Strong operating performance in first quarter of 2004

       Net Operating Profit rose by EUR 1,477 million to EUR 1,024 million. Net operating profit before realized capital gains increased with 41% to EUR 541 million and by 65% excluding Seguros Bilbao and Assurant (previously Fortis, Inc.). Stock markets contributed EUR 181 million, compared with a loss of EUR 1,249 million in the first quarter of 2003. Net realized capital gains were reduced by 27% to EUR 302 million.

 

       Net Profit increased by EUR 1,728 million to EUR 1,275 million, benefiting from EUR 251 million of non-operating items representing the realized gain on the sale of Seguros Bilbao and of 65% of Assurant.

 

       Net Operating Profit in the Banking business increased by 82% to EUR 653 million. Excluding realized capital gains the net operating profit increased by 94% to EUR 342 million due to higher revenues, lower value adjustments and lower operating expenses.

 

       Net Operating Profit in the Insurance business increased by EUR 1,123 million to EUR 417 million. Stock markets contributed EUR 151 million, compared with a loss of EUR 1,089 million in the first quarter of 2003. Net operating profit before realized capital gains increased 14%, excluding Seguros Bilbao and Assurant, owing to better results in Non-life and lower operating costs.

 

 

 

"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.

 

Our focus remains on improving our customer service and growing our core businesses in the Benelux, while keeping our costs flat. At the same time, we will seek to further expand certain businesses in which we have a competitive advantage on a European or a global basis. These include commercial banking, selected merchant banking activities, investor services and bancassurance.

 

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."