Gross premiums

Total gross inflow clocked in at EUR 7,517 million, 11% higher than last year.

Total Life inflow grew by 12% to EUR 6,150 million. This strong performance was fuelled by successful savings campaigns at the banking and broker channels in early 2007, and by the Summer Heat savings campaign.

Full-year inflow through the banking channel came to EUR 3,571 million, 15% higher than last year, fuelled by a record inflow in the first semester and the Summer Heat campaign. Year-on-year inflow in savings advanced 20%. Unit-linked inflow increased by 7% compared with 2006, despite the volatile financial market environment. Growth was driven mainly by safe funds which work according to a loss-limiting investment approach, switching from shares to cash when stock markets go down based on a dynamic asset allocation model.

Inflow through the broker channel went up 10% to EUR 1,609 million at the end of 2007. Here too savings products – in particular Top Rendement Invest – were mainly responsible for this solid performance, with year-on-year growth at 16%. Growth was driven chiefly by Top Rendement Invest, now accounting for 70% of inflow from savings products, most of which are principal protection products.

Group Life delivered a robust performance, with inflow rising 7% to EUR 970 million. Single premiums increased by 16% while regular premiums climbed 4%.

Value added by new business increased by 10% to EUR 207 million, mainly on increased sales of savings products in both the banking and broker channels.

Gross written premiums at Non-Life came to EUR 1,367 million, up 8% on last year, with growth achieved primarily at Motor and Fire. This sharp increase was recorded without compromising the sound underwriting or pricing criteria.

Non-Life inflow through the banking channel advanced 6% to EUR 198 million. Non-Life products sold through the broker channel stood at EUR 861 million, rising 9%.

Insurance Belgium, Life (in EUR million)

Insurance Belgium, Non-Life (in EUR million)

Operating margin

Despite the strong commercial performance, the full-year technical result at Life decreased by EUR 83 million to EUR 242 million, largely owing to the impact of turmoil on the capital markets (EUR 102 million). Moreover, the 2006 technical result was lifted by the realisation of a large, one-off real estate development project. Excluding the above effects, Life activities benefited from volume growth in both individual and group life.

The full-year technical result at Non-Life amounted to EUR 118 million, down 8% on last year, due to Windstorm Kyrill (EUR 45 million pre-tax impact). Excluding the storm, the year-on-year technical result improved from EUR 128 million to EUR 162 million, thanks to volume growth and operational excellence.

The combined ratio at Non-Life, including Workmen’s Compensation, ended up at 100.4%, compared with 99.1% in 2006, and was severely impacted by Windstorm Kyrill. Disregarding the storm, the combined ratio stood at 96.9%. Excluding Kyrill and the long-term business of Workmen’s Compensation, which tends to have a higher combined ratio while still being profitable, the combined ratio would have improved to 94.2%.

Net profit

Net profit at Fortis Insurance Belgium came to EUR 522 million, down from EUR 552 million in 2006. The figure was depressed by Windstorm Kyrill and the turmoil on the capital markets (EUR 134 million pre-tax in Life only), but lifted by an improved operational performance and net capital gains.