Group performance review Operating and financial review 102 Risk review 127
Business operating profit (BOP) increased 15 percent to USD 4.7 billion compared with 2012. Net income attributable to shareholders (NIAS) rose 4 percent to USD 4.0 billion in the same period. Our solid results and strong cash generation have given us the confidence to propose a dividend of CHF 17 per share. In the final three months of 2013, BOP was USD 1.1 billion, an increase of 94 percent compared with the same period of 2012, which included the impact of Storm Sandy in North America. NIAS rose by 9 percent to USD 1.1 billion.1
Governments are also turning to the insurance industry to help raise revenue. The U.S. Foreign Account Tax Compliance Act (FATCA) utilizes banks and insurance companies to track down offshore assets held by U.S. taxpayers. The EU is in the process of creating its own FATCA, one which is not necessarily compatible with the U.S. approach. Other governments are likely to follow suit.
We are investing in our people and making Zurich a great place to build a career. We are investing in the systems and processes we need to understand our customers, serve them in the way they prefer, increase collaboration and improve efficiency.
Zurich’s strategy for 2014 – 2016 is designed to deliver sustainable, profitable growth in a changing and more competitive business environment. It builds on our strengths. It places customers and their needs at the center of our business.
We are investing in the Zurich brand, including brand metrics in priority markets. And as we drive for profitable growth we are acting responsibly in all we do, in line with our strategy.
Return on Equity (ROE) of 12.0 percent and BOP after tax ROE of 10.5 percent improved by 0.2 percentage points and 1.2 percentage points respectively compared with 2012, driven by the increased earnings. Diluted earnings per share increased by 2 percent to CHF 25.23 for the year ended December 31, 2013, compared with CHF 24.72 in 2012.
Global Life Global Life business operating profit decreased by USD 80 million to USD 1.3 billion, or by 6 percent. Increases in Latin America were more than offset by reductions in North America, Europe and Asia-Pacific and Middle East (APME). Improvements from the increased contribution from Zurich Santander, after non-controlling interests, and improvements in the expense and risk margins, were largely offset by a significant reduction in the investment margin and a lower level of positive special operating items.
responsible sourcing & procurement practices help extend Zurich’s high standards to our supply chain.
To monitor our progress and improve our corporate responsibility performance, we use stakeholder feedback provided through customer and employee surveys, as well as measures such as the FTSE4Good Index Series and the Dow Jones Sustainability Indexes (DJSI). In 2013, Zurich again qualified for inclusion in the DJSI World Index and the FTSE4Good Index Series.
In terms of health & safety, we aim to ensure well-being in the working environment, taking precautions to prevent people from becoming ill or working in conditions that might pose a health risk.
Contributions (cash in USD millions) 0.8 0.1 656% of which contribution from employees (USD millions) 0.4 0.1 296% of which contribution from Z Zurich Foundation
My fellow Board members and I would like to thank you for your continued support. Our commitment to you, our shareholders, and to our customers, employees and the communities in which we live and work, requires that we keep Zurich in the front rank of the insurance industry through profitable growth. To guide us on this journey, we will maintain and further strengthen our corporate governance framework.
Change of role: • Kristof Terryn, CEO Global Life, former Group Head of Operations
Significant shareholders According to the rules regarding the disclosure of significant shareholdings of Swiss companies listed in Switzerland, disclosure has to be made if certain thresholds starting at three percent are reached or if the shareholding subsequently falls below those thresholds. Call options and other financial instruments are added to any share position, even if they
The members of the Board are elected by the shareholders at the AGM. The Board constitutes itself in its first meeting, except for the Chairman and the members of the Remuneration Committee who, as required by the Ordinance Against Excessive Compensation (AEC), in force since January 1, 2014, must be elected by the shareholders.
Committee membership: Audit Committee Other directorships within the Group: Zurich Insurance Company Ltd External appointments: Mr. Watter has been a nonexecutive director of Nobel Biocare Holding AG since 2007 and has served as non-executive chairman of the board since summer 2012; he is also a non-executive chairman of PostFinance AG since mid 2013 and serves as a non-executive director of UBS Alternative Portfolio AG since 2000 and of A.W. Faber-Castell (Holding) AG since 1997. He is a member of the SIX admission board and of its Disclosure Commission of Experts. He is also chairman of two charity institutions. Educational background: Mr. Watter graduated from the University of Zurich with a doctorate in law and holds a master of laws degree from Georgetown University in the U.S. He is admitted to the bar of the Canton of Zurich.
For more information on the supervision and control of the external audit process, see pages 65 and 66.
1 Martin Senn Chief Executive Officer 2 Jeff Dailey Chief Executive Officer Farmers Group, Inc.
Local management, led by the legal entity CEO, is responsible to maintain appropriate controls in place and to appropriately identify and address risks. They meet regularly with risk management and other assurance functions to ensure an effective system of risk identification and mitigation and maintenance of sound internal controls. In addition, regular review of reporting by risk and other assurance functions is carried out by (1) subsidiary boards or subsidiary
The internal control system focuses on key financial reporting, operational and compliance controls. The system encompasses the policies, processes and activities that contribute to the reliability of financial reporting, the effectiveness and efficiency of operations and compliance with laws and regulations. The Group’s annual business plan includes risk management considerations, as well as strategic and business direction, financial information and key indicators. During the year, the Board, the Audit and Risk Committees of the Board and Group Management receive regular reports summarizing financial condition, financial and operating performance, as compared to plan, and key risk exposures.
2013 Remuneration In determining remuneration for 2013 an appropriate balance was made between all relevant factors including business performance, market considerations, regulatory requirements, the long-term overall focus as well as risk considerations. For the Board, no changes were made to the fee structure in 2013. The Remuneration changes for members of the GEC in 2013, where applicable, were focused on increasing the long-term part of variable remuneration and this helped achieve at least 60 percent of the variable remuneration being deferred and subject to long-term performance conditions. Balancing the overall structure of remuneration with company performance, market, risk and regulatory considerations was also important for employee remuneration decisions.
• The Group promotes a high-performance culture by differentiating total remuneration based on the relative performance of businesses and individuals.
Deferral of long-term incentives is achieved by: • pro-rata vesting of the long-term incentive grants in one third installments over the three years following the year of grant, and
Audit Committee of this company. In 2012, Mr. de Swaan earned CHF 75,000 in respect for his work on the board of Zurich Insurance plc and Zurich Life Assurance plc. He also earned an annual fee of CHF 10,000 for being chair of the Audit Committees of these two companies.
Special payments for new members of the Board At the Annual General Meeting on April 4, 2013, Ms. Mächler was elected new member of the Board. No special payments (i.e. “golden handshakes”) or other benefits were provided.
Included in the amount for 2013 is the value of target equity grants of USD 16.2 million given out in 2013 which assumes the grant will vest at 100 percent of target in 2014, 2015 and 2016. As mentioned above, the vesting level under the LTIP for the three year performance period ending December 31, 2013 was 50 percent of target and this results in an actual realizable value of USD 7.2 million based on the number of shares vesting and the closing share price of CHF 258.50 as of December 31, 2013. As a result, the actual earned total remuneration for the period ending December 31, 2013 was USD 9.0 million lower than shown in the table below.
Base salaries 11.6 12.0 Cash incentive awards earned for the year 12.1 12.3 Value of target performance share grants 4 16.2 16.8 Service costs for pension benefits 5 3.2 3.3 Value of other remuneration 6 2.9 2.0 Total in USD 7 46.0 46.4 Total in CHF 8 42.5 42.6 1 The remuneration shown in the table is gross, based on the accrual principle and does not include any business related expenses incurred in the performance of the members’ services.
Sign-on and severance payments for Key Risk Takers As mentioned above, the Group as a principle does not grant sign-on or severance payments. However, if circumstances in the Group’s interest warrant such payments, these can be approved through a clear governance process. With regard to the disclosure of sign-on and severance payments for the individuals considered to be KRTs for the Group, the following sign-on and severance payments were committed to this group of individuals in 2013 and in 2012: Amount 3
• The cash dividend is calculated on the number of Target Shares provided at the grant date and is converted into additional shares based on the market share price prior to the dividend payment.
• At the vesting date, the original number of Target Shares plus the “dividend equivalent” Target Shares will in aggregate be assessed for vesting based on the performance achievements against the vesting grid. In this way only the number of shares vesting will be eligible for accrual of dividend equivalent shares. Further, no dividends will accrue on the dividend equivalent shares.
• Non-Core Businesses reported a business operating profit of USD 73 million compared with USD 129 million in 2012. This reduction resulted from a one-off gain in 2012 included in Other run-off.
ROE of 12.0 percent and BOPAT ROE of 10.5 percent improved by 0.2 percentage points and 1.2 percentage points respectively compared with 2012 driven by the increased earnings. Diluted earnings per share increased by 2 percent to CHF 25.23 for the year ended December 31, 2013, compared with CHF 24.72 in 2012.
Gross written premiums and policy fees 10,215 1 10,003 2% Net underwriting result 362 26 nm Business operating profit 972 699 39% Loss ratio 68.0% 71.4% 3.4 pts Expense ratio 27.2% 28.2% 1.0 pts Combined ratio 95.3% 99.7% 4.4 pts 1 after internal business transfers to Global Corporate
1 Including the return of USD 74 million of premiums as a result of the anticipated settlement of a lawsuit with the State of Texas.
Total return on Group investments was 1.3 percent compared with 7.0 percent in 2012, primarily reflecting the reduction in net unrealized gains in 2013 from rising yields on debt securities.
Net reserves for losses and loss adjustment expenses 57,319 57,385 55,102 55,234
Asia-Pacific and Middle East 11,830 11,315 2,860 3,035 14,689 14,350 1 Restated as set out in note 1 of the Consolidated financial statements.
The overview above highlights only key elements of the governance framework that specifically relate to risk management.
Table 2.a in USD millions, for the year ended December 31, 2013
The Group reviews and aggregates worker injury and property exposures to identify areas of significant concentration. The Group also assesses other lines of business, such as liability and auto, although the potential exposure is not as significant. The resulting data allows underwriters to evaluate how insuring a particular customer’s risk might affect Zurich’s overall exposure. In North America, Zurich uses a vendor-provided catastrophe model to evaluate potential exposures in every major U.S. city. The Group undertakes more detailed and frequent analytics for cities in which Zurich has greater exposure, and continues to refine its reporting about such risks.
Rest of Eurozone 1,147 974 Eurozone supranationals and similar 679 1,058
• Dividends • Share buy-back • Share issuances • Senior & hybrid debt • Reinsurance • Securitization
Regulatory requirements in the European Economic Area In European countries, insurance entities are required to maintain minimum solvency margins according to the existing Solvency I legislation. Solvency I capital is calculated as a fixed percentage of premiums, claims, reserves and net amounts at risk. The required minimum solvency margin for general insurers is the greater of 16 percent of premiums written for the year or 23 percent of a three-year average of claims incurred, subject to the first tranche (EUR 61 million) of premiums at 18 percent and the first tranche (EUR 43 million) of claims at 26 percent. In these calculations, premiums and claims for certain liability lines are increased by 50 percent. A reduction is given for reinsurance based on reinsurance claims recoveries over three years as a percentage of gross claims in those years, limited to a maximum of 50 percent. Life insurance companies are required to maintain a minimum solvency margin generally of 4 percent of insurance reserves, but reduced to 1 percent of insurance reserves for life insurance where the credit and market risks are carried by policyholders, plus 0.3 percent of the amount at risk under insurance policies. The same minimum capital requirements are applicable for insurance entities operating in Switzerland. In certain European countries, both EU and non-EU, further requirements have been imposed by regulators.
• The impact on unit-linked business is not included, as policyholders bear the majority of investment risk. • The impact on changes to the required capital is not included in the sensitivities for the Solvency I ratio. • The major markets in which the Group invests are the U.S. and Europe. The major interest rate exposures are to
Sensitivities for the Group’s Solvency I ratio and IFRS equity (as of December 31, 2013)
Zurich Insurance Group Ltd and its subsidiaries (collectively the Group) is a provider of insurance-based products. The Group also distributes non-insurance products, such as mutual funds, mortgages and other financial services products, from selected third-party providers. The Group operates mainly in Europe, North America, Latin America and Asia Pacific through subsidiaries, as well as branch and representative offices.
Disclosures under IFRS 4 “Insurance Contracts” and IFRS 7 “Financial Instruments: Disclosures” relating to the nature and extent of risks, and capital disclosures under IAS 1 “Presentation of Financial Statements” have been included in the Risk review on pages 128 to 168, and they form an integral part of the Consolidated financial statements.
Fin an cial info rm atio n contracts, deferred front-end fees, reserves for losses and loss adjustment expenses, reserves for unearned premiums, future life policyholders’ benefits, policyholders’ contract deposits and other funds, other liabilities, collateralized loans, senior and subordinated debt, and assets and liabilities held for sale.
New standards IFRS 10 Consolidated Financial Statements 2 January 1, 2013 IFRS 11 Joint Arrangements 1 January 1, 2013 IFRS 12 Disclosure of Interests in Other Entities 1 January 1, 2013 IFRS 13 Fair Value Measurement 3 January 1, 2013
Derivative financial instruments that qualify for hedge accounting Derivative financial instruments are used by the Group to economically hedge risks. In limited circumstances derivative financial instruments are designated as hedging instruments for accounting purposes in: • fair value hedges which are hedge of the exposure to changes in the fair value of a recognized asset or liability; • cash flow hedges which are hedges of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction and could affect profit or loss; or
i) Property and equipment Buildings held for own use and equipment are carried at cost less accumulated depreciation and any accumulated impairment loss. These assets are depreciated usually on a straight-line basis to income over the following estimated useful lives: • buildings 25 to 50 years; • furniture and fixtures five to ten years; and
Valuations can be subject to significant judgment especially when the fair value is determined based on at least one significant unobservable input parameter; such items are classified within Level 3 of the fair value hierarchy. See note 6, 7 and 25 for further information regarding the estimate of fair value.
• its fair value has been below the weighted-average cost for a prolonged period of 24 consecutive months or longer.
Goodwill and Attorney-in-fact relationships (AIF) Goodwill is allocated to the cash generating units (CGUs) as outlined in note 3. For goodwill impairment testing, the recoverable amount is the higher of its fair value less costs to sell and its value-in-use.
Sensitivity tests have been performed on goodwill and AIF, and typically comprised of an analysis for either a decrease in cash flows of up to 30 percent, a decrease in the perpetual growth rate of up to 1.0 percentage point or an increase in the discount rate of up to 3.5 percentage points in order to capture potential future variations in market conditions. Applying the value-in-use methodology, an increase of approximately 1.4 percentage points in the discount rate or a decrease of approximately 1.7 percentage points in the perpetual growth rate of the Global Life Germany CGU would result in the recoverable amount being close to the carrying value. No such reasonably possible changes of key assumptions were identified for the remaining CGUs.
Rental operating expenses for real estate held for investment included in investment expenses for total investments amounted to USD 189 million and USD 194 million for the years ended December 31, 2013 and 2012, respectively.
Investments in associates and joint ventures 11 12 1 1 12 13
Debt securities: Fair value through profit or loss 18,725 5.5 20,630 6.2
The decrease of USD 66 million (USD 324 million before the foreign currency translation impact) during the year ended December 31, 2013 in net reserves for losses and loss adjustment expenses is mostly driven by payments on crop and storm Sandy losses in North America. Favorable reserve development arising from reserves established in prior years amounted to USD 757 million during the year ended December 31, 2013, and mainly relates to the following movements by market-facing business, country and line of business: Table 8.1 in USD millions, as of December 31Reserves for insurance contracts
Fin an cial info rm atio n 16. Goodwill and other intangible assets
The Group’s deferred tax assets and liabilities are recorded by its tax paying entities throughout the world, which may include several legal entities within each tax jurisdiction. Legal entities are grouped as a single taxpayer only when permitted by local legislation and when deemed appropriate. The first part of table 19.8 includes single taxpayers with a net deferred tax asset position and the second part includes single taxpayers with a net deferred tax liability position.
Table 19.9 in USD millions, as of December 31Tax losses carryforwards and tax credits
Fin an cial info rm atio n 20. Senior and subordinated debt
2 Operational senior and subordinated debt included USD 100 million for non-recourse debt.
U.S. pension plans There are two major pension plans in the U.S., the Zurich North America (ZNA) plan and the Farmers Group, Inc. pension (the Farmers Group) plan. These are both cash balance pension plans funded entirely by the Group. The ZNA plan is entirely cash balance and the Farmers Group plan provides benefits on a cash balance pension formula for benefits accruing after January 1, 2009, except with respect to certain grandfathered participants. A final average pay defined benefit formula applied for benefits accrued before 2009, and for the grandfathered participants. For both cash balance plans, an amount is credited to the cash balance plan each quarter, determined by an employee’s age, service and their level of earnings up to and above the social security taxable wage base. The minimum annual interest earned on the account balance is 5 percent. The retirement account is available from age 65, or age 55 with five years’ service. The benefit can be taken as a monthly annuity or a lump sum. Both the ZNA plan and the Farmers Group plan have fiduciaries as required under local pension laws. The fiduciaries are responsible for the governance of the plans. Actuarial valuations are completed regularly and the Group has historically elected to make contributions to the plans to maintain a funding ratio of at least 90 percent as valued under local pension regulations. The annual employer contributions are equal to the present value of benefits accrued each year, plus a rolling amortization of any prior underfunding.
Table 22.3b as of December 31, 2012Key information by main country – prior period
Table 22.4 as of December 31Key financial assumptions used for major plans
Maturity analysis of benefits expected to be paid: < 1 year 155 248 141 54 247 230 131 48
Table 22.5a as of December 31, 2013Mortality tables and life expectancies for major plans – current period
Fin an cial info rm atio n 23. Share-based compensation and cash incentive plans
Total option-based expenses 5 14 Total share-based expenses 46 126 Total expenses 50 140
Expenses for share-based payments depend on various factors, including achievement of targets, and are subject to the discretion of the Remuneration Committee. The net amount reflects all aspects of share-based compensation, including adjustments made during the year. The expenses in table 23.1, therefore, may vary significantly from year to year.
Table 24.1 in USD millions, as of December 31Quantifiable commitments and contingencies
Legal proceedings and regulatory investigations The Group’s business is subject to extensive supervision, and is in regular contact with various regulatory authorities. The Group is continuously involved in legal proceedings, and regulatory investigations arising, for the most part, in the ordinary course of its business operations. Specifically, certain companies within the Group are engaged in the following legal proceedings: An action entitled Fuller-Austin Asbestos Settlement Trust, et al. v. Zurich American Insurance Company (ZAIC), et al., was filed in May 2004 in the Superior Court for San Francisco County, California. Three other similar actions were filed in 2004 and 2005 and have been coordinated with the Fuller-Austin action (collectively, the Fuller-Austin Case). In addition to ZAIC and four of its insurance company subsidiaries, Zurich Insurance Company Ltd and Orange Stone Reinsurance Dublin (Orange Stone) are named as defendants. The plaintiffs, who are historical policyholders of the Home Insurance Company (Home), plead claims for, inter alia, fraudulent transfer, tortious interference, unfair business practices, alter ego and agency liability relating to the recapitalization of Home, which occurred in 1995 following regulatory review and approval. The plaintiffs allege that pursuant to the recapitalization and subsequent transactions, various Zurich entities took assets of Home without giving adequate consideration in return, and contend that this forced Home into liquidation.
Total fair value through profit or loss securities 129,624 119,403 129,624 119,403
Table 25.1b in USD millions, as of December 31Fair value and carrying value of financial assets and financial liabilities – unit-linked
Fair value through profit or loss securities Equity securities 85,375 26,514 64 111,954
Africa South Africa 427 460 Morocco 131 125 Africa 558 585 37 19
Table 28.6 in USD millions, as of December 31General Insurance – Non-current assets by region
Table 28.11 in USD millions, for the years ended December 31Other Operating Businesses – Overview
Zurich Holding Company of America, Inc. 10 Wilmington, DE Other Operating Businesses 100 100 USD –
This report describes the development of embedded value of the Zurich Insurance Group (the Group) for the year ended December 31, 2013.
The majority of this report, sections 1 to 10, relates to Global Life, but summary information relating to total Group MCEV is given in section 11.
(% SM) 1 Free surplus Free surplus of which: Asia-Pacific and Middle East 1,172 837 135% 334 400 1 SM is the local minimum solvency margin.
In North America, free surplus increased by USD 113 million mainly as a result of a change in reinsurance arrangements.
of which: Asia-Pacific and Middle East 530 464 3,368 3,058 177 125 33.5% 26.9% 5.3% 4.1%
• Mortality and morbidity assumption updates increased embedded value by USD 47 million. The main impacts arose in Germany, Asia-Pacific and Middle East and Switzerland contributing USD 45 million, USD 37 million and USD 20 million respectively, partially offset by a decrease in North America of USD 30 million.
Zurich Insurance Group Annual Report 2013 325Embedded value report d) Value of business in-force The value of business in-force is the present value of future projected profits, distributable after tax to shareholders from the covered business. It is defined as the certainty equivalent value of business in-force less frictional costs, the time value of financial options and guarantees, and the cost of residual non-hedgeable risk. These components are explained below.
Zurich Insurance Group Annual Report 2013 327Embedded value report deterministic techniques (referred to as “certainty equivalent”) have been used. In such cases, the projection and discounting are based on the same risk free yield curve. Further details are set out under “Economic assumptions” in section 13.
i) Expenses Initial commissions and renewal commissions directly attributable to policies are allocated to those policies.
In previous years, certain central expenses not reflected in the long-term assumptions of the business units were written off to other operating variances as development expenses as incurred. As of December 31, 2013 these are treated as a maintenance expense for embedded value reporting and a capitalized value of the projected amount
Zurich Insurance Group Annual Report 2013 329Embedded value report o) Change in legislation or solvency regime The impacts of changes in legislation or solvency regimes are included in economic variance for the analysis of movement when they occur.
Expected asset returns in excess of the risk free rate have no bearing on the calculated embedded value other than in the expected contribution used for the analysis of embedded value earnings. The expected return for equities comprises an equity risk premium added to the start of period one year swap rate. The expected return on corporate bonds is equal to the start of period one year swap rate plus a risk premium estimated by comparing the market yield on corporate bonds with the swap rates for equivalent durations. In addition, a reduction must be made to the yield to allow for the expected level of defaults.
Where service companies have been valued on a “look through” basis, the value of profits or losses arising from these services have been included in embedded value and new business value.
Present value of new business premiums (PVNBP) 15,422 14,112 2,937 4,503 2,651 2,544 3,637 3,033 1,410 1,335 1,694 1,471 27,751 26,998
Short-term liabilities Other liabilities to subsidiaries – 668 Other liabilities to third parties 12,507 865 Other liabilities to shareholders 810 607 Accrued liabilities to subsidiaries 1,836 14,227 Accrued liabilities to third parties 40,250 63,622 Derivatives with subsidiaries 3,033 3,065 Total short-term liabilities 58,436 83,054 Long-term liabilities Long-term loans from subsidiaries 466,229 479,029
10. Subordinated loans to subsidiaries Subordinated loans have remained unchanged in local currency compared with 2012, and mainly include a loan to Zurich Insurance Company Ltd of CHF 4,832 million as of December 31, 2013 and 2012.
As of January 1 10,688,412 12,981,667 Transfer to free reserve for dividend payment – (2,494,314) Transfer to free reserve (adjustment capital contribution reserve) (5,457) – Dividend payment out of capital contribution reserve (2,507,249) – Agio on share-based payment transactions 143,798 200,631 Subscription rights out of capital increase 2002 – 428 As of December 31 8,319,504 10,688,412 14. Capital contribution reserve (reserve for treasury shares) This reserve corresponds to the purchase value of all Zurich Insurance Group Ltd shares held by companies in the Zurich Insurance Group as shown in the table below. The Company itself does not hold any treasury shares.
At the Annual General Meeting on April 4, 2013, the term of office of Mr. Meyer expired and he did not stand for re-election as he had served the maximum tenure. No termination payments (i.e. “golden parachutes”) were made and no other benefits such as waiver of lock-up periods for equities, shorter vesting periods or additional contributions to occupational pension schemes were provided. Ms. Mächler was elected new member of the Board. No special payments (i.e. “golden handshakes”) or other benefits were provided.
M. Senn, Chief Executive Officer 41,392 107,212 29,719 103,447 J. Dailey, CEO of Farmers Group, Inc. 3,564 17,605 2,373 14,987 M. Foley, Chief Executive Officer North America Commercial and Regional Chairman of the Americas 8,679 59,404 9,306 52,710 Y. Hausmann, Group General Counsel 5,644 10,193 3,728 7,301 K. Hogan, Former CEO Global Life 3 n / a n / a 3,080 13,032 M. Kerner, CEO General Insurance 9,090 21,588 8,469 24,432 A. Lehmann, Chief Risk Officer and Regional Chairman of Europe 27,955 79,559 23,128 84,640 M. Nordlin, ad interim Group Head of Operations 4 5,288 11,322 n / a n / a C. Reyes, Chief Investment Officer 8,041 25,922 4,823 22,012 G. Riddell, Regional Chairman of Asia-Pacific & Middle East 27,840 67,171 25,002 73,136 V. Sharma, ad interim Chief Financial Officer 5 3,988 8,741 n / a n / a K. Terryn, CEO Global Life 7,086 20,302 4,324 20,540 P. Wauthier, Former Chief Financial Officer 6 n / a n / a 4,947 23,283 1 None of the GEC members together with parties related to them held more than 0.5 percent of the voting rights as at December 31, 2013 or 2012, either directly or through share options.
Appropriation of available earnings as proposed by the Board of Directors Net income after taxes 2,327,038 2,382,137 Balance brought forward 5,321,406 2,939,269 Retained earnings 7,648,444 5,321,406 Balance carried forward 7,648,444 5,321,406
T. de Swaan as of December 31 in CHF thousands in CHF thousands
We further confirm that the proposed appropriation of available earnings (page 355) complies with Swiss law and the Company’s articles of incorporation. We recommend that the financial statements submitted to you be approved.
In this section Registered share data 362 Financial calendar 364 Contact information 365 Glossary 366
Zurch Insurance Group Ltd is not aware of any person or institution which, as of December 31, 2013, directly or indirectly, alone or with others, exercised or was a party to any arrangements to exercise control over Zurich Insurance Group Ltd.