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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
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Nationale Suisse
Steinengraben 41 Basel
WKN: 1081197; ISIN:
CH0010811971; Index: SMCI, SPI, SPIEX;
Listed: Main Market in SIX Swiss Exchange;
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