Fortis saw a strong operating performance in the first quarter of 2004, said the company as it announced results for the three months ending 31 March 2004.
It said the net profit of €1.3bn was the company's best ever quarterly result, showing an increase of €1.7bn.
But net operating profit before realised capital gains for Fortis' insurance operations fell 5%, down from €252m in the first quarter of 2003 to €239m. The result represented a 3% decline on the €246 reported for the last quarter of 2003.
After realised capital gains, namely the sale of the company's stakes in Seguros Bilbao and Assurant, net operating profit for the insurance operations increased by €1.1bn to €417m, compared to the first quarter of 2003, said Fortis. This figure is 29% down on the €586m recorded for the last quarter of 2004.
Fortis attributed the changes to the improved performance in its non-life insurance business and lower operating costs following the sale of the two businesses.
Chief executive Anton van Rossum said: "Fortis delivered a strong operating performance in the first quarter of 2004, building on the performance improvement in both the banking and the insurance activities achieved during the latter half of last year.
“Our performance to-date confirms that we have adapted our group to deliver attractive results even in a difficult economic environment. Fortis is therefore well positioned to benefit from improved market conditions, as and when they occur.
“The first-quarter performance gives us confidence that our original expectations for the current year results will be met.
“As we said earlier, the ongoing operating improvements in the businesses, together with the value adjustments on our equity portfolio, barring unforeseen circumstances, should compensate for the reduction in net operating profit due to the sale of Seguros Bilbao and Assurant, and with the stock markets at today's levels, will result in a higher net operating profit for Fortis as a whole in 2004."
