Financial services segment
In the financial services segment we recorded total revenues of € 543.6 million in the last financial year. Compared to the previous year, this represents a drop of 4.2 %. The segment earnings before interest and tax (EBIT) dropped from € 107.4 million to € 55.8 million. Alongside the drop in total revenues, this was down to an increase in the interest expenses, personnel expenses and other operating expenses.
Total revenues and EBIT for the financial services segment (in € million)
New regulatory requirements increase expenditures
The increase in the interest expenses from € 17.6 million to € 24.0 million is mainly attributable to the increase in client deposits. Personnel expenses increased by 9.2 % to € 82.0 million due to general salary increases, new employees and inclusion of the TPC-Group for the first time. Other operating expenses essentially increased due to the higher training and IT expenses required to meet the changes in the new regulatory environment and amounted to € 166.5 million (€ 140.1 million) at the end of 2008.
Together with the finance cost of € –1.4 million (€ –0.6 million), earnings before tax (EBT) were € 54.3 million (€ 106.8 million).
New business in the field of old-age provision remained virtually at the previous year’s level
With new business in the old-age provision segment of € 6.6 billion (€ 6.8 billion), we achieved virtually the same level as the previous year. The figures for the last financial year contain the fourth and final increase in tax-privileged premiums for the Riester pension. In the field of private health insurance, with a brokered annual premium of € 49.0 million (€ 50.0 million) we very nearly achieved the previous year’s level. Following the healthcare reform introduced on April 1, 2007, our business in this segment stabilised at a significantly lower level. At € 919 million (€ 1,162 million), our brokered financing volume was below the previous year’s level. Demand, in particular for construction financing, saw a downward trend due to the capital market crisis. Yet against the negative market trend, triggered by the capital market crisis, we were able to keep the funds under management together with Feri Finance AG constant at € 11.4 billion (€ 11.4 billion).
|Old-age provisions (premiums in € billion)||6.6||6.8||6.8||6.3||10.9|
|Health insurance (annual premiums in € million)||49.0||50.0||68.2||55.1||59.0|
|Loans and mortgages (volume in € million)||919||1,162||1,195||997||777|
|Funds under management in € billion||11.4||11.4||10.8||8.3||2.6*|
|* MLP without Feri|