Fortis: Good operating performance and better market conditions lead to Net Profit of EUR 2.2 billion

Full year results 2003

 

           Net Profit increased from EUR 532 million to EUR 2,197 million (times four), bringing return on equity for the year to 19% (4% in 2002).

 

           Net Operating Profit increased from EUR 430 million to EUR 2,247 million (times five). Excluding value adjustments to the equity portfolio, Net Operating Profit increased by 19% to EUR 2,558 million.

 

           The Banking business's Net Operating Profit increased by 25% from 1,154 million to EUR 1,446 million.  Excluding value adjustments to the equity portfolio, Net Operating Profit rose by 6% to EUR 1,438 million in 2003.

 

           The Insurance business's Net Operating Profit improved by EUR 1,612 million to EUR 996 million. Excluding value adjustments to the equity portfolio, Net Operating Profit increased by 29% to EUR 1,304 million.

 

           A cash dividend of EUR 0.92 per share, an increase of 4.5% from EUR 0.88, will be proposed by the Board of Directors to the Annual General Meeting of Shareholders on 26 May.

 

 

1) After tax, excluding equity portfolio.

Fourth quarter 2003 (versus fourth quarter 2002)

 

       Net Profit increased by 37% from EUR 619 million to EUR 849 million.

 

       Net Operating Profit rose by 35% from EUR 646 million to EUR 871 million. Excluding value

adjustments to the equity portfolio, Net Operating Profit increased by 98% to EUR 597 million.

 

       The Banking business's Net Operating Profit rose by 56% from EUR 196 million to EUR 307 million. Excluding value adjustments to the equity portfolio, Net Operating Profit increased by 145% to EUR 337 million.

 

       The Insurance business's Net Operating Profit increased by 16% from EUR 505 million to EUR 585 million. Excluding value adjustments to the equity portfolio, Net Operating Profit rose by 31% to EUR 300 million.

 

 

 

 

 

 

"We had a good performance in a year that started poorly with a weak economy and low stock markets, but that ended well. Operating performance continued to improve thanks to further cost reductions, better interest margins and excellent results at Non-life insurance owing to sharply reduced combined ratios.

 

"We successfully concluded an initial public offering (IPO) of 65% of the common stock of Assurant, Inc., our US specialty insurance subsidiary, in February 2004. The proceeds of this IPO will be used in line with our strategy to: strengthen our businesses in our home markets, the Benelux countries, and to expand selected activities in Europe and certain skills, such as bancassurance, globally.

 

"The same forces that improved our operating performance in the latter half of 2003 will continue to have a positive impact in 2004 and will compensate for a considerable part of the reduction in Net Operating Profit owing to the sale of 65% of Assurant, Inc. Barring unforeseen circumstances, we expect that this, together with the already improved markets, will result in a higher Net Operating Profit for the current year."

 

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