Key Figures 1994 Performance of Swiss Re Registered Shares Annual Report of the Chairman and the Chief Executive Officer Board of Directors, Executive Board and Auditors
Swiss Re Group Organisation 12 Overview of 1994/1995 16 Report of the Divisions 18 Group Accounts
Proposal for Allocation of Profit 74 Report of the Statutory Auditors 75
Performance of Swiss Re registered shares vs the SBC total market index from 1 January 1986 to 13 October 1995 n SWISS fiüiii i
Performance of Swiss Re registered shares and the Pictet index from 31 December 1985 to 13 October 1995
I III ulSii I KI'. Ill S v\'h'.s f I .ini: Swiss Re registered shares Pictet index
The Board of Directors proposes to the General Meeting on 24 November 1995 an increase in the dividend payment from CHF 10.50 to CHF 15.—per share. Moreover, our shareholders should participate in the extraordinary profit by means of a capital repayment of CHF 10.- per share through reduction of the par value of Swiss Re shares from CHF 20.- to CHF 10.- per share. The Board of Directors further proposes to the General Meeting the creation of a single class of share through conversion of the existing bearer shares into registered shares. Simultaneously, limitations on registration and voting rights should be removed to the greatest possible extent.
This year's annual report will inform you about the 1994 financial year. The report will also brief you on the developments in the first nine months of this year and provide you with an outlook on the 1995 financial year.
The sale of our insurance companies to the Allianz Group and the Winterthur Group brought CHF 5.5 billion to Swiss Re. These funds bolster our financial strength, making Swiss Re an even stronger and more reliable partner.
Our focus on the reinsurance business has changed the character of the Swiss Re Group considerably. In order to clearly present this new situation, the divested insurance companies are no longer consolidated in the 1994 Group accounts. The 1994 result includes solely, under investment income, these com­ panies' dividend payments in the amount of CHF 67 million.
The investment result, including allocated investment return, reached CHF 2.104 billion or approximately the same level as in the previous year. The average yield of 6.1% in 1994 compared with 6.6% in 1993 should be judged against the backdrop of the less favourable capital market conditions in contrast with the previous year.
We have allocated CHF 1.760 billion for an extraordinary increase in our technical provisions, especially for liability risks. The reason for boosting our already large provisions is the difficulty in foreseeing the probable burdens from 3 Swiss Re Group
More recent examples include product liability claims in the chemical and pharmaceutical sector. Our policy here is to gain the best possible understanding of the risks through research and development work, to exhaust all possibilities to avoid and limit these risks, and to take all necessary precautions in our balance sheet given our current knowledge in order to make provision for conservatively estimated potential burdens.
Together with other extraordinary provisions of CHE 400 million, total extra­ ordinary expenses were CHE 3.16 billion, leaving an extraordinary profit of CHF 348 million before tax and CHE 227 million after tax.The ordinary and extraordinary profit add up to a total profit of CHF 932 million after deducting tax and minority interests. Swiss Re's tax charge on ordinary and extraordinary profit for the 1994 financial year totalled CHF 376 million.
Balance sheet Investments of the Swiss Re Croup amounted to CHF 34.6 billion at the end of the year. The amount of investments rose sharply in the first half of 1995, due mainly to the payment of CHF 4.3 billion in amounts owed to Swiss Re as a result of the sale of our insurance operations. Our investment policy has been successful in the past years. Over the long term we have achieved above-average returns on our internationally diversified equity share investments. Accordingly, we will gradually raise the equities portion of our investments over time at the expense of investments in property and fixed income securities.
Shareholders' capital and reserves of the Swiss Re Croup was stated at CHF 8.0 billion in the balance sheet at year-end. The relationship between ordinary profit and average employed capital funds, ie the return on equity, was 8.7% in 1994 or still below our target return.
— A strong financial basis. Following the sale of our insurance operations, we are focusing our entire resources on the reinsurance business. Through a solid capital base, a conservative provision policy and improved profitability — our objective is an after-tax return on equity of 15% — we want to be a reliable business partner over the long term. This is increasingly a decisive competitive factor in the reinsurance business, in which decades often go by before obliga­ tions from current treaties must be fulfilled.
In the past 12 months we have introduced a number of steps aimed at strategic expansion and improved profitability of our business. Tbese include three joint ventures with subsidiaries of CS Holding, which extend our service and product range. As part of this co-operation we acquired a 20% stake at the end of December 1994 in Credit Suisse Financial Products, a London-based bank that operates globally in tbe derivatives business.
including the opening of new representative offices in Taipei in June and Seoul in September. We plan to launch additional such offices in Bangkok, Kuala Lumpur, Beijing and Shanghai and open a branch in Singapore in the near future. In Europe we are continuing our strategy of selective expansion.
As part of the expansion of our global life reinsurance business, we acquired the Alhermij Group at the end of June 1995.This company operates mainly in the Dutch life reinsurance market. We see attractive expansion opportunities in life and health reinsurance and intend to effectively exploit this potential.
In the course of last spring we reorganised and expanded our Group's Executive Board. The structure now reflects our new strategic focus and will enable us to better satisfy the needs and expectations of our clients.
Given the developments to date and the assumption of no large claims from natural catastrophes, we anticipate a favourable reinsurance result in 1995. Moreover, tbe significant increase in the investment portfolio due mainly to the proceeds from the sale of our insurance operations and the overall positive trend of the capital markets up to now will likely result in a considerably higher investment result. We thus presently expect 1995 to bring a substantial increase in ordinary profit and a return on equity that moves us a major step closer to our target return.
l/ULi^ Ulrich Bremi Lukas Mühlemann Ghairman Managing Director and of the Board of Directors Chief Executive Officer 6 Swiss Re Group
As from 1 April 1995 the management structure of the Swiss Re Group was adapted to the strategic reorganisation implemented in the autumn of 1994 and simplified. The new Executive Board consolidates the former Group Manage­ ment and the Executive Board of Swiss Re, Zurich. At the same time, the various divisions have been more aligned to clients and markets, with some new responsi­ bilities added and new appointments made. Thus the following persons joined the Executive Board on 1 April 1995: John Coomber as head of the Life Reinsur­ ance Division, Stefan Lippe as CEO of Bavarian Re, and Bruno Porro as deputy head and as of 1 January 1996 head of the Southern Europe and Latin America Division. Heidi Hutter joins Swiss Re Group's Executive Board as of 1 January 1996, and will become head of the USA Division.
Atlanta Boston Chicago Cleveland Dallas Manchester New York Philadelphia Phoenix San Francisco 12 Swiss Re Group
Audatex Zeno J.Amrein * Member of the Committee of the Executive Board 1 until end of 1995 2 as from January 1996 13 Swiss Re Group
The illustrations contained in this Annual Report, a focus on Swiss Re's recent advertisements, show the vibrant presence of our company throughout the world.
In Germany, Europe's largest insur­ ance market, the "Frankfurter Allge­ meine Zeitung" with a daily circula­ tion of 373 000 is a well reputed economic and daily newspaper.
26 April Worst aviation catastrophe in the financial year. 264 people are killed during an emer­ gency landing by aTaiwanese Airbus in Nagoya, Japan.The damage claims amount to USD70 million, and liability claims total USD 320 million. Swiss Re assumes USD 18.5 million.
6 May The railway tunnel between England and France opens following six years of construction.The 50-kilometre structure with two railway pipelines and a service tunnel cost about CHF22 billion. Swiss Re participated in the construction of this "monumental work" through its technical insurances.
21 January to 2 February Gale-force storms and uninterrupted rainfall In large areas of Northern Europe wreak havoc and claim many lives.The hardest hit countries are Germany, France, Belgium, the Netherlands and Switzerland. Insured losses amount toCFIF746 million, of which Swiss Re carries CFIF 2 million.
20 March A rush-hour attack onTokyo's subway system In which the nerve gas Sarin Is em­ ployed causes 11 deaths and 5,500 Injuries. Swiss Re has no claims from this event.
27 March to 7 April At the first conference of the treaty partners of the Climate Convention In Berlin, two employees of Swiss Re also participate within the official Swiss delegation. Based on Swiss Re's work on the topic of natural catastrophes, they document the alarming trend of extreme weather damage and suggest possible contributing factors, eg the emission of greenhouse gases.
I Aprll/23 June Swiss Re's management structure Is sim­ plified through the consolidation of Group Management and the Executive Board. At the same time, the various divisions are more aligned to clients and markets, with some new responsibilities added and new appointments made. New members of the Executive Board Include John Coomber, Stefan LIppe, Bruno Porro and Fleldl Flutter. The revised Executive Board thus now has II members.
23July Employers Re acquires a majority holding In Frankona Re. It was already announced In May that the American reinsurer has bought the majority of Aachener Re. With the acquisition of these two German com­ panies, Employers Re surpasses the General Re Group and becomes the world's third largest reinsurer based on premium Income.
5 September Swiss Re registered shares exceed the CHF1000 mark forthe first time, closing at a price of CFIF 1001. A year earlier, on 5 September 1994, the registered share price was only CFIF 552.
The insurance industry is currently undergoing a phase of great structural change. In the mature markets, Europe and North America, significant restructuring is underway and will continue due to growing deregulation and opening of markets. This is accompanied by a fundamental reevaluation of the insurance product, related services, distribution channels and cost structures.
As a reinsurer we do our best to optimally support our clients in the changed market environment. This means the provision of efficient reinsurance products that are tailored to the individual needs of our business partners and the offering of new and additional services.
In the rapidly developing markets in Asia, Latin America and central and eastern Europe, the large demand for insurance protection outstrips the existing supply. This opens new opportunities for local and, after the anticipated coming opening of currently inaccessible markets, also foreign insurers.
Gross premiums by country 1994:100% = CHF7.64 billion in % • Germany 35% • United Kingdom 15% • France 12% • Switzerland 8%
Our task is to recognise early the opportunities presented by the significant changes in the European insurance market and to support our clients to the best of our ability. We have therefore broadly expanded our range of services: market research, pricing foundations, product development and models for risk manage­ ment and performance measurement in insurance companies are examples.
Switzerland Premium volume in Switzerland fell modestly. The main reasons for this are the ongoing consolidation in the insurance industry, the introduction of new cover concepts in reinsurance and the continued slide in the premium level in the commercial business. We are concerned about rising claims payments in motor insurance and increasingly also in tbe accident business, which has led us to substantially boost the provisions for late claims. More than half of the reinsurance premiums of our Swiss clients relate to foreign, mostly European risks. The claims experience of this portfolio in 1994 was gratifying for the most part.
Germany The primary insurance market in Germany recorded strong premium growth, especially in motor insurance. Swiss Re was also able to expand its volume dis­ proportionately compared with other European markets. 1989-93 were marked by inadequate returns for the entire insurance market. Whereas the initial culprits were primarily severe storm and hail losses as well as a catastrophic industrial fire business, these were joined following German reunification by losses in the motor damage business due to an increase in vehicle theft. More­ over, the hail storm in the Cologne area in early July 1994 caused a gross loss of about CHF 500 million. The reorganisation underway since 1992 in the motor and industrial fire businesses has lost momentum, and competition is already starting to pick up again, especially in the peak risk area, which increasingly also attracts foreign providers.
The growth in general liability is primarily attributable to the adjustment of the portfolio premium to the increased risks in industrial and commercial business. This process will continue in 1995 and the following years because the risks are still marked by high volatility, particularly in the pharmaceutical, product and environmental segments.
The overall unsatisfactory performance of the household business (fire, storm, waterpipes) should be improved through the gradual introduction of risk retention by insurers. Since the few, small storms mainly were not reinsured, reinsurance premium rates came under substantial pressure around year-end. Earthquake and flood cover for households was newly introduced into the market.
Central Europe As a result of a strong market presence in the central European target markets Poland, the Czech Republic and the Slovakian Republic, we have been able to greatly expand our business relationships. Our representative office in the Baltics actively contributes to the build-up and development of the local insur­ ance industry.
Netherlands In the Netherlands the move away from tortious liability to causal liability in the liability business is triggering higher losses. Generally higher compensation, the withdrawal of the state from some areas of social insurance, and the impending right of recourse of health and accident insurers also increase losses. Following the floods in winter 1995, primary insurers and the administration have agreed on the formation of an earthquake/flood pool.
The Swiss Re Group strengthened its market position. The lack of natural catastrophes and the notable reduction of large property losses bave contributed significantly to an improved total result.
Japan In view of the looming deregulation in 1996, the Japanese insurance market stands before far-reaching changes that will bring an end to the previous separa­ tion of life and non-life insurance. Most companies are preparing to expand their business activity accordingly. We will be able to actively support them in this process through our recently expanded office in Tokyo. The result in this market was positive. Insured losses from the Great Hanshin earthquake in January 1995 were substantially lower than initially feared and are estimated to total less than CHF 80 million for the Swiss Re Group.
Australia In Australia the insurance industry experienced the second successive year of overall good results, which was attributable to the renewed lack of natural catastrophe losses. The favourable underwriting result of our Australian sub­ sidiary reflects the market situation. Swiss Re Australia faces new duties and challenges as it must provide service and support for expansion of the business activity of its clients in the Asian markets.
In Australia, as in other Asian markets, motor insurance is still a problem area. Premium adjustments are hardly able to keep pace with the growth in the number of accidents and loss expenses, especially for bodily injuries. In pro­ perty insurance the competitive pressure on premium rates for large industrial risks is increasingly spreading to the mass business.
Losses from natural catastrophes were dominated by the Northridge earth­ quake in 1994. Of the total known damage today of USD 16 billion, the insurance industry loss stands at nearly USD 12.5 billion. The true extent of the damage was initially seriously underestimated. With the help of our loss simulation model, we were able to swiftly provide a reliable estimate of our share of the damage. The Swiss Re Group's total share of this claim amounts to CHF 125 million.
Dealing with the long latent asbestos and environmental claims remains a prime concern for the American insurance and the entire reinsurance industry. Although the attempt to reform the financing of environmental losses (Superfund ) failed in 1994, efforts still continue in this direction. Nevertheless, we still anticipate substantial claims. For rhis reason, we have increased the provisions for these potential claims at our American subsidiary by USD 700 million in the first half of 1995. Other insurance companies have since made similar additions to provisions.
We began a fundamental review of our strategy for the American non-life reinsurance market at the end of 1994. As a result, we have reorganised our US subsidiary, Swiss Re America. We will from now on focus increasingly on client groups and products in which we can contribute added value. With a strengthened capital base and a new management structure, we intend to bolster our position in the world's largest reinsurance market. Given the current market situation, our main focus will he on enhancing the quality of our portfolio and improving profitability.
In view of the possible elimination of the reinsurance monopoly in Brazil, we are also targeting a leading position in Latin America's largest insurance market.
Property Premium income in the property lines declined slightly from the previous year, whereas the proportional share particularly fell compared with the non-pro­ portional and facultative business. This was the result of our efforts to shift the portfolio to a more volatile yet more capital intensive area with higher margins and growing reinsurance demand.
With the exception of the American market, property insurances on the whole were affected less by natural catastrophes or spectacular large losses in 1994 than in previous years. This circumstance, bolstered by the successful introduc­ tion of reorganisation efforts by the insurance industry in individual markets, brought generally improved results. Against this backdrop, property reinsurance in the non-proportional segment consolidated at a generally attractive price level and posted selective gains in proportional treaty reinsurance, which remains the highest volume business.
We continue to pay close attention to the proportionalfire business. Due to reorganisation of reinsurance programmes, increased retention by insurers and the termination of treaties with insufficient profit prospects, the premium income from proportional treaty reinsurance fell ar most Group companies. The 1994 results remain unsatisfactory in individual markets and business segments. We further expanded our non-proportional portfolio. Our ability to directly influence pricing by uncoupling from the premium rates of primary insurers, and continuation of a sufficient price level for catastrophe covers led to an attractive result. Facultative business experienced a growth spurt in 1994, again recording a satisfactory underwriting result.
Rising capacity and initial signs of softening reinsurance conditions and prices are apparent in European catastrophe covers. We will therefore cautiously employ our capacity in 1996, with only selective increases at corresponding price levels. Nevertheless, we are convinced that the market has grown more professional and reacts more responsibly, consequently limiting the extent of any renewed price competition. Premium volume in hail/crop reinsurance idi somewhat worldwide. Our port­ folio was additionally influenced by pruning measures that were necessary after the negative results of the previous year. The result was thus improved in the financial year but still remains unsatisfacrory. Ongoing restructuring in the 25 Swiss Re Group
Gross premiums Liability/Accident/Health in millions of Swiss francs agricultural sector spurs increasing demand for new insurance products. For the specialised agricultural insurers, as well as for reinsurers, this means providing additional effort in support of product development.
Marine The improved original conditions in past years and enhanced treaty conditions formed a favourable setting for the targeted expansion of the marine business. Although income fell in some markets due to the necessary continuation of re­ organisation or consolidation and diversification, premium income rose on the whole. Improved original conditions led to a satisfactory result, and the influence 26 Swiss Re Group
Demand for financial reinsurance continues to rise, despite the introduction of regulatory limitations in the USA and the UK last year. Client needs keep growing for the build-up of coverage for losses for wbich traditional reinsurance is capable of providing only modest or no capacity. Capacity is especially limited for liability risks (eg environmental losses) or for catastrophe covers.
A growing number of traditional reinsurers are entering the financial reinsur­ ance market. Moreover, banks are establishing special purpose companies to structure financial reinsurance contracts. The Swiss Re Group already holds a top position among the leading international financial reinsurers. Our global scope, high degree of specialisation and strong ability to innovate provide us wirb the ideal qualifications to continue exceptional growth and expand our position.
New York, develops products that make risk covers tradable, and should thus offer additional investment possibilities to the international financial markets.
In addition to optimising risk transfer costs in traditional insurance lines, a growing number of captives also help take precaution against newly defined, 28 Swiss Re Group
Premiums from international large risks rose only modestly in terms of Swiss francs in comparison with the previous year. The underwriting result in this business segment was positive. Given our capital strength and our increased specialisation in targeting clients, the future should continue to offer attractive prospects.
Gross premiums Life Life Reinsurance in millions of Swiss francs 1910 1511 1994 was characterised by uneven development of new business across the
world's insurance markets. Liberalisation of market access, privatisation and the H gradual transfer of some public welfare benefits to the private sector provided H positive impetus, most notably in Europe and Latin America. At the same time, however, liberalisation of financial products increased competitive pressure on saving products.
Robust economic growth generally holsters the life insurance industry, which was particularly evident in many markets of the Far East. Japan was an ex­ ception to this trend, with uncertainty about economic development resulting in subdued life insurance growth.
Results The decline in life reinsurance premium volume in 1994 is attributable primarily to the inclusion of two extraordinary transactions in 1993. Otherwise, premium income in original currencies was roughly on a par with the previous year, with a modest reduction after conversion into Swiss francs. Moreover, part of the accident and health business was underwritten by the life reinsurance companies and operations. This business accounted for gross premiums of CHE 423 million in 1994.
Western Europe and North America remain our principal sources of business. Yet our development during the nineties shows that the Asia Pacific region, spearheaded by Japan, has made significant gains. Latin America and eastern Europe are also experiencing strong growth, but from a somewhat smaller base.
In the USA we have conducted a major review of our strategy, which has triggered a number of new initiatives in the life and health reinsurance lines. And in the rapidly expanding markets of the Far Fast, Fatin America and eastern Europe, we are reinforcing our commitment through additional local resources.
The steady expansion of our global life reinsurance business is a major com­ ponent of the Swiss Re Group's strategy. We see attractive market opportunities in the traditional products as well as in the health market. In order to support our business development efforts, we have created a new department in Zurich specialising in life reinsurance product management.
Global economic development was marked by ongoing growth momentum in the Anglo-Saxon countries, the start of economic recovery in Europe and con­ tinuing deep recession in Japan.
Structure of investments as at 31.12.1994 100% = CHF 34.616 billion in%
Investments rose by about CHF 0.6 billion or 1.7% in the financial year. There are two reasons for the increase not being more. First, the previously mentioned price decline on the equity market and conversion-related currency losses dampened the rise. Second, even though the balance sheet value of the item "investments in unconsolidated subsidiaries and affiliated companies" was already reduced by tbe sale-related disposal amount following the divestment of the primary insurance operations, Swiss Re received the majority of the sale proceeds only in 1995. Thus these funds are not yet included in the investment portfolio.
Within land and buildings, outflows slightly surpassed inflows. This, together with conversion-related losses, led to a modest decline both in absolute terms and in relative terms.
Investments in unconsolidated subsidiaries and affiliated companies also fell in absolute terms and in terms of percentage share.
rose modestly. The change reflects both the increase in investment volume and the losses from conversion at lower exchange rates.
- Valuation readjustments and realised gains on investments fell, but at about CHF 0.6 billion, their contribution remains substantial.
The management of personnel recruitment, counselling, development, training and ongoing education is the decisive success factor, in addition to financial strength, for the Swiss Re Group. In an industry whose products neither enjoy patent protection nor are safeguarded against rapid imitation by competitors through time-consuming investment in buildings and machines, the quality of personnel determines competitive position among competitors with equivalent financial resources. The definition and attainment of goals depends on the enthusiasm, quality, creativity, bearing, client focus, knowledge, ability to learn, willingness to change and, last but not least, the willpower of each individual. Moreover, the success of the company is increasingly determined not only by the performance of the individual alone, but also by what he or she achieves together with others as a member of a team.
Performance- and success-based compensation system As a first step, a long-term incentive compensation plan has been introduced for top management. Starting in 1996 all Group companies will implement these principles, tailored to their local market conditions.
Premiums written Change in the provision for unearned premiums 3. Claims incurred Claims paid Change in the provision for claims outstanding 4. Change in the provision for life, health and disability reinsurance 76 56 - 132 - 428 5. Change in other technical provisions 97 - 97 - 335 7. Operating expenses - 3208 - y221 Commissions Administrative expenses
III Total result 1. Technical result 2. Non technical result 3. Profit on ordinary activities before tax 4. Tax on ordinary activities
in miliions of Swiss francs 1994 1993 1 Shareholders' capital and reserves 8019 8175 1. Share capital 301 301 2. Share premium account 2 648 2 367 3. Reserve for own shares 155 4. Revaluation reserve 1 442 1 891 5. Retained earnings brought forward 2 541 3 071 6. Profit for the financial year 932 545
III Technical provisions 28307 25 034 1. Provisions for unearned premiums 2 179 2 383 2. Provisions for life, health and disability reinsurance 3 658 4177 3. Provisions for claims outstanding 21 555 17715 4. Provisions for bonuses and rebates 452 62 5. Other technical provisions 463 697
IV Technical provisions for unlt-llnked life reinsurance policies where policyholders bear the Investment risk 302 298
V Provisions for other risks and charges 1756 1310 1. Provisions for pensions 64 53 2. Provisions for taxation 1 057 1 054 3. Other provisions 635 203
Additional information on the Group accounts Gross premiums by country 46 Premiums by line 46 Net technical account by line 47 Investments 48 Investment result 48 Investments by currency 49 Technical provisions 50 Technical provisions by line 50 Technical provisions by currency 50 Capital funds 51
The insurance companies sold as of 31 December 1994 or 1 January 1995 are treated as unconsolidated Group companies in the 1994 accounts and the comparable 1993 figures.The 1993 financial statements have been restated to enable comparison.
Other investments are valued at their nominal value, less provisions required for permanent diminution in value.
Provisions for claims outstanding are based on the full expected amount of the related payments, with the exception of the life business and partly for the accident, health and disability businesses, in which the present value of future income and outgo are set aside as provisions. In financial reinsurance, provisions for claims out­ standing are also partially accounted for at present value.
Provisions for claims outstanding are calculated individually or by statistical methods. They also include provisions for claims incurred but not yet reported as well as pro­ visions prescribed by local regulatory authorities for future claim fluctuations and for large and catastrophic losses. The amount of these provisions is disclosed in the notes to the financial statements.
Provisions for the life, accident, health and disability businesses are actuarially determined. The corresponding reserves are those shown in the books of the Group companies.
Currency exchange rates in CHF per 100 units of foreign currency 31.12.94 31.12.93 % German Mark DEM 84.43 85.52 - 1.27 Pound Sterling GBP 204.76 219.71 - 6.80 French Franc FFR 24.52 25.15 - 2.50 Dutch Guilder NLG 75.41 76.46 - 1.37 Peseta PTE 0.99 1.04 - 4.31 Lira ITL ^0.08 0.09 - 6.92 US Dollar USD 130.86 148.50 -11.88 Canadian Dollar CAD 93.30 112.17 -16.82 Yen JPY 1.31 1.33 - 1.50 Australian Dollar AUD 101.50 100.79 0.70 Rand ZAR 36.92 43.71 - 15.53 45 Swiss Re Group
1994 1993 in millions of Swiss francs Total % % Total % % Gross premiums by country Europe 59.0 55.6
Germany 2 661 20.6 2 472 18.4 United Kingdom 1 122 8.7 1 246 9.3 France 924 7.1 963 7.1 The Netherlands 496 3.8 458 3.4 Spain 340 2.6 312 2.3 Italy 253 2.0 290 2.1 Other EU countries 670 5.2 619 4.6
Premiums by line Property 4 047 - 297 3 750 4 240 - 323 3917 Liability 1 795 - 37 1 758 1 914 - 46 1 868 Motor 2 380 - 97 2 283 2214 - 75 2 139 Accident 564 - 38 526 538 - 32 506 Health (including disability) 539 - 17 522 558 - 24 534 Marine 612 - 48 564 589 - 64 525 Aviation 298 - 17 281 281 - 35 246 Credit/Surety 546 - 10 536 529 8 521 Engineering/Other lines 658 - 17 641 689 - 26 663 Subtotal Non-Life 11439 - 578 10861 11 552 - 633 10919 Life 1511 - 193 1 318 1910 - 116 1 794 46 Swiss Re Group
Land and buildings Investments in unconsolidated subsidiaries and affiliated companies Loans to unconsolidated subsidiaries and affiliated companies Shares Fixed income securities Loans Mortgages Time deposits Other investments Deposits with ceding companies
Transfers adjustments Revaluations on sales 31.12.1994 value in millions of Swiss francs CHF DEM FRF GBP USD Other Total
Investments by currency Land and buildings 2 233 495 19 13 217 2 977 Investments in unconsolidated subsidiaries and affiliated companies 182 331 393 39 614 367 1926 Loans to unconsolidated subsidiaries and affiliated companies 65 40 105 Shares 1 276 999 226 231 1 156 1 314 5 202 Fixed income securities 1 997 2 902 1 783 1 284 7 233 3 868 19 067 Loans 21 11 7 50 89 Mortgages 312 21 19 352 Time deposits 299 529 74 164 223 193 1 482 Other investments 5 27 32 Deposits with ceding companies 389 697 396 29 377 1 211 3 099
Total investments for own account 6 714 6 077 2 872 1 766 9 623
Technical provisions Provisions for unearned premiums Provisions for life, health and disability reinsurance Provisions for claims outstanding Provisions for bonuses and rebates Other technical provisions 1994 1993 Retro- Retro-
Technical provisions for unit-linked life reinsurance policies where policyholders bear the investment risk 302 302 298 298 in millions of Swiss francs Property Liability Accident,
Technical provisions for unit-linked life reinsurance policies where policyholders bear the investment risk 302 302
In millions of Swiss francs CHF DEM FRF GBP USD Other Total
Changes in capital funds Capital funds at end of the previous year
Capital funds including unrealised gains Capital funds on 31 December Unrealised gains on investments Deferred taxes Capital funds on 31 December including unrealised gains.
Key figure* Return on Equity 8.7 7.4 * Refer to glossary for definition 51 Swiss Re Group
Cash flow from reinsurance operations 3 245 2. Non technical operations Investment income 1 942 Investment charges excluding valuation adjustments - 206 Technical interest expense - 1 525 Other net charges - 25
I Cash flow from financing activities Change in other liabilities 372 Additional paid in capital by shareholders 281 Dividend - 142 Cash flow from financing activities 511
IV Cash flow (change in cash funds) Cash funds on 31 December 1993 - 493 Cash funds on 31 December 1994 400 Effect of currency translation 21 Change in cash funds - 72 52 Swiss Re Group
For the reinsurance business assumed, the accrual of deferred acquisition costs is partially accounted for as part of the unearned premium reserve calculation. For consistency purposes, the capitalised part of the deferred acquisition cost (CHF 164 million in 1994 compared with CHF 185 million in 1993) is offset against the unearned premium reserve. The change in the deferred acquisition cost of CHF -7 million (1993: CHF 16 million) is offset against the change in the unearned premium reserve. Moreover, capitalised deferred acquisition cost of CHF 157 million (1993: CHF 170 million) is offset against provisions for life, health and disability reinsurance.The change in the deferred acquisition cost of CHF-5 million (1993: CHF -6 million) is offset against the change in the provisions for life, health and dis­ ability.
Other income is income from a court settlement with the Stadtsparkasse Düsseldorf.
Extraordinary technical provisions precautionary provision for catastrophe claims other technical provisions, especially for liability risks
The other extraordinary provision relates to a guarantee provided in connection with the acquisition of a minority holding in Credit Suisse Financial Products, London.
Land and buildings with a cost of CHF 551 million (1993: CHF 556 million) and a mar­ ket value of CHF 729 million (1993: CHF 761 million) are used by Group companies for own purposes. Fair market rent is charged for their use. The total cost of land and buildings is CHF 2.172 billion (1993: CHF 2.222 billion).
Claims on and commitments to unconsolidated subsidiaries and affiliated companies in mliiions of Swiss francs
Insurance companies sold as of 31 December 1994 or 1 January 1995
Affiliated companies valued at Swiss Re's share of their equity Unconsolidated subsidiaries Other minority holdings Investments in unconsolidated subsidiaries and affiliated companies as stated in the balance sheet
Income from insurance companies sold as of 31 December 1994 Income from companies stated at Swiss Re's share of their equity Income from unconsolidated subsidiaries Income from other minority holdings Income from unconsolidated subsidiaries and affiliated companies in millions of Swiss francs
The amount in the respective balance sheet positions related to unconsolidated sub­ sidiaries is as follows; in millions of Swiss francs
Cash deposits (assets) Debtors from insurance operations Other debtors Cash deposits (liabilities) Liabilities from insurance operations Other liabilities 3
Refer to pages 82-89 for information on unconsolidated subsidiaries and affiliated companies.
The shares stated at market value in the balance sheet cost CHF 4.144 billion (1993: CHF3.001 billion).
Own shares held by the Swiss Re Group are stated in the notes of Swiss Re, Zurich, page 72.
As security for own obligations, assets totalling CHF 2.961 billion (1993: CHF 3.019 bil­ lion) have been either deposited, pledged or assigned in favour of ceding companies.
Other debtors Other debtors contains claims of CHF 4.328 billion arising from the sale of the insur­ ance companies.
Technical provisions Statement of changes: Technical provisions, including technical provisions for unit-linked life reinsurance policies where policyholders bear the investment risk, on 31 December 1993
The Swiss Re Group regularly evaluates its obligations arising from these claims and undertook a comprehensive status review in 1994 and 1995. Customary methods for the estimation of obligations are inappropriate for this business. Thus alter­ natives have been developed in order to estimate the Swiss Re Group's prospective claims burden.
Provisions for claims outstanding on 31 December 1994 reflect the carefully esti­ mated future trend of claims payments and claims settlement charges. Due to the uncertainties and assumptions on which these estimates are based, however, we cannot exclude the need to make further additions to these provisions in the future.
Accruals and deferred income contain a deferral of CFIF 510 million, from the sale of the insurance companies, which will only be realised in the 1995 accounts.
There are off-balance sheet leasing liabilities in the sum of CHF 5 million (1993: CHF5 million).
There are liabilities coming due after more than five years in the sum of CHF 0.3 mil­ lion (1993: CHF 189 million).
Contingent liabilities at 31 December 1994 are as follows: in millions of Swiss francs
We have audited the consolidated financial statements, consisting of the balance sheet, income statement and notes to the financial statements, of the Swiss Reinsurance Group presented by the Board of Directors for the year ended 31 December 1994, as set forth on pages 38 to 56, in accordance with the Swiss Code of Obligations. Our audit was conducted in accordance with auditing standards promulgated by the profession and in accordance with the Interna­ tional Standards on Auditing issued by the International Federation of Accoun­ tants (IFAG). We confirm that we comply with the legal requirements concern­ ing professional qualification and independence.
Figures for both years are based on the new accounting principles and exclude the insurance companies sold as of 31.12.1994 and 1.1.1995.
Earned net premiums Claims incurred Change in the provision for life, health and disability reinsurance Operating expenses Other technical positions Allocated investment return
Profit for the financial year 545 932 in millions of Swiss francs
Switzerland, home to a highly Inter­ national Insurance market, possesses the highest per capita expenditure for Insurance In Europe. Here In our domestic market and beyond, the "Neue Zürcher Zeltung" Is highly regarded for Its coverage of foreign and business affairs. NZZ's dally circulation Is 154 000.
Corporate Communication and Economic Research Otto Kern Thomas Hess, Heinz von Aesch
Switzerland, Italy, Austria Erich EtterVAndreas Beerli^ Peter Arbenz, Jakob Eugster, Aminta Galfetti, Filippo Raffaele, Sebastiaan Reitsma, John W. Youngs'
Product Management Ernst Baumann/ Robert Martignier Martin Albers-Schönberg, Alfred Bloch, Alfred Diezi, Fritz Eugster,Thomas Hiltmann, Werner Meier, Niklaus Müntener, Peter Schranz, Jürg Spühler, Heinz Stettier
Reinsurance Services Alexander Schneeberger Max Becker, Marcel Bürge, Daniel Dürst, Armin Frei, Jürg Hofmann,Thomas Lörtscher
Suiza de Reaseguros (Iberical Agencia de Reaseguros S.A. Departamento OFATEC Madrid
Asia Pacific Hermann Hefti Sigisbert Albin, Jürg Bleuler, Glon Duri Cantieni, Manfred Freylinger, Rudolf Oschwald, Tomihiro Segawa
Swiss Reinsurance Company Representative Office Tokyo Tokyo 62 Swiss Re, Zurich
Credit and Surety Adrian Sulzer Charlotte A. Gubler, Peter Hoppler, HansVoser
Accounting Ennio Franci Martin Benz, Walter Engier, Erich Hunold, Johannes Scherrer
Profit for the financial year amounted to CHE 530 million after taxes. It consists of the ordinary and the extraordinary profit. Given the favourable market conditions for the reinsurance industry, the technical result improved notably. In contrast, the difficult conditions on the capital markets caused the invest­ ment result to reduce from the previous year. The sale of the primary insurance operations additionally resulted in an extraordinary profit of CHE 238 million after tax.
The book profit on the sale of the primary insurance operations, which was partly offset by various extraordinary charges, was used primarily to boost technical provisions. Additions were made for claims reported and for claims incurred but not reported, mainly for liability risks. A provision for catastrophe claims was formed at the direction of regulatory authorities. In addition to the technical provisions, further financial provisions and precautionary valuation adjustments on the investment portfolio were made.
The total amount of investments in unconsolidated subsidiaries and affiliated companies changed little from the previous year.
Whereas the sale of the primary insurance companies reduced the balance sheet amount, this was offset by capital increases and the increase of holdings in the reinsurance division.
Loans to unconsolidated subsidiaries and affiliated companies rose by CHF 672 million to CHF 1.195 billion. The increase in loans financed the acquisition of a 20% holding in Credit Suisse Financial Products, London, through an intermediate holding company.
Premiums written Change in the provision for unearned premiums 2. Claims incurred Claims paid Change in the provision for claims outstanding 3. Change in the provision for life reinsurance 4. Profit commissions 5. Operating expenses Commissions Administrative expenses
Income from land and buildings Dividend and interest from subsidiaries and affiliated companies Dividend income Income from fixed income securities, loans and mortgages Income from time deposits Income from deposits with ceding companies Realised gains on investments 2. Investment charges Investment management charges Valuation adjustments on investments Realised losses from sale of investments
Retained earnings brought forward 5 Profit for the financial year 530
II Technical provisions 15337 12748 1. Provisions for unearned premiums 1311 1 427 2. Provisions for life reinsurance 1399 1 454 3. Provisions for claims outstanding 11606 9 827 4. Provisions for profit commissions 21 40 5. Provision for catastrophe claims 1000 -
V Creditors 3169 1390 1. Creditors arising out of reinsurance operations 1 691 1 039 2. Amounts owed to banks 300 2 3. Other creditors 1 178 349
The accounts of the parent company are prepared in accordance with the regula­ tions of Swiss Corporation Law. Effective for the first time in the 1994 financial year, Swiss Re's profit and loss account and balance sheet are presented in line with European Union directive-based accounting and reporting recommendations for insurance companies.The 1993 figures have been restated to comply with the new structure of the profit and loss account and the balance sheet.
The following assets are stated at cost, less necessary and legally permissible depre­ ciation: - Land and buildings (purchase or construction cost) - investments in unconsolidated subsidiaries and affiliated companies - Shares - Fixed income securities - Loans These assets are not subject to revaluations.
The following items are stated at nominal value in the balance sheet, after deduction of known delcredere risks if applicable: - Loans to unconsolidated subsidiaries and affiliated companies - Mortgages - Time deposits - Deposits with ceding companies - Debtors - Cash at bank and in hand
Provisions for claims outstanding are determined on the basis of Information provided by clients. If necessary, cautious adjustments are made to these reserves based on past experience. Additional provisions are formed for claims that are Incurred but not yet reported. Unpaid Insurance obligations are set aside at the full expected amount of future payment. At the direction of the Swiss Insurance supervisory authority, a re­ serve for catastrophe claims was established In 1994. Annuity liabilities are calculated at actuarially determined present values.
Source of capital funds From nominal capital From share premium From extraordinary allocation From profit allocation
Assets with reservation of title To secure the technical reserves on the 1994 balance sheet date securities in the amount of CHF 988 million were deposited in favour of ceding companies (1993: CHF964 million).
The current account obligations towards employee pension funds amounted to CHF 49 million on the 1994 balance sheet date (1993: CHF 9 million).
Other provisions This item consists mainly of provisions for currency fluctuations and a provision re­ lating to a guarantee provided in connection with the purchase of a minority holding in Credit Suisse Financial Products, London.
Details on the Swiss Re Group's subsidiaries and affiliated companies are to be found on pages 82 to 89.
Own shares held on 1 January 1995 at cost 208 888 - 155 Purchases in 1995 503 269 15 575 423 Sales in 1995 23 800 3 000 23 Realised gains 3 Own shares held on 13 October 1995 at cost 688 357 12 575 558 Own shares held on 13 October 1995
Major shareholders Based on the information at our disposal, CS Holding owned 1,360,792 registered shares of Swiss Reinsurance Company on 13 October 1995, representing 9.7% of the registered share capital or 9.0% of the total share capital.
Actuarial audit The Independent actuary, Hans-Ulrlch Gerber, Lausanne, has confirmed In his report that the balance sheet provisions for the life reinsurance business stated at year-end 1994 have been calculated In accordance with European Union guidelines.
The General Meeting to be held in Zurich on 24 November 1995 has at its disposal the following balance sheet profit (cf. Profit and Loss Account and Balance Sheet, pages 66 to 68): in Swiss francs
Retained earnings brought forward from previous year Profit for the financial year
The Board of Directors proposes to the General Meeting to allocate this profit as follows: in Swiss francs
If the proposal of the Board of Directors is accepted, a dividend of GHF 15.— per share will be paid.
After deduction of the Federal Withholding Tax of 35 %, the net dividend of GHF 9.75 will be paid from 1 December 1995 as follows: - Registered shares by means of dividend order to shareholders in the records of the share register or to their deposit banks. — Bearer shares against presentation of Goupon No. 2.
Based on our audit we conclude that the books of account, the financial statements and the proposed appropriation of retained earnings are in accor­ dance with the law and the Articles of Association.
We recommend that the financial statements submitted to you he approved.
H. Thiel P. Ochsner Auditors in charge 75 Swiss Re, Zurich
The "Financial News", in Beijing (circulation 400000), the "Business Times" in Singapore (circulation 33000) and the "Nihon Keizai Shimbun " in Japan (circulation 2 863 000) are important media for business people in Asia.
Registered shares Number of registered shares Issued 1 750 000 1750 000 1 892 266 14 023 601 14023 601 14023601 of which reserved for option rights 153797 151 144 151 144 1 138011 561 380 reserved for other corporate purposes 176000 176000 176000 416 848 416848 423140
Number of registered shares entitled to dividend'' 1 420 203 1 422 856 1 565142 12 468 742 13045373 13 600 461 Par value CHF 100 100 100 20 20 20 Parent-company ordinary profit per registered share^'^' CHF 65 75 77 36 21 Dividend paid per registered share CHF 45 48 48 10.50 15 Adjusted ordinary Group profit per registered share^'^ CHF 18 22 22 41 50 Adjusted Group capital per registered share^'^'^ CHF 367 442 472 752 640 Adjusted stock exchange prices per registered share high CHF 492 462 494 763 811 1 264 low CHF 319 313 370 464 515 720 year-end® CHF 350 370 480 735 789 1 230
Average dally trading volume® CHF million 2.4 4.6 7.8 17.2 44.7 59.4
Bearer shares Number of bearer shares Issued 170 000 170 000 185400 1019700 1019700 1 019700 of which reserved for corporate purposes 16 000 16 000 Number of bearer shares entitled to dividend 154000 154000 185400 1019700 1019700 1019700 Par value CHF 100 100 100 20 20 20 Parent-company ordinary profit per bearer share^ ^ CHF 65 75 77 36 21 Dividend paid per bearer share CHF 45 48 48 10.50 15 Adjusted ordinary Group profit per bearer share^ ® CHF 18 22 22 41 50 Adjusted Group capital per bearer share^ ®'^ CHF 364 438 470 752 640 Adjusted stock exchange prices per bearer share high CHF 729 625 527 808 810 1 263 low CHF 444 437 415 495 566 720 year-end® CHF 536 462 520 780 790 1 230
Stock market capitalisation^ High CHF 6 239 5 846 6 539 10 338 11 406 18741 Low CHF 3 968 4021 5 000 6 290 7 296 10 127 Year-end® CHF 4 820 4720 6 342 9 960 11 098 17 966
ket value 5 1995: price on 13 October 1995 ® On the stock exchanges of Zurich, Basle and Geneva ^ Based on shares entitled to dividend, in CFIF millions The bearer participation certificates were converted into registered shares on 2 December 1993 78 Swiss Re, Zurich
Year-end price High forthe year Low forthe year 1993 shareholder warrants A and B Subsequent to the 1993 General Meeting, registered and bearer shareholders were given shareholder warrants entitling them to subscribe to new registered shares. Shareholder warrant A had an exercise period from 2 December 1993 to 14 October 1994, while shareholder warrant B had an exercise period from 2 December1993 to 30 June 1995. Of the 1 218 872 registered shares reserved for this transaction, a total of 1 212 580 or 99.5% were taken up. Swiss Re received as a consequence a premium of CHF 603.5 million between 1993 and 1995 (after deduction of issuing costs of CHF 24.1 million). The 6 292 reserved registered shares left unsubscribed were allocated to the other reserved shares. The reserved shares may be used for corporate purposes.
Single class of share The Board of Directors of Swiss Re will propose to the General Meeting on 24 November1995 the creation of a single class of share through conversion of bearer shares into registered shares of equal nominal value. If the General Meeting approves this proposal, Swiss Re will subsequently have a single class of share made up of 15 043 301 registered shares, of which 423 140 will be reserved registered shares. Thus only registered shares will still be traded on the stock exchanges from 1 December 1995.
Gross premiums for Swiss Re Group 1994 (percentage share by country/region)
France Suisse de Reassurances (France) 5 rue de Logelbach 75847 Paris Cedex17 82 Swiss Re Group
Societe Anonyme Frangaise de Reassurances 34 boulevard de Courcelles 75849 Paris Cedex 17
United Kingdom Credit Suisse Financial Products 1 Cabot Square London E144QJ
European Risk Management Limited 31/33 Monument Flill Weybridge, Surrey KT138RS with branch office in Frankfurt
European Atlantic Reassurance • 100 f USD -0.1 2.0 Company Limited Chancery House, High Street Bridgetown
European International Holding O 100 f USD 0.6 75.4 Company Limited Chancery House, High Street Bridgetown
European International • 100 f USD 25.8 172.9 Reinsurance Company Limited Chancery House, High Street Bridgetown
Harrington International #71 _ _ _ _ Insurance Limited^ 69 Pitts Bay Road Hamilton HMCX
SwissRe Finance (Bermuda) Limited^ O 100 _ _ _ _ 41 Cedar Avenue Hamilton HM 12
Canada International Risk Management (Canada) Ltd. 151 Frobisher Drive Waterloo, Ontario N2V 2C9
Swiss Re Life Canada 99 Yorkville Avenue Toronto, Ontario M5R3K5 with a branch office in Montreal
Swiss Re America Corporation^ O 100 f USD -12.0 309.7 237 Park Avenue New York, NY 10017
Swiss Re Atrium Corporation • 100 - USD 0.1 2.2 200 ParkAvenue New York, NY 10166
Swiss Reinsurance America • 100 f USD -11.3 244.1 Corporation 237 Park Avenue New York, NY 10017 with branch offices in Atlanta, Boston, Chicago, Dallas, Philadelphia, Phoenix and San Francisco
Argentina OFATEC Buenos Aires SA Av. Cordoba 836, PIso 5 1054 Buenos Aires
Venezuela OFATEC Venezuela SA Edifico Torre La Noria Piso 8-Norte Paseo Enrique Eraso Caracas 1060
Hong Kong SwissRe Advisers Limited 2902 Great Eagle Centre 23 Harbour Road, Hong Kong
South Africa Swiss Re Southern Africa Limited Swiss Park, 10 Queens Road Parktown 2193, P. O. Box 7049 Johannesburg 2000 with branch offices In Durban, Capetown, Harare (Zimbabwe), Pretoria and representatives In Port Elizabeth 89 Swiss Re Group
Current titles are introduced below: A study showing that most accidents in aviation are due not to individual but to collective error-errors in the "aviation" system itself. AR 1, languages E, G
An inventory of ecological deficien­ cies, accompanied by constructive criticism and possible solutions. AR 3, languages E, G, F, S, I
Floods and landslides are on the in­ crease: investigation and analysis of the causes, taking as an example the severe storms which affected the Alps in 1987. AR 4, languages E, G, F, I
Volcanic eruptions (e. g. Mount Pinatubo, Mount Unzen) and their consequences: How can one insure against them? Who carries the liabili­ ty? AR 5, languages E, F, S, I
An urgent warning that current loss prevention methods are inadequate to cope with petrochemical risks. AR 6, languages E, G, F, I
Uses the example of fire claims to show how the expected loss burden can be determined as a basis for pricing. AR 7, languages E, G, F
The facts, the losses - and the conse­ quences to be drawn by technology, science and insurers from the Kobe earthquake disaster. AR 8, languages E, G, J
Analysis of the catastrophic East Bay Hills fire which hit Oakland, USA-the "rural-urban fire" phenomenon: an unstoppable combination of city and forest fires. AR 9, languages E, G
Terrorism risks are catastrophe risksbut under which circumstances can they be insured? The principle of a central pool should also be applied here. AR 11, languages E, G, F, I
How should insurers respond? Crime in the affluent society: a description of the status quo and a forecast of future trends. AR 12, languages E, G, F
Risk management in construction: What influence can the insurer have on the various phases of a construc­ tion project? FIDIC contract, CAR policy. Loss prevention and claims handling. AR 16, language E
Products liability in the USA as a risk for exporters, and how this risk can be calculated and minimised. AR 20, languages E, F, 8
Addresses methods to make commu­ nications In aviation even safermethods which can be applied to other areas of life. AR 22, languages E, G
Informs young applicants about career opportunities at Swiss Re. AR 25, languages E, G, F
If you are interested In receiving any of the publications, please contact us at the address below, stating the AR number, language required, and your name, address and telephone num­ ber.
Of course, you may request one or two publications or the complete range.
Swiss Re Mythenquai 50/60 8022 Zurich Switzerland Fax +41 1285 20 23
Concentration of risks which may be affected by the same loss event or concentra­ tion of shares in the same risk through reinsurance treaties.
The return on investments accounted for by the flow of funds from reinsurance operations is debited to the non technical account and credited to the technical account as allocated investment return.This accounting transfer is calculated as the interest on the average level of reserves.
Imputed tax on the valuation differences between the Group accounts and the local accounts.
Sum of commissions, administrative expenses, bonuses and rebates and other technical charges and income, in relation to net premiums written.This ratio enables the assessment of business performance in non-life reinsurance.
The excess of cost of an acquired company over the fair market value of the com­ pany's separately identifiable net tangible assets.
Insurance providing payment of a sum of money upon death of the insured, or in the case of endowment insurance, upon survival of a specified period.
Burglary, Fidelity and Allied Lines insurance: Insurance against burglary, breaking and entering, robbery, embezzlement; also includes water damage, glass breakage, damage to and loss of jewellery or damage or losses in connection with the keeping of animals.
Employers' Liability insurance: Insurance by employers covering employees for injuries arising out of their employment.
Nuclear Energy insurance: Insurance against property damage, liability and accident in connection with the operation of nuclear energy installations.
Property/nsurance; Collective term for Fire and Business Interruption insurance as well as Burglary, Fidelity and Allied lines.
Operating ratio Equal to the combined ratio adjusted by the addition of allocated investment return (allocated investment return in relation to net premiums earned).This ratio enables the assessment of business performance in non-life reinsurance after inclusion of allocated investment return.
Portfolio The totality of risks assumed by an insurer or reinsurer; also the totality of invest­ ments of a company.
Financial reinsurance: Form of reinsurance treaty with reduced risk and specific con­ sideration of accounting features of the insurer.
The amount received by Swiss Re, Zurich, from shareholders for shares in excess of par value.
June 1996 Results for 1995 published 22 November 1996 132nd Ordinary General Meeting 27 June 1997 133rd Ordinary General Meeting
English translation of original German report; French, Italian and Spanish versions are also available.