begun. Towards the end of 1986, the activities
concerned with the analysis of the business were
concentrated in a Prudential Management
Department. The purpose of this department is
to enable better control of the business manage
ment processes and to provide more manage
ment information.
Social Policy
In the year under review, a great deal of attention
was devoted to the consequences of automation
as regards social policy. As far as recruitment is
concerned, it proved possible to attract suffi
ciently well-qualified new staff in the automa
tion, new business and accounting fields.
As regards time lost through sickness, it is
gratifying to note that there has been a consider
able fall, with a marked reduction in short
periods of absence. Absence rates fell from 7.5%
in 1985 to 5.7% in 1986. In the year under
review, we continued to pay attention to our
career development and training policy with a
view to optimizing the technical knowhow, flexi
bility and customer-oriented attitude of our staff.
There was frequent contact with the Staff
Council concerning a variety of important mat
ters. During the closing months of the year
under review in particular, there were intensive
consultations about the recent developments
within the company. The meetings with the
Council took place in a critical but constructive
atmosphere, which made a positive contribution
to the decision-making process.
Financial Reporting and Operating Results
As per January 1, 1986, Friesch-Groningsche
Hypotheekbank N.V transferred substantial
amounts of mortgage loans and real estate to
Transveer B.V As explained in our 1985 report,
Transveer B.V was created with the object of
relieving the core business of the burden of less
profitable real estate and mortgage loans. The
portfolio hived off in this exercise, amounting to
approximately NLG 1.3 billion, was financed by
De Nederlandsche Bank N.V, AEGON N.V and
Postbank N.V, who each injected NLG 410 mil
lion, and Friesch-Groningsche Hypotheekbank
N.V, who injected NLG 100 million, in the form
of a subordinated loan. To compensate for the
loss of interest in respect of the financing of
Transveer B.V, AEGON N.V and Postbank N.V
were granted profit rights by Friesch-
Groningsche Hypotheekbank N.V
As is already known, Friesch-Groningsche
Hypotheekbank N.V has guaranteed the financial
commitments of Transveer B.V
The above transfers affected the gross
operating result in particular of Friesch-
Groningsche Hypotheekbank N.V Owing to the
fact that the guarantee provided by FGH in favor
of Transveer B.V has been taken into account in
the addition to the Reserve for General Con
tingencies, the effect on the net result is limited.
The net result for the 1986 financial year
was a loss of NLG 110.3 million. This figure is
made up as follows:
