direct/ Eureko B.V. (NL) - Eureko Announces 2007 Interim Results

Net profit on course, strong premium growth

Expansion in Turkey and merger with Agis announced

- Net profit on course at EUR 561 million; down 16% from EUR 669 million at 30 June 2006
- Gross written premiums up 9% to EUR 8,602 million, from EUR 7,910 million in the first half of 2006
- Value of new business (life insurance) up to EUR 33 million, from EUR 23 million at 30 June 2006
- Total equity up 6% to EUR 10,183 million, from EUR 9,632 million as at 31 December 2006
- Return on adjusted equity at 12.4% compared with 18.5% at 30 June 2006
- Debt leverage still low at 7.7% compared with 6.1% at 31 December 2006
- Earnings per ordinary share on continuing operations lower at EUR 1.56, from EUR 1.93 in the first half of 2006

Notes:
1. Return on adjusted equity excludes goodwill, preference shares, and equity instruments (tier-1 capital securities)
2. Garanti Sigorta and Garanti Emiklilik in Turkey are not included in the income statement because these transactions were not closed until 21 June 2007. These acquisitions are included in the balance sheet on a provisional basis

Announcement of interim results on 14 August 2007
Conference call for media at 11:00 CET: +31 20 531 58 28. Conference call for investors and analysts at 14:00 CET. More details on Eureko website: www.eureko.net.

Eureko´s interim financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. KPMG Accountants N.V., Eureko´s auditor, has issued a qualified review opinion on the Interim Financial Statements. The qualification regards Eureko´s share in PZU´s net profit and total equity.

Chairman´s statement

"On course in challenging markets"

At this mid-point of 2007, I am pleased to be able to report healthy results. Eureko is strongly represented in the competitive Dutch insurance markets, where we maintain market leadership, which is also as a result of ongoing cost awareness and the utilisation of economies of scale. In the first six months of 2007, we achieved further growth in the region of Central and Eastern Europe (CEE region).

Eureko´s financial situation can best be characterised as ´on course´. Compared to the first half year of 2006, total gross written premiums showed an increase of 9% to EUR 8,602 million, while at the same time the value of new business (life insurance) increased to EUR 33 million. Net profit decreased by 16% compared to the very positive first half of 2006 (EUR 669 million). This profit decrease can mainly be attributed to a significant rise in net claims resulting from Windstorm Kyrill and disappointing negative results in supplementary health insurance. On a comparable basis (excluding one-off results), net profit remained stable. With EUR 561 million, net profit is clearly on course.

Despite Windstorm Kyrill, we expect net profit for the whole of 2007 to be in line with the 2006 result, provided no major disturbances occur in the second half of the year.
Cost efficiency measures are presently being carried out as planned, to counter the pressure on margins in our non-life business. The reorganisation of our health business is also proceeding according to plan.

Friends First in Ireland continues to maintain its positive growth. Interamerican Greece has continued to focus on improving its results and on streamlining the agents´ network. Union has had a strong introduction on the health insurance market in Slovakia; experience so far is positive. Império France, Interamerican Romania, Interamerican Bulgaria and Interlife Cyprus continue to seek to provide a broader range of innovative products to their client bases.

Highlights
As a result of the announced merger with health insurer Agis in June, Eureko will become the market leader in the Dutch health insurance market and is well positioned for necessary innovation and efficiency. Also in the fields of insurance, pension administration and occupational health, Achmea has retained its top-three position in the first half of 2007.

Outside The Netherlands, Eureko has, over the reporting period, made considerable strides in its growth plans for the Balkans and CEE region. In February, the acquisition of the Turkish insurer Garanti was announced, where Eureko acquired 80% of Garanti´s non-life insurance business, as well as a 15% stake in Garanti´s life insurance and pension operations, with an option to acquire another 35% within the next 3 to 5 years in the latter. This transaction and the long term distribution agreement through Garanti Bank that came with it, was finalised in June. It gives Eureko a solid platform from which to launch its plans for further expansion and closer co-operation with companies in the region.
In May, we announced the sale of 9.1% of the issued shares in F&C Asset Management, in support of our strategic focus on growth in the Balkans / CEE region.

Health
The health insurance activities of Achmea, after the turbulent transition year of 2006 when changes in the health system were implemented and many insured changed their insurance company, has reached calmer waters. The reorganisation started in 2006 is bearing fruit in raised service levels, which last year suffered from the large increase in number of policy holders. The reorganisation of health care in The Netherlands is on target, with the exception of supplementary health insurance, which shows negative results.

The focus for the Dutch health insurance company in 2006 and 2007 has been on operational excellence and improving the service level and customer satisfaction. This focus will be continued in the coming years, combined with focus on innovation, quality and lower cost of health care procurement.

Eureko´s operating company in Slovakia, Union, is active in an Eastern European growth market, which significantly resembles the liberalised health insurance market in The Netherlands. With our extensive experience in the Dutch market with large brands such as Zilveren Kruis Achmea and Groene Land Achmea, we are well placed for the health business in Slovakia. This is particularly relevant as discussions on reforms of the Slovakian health system are ongoing.

Poland
In July we announced that Ernst Jansen (59), Vice Chairman of the Executive Board, will take up retirement as of 1 October 2007. After his retirement he will remain Vice Chairman of the Supervisory Board of PZU. Consequently, he will continue to be involved in the Polish operations. Eureko has a 33% shareholding (minus 1 share) in PZU with the agreement to acquire a further 21%, which, as a consequence of a dispute with the Polish Government, is currently subject to international arbitration. We will continue to seek an amicable solution; however, we will continue legal procedures pursuing our rights.

Outlook
Challenges will keep us focused. Eureko´s strategy facing these challenges remains unchanged. We seek to maintain market leadership in the highly competitive Dutch market by ongoing cost awareness, product development and the building of strong distribution lines. Growth in Europe remains our goal and will add further substance to our efforts to achieve greater balance between our business within and outside of The Netherlands.
So far, we are on course.

Maarten W. Dijkshoorn

Chairman and Chief Executive Officer Eureko B.V.
14 August 2007

For further information, please contact:

International media
Lorrie Morgan
+31 - (0)30 - 693 70 65
+31 - (0)6 - 54 93 72 72

Dutch media
Marco Simmers
+31 - (0)6 - 53 43 87 18

Investor Relations
Barth Scholten
+31 - (0)30 - 693 70 51

Please click the link below to view the entire press release including all annexes:

Complete Eureko press release including annexes (PDF)



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