For the year 2005, the Ethniki Insurance Group's consolidated profits before tax reached euro 40.492.000, whereas profits after tax reached euro 25.155.000 in accordance with the International Financial Reporting Standards (IFRS). The results of 2004 were losses of euro 16.233.000 before tax and euro 22.679.000 after tax. The Company's profits after tax are higher by 158% compared to the Business Plan target. The return on average net equity reached 13,5% after tax, whereas the Business Plan target was 5,8%.

The Parent Company's profit for the Fiscal Year 2005, in accordance with IFRS, is euro 38.492.000 before tax, and euro 23.405.000 after tax. The return on average net equity is 12.8%. Life Branch premiums, including DAF contracts, reached euro 273.080.000 in 2005, as compared to euro 246.674.000 for 2004, demonstrating a material growth of 10,75%.

This significant achievement has been accomplished due to the robust increase of new production of the Individual Life Branch by 26,9% y.o.y. and the successful promotion of the new bancassurance product Triploun to NBG's customers during the last quarter, reaching premiums of approximately euro 15.000.000. P & C branches premiums were euro 357.100.000, lower by 3,2%, as compared to the 12-month adjusted 2004 premiums of euro 368.854.000. This is due to the lower production in the Motor Branch by 10,2% and the increase by 6,5% in Other Branches. The rate of increase of Other Branches is significantly higher compared to competition. Some of the key factors, leading to the increased profitability, are:
- Conversion of reinsurance contracts in certain P & C Branches from Surplus and Quota Share to Excess of Loss, resulting in a reduction of reinsurance premiums by euro 17.185.000 or 21%, compared to 2004.
- Decrease by 2,3% of incurred claims net of reinsurance, as compared to 2004.
- Increase by 33,7% of the investment income, amounting to euro 84.456.000 for 2005, compared to euro 63.170.000 for 2004. Included in the 2005 investment income is a profit of euro 6.192.000 arising from the sale of real estate.
- Operational expenses were contained flat at 2004 levels, net of the cost of the voluntary pension leave charged in 2004.

The Company's retained deficit as at December 31, 2005 according to the IFRS Financial Statements is euro 250.651.000. Losses for the year, as at the same date, based on Greek Accounting Standards are euro 24.435.180. Therefore, dividend will not be distributed for the year 2005, according to the provisions of article 44 of the Greek Company Law 2190/20. Consolidated profits before tax for 2005 have been reinforced by profits of the subsidiaries of the Group amounting to euro 2.000.000, as opposed to the losses of previous years. The Group continues its dynamic expansion in Romania, after the completion of Alpha Insurance Romania S.A. take-over. In Bulgaria, growth is secured by the agreement for the set up of two companies in partnership with U.B.B. A.D, subsidiary of National Bank of Greece and with the American International Group Inc (AIG).