Annual results 2017: strong improvement in results
- Operational result increases to €349 million
- Non-Life and Pension & Life are main contributors to the improved results
- Basic Health still loss-making in spite of lower allocation of capital for premiums below cost price of €108 million
- Structural reduction in operating expenses of €117 million (5%)
- Solvency ratio increased with 3%-pt to 184%
Willem van Duin, Chairman of Achmea’s Executive Board
“As insurer we assist our clients and we are expanding our insurance activities with innovative solutions and services. In 2017 we completed the first year of our new planning period with the motto Delivering Together. We have accomplished major achievements, both in our services to customers and our business operations. This allows us to remain relevant to our customers.
The fact that our customers believe we are succeeding in this can be seen from the persistently high scores they continue to award our brands. Our planned cost reduction is ahead of schedule and we are investing heavily in renewing our company.
Achmea’s results improved strongly in 2017. The improvement measures at Non-Life, lower loss provision for premiums at Health and the overall reduction in expenses contributed to the improved result. Non-Life and Pension & Life have made a substantial contribution to the result. Our strategic planning period runs until 2020 and foresees an annual structural gross operational result of about €450 million, excluding the contribution from our healthcare activities. The results over 2017 give us the confidence that we will achieve our goals.
Gross written premiums have increased in our Non-Life and Health insurance businesses. The increase at Non-Life is mainly a result of growth in the retail customer portfolio. The number of Zilveren Kruis customers remained relatively stable during this renewal period, and it therefore retains its position as the largest health insurer in the Netherlands.
Our solvency remained strong at 191%. After payments of dividends, coupons on hybrids and share buy-back the Solvency II ratio is 184%, an increase of 3%-pt compared to 2016.
We have made significant investments in the past few years to improve the service to our clients. We are serving customers better online, we have improved the partnership with Rabobank and we provide innovative services such as the Zilveren Kruis Actify health platform. In the pension market we provide an innovative pension solution for employers and pension funds with the Centraal Beheer General Pension Fund (APF). These and other innovations enable us to continue to build a trendsetting company and to be a service provider with daily relevance for our customers.
In order to achieve this, we are at the heart of society thanks to our cooperative identity and we actively tackle the latest problems facing society. Based on the conviction that in our capacity as a cooperative insurer which operates in many areas we can provide value in a broad sense. This applies to both our customers and society in general. This is how we work together to ensure that the Netherlands is a healthier, safer and more future-proof country.”
On March the 22nd there was a press conference in Zeist. You can watch the presentation and explanation here.