equity at the end of 2008, assuming approval of the transactions by shareholders on 8 and 9 April, amounted to EUR 7.5 billion.

Pro forma net cash of General, assuming approval of the transactions with the Belgian State and BNP Paribas by shareholders on 8 and 9 April, after redemption of the European medium term notes and commercial paper programmes and after the elimination of leverage of Fortis Insurance International N.V., was EUR 3.3 billion.

Fortis Insurance’s strategy is to continuously enhance customer centricity by adapting the product portfolio and aligning the multi-distribution strategy with changing customer needs.

Other goals are to attain a fortified insurance organisation by improving operational excellence in all countries and by expanding the business internationally.

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