March 31, 2006 The Company's loss for 2005 reached € 11.9 mil., showing a major improvement by 72% compare to last year whereby the loss stood at € 42.2 mil.
The decline in premiums is mainly attributed to the Company's corrective actions regarding the restructuring of the Motor (3rd party liability) class of business. Despite this, the Company showed a significant improvement in the bottom line mainly due to: a) the higher return on investments, b) the readjustment of the terms and conditions of the investment contracts (DAF), c) the substantial decrease in operating expenses, d) the cost of the voluntary personnel retirement scheme in 2004 and e) the lower doubtful debt provisions.
It is noted that for both fiscal years, 2004 and 2005, the financial figures and information presented are in accordance with the Accounting Principles provided by the International Financial Reporting Standards (IFRS). As a result, the Company's net Equity of €10.5 mil. as at 31/12/2005, was affected not only by the loss for the year, but also by the adjustments booked due to the first adoption of IFRS. The net adjustments amounted to €22.6 mil., reflecting mainly the adjustments in the insurance reserves of the Life class of business.
