NET PROFIT AT EUREKO DROPS TO €180M FOR FIRST HALF

Netherlands-based insurer Eureko has recorded a profit of €180m for the first half, down from €864m in the same period last year. Net earned premiums rose by 3% to €9.87bn, on gross premiums written up 2% to €10.96bn. Eureko’s sale of its stake in Polish insurer PZU brought into stark relief what a cash cow it was. Last-year’s pretax gain of €835m was helped by an €820m contribution from PZU. That has vanished this year. Non-life net earned premiums were down by 5% year on year to €1.79bn. The combined ratio was roughly flat at 92.8%. The company said that both of its direct writers – InShared in the Netherlands and Anytime in Greece – were performing well. Eureko also took a €48m hit on Greek sovereign bonds that have a nominal value of €145m. A negative revaluation reserve of €11m remains. Eureko intends to participate in the support package put together by eurozone governments and the International Monetary Fund. However, Greece has indicated that it requires a 90% participation rate from the private sector for it to go ahead.