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Despite the adverse conditions, the Nationale Suisse Group attained
solid results in the 2008 financial year:

- The second best Group result ever achieved of CHF 73.7 
million
(2007: CHF 88.2 million).

- An increase in equity capital to CHF 601.7 million (2007: CHF 
591.7
million).

- An accretive increase in shareholder value with a return on 
equity
(ROE) of 12.5% (2007: 14.4%).

- A reduction in the non-life combined ratio to 97.7% (2007: 
101.9%).

- Revenues which remained static over the previous year, with 
a
premium volume of CHF 1.67 billion
(2007 without special factors: CHF 1.66 billion). Adherence to high
quality underwriting.

- We are pushing ahead vigorously with strategic restructuring.

At 
the Annual General Meeting on 18 May 2009, the Board of Directors
will propose a 20-for-1 share split and payment of a stock dividend
(bonus shares). Alongside the proposed election of Dr. Bruno H.
Letsch, three current members of the Board of Directors whose terms
of office come to an end at the next Annual General Meeting will
stand for re-election. This will guarantee continuity amongst the
members of the Board of Directors.



Group result once again decidedly positive

Despite the  extraordinarily  difficult  conditions  in  the  capital
markets,  a  continually  deteriorating  market  environment  and  an
unrelenting price war in the insurance industry, the Nationale Suisse
Group again  posted a  decidedly positive  Group result  in the  2008
financial year.

The profits  of CHF  73.7 million  may have  been 16.4%  or CHF  14.5
million below the record figure of  CHF 88.2 million achieved in  the
previous year.  However,  following  the  sale  of  Nationale  Suisse
Assurances France to the AXA  Group and the in-depth reassessment  of
claims from ceded reinsurance,  both of these  special factors had  a
strong influence on the figure for 2007. Excluding these factors  the
result for 2007 would have come to CHF 77.7 million, meaning that the
decline in profits for 2008 would only have been 5.2%.

Overall, the Group result for the 2008 financial year was the  second
best result ever achieved in the history of the company.


Slight growth in gross premiums excluding special factors in 2007 and
adherence to high quality underwriting

Gross premiums were slightly down in  the year under review and  came
to CHF 1.67 billion (2007: CHF 1.87 billion). A decisive role in this
10.6% decline  was  played  above  all by  the  sale  of  the  French
subsidiary mentioned above (approximately CHF 130 million) as well as
by the  receipt  of a  single  premium of  some  CHF 80  million  for
occupational pensions  in Switzerland.  Adjusted  for both  of  these
special factors and currency effects, this translated into growth  of
1.7% (2007: 6.2%). This  is all the more  remarkable bearing in  mind
Nationale Suisse's adherence to high quality underwriting.  So-called
cash flow underwriting is strictly avoided and Nationale Suisse  does
not lower its  premiums to levels  that are not  justifiable from  an
underwriting point of view.

Premium  volume   development  in   specialty  lines   business   was
particularly pleasing. These showed  double-digit growth and  already
account for around 20% of the Group's entire portfolio.


Significant reduction  in combined  ratio for  non-life business  and
lower earnings in life

The underwriting result for non-life rose  by CHF 3.3 million to  CHF
83.3 million  (2007:  CHF 80.0  million)  in 2008.  This  figure  was
achieved despite the  markedly reduced  allocated investment  return,
which was CHF 77.5  million (2007: CHF  110.9 million). The  combined
ratio in  the year  under  review came  to  a pleasing  97.7%  (2007:
101.9%), with the Swiss domestic market accounting for around 65%  of
premiums in non-life business and  thus proving to be a  consistently
stable source of income for the Nationale Suisse Group. The  positive
developments in the insurance  business also show  that - aside  from
the lack of major catastrophes  - the measures initiated three  years
ago with the aim  of achieving a  more proactive and  client-friendly
claims management are increasingly bearing fruit.

The impact of the financial market crisis was particularly noticeable
in life business. The underwriting result fell from CHF 22.9  million
in 2007 to  CHF 11.2 million  in the  year under review,  which is  a
consequence of the massive reduction in the figure carried over  from
investment activity. Claims experience again proved favourable in the
year under review, particularly in the Swiss domestic market. At  CHF
10.1 million,  policyholder dividends  and participation  in  profits
showed little variation over the previous year (CHF 10.4 million).


Diversification effects  contribute  to  investment  return  that  is
robust given the environment

Thanks   to   active   portfolio   management   and   a    consistent
diversification strategy, total investment income increased by  28.9%
to CHF 551.1 million (2007:  CHF 427.5 million). This realised  gains
on the sale  of investments  of CHF  286.0 million  (2007: CHF  161.2
million), which included CHF  112.6 million realised  on the sale  of
real estate.

At the same time the total  investment expense rose sharply from  CHF
106.4 million to CHF 318.3 million.  For the most part this  increase
was due to impairment charges on investments of CHF 197.3 million and
losses on  the  sale  of  investments  totalling  CHF  82.2  million.
Particular mention must be made  of CHF 32.9 million for  impairments
to fixed-income securities.  This development can  be traced back  to
the adverse environment in the financial markets.

After transferring  the  allocated  investment return  of  CHF  156.5
million (2007:  CHF  228.2  million) to  the  technical  account  and
deducting other  corporate costs,  the non-technical  account  closed
with a  net  loss  of CHF  5.2  million  (2007: profit  of  CHF  19.4
million).

The overall investment return  for the year under  review came in  at
3.4% (2007: 5.0%). This also takes into consideration currency losses
of CHF 31.1 million (2007: CHF 14.9 million) and the interest expense
included in total investment expense.


Increased shareholders' equity despite adverse market conditions  and
value-accretive rise in shareholder value

As of 31 December 2008, the Group's equity capital totalled CHF 601.7
million, which equalled a  rise of 1.7% year-on-year  in the face  of
adverse circumstances  in  the  financial  markets.  The  revaluation
reserves declined from CHF 208.1 million at the beginning of the year
to CHF 118.7 million. This contraction was primarily due to  negative
developments  in  the  market  value  of  equities  and   alternative
investments and to the  realisation of profits  in the various  asset
classes. It proved possible to  compensate in part for the  reduction
in the revaluation reserves by means of transactions in the company's
own shares, notably through the sale of 7.4% of our own shares to the
VHV Group in November 2008.

The return on equity  (ROE) for 2008 was  12.5% (2007: 14.4%),  which
constituted a value-accretive return  on the Group's equity  capital,
even in the crisis year 2008.


Consistent continued development and implementation of the  corporate
strategy

Notwithstanding the troubled  economic environment, Nationale  Suisse
continued to push  ahead vigorously  with the  implementation of  its
corporate strategy  and made  targeted  investments in  the  business
sectors of the future. In  2008, work was carried  out on a total  of
eleven strategic projects  aimed at  implementing the  modernisation,
differentiation and niche strategies,  eight of which were  completed
successfully by the end of the year. We are currently investing above
all in our three multinational specialty lines art/HNWI,  engineering
and marine. Furthermore, considerable  headway was made in  preparing
for the  first-time  implementation  of  IFRS  accounting  standards,
setting up an  efficient internal  control system  (IKS), putting  in
place  new  pricing  models  in  non-life  business  and  in  further
optimising a reinsurance cession hierarchy.


Stable profits for the parent company. Proposal for a 20-for-1  share
split and payment of a stock dividend at the Annual General Meeting

The parent company posted after-tax profit of CHF 35.2 million (2007:
CHF 39.3  million). Including  the CHF  1,724,943 carried  over  from
2007,  disposable   profit  came   to  CHF   36,940,002  (2007:   CHF
41,124,943).

Share split:  The Board  of Directors  and the  Executive Board  will
present a proposal at the Annual General Meeting on 18 May 2009 for a
20-for-1 split  of  its  registered shares.  This  proposal  aims  to
enhance the share's tradability and create a better position for  our
small shareholders with a view to the proposed stock dividend.

Stock dividend: Payment of a stock dividend (bonus shares) instead of
a cash  dividend will  be  proposed at  the upcoming  Annual  General
Meeting. This will enable the requisite number of 20 rights for  each
existing share (at a par value of CHF 8) to be used to subscribe  for
one new  share  (with a  par  value  of CHF  0.40).  Consequently,  a
shareholder  with  only  one  existing  share  will  be  entitled  to
subscribe for a new share without purchasing subscription rights. The
proposed waiver of a cash dividend is designed to preserve the  solid
capital base of  Nationale Suisse.  Risk capacity -  which is  mainly
derived from a company's equity capital - is becoming an increasingly
important success  factor in  the insurance  industry, especially  in
times of economic turbulence.


Continuity on the Board of Directors ensured by re-election of  three
current members and  reinforcement provided  by the  election of  Dr.
Bruno H. Letsch

The Annual  General Meeting  of 18  May  2009 marks  the end  of  the
current term of office  for Andreas von  Planta, Walter Grüebler  and
Peter E. Merian. All three members are standing for re-election.

The Board  of  Directors  also  nominates Dr.  Bruno  H.  Letsch  for
election to the  Board. Dr.  Letsch was  employed for  many years  in
various asset  management  functions  at SwissRe  until  2005.  As  a
specialist of international  standing in all  issues of an  insurance
company's asset management, he brings knowledge and experience  which
will make him  an important  addition to  the Board  of Directors  of
Nationale Suisse.




Brief profile
Nationale Suisse is an innovative,     The headquarters of Swiss
international Swiss insurer providing  National Insurance Company is
first-rate risk and pension solutions  in Basel. Nationale Suisse is
and tailored niche products. The Group listed on the SIX Swiss
has gross premiums of CHF 1.67         Exchange (NATN). On 31
billion, about 30% of which come from  December 2008 the Group
their subsidiaries in Germany,         employed 1,775 persons (FTEs).
Belgium, Italy and Spain.

Downloads                              Disclaimer
You can access this media release on   Swiss National Insurance
our website www.nationalesuisse.ch     Company wishes to point out
under Medien/Medienmitteilung.         that any forward-looking
                                       statements in this report are
                                       based on projections,
                                       estimates and assumptions. The
                                       influence of uncertain and
                                       unforeseeable circumstances
                                       and certain risks may mean
                                       that actual performance
                                       deviates significantly from
                                       our expectations.

Information
Sophia Schor                           Nationale Suisse
Media relations                        Steinengraben 41
Tel.           +41 61 275 23 86        4003 Basel
Fax           +41 61 275 22 21         www.nationalesuisse.ch
sophia.schor@nationalesuisse.ch

Important dates
Publication of Annual Report           01.04.2009
Media conference to announce financial 01.04.2009
results at Hotel Park Hyatt, Zurich
Financial analysts' conference at      01.04.2009
Hotel Park Hyatt, Zurich
Annual General Meeting                 18.05.2009


 
--- End of Message ---

Nationale Suisse
Steinengraben 41 Basel 

WKN: 1081197; ISIN: 
CH0010811971; Index: SMCI, SPI, SPIEX;
Listed: Main Market in SIX Swiss Exchange;
http://hugin.info/100296/R/1301959/297809.pdf


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