VIVAT Annual Results 2017

Results Reflect Transformation of VIVAT
Lower Costs and Strong Improved Combined Ratio P&C Drives Higher Net Underlying Result

• Net underlying result up 4% at EUR 168 million; all product lines are profitable
• Combined ratio at 99.0%, successfully managed below 100% (2016: 104.9%)
• Gross written premiums up 17% to EUR 2,923 million, mainly contributed by a single premium pension fund buy-out
• Total operating costs down 8% to EUR 386 million. Staff costs 24% lower than comparable cost base before start of transformation; part of cost savings used for growth initiatives
• IFRS net result of -/- EUR 98 million due to parameter updates
• Solvency II ratio (standard model) of VIVAT NV decreased to 162% (175% at year-end 2016) as a result of a sharp decrease of the Volatility Adjustment (VA) which was only partly offset by an increase in the market value of the credit spread sensitive part of the investment portfolio
• Solvency II ratio (standard model) of SRLEV NV increased to 157% (149% YE16) mainly following a EUR 250 million restricted Tier 1 loan provided by VIVAT, partly offset by a decrease of the VA
• Successful issuances of EUR 650 million senior notes and USD 575 million subordinated notes
• Liquidity position holding at EUR 653 million (EUR 267 million YE16)
• Further improvements in customer and intermediary satisfaction
• Investment policy of Zwitserleven voted as most responsible for the 5th consecutive year

Ron van Oijen, Chairman of VIVAT’s Executive Board:
“2017 was an important year for VIVAT. It was the first full year after an extensive transformation in which staff costs were reduced by 24% and VIVAT's focus could shift to growth. This successful transformation is reflected in our financial performance and in the positive developments in our product lines. We closed 2017 with a net underlying result of EUR 168 million. VIVAT's Solvency II ratio of 162%, impacted by a decrease of the Volatility Adjustment, remained above its internal target. Over the past year a lot of progress was made to create a leading, customer-focused and innovation-driven insurance company. Processes were optimised, resulting in cost reductions and improvements to service levels. Following the transformation the customer satisfaction levels of our main brands remained stable and intermediaries consistently rank us high in surveys thanks to the contribution of our employees.”

For the full press release about the Annual Results please download the pdf below.