RO. Box Telephone Telex Telefax Cables CH-8022 Zurich 01 2082121 815722 srech 01 2082999 swissre *from 20.5.1991 " ~~~~~
Hans Ulrich St. Gall 1991 * Members of the Committee of Directors
German-speaking Switzerland, Germany, Austria, Eastern Europe, Netherlands, Denmark, Sweden, Norway, Finland, Iceland B. Heyer, Executive Manager E. Etter, &ecutive Manager Executive Manager W. Müller Managers F. Eugster, W. Hersberger, N. Müntener, R Schmid, R. Siegrist
H. Fischer, Executive Manager H. Lüthi, Manager Managers M.A. Bloesch, E. Steider
The underwriting result deteriorated considerably as against the previous year's excellent result. The underwrit­ ing loss rose from Sw. frs. 180 million in the previous year to Sw.frs. 253 million in the year under report. The result was adversely affected by natural catastrophes and an unusual accumulation of large losses, which had been al­ most totally absent in the previous year.
Swiss Re's greatest asset is Its staff: our company's suc­ cess depends to no small extent on the capability of our employees at all levels. Our hiring, training, salary and de­ velopment policies therefore reflect the great importance we attach to technically competent, committed and loyal employees who are able to work with our clients, deter­ mine their needs and work out innovative and enterprising solutions.
Claims incurred incl. adjustment in outstanding claims reserve - 315,491,254 - 301,528,289
Up to 31 December 1989, most foreign exchange rates showed a further rise with basically the same effect on the Group accounts as on the annual accounts of Swiss Re, Zurich (cf. page 15). The conversion of foreign currencies into Swiss francs is explained on page 50.
Our examination was conducted in accordance with generally accepted auditing standards and included those audit tests which we considered necessary in the given circumstances.
Gross premiums as well as all balance sheet and profit and loss account figures from foreign Group companies which are shown in the various local currencies were uniformly converted into Swiss francs using the average foreign cur­ rency rates as at 31 December 1989.
The foreign currencies used in the Group accounts showed varying rates of change as compared with the previous year. The rates of the currencies of continental Europe have all risen, while the pound sterling weakened. The value of the US dollar has increased marginally. In con­ trast, the Australian dollar and the South African rand were valued lower (of. table on page 26).
The valuation of ali other items of the Group balance sheet piays a subordinate role. Foreseeable risks of loss are taken into consideration by means of value adjustments by the individual Group companies.
In the case of fixed-interest securities and shares and the quoted non-consolidated holdings, the difference be­ tween the lower book and higher market value of the indi­ vidual securities, taking into account the estimated value of taxes due on realization, amounted to Sw. frs. 2,526 miliion, or 8.4% of the balance-sheet value (previous year, Sw.frs. 2,039 million or 7.8%).
The profits and capital funds applicable to third party shareholders correspond to the percentage shares of non-Group shareholders in the capital funds or in the results of the relevant companies. The capital funds applicable to minority shareholders rose in the reporting year by Sw.frs. 6 million to Sw.frs. 197 million, applicable profit by Sw.frs. 5 million to Sw.frs. 30 million. The in­ creases are primarily due to increased capital funds or to higher dividends.
South Africa/Zimbabwe Swiss-South African Reinsurance Company Limited Swiss Park, 10 Cueens Road Parktown 2193, Johannesburg 2000 with branch offices in Durban, Cape Town and Pretoria and in Harare, Zimbabwe as per November 1990
United States Fidelity and Deposit Company of Maryland Charles and Lexington Streets Baltimore, MD 21203
North Amerioan Specialty Insurance Company 650 Elm Street, Office Suite 600 Manchester, NH 03101
North American Benefits Group Contact address 19800 Detroit Road Cleveland, OH 44116 (USA)