Summary of mportant Figures in millions of Swiss francs Swiss Re, Zurich 1985 1984
Helmut F Rudolf Zumikon, General Manager (ret.) of Swiss Re 1986
Organization of Swiss Re, Zurich) as per 1st January, 1987 'until 31st December, 1986
Personnel service, training R. Oberle, Executive Manager H. Spörrl, Manager Executive Manager J. Niederer
ing the profit zone. The development of American and British Fire business was positive, this improvement be­ ing greatly aided by premium increases in the United States and the lack of major losses in Great Britain, as well as by the implemented remedial measures. The scene was less encouraging in some of the major mar­ kets of continental Europe, where the premium level for Industrial Fire business is still inadequate, and it proved yet again impossible to enforce the improvements need­ ed. In the year under report a series of major losses from natural occurrences had once more to be borne: earth­ quakes in Mexico and Chile, floods and windstorms in the United States, frost and hail in France and storms in Japan. Together these cost the Swiss Re Sw.frs. 58 mil­ lion. The earthquake catastrophe in Mexico had reiatively little effect on the profit and loss account since the Swiss Re had not participated there in the insufficiently rated ca­ tastrophe covers. Overall it has become very difficult to achieve a balance in Fire reinsurance business, since the branch is highly exposed to the so-called risk of change, as well as to catastrophe losses from natural occur­ rences.
Gross claims expenditure rose slightly in the year under report, whereas there was a significant drop on the retroceded portion. Net expenditure subsequently grew more strongly than gross expenditure. For this reason, and be­ cause of the effects of foreign exchange rates, the year's result declined from Sw.frs. 36.1 million to Sw.frs. 35.1 million.
At the end of 1985 Swiss Re, Zurich, had 1,047 employees. The average age was 41 with an average of 11 years of ser­ vice. The fluctuation rate (total number of departures as a percentage of the Initial number of employees) rose to 9.2%.
tion, amounted to Sw.frs. 858.3 million (previous year, Sw.frs. 588.8 million) or 19.8% (previous year, 14.4%) of ttie balance-sfieet value of securities.
Business in force at end of previous year Non-Life reinsurance 5,643.7 4,873.9 Life reinsurance 1,445.2 1,321.4 Total for own account 7,088.9 6,195.3
Proposal of the Board of Directors The General Meeting to be held in Zurich on 21st Novem­ ber 1986 has at its disposal the following profit (of. Profit and Loss Account and Balance Sheet, pages 20/21): Sw. frs. Sw. frs.
The drop in the net outgo is due to the surplus of realized capital gains over write-offs and value adjustments of Sw.frs. 7.7 million (previous year, Sw.frs. 5.0 million). Fur­ ther outgo comprises mainly the loan interest of Sw.frs. 24.9 million (previous year, Sw.frs. 24.4 million), taxes of Sw.frs. 3.9 million (previous year, Sw.frs. 3.3 million) and management expenses of Sw.frs. 2.6 million (previous year, Sw.frs. 2.2 million).
Underwriting result from Non-Lite insurance - 506 13 - 493 - 528
Glossary of Technical Terms For readers who are not familiar with insurance and reinsurance, the following glossary briefly defines various technical terms as used in the Annual Report.