Fortis banks on insurance in €28 billion loss
Troubled European financial services group Fortis will count on the sale of insurance policies to make money after its banking operations plunged the firm deep into the red last year.
Fortis reported a full-year net loss of €28 billion ($52.9 billion), mainly due to the sale of discontinued banking operations which contributed writedowns worth €27.4 billion ($51.7 billion).
Fortis earned operating profit of €6 million ($11.3 million) and recorded investment losses of €639 million ($1.2 billion).
Insurance operations were a leading light, contributing a 7% rise in gross written premium and a break-even divisional performance.
CEO Karel De Boeck said it was a satisfactory performance from the insurance subsidiaries “taking into consideration the market turbulence and the uncertainty surrounding Fortis,” and said he expects further growth from the business.
Fortis owes its continued existence to the governments of Belgium, the Netherlands and Luxembourg, which last year stepped in to pour €11.2 billion ($21.1 billion) into the beleaguered Belgian-Dutch financial institution to partially nationalise the group.
In February shareholders rejected terms that would have seen the business carved up between the Dutch and Belgian governments and French financial services company BNP Paribas. They are due to vote on revised terms later this week.
Fortis reported a full-year net loss of €28 billion ($52.9 billion), mainly due to the sale of discontinued banking operations which contributed writedowns worth €27.4 billion ($51.7 billion).
Fortis earned operating profit of €6 million ($11.3 million) and recorded investment losses of €639 million ($1.2 billion).
Insurance operations were a leading light, contributing a 7% rise in gross written premium and a break-even divisional performance.
CEO Karel De Boeck said it was a satisfactory performance from the insurance subsidiaries “taking into consideration the market turbulence and the uncertainty surrounding Fortis,” and said he expects further growth from the business.
Fortis owes its continued existence to the governments of Belgium, the Netherlands and Luxembourg, which last year stepped in to pour €11.2 billion ($21.1 billion) into the beleaguered Belgian-Dutch financial institution to partially nationalise the group.
In February shareholders rejected terms that would have seen the business carved up between the Dutch and Belgian governments and French financial services company BNP Paribas. They are due to vote on revised terms later this week.