MILAN (Thomson Financial) - Fondiaria-SAI SpA said full year net profit rose
to 507 mln eur, from 481 mln, with a rise in investment income offsetting a fall
in results in the group's non-life and life activities.
Ordinary share dividend is being hiked to 1.100 eur per share, from 1.000,
and the savings share dividend increased to 1.152 eur, from 1.052, the company
said in a statement.
"Notwithstanding the uncertainty on financial market, the group has reached
its 2006-2008 business plan targets a year in advance," it said.
In the non-life sector, pre-tax profit fell to 662 mln eur, from 685 mln in
2006, on premiums of 7.318 bln, up 0.2 pct.
In auto insurance, premiums fell as the group put its efforts into improving
the quality of the portfolio of customers, it said.
Non-life combined ratio -- claims and costs as a percentage of premiums --
rose to 94.7 pct, from 94.0, it said.
In life sector, pretax profit fell to 158 mln eur, from 191 mln, while
premiums were up 71 pct to 4.564 bln, it said.
Premiums were boosted by recently launched bancassurance activities.
Investment income rose 27.4 pct to 1.256 bln eur, it said.
Looking forward, Fondiaria-SAI said further efforts will be made to improve
auto insurance efficiency and deal with latest claims requirements.
In the next years, the group will examine its geographical direction in
order to re-distribute risk, with attention to eastern Europe, which offers
"good" opportunities in price-quality terms.
nigel.tutt@thomson.com
nt/sal
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