Services
Financial results
42 Rabobank Group Annual Report 2004
Core activities
his no-claim bonus in the case of damage to his vehicle. With its market
share of around 11% in private non-life insurance, Interpolis is among
the top five of Dutch non-life insurance companies. In 2004, customer
satisfaction in the non-life insurance business was unchanged at 7.5.
Total income from insurance activities was 17% higher at EUR 1,498
(1,278) million.
Apart from insurance against product loss and/or damage, Interpolis
offers private individuals and enterprises the possibility to insure against
disability and illness. Interpolis offers these products in combination
with its associated reintegration services, so that as much of this burden
as possible is taken off the client's hands
The Alles in één Polis® (All-in-one Policy) enables private individuals to
insure against damage. In 2004, the number of policies grew by 7% to
1.2 (1.1) million. Premium income rose by EUR 63 million to EUR 634 (571)
million. The Business Compact Policy insures small and medium-sized
enterprises and agricultural enterprises against damage. Despite the not
particularly favourable economic conditions for small and medium-sized
enterprises and the implementation of necessary premium increases,
the number of policies taken out went up 5% to 215,000. Total premium
income was EUR 499 (432) million, a rise of 16%. In the agricultural sector,
Interpolis has a market share of 50%.
Premium income from People Work (disability and income protection
insurance) amounted to EUR 365 (275) million in 2004. Of the total
premium income from non-life insurance, 78% comes from the local
Rabobanks.
Premium income from non-life insurance
in EUR millions
700
People Work Non-life Non-life
insurance corporate private
individuals
Collaboration with Zilveren Kruis Achmea
At the end of 2004, after a few years' absence from the field of healthcare
insurance, Interpolis re-entered this market with its ZorgActief product.
ZorgActief is the result of the collaboration with Zilveren Kruis Achmea,
which started in 2004. This insurance product was specially developed
for entrepreneurs and their employees. Entrepreneurs are given the
guarantee that employees will quickly get to see a specialist in case of
illness. ZorgActief provides for both privately insured individuals and
persons covered by compulsory health insurance.
Higher income from pension services
Pensions have been much in the news during the past few years, not
only because of changes in legislation but also by the cutbacks in pen
sion arrangements as a result of the lower investment coverage. This
puts ever-greater demands on the provision of information. In addition,
the clients want more options to choose from. In order to meet the
greater demands from clients, Interpolis started optimising its business
processes (operational excellence) in 2004. Income from pension services
was 8% higher at EUR 127 (118) million. With a market share of 20%,
Interpolis is among the biggest players in this field in the Netherlands.
Difficult year for occupational health safety and
reintegration activities
In 2004, activities in occupational health and safety and reintegration
were under pressure because of regulatory changes, difficult economic
conditions and reduced absenteeism due to illness. This resulted in a 23%
reduction in income, to EUR 98 (128) million. In addition, the customer
satisfaction rating for these activities of 5.6 was far lower than the
internal standard.
Extension of distribution network
The local Rabobanks are Interpolis' main distribution channel. In 2004,
76% of premium income was realised through the local banks. However,
independent brokers form an important distribution channel as well.
The direct channel (websites and call centres) is developing strongly. In
2004, independent brokers generated 5% of premium income. Part of the
increase is due to very good service provision to brokers, such as system
support and account management. At EUR 107 (97) million, income from
the direct channel remained relatively limited in 2004, but it is showing
strong increase, particularly for simple products.
Interpolis' operating profit before taxation for 2004 was EUR 308 (238)
million, consisting of EUR 241 (118) million in results from operations
and EUR 67 (120) million in returns on investments.
Strong increase in results from operations
Results from operations were 104% higher last year, at EUR 241 (118)
million. The increase is mainly due to the excellent results of EUR 108
(36) million from non-life insurance activities (excluding People Work).
Lower claims, particularly because of favourable weather conditions,
positive claim results from previous years and higher premiums in the
