Achmea achieved significantly less profit in the first half of the year as a result of the corona crisis. The insurer faced lower investment returns due to the turmoil in the financial markets, while healthcare costs also rose.
Achmea recorded an operating profit of 127 million euros. That was much less than the 284 million euros that had remained a year earlier. The net profit amounted to 108 million euros compared to 234 million euros after the first half of 2019.
Achmea also emphasized that the crisis was having a negative impact on claims handling for events and travel. On the flip side, the company spent less money on compensation payments related to break-ins and traffic accidents, as more people were staying at home because of the lockdown measures.
Achmea has also seen a decline in claims abroad. This was particularly the case in Greece and Turkey. In addition, an international premium growth of 12 percent was achieved.
The result for the basic insurance was 55 million euros negative. Achmea earned 65 million euros with the additional health insurance. The increase in this result is also related to the corona. This is because certain care services have also been discontinued as a result of the measures. In addition, Achmea has provided financial support to healthcare providers when needed.
Gross premium income rose slightly to EUR 17.7 billion in the first half of the year. Achmea was also able to reduce operating costs by 17 million euros. The workforce fell by 500 positions during the measurement period. According to Achmea, this affects, among other things, the reduction of external parties.
CEO Willem van Duin said that Covid-19 is having a huge impact on society and Achmea’s results. He stressed that the insurer’s financial buffers have remained solid.