This corresponds to an increase of more than 6.4% in Swiss franc terms. While yields picked up on the money markets, driven by the interest turnaround initiated by the central banks, rates at the long end of the interest curve continued to fall, due to the slowing down of the economy and the moderate inflation levels experienced in the second half of the year. In the wake of these developments, real interest rates (nominal interest rates adjusted for the effect of inflation ) sank to an all-time low, at the same time as many global bond indices climbed to record highs.
At the Baloise Group, the focus was on the pilot projects for the Swiss Solvency Test and the introduction of a Groupwide standardized risk management system in line with the supervision of conglomerates by the Federal Office of Private
These investments both promise solid returns and help to diversify the portfolio risk. In addition, they reduce the relatively high interest exposure in the asset allocation. In real estate, investment property performance came to 3.3%, while alternative investments saw an increase of 2.3%.
Successful BFI funds The BFI funds achieved an extremely gratifying result in 2004, with all products performing well. In a peer group comparison, 9 of the 12 funds were positioned in the first and second quartiles, i.e. they performed above the average of comparable products. The impressive performance of the 6 strategy funds should be emphasized. Following on from their excellent ranking of the previous year, all stood their ground in the first half of 2004. Particular mention should also be given to the BFI Capital Protect (EUR) guaranteed fund, launched at the start of 2003, which once again experienced a satisfactory increase in value, reporting a guaranteed performance of 7.7% at the end of
At the elections to the Board of Directors held in the year under review, the body was reduced in size from 12 to 10 members. This development took place in the context of optimizing the work processes and decision-making processes of the Board of Directors. At the same time, additional members were coopted onto the Board of Directors’
The “change of control” agreement exclusively in favor of the Members of the Board of Directors and the Corporate
CHF 2,903.6 million. Information about Baloise shares can be found on page 52. A list of important Group companies and participations as at December 31, 2004, can be found in the Notes from page 119. Apart from Bâloise-Holding, no
Distribution policy The capital changes in recent years were marked by a shareholder -friendly distribution policy. In the last five years alone, over CHF 1.1 billion was paid out to shareholders in the form of cash dividends, share buybacks and nominal value repayments.
Consolidated capital and reserves of the Baloise On December 31, 2004, the consolidated capital and reserves of the Baloise Group came to CHF 3,482.5 million, representing a 4.9% increase compared with the previous year.
Chairman of the Board of Directors. Between 1998 and 2002 German Egloff was Chief Financial Officer at Winterthur Insurance, Switzerland, and a Member of the Wincare Board of Directors, becoming its Chairman in 2000.
From 2002 to 2004 he was Chief Financial Officer at Zurich
The Audit Committee assists the Board of Directors in tasks that cannot be delegated relating to supervision and financial monitoring (Art. 716a Swiss Code of Obligations)
In 2004 – as in every year – a seminar was held for the Members of the Board of Directors. The subject this year was
Notice of the convening of the Annual General Meeting must be given at least 20 days before the appointed date. Each registered shareholder receives a personal invitation that includes an agenda for the Meeting. Invitation and agenda
Schweizerische Treuhandgesellschaft/STG-Coopers & Lybrand, have been the statutory auditors of the Baloise since 1962. The statutory auditors are chosen by the General
Change in actuarial reserve (life) 16 –1,680.3 –1,449.4 –2,235.0 –952.2 –332.0
Surplus and profit allocations to policyholders 17 –870.9 –177.6 29.2 –440.5 –489.1
Annual profit/loss before tax and minority interests 732.1 523.0 –714.3 223.7 333.7
Revaluation, amortization and depreciation of intangible assets and tangible noncurrent assets 152.3 94.4
In fiscal 2004 IFRS 3, which governs the purchase of companies as of
3. Accounting policies 3.1 Method of consolidation The consolidated financial statements consist of the financial statements of Bâloise-Holding and of its subsidiaries.
Reinsurance assumed is recognized in the same accounting period as the initial risk. The technical provisions are included in liabilities under the headings “Unearned premiums reserves (gross)” and “Loss reserves (gross)”.
Share participation scheme: Since May 2001, most middle and senior managers working in Switzerland can opt to have a freely determinable part of their performance -related earnings (incentive) remitted as shares instead of cash. To boost the effectiveness of the share participation scheme, employees receive a loan at a market rate of interest, enabling them to purchase a far greater number of shares than provided by the incentive scheme.
Deposits and other amounts due to policyholders: The fair values are determined by discounting the cash flows, using the current interest rate applied by the Baloise Group to similar financial instruments with similar time remaining to maturity.
Expenses of the Baloise Group in CHF m 1.6 1.3 24. Capital and reserves 24.1 Share capital
Capitalization regulations: Under supervisory law, minimum capital regulations (solvency regulations) apply to subsidiaries which carry out insurance business. With regard to the business years 2003 and 2004, the subsidiaries complied with all relevant supervisory regulations in respect of capitalization.
(for capital market transactions or for employee share schemes) have a dilutive effect. The option holder’s counterparty is a financial institution outside the Group, which will procure the shares required on the market if the options are exercised.
in CHF m 32.5 Assets assigned or pledged and securities lending
Mercator, Re N.V., Antwerp Reinsurance NL 100.00 F EUR 1.2 5.3 0.0
Merno-Immo N.V., Ghent Other O 99.75 F EUR 14.5 17.9 –/–
Europe, the Baloise Group is a solution provider in the fields of insurance and provision for the future. The Group’s strategic focus is on sustainable, income-oriented growth. Core markets are Switzerland, Germany, Belgium,