Based on these figures, the business experience can be summarized as follows: - The underwriting loss in Non-Life reinsurance had already reached record levels in the two preceding years: the fact that the year under report saw another massive increase confirms the ungratifying develop­ ment of this business sector in the recent past. There are three main reasons: First, 1992 was again a year of natural catastrophes: After the winter storms in Europe (1990) and Typhoon Mireille in Japan (1991), Hurricane Andrew in the USA was responsible for the heavy losses suffered by the Swiss Re Group and head office. - Second, the devel­ opment of Liability reinsurance continues to be un­ satisfactory; there are still some late asbestos claims and Increasingly also environmental Impairment claims to be settled. - Finally, considerable costs were in­ curred in Motor reinsurance, because of the unbroken wave of car thefts across Europe.
burden in Burglary; the result was only narrowly fa­ vourable in this line.
Of the claims incurred, Sw.frs. 3,121.2 million was ac­ counted for by claims paid and Sw.frs. 1,278.0 million by the adjustment in the outstanding claims reserve. Overall the figure for own account rose by Sw.frs. 879.5 million to Sw. frs. 4,399.2 million.
The commissions and profit commissions calculated for business assumed totalled Sw. frs. 148.7 million.The retro­ cessionaires' share of this amount was Sw. frs. 4.0 million, so that Sw.frs. 144.7 million remained for own account.
The tax outgo contains both taxes on profit and on capital as well as indirect taxes. It amounted to Sw. frs. 53.6 mil­ lion, as against Sw.frs. 61.9 million in the previous year and comprises current taxes levied abroad together with the outgo expected in Switzerland on the basis of the 1992 result. Despite the stamp duty for the capital increase carried out in the year under report, the overall total fell because of the substantial drop in the taxes of foreign branches.
The balance-sheet value of holdings rose by Sw. frs. 518.9 million to Sw. frs. 895.0 million. Loans to Group companies fell by Sw.frs.491.7 million and amounted on the balancesheet date to Sw.frs. 1,853.1 million.The changes mainly resulted from transactions within the Swiss Re Group (of. page 21).
Share capital 207.8 192.0 Non-voting share capital 68.7 60.2 Reserves and profit carried forward 2,815.8 2,342.5
Compagnie Europeenne d'Assurances, Neuilly-sur-Seine Compafiia Europea de Seguros, S.A., Madrid Eüropeesche Verzekeringen, Amsterdam Union Franco-Suisse d'Assurances Vie, Neuilly-sur-Seine
At the request of Group Management, we have audited the consolidated financial statements for the year ended 31 December 1992 of Swiss Reinsurance Company. Our audit was conducted in accordance with accepted auditing standards promulgated by the profession. We confirm that we comply with the legal requirements con­ cerning professional qualification and independence.
Current-account and bank balances 2,411 2,189 4,889 3,730 Casfi deposits 423 170 593 571
Real estate is entered at the balance-sheet values of the individual Group companies: these correspond as a rule to the acquisition cost less the depreciation permitted by the tax authorities. Revaluations whioh certain Group companies are required by law to make are Incorporated In the consolidated accounts but have no effect on the profit for the year.
Profit commission: Contractually agreed ^ commission paid by the ^ insurer or ->• reinsurer in proportion to his profit in a particular piece of insurance or reinsurance business.
- Non-proportional reinsurance (also excess of loss reinsurance): Form of reinsurance in which the rein­ surer assumes that part of the insurer's losses that ex­ ceed a certain amount against payment of a specially calculated ->• premium.