Conclusions and ambitions
In 2007, Insurance Asia/Pacific delivered on its growth plans. Tied agents improved production, new significant bank distribution deals were concluded and sales revitalised. This resulted in 18.7% growth in underlying profit before tax excluding Japan where results were affected primarily by increased market volatility. Including Japan, underlying profit before tax decreased by 7.2% to EUR 576 million. The overall internal rate of return remained highly attractive at 16.8% and both APE and VNB increased. These financial accomplishments reflect successful execution of our strategy in the region.
Looking forward, the focus on investment-oriented insurance products continues to sharpen, as customer demand increases. Through customer segmentation, we will offer customers a growing suite of products geared towards their particular financial needs. The tied agency model remains important and we will continue to improve it. In addition, more initiatives will be taken to strengthen multi-channel distribution capabilities, through bank distribution, and direct and new alternative channels.