Fortis Inc. · TSX:FTS
Fortis — FY2001 Earnings Presentation
77 slides from Fortis's earnings presentation, March 2002
Slide 1: Fortis bolsters foundation in difficult year – Annual results 2001
“Fortis bolsters foundation in difficult year” Annual results 2001 Presentation to the Investment Community Anton van Rossum, CEO Herman Verwilst, Deputy CEO Gilbert Mittler, CFO March 2002 1
Slide 2: Fortis in 2001
Fortis in 2001 Fortis had good results in a poor environment 6 Strategy further implemented 6 Net Operating Profit declined by 4% or EUR 88 million 7 Market related revenues decreased 7 We decided to take less capital gains 7 We provisioned carefully for the deteriorating environment 7 Maintaining s
Slide 3: Fortis in 2001: Summary
Fortis in 2001: Summary (EUR million) 2000 2001 Change Net Operating Profit (NOP) 2,355 2,267 - 4% 6 Banking 1,313 1,238 -6% 6 Insurance 1,265 1,209 -4% 6 General -223 -180 +19% Non-operating items 412 331 -20% Net profit 2,768 2,598 -6% ROE 20% 18% -2 pp RORAC after tax 15% 14% -1 pp Economic Capit
Slide 4: Non operating items 2001
Non operating items 2001 (EUR million) 82 212 2,598 Divestitures gains** 31 Restructuring Tax rate 430 provision*** reduction in Luxembourg 2,267 Capital gains* Net Operating Net profit Profit (NOP) * Capital gains: SES 75, Liffe 11, Kempen 80, Suez 264 ** Divestitures gains: Australia 46, FFG 36 **
Slide 5: Fortis in 2001
Fortis in 2001 1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value 5
Slide 6: Aspects of Fortis' risk profile
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Aspects of Fortis' risk profile 6 Investing in a high-quality, low risk investment portfolio 6 Thorough review of U.S. insurance investment portfolio 6 Careful provisio
Slide 7: Fortis maintains a sound risk profile: capital gains sustainable
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value With normal capital appreciation on a 14 billion EUR shares portfolio (6%), the realization of EUR 600 million of capital gains is sustainable The investment portfolio
Slide 8: Fortis decided to realize less capital gains
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value In weak markets, Fortis decided to realize less capital gains, despite a high level of unrealised capital gains Realised capital gains on shares Unrealised capital gain
Slide 9: Rigorous review of U.S. insurance investment portfolio
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Rigorous review of U.S. insurance investment portfolio led to normal write-offs Composition U.S. Bond portfolio by rating 79% of Fortis Inc. portfolio is Percent invest
Slide 10: High quality fixed income portfolio
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis has a high quality fixed income portfolio: 99% of bonds are investment grade Fortis Insurance Bond Portfolio: EUR 34 billion Fortis Bank Bond Portfolio: EUR 92 b
Slide 11: Fortis Bank maintains conservative approach to credit
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis Bank maintains its conservative approach to credit (EUR million) 2000 2001 Total loans 214,374 230,256 6 Customers 153,113 167,616 6 Credit institutions 61,262 6
Slide 12: Level of loan loss value adjustments adequate
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Level of loan loss value adjustments adequate given expected recoveries (EUR million) Residential mortgages Commercial loans Total outstanding 40,816 Total outstanding
Slide 13: Fortis has good solvency levels
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis has good solvency levels Diversification (EUR billion) effect of combining Bank 21.3 and Insurance 19.2 16.6 3.1 10.6 (2.5x) 7.4 10.3 (1.75x) 4.2 16.3 Insurance
Slide 14: Fortis in 2001
Fortis in 2001 1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value 14
Slide 15: Delivery of operational improvements in banking and insurance
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Delivery of operational improvements, both in banking and insurance, but still a lot of upside potential to be captured 6 Banking: continued integration efforts and imp
Slide 16: Banking results 2001
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Banking results 2001 (EUR million) 2000 2001 Change 6 Total revenues net of interest 8,022 8,282 +3% expenses 6 Net Operating Profit 1,313 1,238 -6% 6 Non Operating Ite
Slide 17: Fortis Bank in 2001: capture of revenue improvement potential
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis Bank in 2001 6 Capture of revenue improvement potential 7 Higher margins in both retail and commercial banking 7 Additional cross-selling on existing customers 6
Slide 18: Banking: total revenues net of interest expenses
Banking 2000 Fortis Bank total revenues net of interest expenses 2001 increased by + 3% (EUR million) 8 022 8 282 4 156 4 404 2 1641 978 373 496 530 579 678 897 121 -72 Net interest Net commission Capital gains Venture Capital Trading Other income Total revenues income income net of interest expense
Slide 19: Banking results impacted by external factors
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis’ banking results 2001 impacted by external factors Net commission income down 9% 6 Commissions from issues and placing: -52% (- EUR 98 million) 6 Commissions fro
Slide 20: Fortis is realizing higher margins
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis is realizing higher margins ... … in new corporate lending … in retail banking 6 Further optimization of credit pricing 6 Higher margins on lending products mode
Slide 21: Cost evolution Fortis Bank: impact of synergies
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Cost evolution Fortis Bank: impact of synergies EUR million 5,195 138 180 5,015 144 Change in Cost 4,859 scope and 54 synergies Increase in currency Inflation on and sa
Slide 22: Fortis Bank is closing branches
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis Bank is closing branches 2,356 2,148 Netherlands 299 231 1,822 50% 50% reduction reduction 185 1,517 185 1,145-1,185 185 Belgium* 2,057 1,917 1,637 1,332 960- 1,
Slide 23: Fortis Bank increases efficiency: FTE reduction plans
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis Bank increases its efficiency: FTE reduction plans 42,960 Additional provisions of EUR 151 million in 42,109 2001 to reduce headcount more than initially planned
Slide 24: Cost / Income ratio mostly affected by revenue dynamics
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Cost / Income ratio mostly affected by revenue dynamics Costs EUR million 5,572 5,837 5,100 Cost-income ratio Percent 66.6 64.5 65.1 6 Cost-income ratio is 1999 2000 20
Slide 25: Banking RORAC remains strong
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Despite difficult environment, banking RORAC remains strong Economic capital* RORAC EUR billion (after tax) 2000 2001 2000 2001 Bank 6 Network banking 11.6 9.8 8% 8% 6
Slide 26: Insurance results 2001
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Insurance results 2001 EUR million 2000 2001 Change 6 Total revenues, net of interest exp. 19,695 20,069 +2% 6 Net Operating Profit 1,265 1,209 -4% 6 Non Operating Item
Slide 27: Key messages - Insurance
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Key messages - Insurance 6 Life 7 Fortis increases transparency by communicating embedded value 7 Strong embedded value of EUR 10.3 billion 7 Value Added by New Busines
Slide 28: Life Embedded Value 2001
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Life Embedded Value 2001 (EUR million) Value of the in-force 1,473 10,291 1,380 1,380 93 3,897 6,487 304 Value added by new business: EUR 211 million 6,184 18% of APE P
Slide 29: Embedded Value: assumptions and sensitivities
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Embedded Value: assumptions and sensitivities Capital market assumptions (pre-tax): Fixed Income, current assets actual returns Fixed income, new money 5.0% Total retur
Slide 30: Good results in Non-Life Insurance
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value 2000 Fortis has achieved good results in Non-Life Insurance 2001 Combined ratios Technical results Percent (EUR million) 94 20 FBI 31 86 103 16 ASR 68 100 105 212 Forti
Slide 31: ASR is implementing synergies while increasing market share
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value ASR is implementing synergies … … while increasing market share (EUR million) Percent change versus 2000* 120 Market ASR Measures still to be taken -6 Regular premiums
Slide 32: Fortis, Inc. Net Operating Profit in 2001
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis, Inc. Net Operating Profit* in 2001 EUR 209 million EUR = 100% Assurant (-23%) Fortis Health (+57%) 6 Difficult regulatory environment 6 Increased profitability
Slide 33: Insurance RORAC is stable overall
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Insurance RORAC is stable overall Economic capital* RORAC EUR billion (after tax) 2000 2001 2000 2001 Bank 6 Network banking 11.6 9.8 8% 8% 6 Merchant banking 1.2 1.2 3
Slide 34: Fortis in 2001
Fortis in 2001 1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value 34
Slide 35: Our Net Operating Profit in Perspective
Fortis in 2001 Our Net Operating Profit in Perspective (EUR million) NOP 2000: 2,355 NOP target for 2001 2.810 NOP 2001 2,267 Shortfall: 543 Less capital gains: 336 Insurance 220 Banking 116 516 Value adjustments above expectation 180 35
Slide 36: Fortis reaffirms its strategy
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis reaffirms its strategy Achieved to date Next steps 6 Solid position in consolidated market 6 Focus on customer relationship Significantly improving 6 Low but imp
Slide 37: Fortis continues to manage its corporate portfolio
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis continues to manage its corporate portfolio Divestitures Strategic acquisitions/JVs 6 FFG 6 Asia 6 Australian insurance 7 Maybank (Malaysia) 6 Fortis Assurances
Slide 38: Asset gathering works
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Asset gathering works (EUR billion) 2000 2001 6Gross Premiums Life 9.7 10.7 7 Traditional 4.8 6.8 7 Unit-Linked 4.9 3.9 6 Funds under Management (net inflow) 16.2 3.5 6
Slide 39: Fortis has developed a unique skill set
1. Fortis maintains a sound risk profile 2. Fortis has realized good operational performance 3. Fortis focuses on shareholder value Fortis has developed a unique skill set amongst Europe's top financial institutions 6 Pioneered bankinsurance concept 6 Built sizeable European positions in Asset Gathe
Slide 40: Fortis in 2002
Fortis in 2002 “Fortis is well positioned to harvest the fruits of an economic recovery, but it is uncertain as to whether the still fragile revival will continue and at what pace. It would therefore be premature to issue a forecast for 2002.” 40
Slide 41: FORTIS – Solid partners, flexible solutions
FORTIS oma B. o © \ | ° @ Za | Ome av FORTIS Solid partners, flexible solutions 41
Slide 42: Agenda – Life Embedded Value
Annexes Embedded Value Agenda LIFE EMBEDDED VALUE 6 Scope 6 Terminology 6 Required Capital and Free Surplus 6 Outcome 6 Assumptions 6 Sensitivities 6 Margins 6 Review 42
Slide 43: 1. Scope
Annexes Embedded Value 1. Scope All life operating companies of Fortis included: Fortis Bank Insurance General Account Network Banking Insurance Insurance Insurance Insurance Netherlands Belgium International United States FB Insurance Life Life Life Life 3,406* 1,563* 1,624* 1,262* Non-Life Non-Lif
Slide 44: 2. Terminology
Annexes Embedded Value 2. Terminology 6 Embedded Value : Free surplus + Value of the In-force (VIF) 6 Free Surplus : Life Equity - Required Capital 6 Required Capital : Fortis Required Capital results in: EU companies = 1.9 times legal minimum US companies = market requirement = 2.25 times legal min
Slide 45: 3. Required Capital and Free Surplus
Annexes Embedded Value 3. Required Capital and Free Surplus ( EUR million) Fortis Shareholders equity 13,844 General Banking Insurance (2,149) 8,907 7,086 Other Life operating insurance companies 1,383 5,703* Free Surplus Required 1,380 Capital 3,897 45 * Including EUR 426 million Value of Business
Slide 46: 4.1 Outcome: Value of the In-Force
Annexes Embedded Value 4.1 Outcome: Value of the In-Force (EUR million) 6 Value of the In-force Present Value Future Profits 6,487 + Required Capital + 3,897 - Cost of Capital - 1,473 = Value of the In-force 8,911 46
Slide 47: 4.2 Outcome: Total Fortis
Annexes Embedded Value 4.2 Outcome: Total Fortis (EUR million) 2000 2001 Value of the In-force 8,970 8,911 + Free Surplus 2,064 1,380 = Embedded Value 11,034 10,291 New Business 2001 6 Annualized Premium Equivalents (APE) 1,147 6 Present Value Future Profits (PVFP) 304 6 Value Added by New Business
Slide 48: 4.3 Outcome: Breakdown by business line
Annexes Embedded Value 4.3 Outcome: Breakdown by business line (EUR million) New Business EV APE PVFP VANB Insurance Netherlands 4,403 241 37 22 Insurance Belgium 2,594 136 45 24 FB Insurance 2,049 269 125 98 Insurance United States* 807 178 54 42 Insurance International 438 324 42 25 Total Fortis 1
Slide 49: 4.4 Outcome: Roll Forward
Annexes Embedded Value 4.4 Outcome: Roll Forward (EUR million) Embedded Value Year-end 2000 11,034 Divestiture FFG (600) Embedded Value Year-end 2000 ex FFG 10,434 Return on Free Surplus (223) Discount unwind Value of the In-force 764 2001 Update of assumptions 205 ACCRUAL Variance - equity shares (
Slide 50: 5.1 Assumptions: Capital markets & Discount Rate
Annexes Embedded Value 5.1 Assumptions: Capital markets & Discount Rate Capital market assumptions (pre-tax): Fixed Income, current assets actual returns Fixed income, new money * 5.0% Total return Real Estate 7.5% Total return Equities 9.0% Discount Rate 9.0% * Indicated rate refers to Government /
Slide 51: 5.2 Assumptions: Expenses, Mortality and Lapses
Annexes Embedded Value 5.2 Assumptions: Expenses, Mortality and Lapses Expenses 6 Set at current level 6 Inflation of expenses: 2.0% per annum Future expense reduction programs, productivity gains and integration synergies are not taken into account Mortality and Lapses 6 Best estimates by the opera
Slide 52: 5.3 Assumptions: Asset mix in projection
Annexes Embedded Value 5.3 Assumptions: Asset mix in projection (EUR million) Fixed Equity Other Assets* Income Insurance Netherlands 73% 17% 10% 18,979 Insurance Belgium 65% 26% 8% 11,304 FB Insurance 69% 24% 7% 8,450 Insurance United 100% 0% 0% 3,539 States 63% 14% 23% 5,434 Insurance Internationa
Slide 53: 6.1 Sensitivities: Discount rate & Capital market assumptions
Annexes Embedded Value 6.1 Sensitivities: Discount rate & Capital market assumptions Base case EV PVFP VANB 10,291 304 211 ∆ ∆ ∆ 3.3% 6.3% 12.2% Discount rate - 50 bp (3.3%) (6.0%) (11.5%) Discount rate + 50 bp Discount rate - 50 bp (2.2%) 0.1% 1.5% Capital Market assumptions - 50 bp Discount rate +
Slide 54: 6.2 Sensitivities: Expenses & Required Capital
Annexes Embedded Value 6.2 Sensitivities: Expenses & Required Capital Base case EV PVFP VANB 10,291 304 211 ∆ ∆ ∆ Expenses - 10 % 1.3% 7.8% 10.9% Required Capital European 3.4% 0.0% 3.7% Companies 1.5 times legal minimum 54
Slide 55: 7.1 Margins: In-force portfolio
Annexes Embedded Value 7.1 Margins: In-force portfolio (EUR million) Technical PVFP VIF PVFP as % VIF as % Provisions* of Technical of Technical Provisions Provisions Insurance Netherlands 23,852 2,650 3,668 11% 15% Insurance Belgium 10,739 1,435 1,999 13% 19% FB Insurance 13,841 1,464 1,879 11% 14%
Slide 56: 7.2 Margins: New Business
Annexes Embedded Value 7.2 Margins: New Business (EUR million) APE PVFP VANB PVFP as % VANB as % of APE of APE Insurance Netherlands 241 37 22 15% 9% Insurance Belgium 136 45 24 33% 17% FB Insurance 269 125 98 46% 37% Insurance United States 178 54 42 30% 24% Insurance International 324 42 25 13% 8%
Slide 57: 8. Review
Annexes Embedded Value 8. Review “Tillinghast have reviewed the methodology and assumptions used by Fortis in the preparation of the embedded values of the life insurance business, and the value added by new life insurance business. It is the view of Tillinghast that the methodology and the assumpti
Slide 58: Cautionary Statements
Annexes Embedded Value Cautionary Statements Certain of the statements contained herein are statements of future expectations and other forward- looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actu
Slide 59: FORTIS – Solid partners, flexible solutions
FORTIS oma B. o © \ | ° @ Za | Ome av FORTIS Solid partners, flexible solutions 59
Slide 60: Normalized value adjustments
Results 2001 Normalized value adjustments (EUR million) Value adjustments in 2001 (EUR million) 2000 2001 6 Normalised value adjustments 408 667 6 Harmonization credit policy 44 (210) 6 Contribution to FGBR 155 170 6 Other 13 6 Value adjustments as published 620 626 60
Slide 61: Net interest income
Results 2001 Net interest income (EUR million) 2000 6M 2001 2001 Change Interest income 23,301 10,737 20,891 - 11% Interest expense 19,145 8,573 16,415 - 14% Net interest income 4,156 2,164 4,404 + 6% Interest margin 1.37% 1.39% 1.40% Duration of equity 9.3 year 9.0 year 9.4 year Risk Weighted 159,0
Slide 62: Quality Fixed income portfolio
Results 2001 Quality Fixed income portfolio (Euro billion) Rating Category Fortis, Inc. Insurance Bank Fortis AAA 18% 28% 44% 40% AA 14% 42% 47% 45% A 33% 17% 7% 10% BBB 29% 10% 2% 4% Investment grade 94% 97% 100% 99% Below Investment grade 6% 2% 0% 1% Unrated 0% 1% 0% 0% Total 100% 100% 100% 0% Por
Slide 63: Solvency development
Annexes Results 2001 Solvency development (EUR million) 31-12-00 30-06-01 30-09-01 31-12-01 Fortis Floor 16,063 17,327 17,154 16,557 Bank (6% of RWC) 9,546 10,190 9,860 9,157 Insurance (175% Reg. Req.) 6,517 7,137 7,294 7,400 Net Core Capital 19,399 19,029 18,643 19,194 Shareholders equity 15,197 14
Slide 64: Ratings
Ratings Fitch S&P Moody’s Fortis Group Short term F1 A-1 Long term A+ A+ Aa3 Fortis Bank Short term F1+ A-1+ P-1 Long term AA- AA- Aa3 64 * estimate
Slide 65: Technical provisions, net of reinsurance
Results 2001 Technical provisions, net of reinsurance (EUR million) Life 2000 2001 Net technical provisions 42,282 42,850 Net technical provisions OBO 21,556 22,977 Total 63,838 65,827 Non Life Net technical provisions 9,029 9,901 65
Slide 66: Insurance Netherlands
Results 2001 Insurance Netherlands (EUR million) 2000 2001 Increase Gross premiums Life 1,566 3,457 +121% Gross premiums Unit-linked 905 1,586 +75% Net premiums Life 1,522 3,406 +124% Annualized Premium Equivalents 241 Present Value Future Profits NB 37 Value Added by New Business 22 Gross premiums
Slide 67: Impact ASR and restructuring on Fortis Results
Results 2001 Impact ASR and restructuring on Fortis Results (EUR million) I: ASR 2001 Net Operating Profit ASR 236 Adjustments for Purchase Accounting (72) Finance costs AMEV for ASR: 1.2 bln Euro (42) Missed Dividend ASR (10) Net operating profit Contribution in Bank and Insurance (Bank +44, Insura
Slide 68: Insurance Belgium
Results 2001 Insurance Belgium (EUR million) 2000 2001 Increase Gross premiums Life 1,378 1,568 +14% Gross premiums Unit-linked 411 310 -31% Net premiums Life 1,373 1,563 +14% Annualized Premium Equivalents 136 Present Value Future Profits NB 45 Value Added by New Business 24 Gross premiums Non-Life
Slide 69: Insurance International
Results 2001 Insurance International (EUR million) 2000 2001 Increase Gross premiums Life 1,755 1,635 -7% Gross premiums Unit-linked 894 504 -44% Net premiums Life 1,748 1,624 -7% Annualized Premium Equivalents 324 Present Value Future Profits NB 42 Value Added by New Business 25 Gross premiums Non-
Slide 70: Insurance United States
Results 2001 Insurance United States (EUR million) 2000 2001 Increase Gross premiums Life 1,773 1,672 -6% Net premiums Life 1,091 1,262 +16% Annualized Premium Equivalents 178 Present Value Future Profits NB 54 Value Added by New Business 42 Gross premiums Non-Life 6,921 6,922 +0% Net earned premium
Slide 71: Insurance United States - Assurant
Results 2001 Insurance United States (EUR million) Assurant FY 2000 2001 Increase GWP 4,634 4,509 -3% Retention rate Loss ratio - Mortgages 10.3% 8.6% 36% 42% Retention rate = margin on GWP on behalf of Assurant 71
Slide 72: Network Banking
Results 2001 Network Banking 2000 2001 Increase Net operating profit 853 868 +2% # branches (Benelux) 2,871 2,662 -7% Belgium* 2,532 2,392 -6% Netherlands 299 231 -23% Luxembourg 40 39 -3% Automation rate 76% 80% - Penetration insurance Belgium 42% 43% FTE’s 22,906 22,604 -1% IPS 17,643 17,184 -3% M
Slide 73: FB Insurance
Results 2001 FB Insurance (EUR million) 2000 2001 Increase Gross premiums Life 3,261 2,350 -28% Gross premiums Unit-linked 2,632 1,736 -34% Net premiums Life 3,259 2,343 -28% Annualized Premium Equivalents 269 Present Value Future Profits NB 125 Value Added by New Business 98 Gross premiums Non-Life
Slide 74: Merchant Banking
Results 2001 Merchant Banking (EUR million) 2000 2001 Increase Net Operating Profit 413 416 +1% FTE’s of which 2,643 2,735 +3% Financial Markets 894 896 +0% Investment Banking 607 561 -8% Information Banking 1,044 1,184 +13% 74
Slide 75: Fortis Private Banking
Results 2001 Fortis Private Banking Funds under management (EUR billion) 2000 Market gain New money 2001 Increase 66.8 (6.9) 0.3 60.2 +10% 2000 2001 Net Operating Profit (EUR million) 176 85 -52% FTE’s 2,431 2,346 -3% 75
Slide 76: Fortis Investment Management
Results 2001 Fortis Investment Management (EUR billion) 2000 Market New 2001 Increase gain money Institutional clients 34,4 (2,0) 1,3 33,7 -2% Investment funds 56,4 (3,9) (1,6)* 50,9 -10% Net Operating Profit 90 45 -50% FTE’s 761 688 -10% * Impact sale of FFG (3.4) 76
Slide 77: FORTIS – Solid partners, flexible solutions
FORTIS oma B. o © \ | ° @ Za | Ome av FORTIS Solid partners, flexible solutions 77