Fortis UK sees profits slide

Premium income rises but profits fall nearly 27% in Q1

Fortis has seen premium income grow by 7% in the UK but profits fall by nearly 27% in the first half of 2009.

Financial highlights (2008 in brackets)

Non-life highlights (2008 in brackets)
Premium income £401.6m (£375.3m).
Commercial lines GWP up 40% to £53.6m.
Personal lines GWP up 3% to £344.7m.
Retail Commission from RIAS, Fortis Insurance Solutions (FIS) and InsureTECH Systems, £42.8m (£43.3m).
Profit Before Tax £31.7m (£43.2m)
Fortis has 6.9 million customers in the UK.

Barry Smith, CEO of Fortis UK, said: “Given the current market conditions, I am pleased with the robust business performance we have delivered in the first half of the year, clearly supported by the progress we are making with our multi-channel distribution strategy, innovative product development and the service excellence we continue to provide to our partners and customers.

“The market faces some significant challenges which will set the agenda for the rest of 2009 and 2010. Pressure on motor rates continues to be a market issue as the impact of discounting and shopping around, combined with increased claims costs makes current market rates unsustainable.

“At Fortis, we continue to respond to these conditions through our disciplined underwriting strategy, implementing rate increases and targeting poor performing segments to enhance motor performance to the desired level.”

Group appointments

Fortis has named Kurt De Schepper as chief risk officer and Antonio Cano as CEO AG Insurance in new management structure that consists of an executive committee and a management committee.

The Executive Committee is composed of:

Bart De Smet, CEO responsible for strategy & development, audit, investor relations, communications and corporate secretariat;
Bruno Colmant, Deputy ceo responsible for finance, legal and legacy issues and
Kurt De Schepper, CRO (chief risk officer) responsible for risk, compliance, support functions and separation issues.

The Executive Committee will oversee the activities of the group on a daily basis.

The Management Committee is responsible for defining and implementing the corporate strategy, business plans and budgets and for the operational activities of the company.

The Management Committee is composed of the three members of the Executive Committee, Patrick Depovere, CFO and the heads of the four geographic operating divisions: