Eureko announces 2011 Interim Results
Eureko generated good results in the first half of 2011. Profit before tax from regular activities increased 27% to €201 million. The increase is due in part to improved results in our Life business but Non-life and Health also made significant contributions to profit before tax. Gross written premiums in both Life and Non-life were under pressure due to fierce competition.
However, increases in Health ensured total gross written premiums for the Group increased slightly to €11 billion. We remain financially strong and, in the current turbulent economic climate, a stable partner for our customers.
Group solvency increased once again during the reporting period to 224% while the solvency of the insurance entities grew to 233%. The programmes we introduced to reduce organisational complexity are moving forward according to plan.
The creation of integrated back offices that can provide our brands with customer focused, affordable products are on track. During the first half of 2011, the cost-reduction programme has demanded our full attention, specifically in terms of personnel costs.
This is primarily because we are in the process of creating a new health organisation and have accelerated the integration of Achmea Health and Agis as well as improvement initiatives on, for example, health procurement to improve the quality of healthcare.
As part of our strategy, we announced in 2009 an efficiency programme and one of the primary goals was to reduce the complexity of our organisation. Part of that programme involves merging the Achmea and Eureko holding companies. We have set that process in motion and have opted to retain the Achmea name for the new holding company. The aim is to finalise the merger in the second half of this year.