The most recent operation launched by Ethias and aiming to speed up the extinction of the Individual Life Portfolios (a First product) enabled the closure of 7,437 First Accounts.
This is out of 12,240 which had been open at the end of May. The life assurance company announced this on Monday. From 29th May to 14 July 2017, Ethias proposed an exit charge of 25% to those who had been First account holders since before 2003, when terminating their contract. This would be deducted before receiving the balance of their portfolio.
Ethias stated in a communiqué, “On 20 July, the final day for valid redemption acknowledgements to be sent, throughout the entire operation, Ethias has processed reimbursement claims for a total of €410 million. Before the operation started, reserves held were €607 million following BGAAP (Belgian Generally Accepted Accounting Principles, editor’s note). The offer enabled the organisation to reduce its reserves level by 68% at a cost of €102 million.”