Switzerland. The Baloise has various pension funds for its banking and insurance employees. Pension benefi ts also include a number and insurance employees. Pension benefi ts also include a number and insurance employees. Pension benefi of special discounts on products which the Baloise grants also to its retired staff. These are primarily specifi c discounts granted in
Employee service costs not yet recognized to be taken into account retrospectively (plan changes)
Net liabilities from defi t plans –1,203.3 –1,274.6 t plans –1,203.3 –1,274.6 t plans –1,203.3 –1,274.6 of which: Recognized as an asset of which: Recognized as a liability in CHF million
VORABDRUCK Present value of liabilities not totally or partially fi nanced by a fund
Employee service costs not yet recognized to be taken into account retrospectively (plan changes) VORABDRUCK Employee service costs not yet recognized to be taken into account retrospectively (plan changes) VORABDRUCK VORABDRUCK
Effects from plan curtailments / settlementsVORABDRUCK Effects from plan curtailments / settlementsVORABDRUCK Resources not recognized as assetsVORABDRUCK Resources not recognized as assets
18.2.2 Present value of liabilities partially fi nanced through a fund 2005 2006
Savings contributions and additional benefi t purchases by employees –19.9 –23.4
Balance as of December 31 –658.0 –684.4 in CHF million 18.2.4 Current value of plan assets 2005 2006
Actuarial gains / losses on plan assets of the current year 66.6 55.5
(excl. benefi ts paid to employees and employer contribution) 21.4 –5.4
Actuarial gains / losses from defi ned-benefiActuarial gains / losses from defi ned-benefiActuarial gains / losses from defi
Actuarial gains / losses on plan assets of the current year
VORABDRUCK Additions and disposals from changes in the scope of consolidation
18.2.4 Current value of plan assets18.2.4 Current value of plan assets
18.2.5 Net actuarial liabilities from defi ned-benefi t plans 2005 2006
Experience-based adjustment of the plan assets 66.6 55.5 in CHF million 18.2.6 Expenses for defi ned-benefi t plans 2005 2006
Total expense for defi ned-benefi t plans 110.9 110.9 in CHF million 18.2.7 Estimated employer contribution The employer contribution for the following year can only be predicted with a certain measure of uncertainty, particularly as it is linked to the payroll. For the year 2007 we anticipate an overall employer contribution of CHF 40 million.
Total expense for defi ned-benefiTotal expense for defi ned-benefiTotal expense for defi t plans 110.9 110.9 ned-benefi t plans 110.9 110.9 ned-benefi in CHF million contribution of CHF 40 million. VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK t plans 110.9 110.9 18.2.7 Estimated employer contribution
VORABDRUCK18.2.7 Estimated employer contribution18.2.7 Estimated employer contribution The employer contribution for the following year can only be predict-
VORABDRUCK to the payroll. For the year 2007 we anticipate an overall employer contribution of CHF 40 million. VORABDRUCK contribution of CHF 40 million.
Current value of the plan assets 1,239.0 1,305.1 of which: Bâloise-Holding shares 55.3 80.0 of which: Properties let to the Baloise Group –/– –/–
Calculating liabilities and expenses for defi ned-benefi t plans require actuarial and other assumptions made for each company and country. The assumptions presented above are weighted averages.
(partially) fi nanced through a fund is determined taking into account the asset allocation and the long-term capital market outlook. The specifi c traits of the individual plan assets are considered separately. We base our return expectations for shares on a long-term assumption of 6 to 8%. Return expectations were clearly exceeded in 2005 and 2006 owing to the exceptionally good performance of the stock markets.
18.3 Other long-term benefi ts Benefi ts for active employees due twelve or more months after the close of the fi scal year must be accounted for separately based on special rules. The accounting is based on rules similar to those applicable for pension liabilities, with the exception that actuarial gains or losses are recognized immediately.
December 31, 2006 (2005: CHF 29.9 million). No plan assets are disposed of for long-term benefi ts. The benefi ts recognized in income totalled CHF 8.0 million (2005: CHF 6.8 million).
Compensation upon service anniversaries is the primary benefi t. The present value of the liabilities totalled CHF 31.8 million on fi t. The present value of the liabilities totalled CHF 31.8 million on fi
VORABDRUCK Calculating liabilities and expenses for defi ned-benefiCalculating liabilities and expenses for defi t plans require
VORABDRUCK ned-benefi t plans require ned-benefi actuarial and other assumptions made for each company and coun-
nancial liabilities The expected return on the plan assets of the fi nancial liabilities The expected return on the plan assets of the fiVORABDRUCK The expected return on the plan assets of the fi nancial liabilities The expected return on the plan assets of the fi
(partially) fiVORABDRUCK (partially) fi nanced through a fund is determined taking into account VORABDRUCK
nanced through a fund is determined taking into account (partially) fi nanced through a fund is determined taking into account (partially) fiVORABDRUCK (partially) fi nanced through a fund is determined taking into account (partially) fi the asset allocation and the long-term capital market outlook. The VORABDRUCK the asset allocation and the long-term capital market outlook. The 18.3 Other long-term benefi
18.4 Share-based payment The Baloise Group offers staff and management members various plans in which shares are granted as part of the total compensation package. Employee shares, employee share ownership plans and direct share subscriptions are treated in accordance with IFRS 2
From the share-based compensation plans listed, CHF 16.6 million were recognized in the income statement in fi scal 2006 (2005: CHF 11.0 million).
18.4.1 Employee shares The Baloise Employee Share Ownership Trust established in 1989 offers employees of different Group companies the opportunity to acquire shares in Bâloise-Holding, generally once a year at a preferred price, based on rules approved by the pension fund Board of
The profi t for the year is CHF 36.7 million (previous year: CHF 8.6 million profi t). After expiration of the three-year holding period, the employee receives the shares remaining after exercizing of options und repayment of the loan, which are freely disposable. Baloise does not incur any additional cost from this employee share ownership plan.
18.4.3 Direct share subscriptions Since January 2003, individuals at all group companies eligible for an incentive have been able to obtain shares at a preferred price as a deduction from their variable, performance-based compensation component (incentive). The subscription price in each case is 10%
less than the market price as of the subscription date. The shares are deposited during a three-year holding period.
were subscribed at a price of CHF 49.10 (2005: CHF 33.80). The fair
VORABDRUCKwere subscribed at a price of CHF 49.10 (2005: CHF 33.80). The fair market value per share was CHF 103.10 (2005: CHF 67.10).
VORABDRUCK market value per share was CHF 103.10 (2005: CHF 67.10).
VORABDRUCK 18.4.2 Employee share ownership plan18.4.2 Employee share ownership plan Since May 2001, the majority of management personnel working in VORABDRUCK Since May 2001, the majority of management personnel working in
Switzerland have been able to obtain any desired fraction – within VORABDRUCK Switzerland have been able to obtain any desired fraction – within a given bandwidth – of their variable, performance-based compen-VORABDRUCK a given bandwidth – of their variable, performance-based compensation component (incentive) in shares instead of cash. To increase VORABDRUCK
sation component (incentive) in shares instead of cash. To increase an incentive have been able to obtain shares at a preferred price as
VORABDRUCK an incentive have been able to obtain shares at a preferred price as a deduction from their variable, performance-based compensation
VORABDRUCK a deduction from their variable, performance-based compensation component (incentive). The subscription price in each case is 10%
VORABDRUCKless than the market price as of the subscription date. The shares are deposited during a three-year holding period.
Since 2006, members of the Board of Directors have received 25% of
As of December 31, 2006, no tax assets had been recognized on loss carry-forwards in the amount of CHF 574.9 million (2005: CHF
Total (net) 702.4 780.5 of which: Shown in the balance sheet as deferred tax assets
Unrealized gains charged to equityVORABDRUCK Unrealized gains charged to equity 167.1VORABDRUCK
20. Noncurrent assets held for sale and discontinued operations In the 2005 and 2006 fi scal years no long-term assets or discontinued operations were held for sale.
Under the share buyback program announced on March 21, 2006, 1,074,000 Bâloise-Holding shares were repurchased for a total value of CHF 113.8 million between May 22, 2006, and December 31, 2006. Moreover, Baloise Group companies sold net 112,331 shares.
The registered shares of Bâloise-Holding are fully paid up and have a nominal value of CHF 0.10 (2005: CHF 0.10). Registration in the share register with voting rights is restricted to 2% for natural and 1,074,000 Bâloise-Holding shares were repurchased for a total value of CHF 113.8 million between May 22, 2006, and December 31, 2006. Moreover, Baloise Group companies sold net 112,331 shares.
VORABDRUCKshares as part of its normal investment activities and for the staff
Gains and losses from sales taken to the income statement –482.6 –583.9
Change in hedging reserves on derivative fi nancial instruments held for cash fl ow hedges –0.9 –0.4
Change recognized directly in equity in hedging reserves on derivative fi nancial assets as a hedge of a net investment in a foreign company –243.2 85.1
Addition as a result of reclassifi cation of held-to-maturity fi nancial assets1 32.9 –/–
Addition as a result of reclassifi cation of investment properties –/– –/–
Transfer to retained earnings as a result of disposal 23. Technical reserves (gross) 23. Technical reserves (gross)
VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCKChange in shadow accounting (DAC, URR, terminal policyholders’ dividends)
No determinable residual term 539.1 –122.3 416.8 802.8 –126.1 676.7 in CHF million
All maturity data is based on assumptions. The item “No determinable residual term” contains in particular aging provisions and annuity reserves.
Less: Premiums earned during reporting period –3,051.4 183.6 –2,867.8 –3,055.2 167.7 –2,887.5
Less: Expenditures in the reporting period –10.8 0.0 –10.8 –15.4 –/– –15.4
VORABDRUCKTotal loss reserves 5,207.4 –424.0 4,783.4 5,330.2 –334.5 4,995.7Total loss reserves 5,207.4 –424.0 4,783.4 5,330.2 –334.5 4,995.7
VORABDRUCK All maturity data is based on assumptions. The item “No determinable residual term” contains in particular aging provisions and reserves.VORABDRUCK reserves.
Special attention is paid to cases of environmental damage caused by deposits, waste, asbestos and generally substances which harm humans and the natural environment.
CHF at the end of 2005. The decline is attributable to claims payments including redemptions and, since a large part of these provisions are denominated in foreign currencies, to exchange rate effects.
The corresponding reserves, contained in the overall amount, VORABDRUCK The corresponding reserves, contained in the overall amount, came to CHF 226.5 million at the end of 2006 and CHF 256.8 million VORABDRUCK came to CHF 226.5 million at the end of 2006 and CHF 256.8 million
Total technical reserves – life 39,158.1 40,610.5 in CHF million 1 The actuarial reserve also includes unearned premiums and loss reserves.
Total provisions for future policyholders’ dividends 1,687.3 1,997.5 in CHF million 2 The Swiss pension business is disclosed separately due to its special features. It comprises group contracts which may be cancelled annually by both parties, while the coverage period of the individuals enrolled is signifi cantly longer.
All maturity information is based on residual term of the contract.
Total actuarial reserve from unit-linked life insurance 1,640.6 1,933.3VORABDRUCK Total actuarial reserve from unit-linked life insurance 1,640.6 1,933.3VORABDRUCK VORABDRUCK
The actuarial reserve as of December 31, 2006, for business with DPF is CHF 32,957.9 million (previous year CHF 32,083.3 million); for business without a DPF CHF 96.7 million (previous year CHF 105.1 million).
The actuarial reserve as of December 31, 2006, for indirect business (inward reinsurance) totals CHF 0.1 million (previous year CHF 0.1 million).
Adjustment from unrealized gains and losses as of December 31 (shadow accounting) 51.9 53.1
Change due to unrealized gains and losses on investments (shadow accounting) –0.1 0.0
Adjustment from unrealized gains and losses as of December 31 (shadow accounting)
VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK3.6 65.4
Additions from the acquisition of insurance portfolios or companiesVORABDRUCK Additions from the acquisition of insurance portfolios or companies
23.2.6 Policyholders’ dividends credited and provisions for future policyholders’ dividends Policyholders’ dividends credited 2005 2006
Change in measurement differences between IFRS and local accounting recognized in income –1.5 71.8
Total liabilities from the banking business and fi nancial contracts 6,062.5 6,744.0 in CHF million
VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK24. Liabilities from banking business and financial contracts
VORABDRUCK24. Liabilities from banking business and financial contracts24. Liabilities from banking business and financial contracts
Including: Financial leasing of property for own use in accordance with section 7 of the fi nancial report.
FINANCIAL REPORT 2006 26. Financial liabilities 26. Financial liabilities 25. Reconciliation between the gross 25. Reconciliation between the gross investment in finance leases and the present investment in finance leases and the present value of minimun lease paymentvalue of minimun lease payment
Including: Financial leasing of property for own use in accordance with section 7 of the fi nancial report.Including: Financial leasing of property for own use in accordance with section 7 of the fi nancial report.Including: Financial leasing of property for own use in accordance with section 7 of the fi
Total liability for future lease payments VORABDRUCK Total liability for future lease payments
The other fi nancial provisions recognized in income comprise primarily estimated liabilities from rental guarantees given in connection with the sale of properties. They also contain sums for legal advice and litigation risks.
Securities number SWX 858851 SWX 1726032 SWX 2011789 1 Upped by CHF 100 million in 2005.
Bâloise-Holding Financial Report 2006 61 27. Financial provisions 27. Financial provisions Restructuring Other
The fi for the reorganization of companies in Switzerland acquired in previous years.
nancial provisions recognized in income comprise primarily estimated liabilities from rental guarantees given in connection with the sale of properties. They also contain sums for legal advice and litigation risks.
there were no transactions with a substantial impact on the results.
Gross premiums written and policy fees 3,055.4 3,783.7 6,839.1 3,065.1 3,651.4 6,716.5
Total investment income1 1,794.5 1,823.7 in CHF million 1 Excluding income from associates
As of the balance sheet date, interest income of CHF 9.6 million has accumulated on investments (2005: CHF 12.9 million), which is not recognized in the income statement.
Recognized at fair value through profi t and lossRecognized at fair value through profi t and lossRecognized at fair value through profi
31. Realized capital gains and losses on investments 31.1 Realized capital gains and losses on investments 2005
Total realized capital gains and losses on investments1 in CHF million
Total realized capital gains and losses on investments 80.4 659.4 86.4 –2.4 –121.0 702.8 in CHF million 1 Excluding investments in associates.
4 In case of investments of a debt nature held-to-maturity, currency effects are carried under realized book profi ts / realized book losses.
31.3 Exchange rate gains The net income from transactions in foreign currencies recognized in the consolidated income statement shows a loss of CHF 69.1 million in the reporting period (2005: loss of CHF 105.6 million).
Excluding the foreign exchange loss from transactions with fi nan cial instruments, which are recognized in income reported in the balance sheet at fair value, the foreign exchange profi t amounts to CHF 44.4 million (2005: loss of CHF 27.9 million).
Total realized capital gains and losses on investments 80.4 659.4 86.4 –2.4 –121.0 702.8
VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK–25.3
VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK
Total realized capital gains and losses on investments 80.4 659.4 86.4 –2.4 –121.0 702.8VORABDRUCK Total realized capital gains and losses on investments 80.4 659.4 86.4 –2.4 –121.0 702.8 in CHF millionVORABDRUCK in CHF million
Expense for rent, upkeep, and repairs 28.8 48.7 in CHF million
35. Number of employees As of the balance sheet date, the Baloise Group employed 7,459 full time staff members (2005: 7,548). The total personnel expense for the current fi scal year was CHF 1,084.5 million (2004: CHF 1,076.7 million).
Gains from the sale of: Property, plant and equipment 0.5 0.1
Bâloise-Holding Financial Report 2006 65 34. Classification of expenses 34. Classification of expenses
Expenses from fi nancial contracts for the account and at the risk of third parties 4.4 4.4
Interest expense on loans from central mortgage bond institutions 18.3 21.1
Total expense from fi nancial contracts 130.0 156.5 of which: Net income from interest rate hedging instruments
Interest rate swaps: Cash fl ow hedges, carryover from cash fl ow hedge reserve –/– –/–
Total income from interest rate hedging instruments –1.7 –14.6 in CHF million
–0.1 nancial contracts for the account and at the risk of third parties 16.7 32.2 nancial contracts 130.0 156.5 of which: Net income from interest rate hedging instruments
VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK–/–
VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCK VORABDRUCKInterest rate swaps: Fair value hedges –1.7 –14.6
VORABDRUCKInterest rate swaps: Fair value hedges –1.7 –14.6Interest rate swaps: Fair value hedges –1.7 –14.6
VORABDRUCKTotal income from interest rate hedging instruments –1.7 –14.6Total income from interest rate hedging instruments –1.7 –14.6
Deferred income taxes in fi scal 2006 contain liabilities of CHF 38.9 million resulting primarily from a change in the tax rate affecting the
Expected income taxes 104.8 220.8Expected income taxes 104.8 220.8Expected income taxes 104.8 220.8
Purchase price fi nanced by: Cash and cash equivalents 65.8 6.2
Outfl ow of cash and cash equivalents for the acquisition 60.8 5.7 in CHF million
Cumulative acquisitions for 2005 essentially consist of amounts for MONEYMAXX Lebensversicherung-AG, Düsseldorf, Germany, included in the consolidated accounts for the fi rst time as of
40. Disposal of companies 40.1 Disposal of companies in 2005 The fully consolidated participating interest in NV Automobiel center,
Immobilien GmbH, Vienna were disposed of during fi scal year 2006.
The proportionately consolidated companies Immo Merpa N.V., Zaventem, Belgium, Pylon AG, Hamburg and the fully consolidated Basler
Disposal pricesVORABDRUCK Disposal prices in CHF million VORABDRUCK in CHF million
41. Related party transactions During the course of its ordinary business activities, the Baloise
Krankenversicherung is not in the Baloise Group’s scope of consolidation. However, it is linked to the Group by an organizational agreement with Deutscher Ring Leben and Deutscher Ring Sach and must be considered as a related party. Both individually and as a whole, the transactions are not material in volume for the Baloise Group and are conducted at arm’s-length.
Compensation for members of the Board of Directors and the executive management came to CHF 9.8 million during the reporting period (2005: CHF 8.8 million). Of these, CHF 3.0 million were remitted in connection with share-based compensation plans
Compensation for members of the Board of Directors and the exe-
VORABDRUCKImpairment losses on doubtful receivables –/– –/– –/– –/– –/– –/– –/– –/–Impairment losses on doubtful receivables –/– –/– –/– –/– –/– –/– –/– –/–
43.1.2 Guarantees and payment guarantees for the benefi t of third parties The Baloise Group has provided guarantees and obligations to third parties, associates, partnerships and joint ventures. This includes obligations in contractually stipulated cases to make additional capital contributions or payments to equity, resources for covering outstanding repayments or interest payments, or guarantees in connection with its operating activities. The Baloise Group is unaware of any case of default which could trigger guarantee payments.
Bâloise-Holding Financial Report 2006 71 from the normal operating activities as an insurer. Since the previous balance sheet date, the Group management is unaware of any new circumstances that could have a signifi cant inflnew circumstances that could have a signifi cant inflnew circumstances that could have a signifi 2006 consolidated annual fi nancial statements.2006 consolidated annual fi nancial statements.2006 consolidated annual fi 43.1.2 Guarantees and payment guarantees for the 43.1.2 Guarantees and payment guarantees for the capital contributions or payments to equity, resources for covering outstanding repayments or interest payments, or guarantees in connection with its operating activities. The Baloise Group is unaware of any case of default which could trigger guarantee payments.
Total liabilities entered into 572.7 571.1 of which: In connection with joint ventures –/– –/–
of which: Own share in the capital commitments of the joint ventures –/– –/–
Contingent lease payments result if the tenancy is linked to an index.
of which: Own share in the capital commitments of the joint ventures
Liabilities entered into for the future acquisition of investments include private equity commitments too, which are unfi age residual term of the leasing agreements is between three and fi ve age residual term of the leasing agreements is between three and fi ve age residual term of the leasing agreements is between three and fi years.
VORABDRUCKmitments for direct investment in private equity or for investment in
VORABDRUCKmitments for direct investment in private equity or for investment in 44. Operating leases
VORABDRUCK 44. Operating leases44. Operating leases 44.1 Baloise Group as lesseeVORABDRUCK 44.1 Baloise Group as lessee The Baloise Group has concluded nonterminable leasing agreements VORABDRUCK The Baloise Group has concluded nonterminable leasing agreements
44.2 Baloise Group as lessor The Baloise Group has concluded operating leases in connection with the leasing of investment properties to third parties. The average nonterminable residual term of the lease agreements is between four and six years. There were no additional leasing agreements on the balance sheet date.
46. Events after the balance sheet date No further events have become known up to the completion of these consolidated annual fi nancial statements dated March 9, 2007 which would have a signifi cant infl uence on the annual fi nancial statements as a whole.
Bâloise-Holding Financial Report 2006 73 45. Claim payments received from insurance 45. Claim payments received from insurance companies outside the Baloise Groupcompanies outside the Baloise Group In fi scal 2006, the Baloise Group companies received CHF 0.3 mil-In fi scal 2006, the Baloise Group companies received CHF 0.3 mil-In fi lion (2005: CHF 0.6 million) in claim payments from insurance com46.
VORABDRUCKpanies outside the Group in connection with insurance contracts in which Baloise Group companies are the policyholder. The claim pay-
Bâloise-Holding, Basel Holding company O Holding Holding F CHF 5.5 1,925.1 –/–
Basler, Versicherungs-Gesellschaft, Basel Nonlife NL 100.00 100.00 F CHF 75.0 5,923.0 1,280.5
Baloise Asset Management International AG, Basel Investment management B 100.00 100.00 F CHF 1.5 8.7 –/–
Bad Homburg Holding company O 100.00 100.00 F EUR 0.0 114.1 –/–
Sachversicherungs-AG, Hamburg Nonlife NL 100.00 100.00 F EUR 50.0 372.3 137.4
Versicherungs Aktiengesellschaft, Bad Homburg Nonlife NL 100.00 100.00 F EUR 15.1 1,003.1 468.5
OVB Vermögensberatung AG, Köln Other O 32.57 100.00 P EUR 10.0 47.3 –/–
Beteiligungs GmbH, Köln Other O 39.00 60.00 P EUR 0.1 21.8 –/–
SECURITAS Gilde Lebensversicherungs AG, Bremen, have been transferred to the German subsidiary of Basler, Lebens-Versicherungs-
AG, Hamburg, as at July 1, 2006. Neither of these transactions had any impact on the shareholders‘ equity or the result of the Baloise
Gent / Antwerpen Life and Nonlife L / NL 100.00 100.00 F EUR 168.0 3,031.1 380.3
Amazon Insurance N.V., Antwerpen Nonlife NL 100.00 100.00 F EUR 3.7 23.3 19.1
Euromex N.V., Antwerpen Nonlife NL 100.00 100.00 F EUR 2.5 56.7 21.3
Hondius N.V., Antwerpen Other O 100.00 100.00 F EUR 2.5 1.9 –/–
Bertrange (Luxembourg) Holding company O 100.00 100.00 F CHF 228.9 936.9 –/–
Bertrange (Luxembourg) Nonlife NL 100.00 100.00 F EUR 7.5 119.9 30.4
Basler Osiguranje d.d., Zagreb Nonlife NL 94.00 94.00 F HRK 22.5 71.2 21.1
Hamilton / Bermuda Reinsurance NL 100.00 100.00 F CHF 5.0 642.4 –/–
Baloise (España) S.A., Madrid Other NL 100.00 100.00 F EUR 18.0 15.8 –/–
OVB Allfi nanz s.v.o. Czech Republic, Prague Other O 32.57 100.00 P CZK 16.5 303.6 –/–
OVB ALLFINANZ Slovensko, Bratislava Other O 32.57 100.00 P SKK 20.0 572.6 –/–
Our audit was conducted in accordance with Swiss Auditing Standards and with the International Standards on Auditing, which require that an audit be planned and performed to obtain reasonable assurance about whether the consolidated fi nancial statements are free from material misstatement. We have examined on a test basis evidence supporting the amounts and disclosures in the consolidated fi nancial statements. We have also assessed the accounting principles used, signifi cant estimates made and the overall consolidated fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated fi nancial statements give a true and fair view of the fi nancial position, results of operations and the cash fl ows in accordance with International Financial Reporting Standards
We recommend that the consolidated fi nancial statements submit-We recommend that the consolidated fi nancial statements submit-We recommend that the consolidated fi ted to you be approved.
VORABDRUCKevidence supporting the amounts and disclosures in the consolidatnancial statements. We have also assessed the accounting prin-
VORABDRUCK nancial statements. We have also assessed the accounting princant estimates made and the overall consolidated
VORABDRUCK cant estimates made and the overall consolidated nancial statement presentation. We believe that our audit provides
In our opinion, the consolidated fiVORABDRUCK In our opinion, the consolidated fi nancial statements give a true and VORABDRUCK
nancial position, results of operations and the cash fair view of the fi nancial position, results of operations and the cash fair view of the fiVORABDRUCK fair view of the fi nancial position, results of operations and the cash fair view of the fi
Total liabilities and equity 1,785,135,201 1,863,267,701Total liabilities and equity 1,785,135,201 1,863,267,701Total liabilities and equity 1,785,135,201 1,863,267,701 in CHF
Baloise Insurance Company (Bermuda) Ltd., Hamilton / Bermuda 100 100 CHF 5.0
Notes to the financial statements of Bâloise-Holding 1. Basis of preparation The Bâloise-Holding accounts comply with Swiss legal requirements.
4. Bonds Amount Interes rate Issued Maturity date 1 Raised by CHF 100 million in 2005 5. Provisions Fluctuation provision amounting to CHF 50 million was reversed in the reporting period and taken to “Other income”.
Baloise Bank SoBa was given a subordinated loan of CHF 30 million.
7. Signifi cant shareholders One single shareholder held over 5 % of outstanding Baloise shares on December 31, 2006. This was Barclays Group with 5.4 % of outstanding shares as of December 31, 2006.
The following table displays the current shareholder structure as of December 31, 2006.
Investors Bank & Trust in percent 9. Income from participating interests Dividend claims pursuant to resolutions of the Annual General
The above distribution is in accordance with the provisions of Article 30 of the Articles of Incorporation and results in a distribution of CHF
As statutory auditors, we have audited the accounting records and the fi nancial statements (income statement, balance sheet and notes, pages 78 to 81) of Bâloise-Holding for the fi nancial year, ended December 31, 2006.
These fi nancial statements are the responsibility of the Board of
Directors. Our responsibility is to express an opinion on these fi nancial statements based on our audit. We confi rm that we meet the legal requirements concerning professional qualifi cation and independence.
In our opinion, the accounting records and fi nancial statements and the proposed appropriation of the retained earnings comply with
We recommend that the fi nancial statements submitted to you be approved.
FINANCIAL REPORT 2006 dards, which require that an audit be planned and performed to nancial statements are free from material misstatement. We have examined on a test basis evidence supporting the amounts and disclosures in the fi cial statements. We have also assessed the accounting principles used, signifi cant estimates made and the overall fiused, signifi cant estimates made and the overall fiused, signifi
VORABDRUCK In our opinion, the accounting records and fi nancial statements and
VORABDRUCK nancial statements and In our opinion, the accounting records and fi nancial statements and In our opinion, the accounting records and fi
Swiss law and the Company’s Articles of Incorporation.VORABDRUCK Swiss law and the Company’s Articles of Incorporation.
Acqusition of companies 68 Appropriation of retained earnings, Bâloise-Holding 82 Asset liability management 27, Assets from reinsurers 46 Assets, Bâloise-Holding 79 Assets, consolidated 2
Cash fl ow statement, consolidated 6 Changes in equity, consolidated 8 Combined ratio annual report Consolidating principles 10 Contingent liabilities and future commitments 71 Contingent liabilities, Bâloise-Holding 81
N Notes to the consolidated annual fi nancial statements 10 Notes to the consolidated income statement 62 Notes, Bâloise-Holding 80
O Operating leasing agreements 72, 73 Other operating income 4, 65
P Payments to employees 22, 47 Personnel expenses, Bâloise-Holding 81 Premiums earned and policy fees 4, 36, 38, 62, 70
Proportionately consolidated companies 74 Proposed appropriation of retained earnings 82 Provisions, Bâloise-Holding 79, 80,
U Uncertanties 22 Unrealized gains and losses in equity 3, 6, 8, 9, 17, 54
Payments to employees Personnel expenses, Bâloise-Holding Premiums earned and policy fees Property, plant and equipment