ACHMEA: Exceptional items impact result, fundamentals improved

Willem van Duin, Chairman of Achmea's Executive Board:

"Achmea closed 2016 with a net loss of €382 million, primarily as a result of extraordinary expenses. The result was influenced by events such as the severe hail storms in June last year, which caused in excess of €300 million damage and affected more than 30,000 of our customers. The use of the Health result to limit the increase in premiums also lowered the result. Looking to the future, we have raised the provisions for personal injury claims and have formed a restructuring provision in connection with further changes to our organisation. Finally, there has been an impairment of goodwill of our Turkish insurance operations. Although it is disappointing to end the year with a loss, over the next few years we expect to benefit from the improvements implemented in recent years.

Last year, we completed our three-year Acceleration & Innovation change programme, which has firmly reinforced the fundamentals of our business. We reduced costs by €390 million. Our gross written premiums are increasing as a result of a growing market share in retail non-life insurance and we are seeing more customers opting to take out health insurance with Zilveren Kruis. Internationally, we are witnessing strong commercial performances. And I am proud of the high NPS scores of our Centraal Beheer, Zilveren Kruis and Interpolis brands and an above-average AFM score of 4.0 for customer centricity on a scale to five. This shows that we have also greatly improved our customer focus.

Our solvency has remained strong at 183% before dividend payments, which means that our customers can be assured that we will also be there for them in the future. New guidelines from De Nederlandsche Bank on how companies should calculate the lossabsorbing capacity of deferred taxes (LAC DT) and the legislative proposal relating to restricting the capital of health insurance companies may have an impact on our solvency.

The changes in our group demand much from our employees. We are changing how we work and that calls for employees to adapt accordingly, and for some of our staff, it means that their work has ceased to exist. Since the start of the Acceleration & Innovation change programme, some 3,350 jobs have been reduced in our group and this decline is set to continue over the coming period. We are doing all we can to involve employees whose jobs are uncertain in the change process as early as possible. We are also encouraging everybody to work on their own development and employability. We entered into new agreements for this at the end of last year in our collective labour agreement and social plan.

And we are going further with the innovation of our services as a key focus over the next few years. Our strategy is clear and we will continue to implement it. We will be there in more and more areas that are important for our customers with the insurance policies and services we offer. We are moving from 'compensating for damage or loss' to 'preventing damage or loss' and offering services that make life more pleasant, safer and healthier. Our aim is to be a leading player and to be more and more relevant to our customers." Read the full story

Related articles

TALANX reconfirmed its FY2018 outlook for the Group's net income

Hannover-based TALANX Group announced its Q1 GWP was up to EUR 10.6 billion, 8.3% up y-o-y, while the Group net income dropped by 8.4%, to EUR 218 million "mainly as a result of the one-off effect of the US tax reform as well as the higher share of profits attributable to minorities".

2018-05-17

ALLIANZ 1Q results are on track to meet FY 2018 targets

German insurance group ALLIANZ announced its 1Q 2018 operating profit was down 6.0% to EUR 2.8 billion. "The main drivers for the decrease were EUR 142 million currency translations and EUR 148 million benefit in the prior year related to our corporate pension administration".

2018-05-17

CROATIA Osiguranje, 1Q2018: net profit up by 50% y-o-y

Adris group's insurance arm, CROATIA Osiguranje, posted a net profit of HRK 101.5 million (~EUR 13.7 million) in 1Q2018, up 50% y-o-y. Its consolidated GWP went up by 7% y-o-y, to HRK 1.10 billion (~EUR 148.6 million).

2018-05-10

SWISS Re reports Q1: GWP up by 13.1%

SWISS Re announced Q1 result heavily impacted by changes in US GAAP accounting due to which the group's net income fell from USD 656 million to USD 457 million.

2018-05-10

ZURICH Q1 result: GWP in P&C rose 5%

ZURICH 1Q2018 results show the development of all business lines. P&C GWP rose by 5% in USD terms. Overall the Group saw rate increases of around 2%, said the insurer's official statement.

2018-05-10

MUNICH Re Q1 profit jumped by 48% y-o-y

1Q2018 results of MUNICH Re show an achieved profit of EUR 827 million, more than 48% higher y-o-y (vs EUR 557 million) thanks to lower expenses and strong underwriting performance.

2018-05-10

ON THE MOVE

TOP EVENT

FIAR 2018 - Motor Insurance Conference (I & II): with the right use of technoloogy, clients' expectations and MTPL insurer's profitability may go hand in hand

The first and second parts of the Motor Insurance Conference taking place at FIAR 2018 focused on the new MTPL Law in Romania and the way it changed the market after almost 1 year of implementation, as well as the consequences of the new legislative framework and the operational challenges this brings, but also the most suitable solutions for balancing regulation, insurers' appetites and customer expectations on the MTPL market.

16.05.2018

FIAR 2018: Brokers' Conference (II): digitization and technology are needed for efficient operations, but will not replace the human touch in consultancy

The second part of the Brokers' Conference taking place at FIAR 2018 analyzed the impact of European Union's legislative overhaul - IDD & GDPR -, also bringing into debate study cases and real-life scenarios of what the brokers face on the market, and, last but not least, trying to see whether digitization and InsurTech could truly lead to disintermediation.


15.05.2018

Brokers' Conference (I): Until 1 July, when we will see the final version of the IDD, we cannot say for certain if we are ready and how ready we actually are

The second day of debates at FIAR 2018 started with The Brokers' Conference, the event dedicated to the mediation market in Romania and in the CEE region. The first part of the conference focused on a market overview and also analyzed the challenges of the IDD implementation, as well as the potential impact of IPID for MTPL and PAD.

15.05.2018

INSURANCE IN A DIGITAL WORLD Conference: capacity, consistency and culture are the three key success factors in the digital transformation of insurers

The INSURANCE IN A DIGITAL WORLD Conference, taking place at FIAR 2018, brought into debate the impact of digitization on the insurance industry. The first part of the conference focused on risks & opportunities of digitalization for both industry and consumers, as well as case studies and best practices: BigData & IoT, BlockChain, Peer-to-Peer, and AI.

14.05.2018

Insurance Market Trends Conference (II): GDPR and IDD, European regulations affecting all business lines, as well as the compliance with the Solvency II framework, are the main challenges ahead for the Romanian market

During the second part of the Insurance Market Trends Conference, taking place at FIAR 2018, the debates focused on the current situation in Romania and the sustainable development for a growing and stable insurance market, as well as the challenges and opportunities for the local insurers.


14.05.2018

See all