Operational result increases to €142 million
Acceleration & Innovation change programme on track
- Write-down of goodwill and reorganisation expenses lead to €58 million net loss
- Acceleration & Innovation on track:
- Various innovations launched for our customers
- Distribution organisation simplified for improved customer service
- Operating expenses fall by 3%
- Improved financial position: current solvency ratio of 217% (IGD)
Willem van Duin, Chairman of the Executive Board:
“We have made progress in a large number of areas over the past six months through our change programme, Acceleration & Innovation, which we launched in late 2013. Several initiatives designed to provide even better services to customers, particularly online, are currently underway or have already been completed. We have also integrated our direct and brokerage distribution organisations, which will enable us to serve customers even better within a less complex organisation. Operating expenses fell by 3%; this reduction represents an essential part of our change programme. Achmea’s inevitable workforce reduction is on schedule, where the interests of the employees concerned are naturally very carefully considered.
The operational result increased during the first six months of the year – to €142 million – thanks to greater profitability across virtually our entire insurance business. The net result was affected by a number of factors, including a €143 million write-down of goodwill for pension services provider Syntrus Achmea and the Russian-based insurance company Oranta. We also incurred €45 million in expenses in connection with our company-wide reorganisation. These items contributed to the €58 million net loss.
However, despite this loss our financial position has remained solid, with the solvency ratio increasing to 217%. The confirmation of Standard & Poor’s A+ credit rating for our insurance entities demonstrates that we are and remain a reliable financial partner for both customers and other stakeholders.
Although the first results of Acceleration & Innovation are promising, the significance of our change programme will remain substantial in the coming years. Achmea will become a more customer-driven, dynamic and competitive organisation, and we will make every effort to achieve our objectives. Costs must be further reduced, and we will continue to work on developing online services. We are implementing these measures so as to be able to continue to invest in new digital solutions for our customers, maintain the current high rate of customer satisfaction, and remain a financially healthy company in the future.”