Brought to you by:

Efficiency drive turns around Achmea result

Dutch insurance group Achmea has reported a net profit of €272 million ($410 million) for the first half, reversing a €58 million ($87 million) loss in the corresponding period last year.

It attributes its recovery to lower operational expenses, improved investment results and gains in the health insurance segment.

Last year’s losses reflected goodwill impairments and reorganisation charges.

Chairman Willem van Duin says operational profit for the six months more than doubled to €285 million ($429.14 million), “which demonstrates we are right on track in terms of the underlying business”.

“All our insurance activities contributed to the improved result,” he said. “Our international business also achieved better results.”

Achmea’s “acceleration and innovation” program aims to reduce costs by €450 million ($678 million) and cut 4000 positions by the end of next year.

Since the program began at the end of 2013 costs have been cut by €200 million ($301 million) and jobs by 2100.

“We are on schedule to meet our targets,” Mr van Duin said.

“In addition to innovation, the focus on costs and return will continue to be important… to offer our customers insurance products at the most competitive prices.”

Achmea recorded an annual net profit of €16 million ($24 million) last financial year.

It has operated in Australia since the end of 2013, servicing the agricultural sector predominantly through its partnership with rural lender Rabobank.