Holding and other activities
- Strong reduction in operating expenses
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(€ million)
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|||
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H1 2009
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H1 2008
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Δ %
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|
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Total income
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206
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259
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-20%
|
|
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|
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Operating expenses
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310
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352
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-12%
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Interest and financial expenses
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47
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88
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-47%
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Other expenses
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35
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51
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-31%
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Total expenses
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392
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491
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-20%
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|
|
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Profit before tax
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-186
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-232
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20%
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‘Holding and other activities’ consists mainly of the following: shared service centres and the Holding entities of Achmea Holding N.V. and Eureko B.V. and Life Services (Pension administration services and Asset management).
Profit before tax was A -186 million (H1 2008: A -232 million). Total income decreased in Life Services. Costs decreased strongly mainly due to lower personnel and project costs.
Total income declined by € 53 million to € 206 million (H1 2008: € 259 million). Main reasons for the decline were lower fee and commission income due to negative financial market developments and a lower number of customers at pension services and lower other income due to one-offs in the first half of 2008.
Total expenses were down 20% to € 392 million (H1 2008: € 491 million). All expenses showed a decline; operating expenses decreased by 12% thanks to lower personnel costs and project spending.
Eureko currently has an important central programme (SENS) to optimise processes and to reduce the cost base. SENS aims to reduce the operational costs by between € 350 and € 450 million annually. Costs for the SENS project are € 14 million in the first half of 2009.
Interest expenses decreased mainly due to lower interest rates.
Assets under Management Life Services
Assets under management on behalf of institutional clients decreased to € 38 billion (H1 2008: € 40 billion), mainly as a result of the turmoil in the financial markets. Achmea Vastgoed’s real estate portfolio decreased to € 12 billion (H1 2008: € 14 billion).