Performance of Swiss Re registered shares Key figures Annual report of the Chairman and the Chief Executive Officer 1 Board of Directors, Executive Board and Auditors 2
Profit and loss account 16 Balance sheet 18 Cash flow statement 20 Notes 21
An investor who invested CHF 100 000 in Swiss Re registered shares at the end of 1989 and reinvested all subsequent dividends, share rights, and the 1996 par value repayment of CHF 10, without investing any new funds, held a position with a market value of CHF
total performance amounts to 735.9% or an average of 25.5% per year.
The excellent result is largely due to an exceptionally strong investment return and good returns from our life operations. Results from non-life operations were not satisfactory, being influenced mainly by negative results in US medical business – reported in the first half of 1998 and discontinued as an active line of business in the meantime – a general soft market environment, and expenses higher than in the previous year. Catastrophe claims for the industry were higher than in recent years, but Swiss Re was able to absorb these within its normal practice of reserving such exposures.
For 1999, we again expect strong investment returns, growth in the life operating result and another difficult year for non-life business due to the prevailing soft market conditions.
Swiss Re has launched a Groupwide initiative to respond resolutely to these soft market conditions, by carefully examining its lowest-valued contracts, reducing capacity for natural hazards where prices are inadequate and increasing productivity across the Group.
Ulrich Bremi Walter B. Kielholz Chairman of the Board of Directors Chief Executive Officer 1 Swiss Re Group
The Board of Directors proposes to the General Meeting that – Ernesto Jutzi be re-elected to the Board for a further four-year term of office. – Jorge Paulo Lemann be newly elected to the
The technical result of CHF 916 million is lower than in the previous year, reflecting developments in the non-life portfolio.The combined ratio, the value commonly used to measure the performance of non-life business, rose by 4 points to 114%, or by 2 points to 112% if US medical business is excluded. The adverse development in US medical business reported in the first half of 1998 led at that time to an increase in provisions of CHF 300 million. Claims incidence in the other lines of business was favourable, except for property catastrophe claims and for the motor business, which showed an adverse development throughout Europe.The expense ratio increased to 34% from 31% as premium growth declined and expenses rose.
The investment result was exceptionally good, rising substantially to CHF 6.1 billion, including allocated investment return. Strong financial markets, particularly in the first half of the year, allowed unusually high realised gains on investments of CHF 3 billion.
The asset leverage – the ratio of investments at average balance-sheet values to net premiums earned – is an indicator of the importance of the investments in relation to the reinsurance business.This ratio continued to climb from 389% to 441%, excluding Life Re and Alianza.
Other income and charges resulted in expenditure of CHF 383 million. Interest on the financial debt and the new hybrid capital positions accounts for the bulk of this expense. In addition, the company incurred restructuring costs of CHF 54 million for the North American life and health business related to the acquisition of Life Re.The provision made in 1997 of CHF 50 million for internal expenses relating to the Year 2000 issue has been strengthened by CHF10 million and carried forward to 1999.
Ordinary profit for the Swiss Re Group increased strongly by 18% to CHF 2504 million.This can be attributed to an exceptionally strong result from investment activities and to the good life result which compensated for the unsatisfactory technical result in the non-life reinsurance business. Earnings per share (EPS) rose by 20.7% to CHF 175, due in part to the reduction of shares outstanding in 1998.
last two years as well as the increased size of the imputed goodwill write-off charge.
In April 1998, the sale of the wholly owned company Audatex Holding AG was completed.This sale underlines Swiss Re’s strategic commitment to focus on its core business of managing capital and risk.
Also in April 1998, Swiss Re acquired Falcon Asset Management, an asset liability management specialist.The combination of Falcon’s proven advisory capabilities in asset liability management with Swiss Re’s existing know-how and client base will give the Group a strong position in this increasingly important area.
In October 1998, Swiss Re’s market position in Latin America was given a considerable boost by the completed acquisition of Mexican reinsurer Reaseguros Alianza S.A. for USD 102 million.The company has a strong presence throughout the region and this transaction will enable Swiss Re to penetrate significant new market segments.The figures for Alianza are only consolidated in the balance sheet.
On 1 December 1998, Swiss Re completed its acquisition of Life Re Corporation in America for USD 1.8 billion.The integration of this company ’s operations into the Swiss Re Group is well underway.This acquisition strengthens Swiss Re’s position in the US life business and will provide a source of new product opportunities in administrative reinsurance. The acquisition only impacts the balance sheet in the 1998 accounts.
The 1999 renewal negotiations for the non-life business were influenced by the favourable capital market results in 1998 and their effects on insurers’ and reinsurers’ capital positions.
While some areas exhibited stable prices, other markets experienced a continued deterioration of terms and conditions. Given these market conditions and the generally lower interest rates available in most of the world’s markets, Swiss Re has launched a Groupwide programme to carefully examine its lowest-valued contracts, taking remedial action as necessary, and to reduce catastrophe capacity where prices fail to reflect the level of risk assumed.The third component of this Groupwide programme seeks to increase the overall productivity of the organisation, and thereby reduce the expense ratio of the Group.These moves will produce an improved and somewhat less volatile technical result for the Group.
1999 will reflect the first-time inclusion of earnings for Life Re. Pro-forma for the Life Re acquisition, life reinsurance premiums in 1998 would constitute 26% of total Swiss Re Group premium in comparison to the 21% reported. We expect the higher share of life reinsurance business to create an attractive, long-term stable earnings base for the Group.This shift in the mix of business will provide valuable diversification benefits to the overall risk portfolio of Swiss Re.
Based on the first four months of this year it would be rational to expect another strong investment result.We do not foresee a repeat of the financial turmoil of the second half of last year, because it appears that the international monetary and regulatory authorities have instituted adequate control and disclosure measures to address those market risks. However, an unexpected sharp increase in interest rates and/or a sharp decline in stockmarkets would have a negative impact on Swiss Re’s investment result. Of course, we are long-term investors, and would view such events as an opportunity to reposition our asset allocation.
The wave of consolidation which swept the industry in 1997 continued unabated in 1998. Mergers and acquisitions among insurers, reinsurers and brokers were commonplace as key players sought to improve efficiency and increase market share.
Moves towards further deregulation have continued in both mature and emerging markets.The trend is towards less regulation of rates and policy wordings and more emphasis on solvency requirements. By changing the fundamentals of the market place, deregulation is one of the key factors driving competition.
One effect of favourable capital markets has been the increased capitalisation of both insurers and reinsurers.This, added to the recent spate of mergers and acquisitions, has brought a significant increase in underwriting limits, with insurers making correspondingly lesser use of reinsurance capacity available in the market place.There is a greater willingness of both insurers and reinsurers to take full advantage of their capital strength.
1998 saw a general deterioration in the claims level for the non-life industry. There was an unusually high frequency of hurricanes in the northern hemisphere in 1998: of 14 named tropical storms, 10 achieved hurricane strength. Hurricanes Bonnie, Georges and Mitch, a cyclone in Western India, extensive floods in China and an ice storm in Canada caused great amounts of damage and claimed many lives.The reinsurance industry was able to absorb the impact of these events without results being affected too severely, due, in part, to the lack of insurance coverage in some affected areas and to the high retention level of primary insurance companies on catastrophe covers.
Facultative multi-year covers have become more common as large industrial corporations seek to lock into the current broad terms and conditions.The trend towards multi-year treaties has also been observed in catastrophe treaty business.
As the new millennium nears, efforts to raise awareness of the Year 2000 issue seem to have been effective in most developed countries. In developing regions, the level of awareness of the problem varies from country to country.
The portfolio mix in terms of premium volume has remained relatively stable, although there has been a gradual reduction in some lines of business, such as property and motor insurance. Premium volume in the engineering business has also declined as a result of less construction activity and depressed premium levels.
The motor line of business saw a bad year due to the depressed premium levels in major markets and from annuity reserve increases as a result of the decline in interest rates.
In the general liability business, too, results reflect the impact of harsh price competition. In addition, an above-average frequency of major new claims and a deterioration in known losses from industrial and product liability have added to a less than satisfactory underwriting result.
Repercussions from the financial crisis were apparent throughout most of the Asia Pacific region.The economic downturn was accompanied by a reduction in premium volume, caused by the decrease in original premium rates, currency depreciations and a surplus of available capacity.
The market in Japan softened further. In 1998, the first year following deregulation, the premium income of primary insurers dropped sharply for the first time sinceWorld War II, although Swiss Re was able to maintain good technical results in the absence of major catastrophe impacts.
1998 showed mixed results for the Chinese-speaking markets. In Taiwan, some companies reported an operating loss. Hong Kong showed stable results with an improving trend for the underwriting year 1998. In China, profits were reported despite the extensive floods last summer, owing to an absence of insured perils. In Indonesia, claims from damage caused by social unrest and an earthquake loss have led to negative results. Swiss Re’s books were also affected by a typhoon event in India and a semi-conductor loss in Taiwan.
Operating results were affected negatively by Hurricanes Georges and Mitch as well as by the Canadian ice storm. Apart from these catastrophic events, the result was satisfactory.
Several countries in the region are facing recession in 1999, particularly Brazil following its sharp devaluation of the Brazilian real.The financial contagion of the Brazilian crisis to other countries in Latin America seems to be limited however, as countries stick to their reform policies.There is also no reason to expect any additional delay in the ongoing privatisation process in the region. Indeed, one of the highlights of this process in 1999 should be the privatisation of the Brazilian reinsurance monopoly. Swiss Re will take 11 Swiss Re Group
Results in Latin American business were affected significantly by two catastrophes, hurricanes Georges and Mitch.There was also an exceptionally high claims ratio reported by the recently launched unit for important industrial risks, for which the corresponding premium volume was still too low to absorb losses.The acquisition and integration of Reaseguros Alianza of Mexico will strengthen the market position of the Swiss Re Group in Latin America.
Interest in integrated risk management – combining asset liability protection – is growing rapidly as risk managers recognise the value of this new approach to comprehensive balance-sheet management. Implementing these solutions in practice still represents a great challenge because of the different disciplines involved in the process.
A soft traditional market, however, has curbed the urge of corporate buyers for sophisticated alternative risk-financing solutions for risks that are already easily insurable.There has been a move towards multi-line/multi-year covers, particularly for high excess treaties.
Traditional business The results posted in property and casualty business for corporate clients were good despite continued pressure on rate levels.
Nevertheless, the premium volume decreased due to generally lowering rate levels, the non-renewal of some business which was deemed to be underpriced, and Swiss Re’s move towards participation in upper layers of selected programmes.
Pricing in natural catastrophe business continued to deteriorate. Given the influx of additional capacity into the market place, the situation is not expected to improve. On a positive note, however, Hurricane Georges was the only major natural catastrophe loss affecting Swiss Re New Markets in 1998.
In the area of long latent risks, cover offered by companies with top financial security ratings continued to fetch a premium over the extremely low prices paid for short-tail insurance.
Political risk insurance – combined with short-term commercial export credit insurance – has, over the last few years, been placed increasingly with the private insurance sector. This trend has not yet translated into a major increase in these types of exposure for Swiss Re, however.
The aviation sector recorded relatively stable premium income with favourable results in general aviation business.
The airline and satellite market is still subject to strong price pressure stemming from surplus capacity. Low premium levels and above-average claims activity led to negative results in this area for 1998.
The volume in capital market solutions held steady. In some areas it increased, although levels remained depressed due to the availability of cheap traditional cover.
The consolidation process sweeping through almost all industries and the pressure on management to clear old balance-sheet liabilities will continue to create significant demand for run-off solutions and adverse development covers.
The phase of consolidation in the primary life and health market continued, driven in part by companies’ need for critical mass to obtain cost advantages over their competitors.
Changing work patterns and demographics have prompted insurers to improve the design of the savings products they offer. Similar trends are also evident in the health-care arena where reductions in state social security payments and higher costs resulting from greater longevity have stimulated innovative product designs. Consumers’ awareness and expectations have been raised by intensive media coverage of the industry in certain regions and the emergence of new entrants from more consumeroriented industries. These new entrants include non-insurance organisations with powerful brands which can capitalise on their existing distribution networks and customer bases (the so-called “brandassurers”).
These activities bring reinsurance into direct competition with other wholesale financial institutions, which offer capital management solutions founded on capital market techniques.
The risk element of the primary life and health market continues to grow, in part as consumers become more risk aware and welfare systems are privatised. Primary insurers are focusing on their core competencies of asset management and distribution, while risk management is being outsourced progressively to reinsurers. As a result, growth in the professional reinsurance market in some parts of the world is actually outpacing that of the primary insurance market.
The life insurance industry is not expecting adverse claims development as a result of the Year 2000 issue. Nevertheless, the capital expenditure for the industry is significant as non-compliant legacy systems are replaced.
In the 1998 Interim Report, a loss of CHF 300 million (at present CHF 271 million after currency adjustments) was reported on US medical business.The subsequent decision to refrain from writing further business in this line in the US was also announced. Premiums outside of the US grew in 1998, but ended the year at a level similar to 1997 because of exchange-rate movements.The decision to exit US medical expense business has led to an overall reduction in health premiums of 12%. Excluding US medical business however, overall health results remained satisfactory.
Investments at book values were CHF 77.5 billion at the end of 1998 (1997: CHF 70.1 billion).The growth of CHF 7.4 billion, approximately 11%, is mainly due to the acquisitions of Life Re, NCM and Alianza.
The volatility of the stockmarkets in 1998 (constant rise until July, followed by the sharp decrease as a result of the financial crises in Asia, Russia and Brazil and the subsequent recovery towards end of the year) as well as the acquisition of Life Re affected the structure of Swiss Re’s investment portfolio. Fixed income securities again constituted the largest category at 63% (1997: 61%), whereas the proportion invested in shares decreased to 26% (1997: 27%). The proportions invested in real estate and in unconsolidated subsidiaries and affiliated companies were 5% and 4% respectively. At market value, the proportion invested in unconsolidated subsidiaries and affiliated companies remained unchanged at 9%.
Despite stockmarket fluctuations in the second half of the year, the total investment result rose by 31% to CHF 6.1 billion (1997: CHF 4.6 billion). The net realised gains on investments contributed 50% to the investment result (1997: 31%). Profits on bonds sold contributed approximately half of the CHF 3 billion in net realised gains. In the declining interest rate environment of 1998 Swiss Re reduced the duration of the bond portfolio. Gains for the share portfolio amounted to CHF 1.1 billion. Gains on participations and other investments were approximately CHF 300 million.The revaluation reserve – indicating the net unrealised gains on shares and real estate after tax – increased during 1998 by CHF 1.4 billion to a total amount of CHF 7.0 billion. In addition, net unrealised gains on other investments after tax increased by CHF 0.8 billion to CHF 4.7 billion.
The overall return on investment increased to 8.5% (1997: 7.4%).The investment result and return on investment figures include NCM’s half-yearly result, but exclude Life Re and Alianza, which were only acquired towards the end of 1998.
Investment result 4. Allocated investment return 5. Interest charges 6. Other income 7. Other charges, including other valuation adjustments
II Investments for unit-linked life reinsurance policies where policyholders bear the investment risk
IV Technical provisions 1. Provisions for unearned premiums 2. Provisions for life, health and disability reinsurance 3. Provisions for claims outstanding 4. Provisions for bonuses and rebates 5. Other technical provisions
The Group accounts are prepared in accordance with the European Union accounting directives for insurance companies, with Swiss Company Law and with the accounting and reporting recommendations issued by the Swiss Foundation for Accounting and Reporting.
Provisions for claims outstanding are based on the full expected amount of the related payments, with the exception of the life business, for claims paid in the form of annuities, and partly for the accident, health and disability businesses, in which the present value of future income and outgo is set aside as provisions. In alternative risk transfer business, provisions for claims outstanding are also partially accounted for at present value for some products.
The tax charge disclosed relates to the profit for the financial year. Valuation differences between the Group and the local accounts are included in the provisions for deferred taxes. These are calculated using the expected future tax rates.
Intra-Group transactions are eliminated. Remaining profit and loss account differences are included in net income; remaining balance-sheet-related differences are eliminated through retained earnings. Details relating to unconsolidated Group companies and minority holdings are disclosed in the notes to the financial statements.
Compensation of the Board of Directors and the Executive Board 23 Swiss Re Group
CHF millions Gross Retroceded Net Gross Retroceded Net 25 Swiss Re Group
CHF millions Property Liability Motor health lines non-life Life Total 26 Swiss Re Group
At the end of 1998, Swiss Re acquired 100% of Life Re Corporation, a life reinsurer domiciled in the United States. Reaseguros Alianza SA, Mexico, was also acquired in October 1998. The balance-sheet positions of both companies are consolidated in full in the year under review. The profit and loss accounts are included from
The Swiss Re Group acquired a majority holding in NCM Holding NV, Amsterdam, on 30 June 1998. This company is fully consolidated as of this date. Swiss Re held a 90% stake in this company at year-end 1998.
A 100%-holding in Facility Insurance Corporation, Texas, was acquired in August 1997. As it was intended to sell a majority stake in this company, it was not fully consolidated in the previous year, but only included with its share of profits and equity. As a sale does not appear imminent, it is now fully consolidated in the Group accounts as of
The goodwill from acquisitions is offset against capital funds in the year of acquisition. A capitalisation and scheduled amortisation of the goodwill on acquisitions made since 1 January 1996 would result in an asset of CHF 5158 million (1997: CHF 2304 million). Amortisation of goodwill for 1998 would be CHF170 million (1997: CHF136 million). This calculation is based on periods of between five and twenty years determined individually for each shareholding. The remaining value of goodwill is reviewed periodically.
In the first half-year, US medical business was hit by an unexpected negative trend, which led to a partial withdrawal from this business. In the remaining areas, the provisions in the balance sheet of the previous year for claims from 1997 and previous years were in total adequate when reassessed for the current year.
Unrealised gains and losses on unit-linked life reinsurance were CHF 55 million and CHF – 4 million and on derivative instruments CHF 47 million and CHF – 63 million, respectively.
Land and buildings with a cost of CHF1198 million (1997: CHF 979 million) and a market value of CHF1412 million (1997: CHF1174 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 2812 million (1997: CHF 2647 million).
Refer to page 48 for information on subsidiaries and affiliated companies.
Income from companies stated at Swiss Re’s share of their equity 182 253
The amount in the respective balance-sheet positions related to unconsolidated subsidiaries is as follows: CHF millions 1998 1997
As security for own obligations, assets totalling CHF 4519 million (1997: CHF 4146 million ) have been either deposited, pledged or assigned in favour of ceding companies.
Subordinated liabilities comprise a multi-currency perpetual step-up loan in the value of CHF1001 million which combines elements of debt and equity and is included in solvency calculations.
The Swiss Re Group’s obligations for claims payments and claims settlement charges also include obligations for long latent injury claims arising out of policies written several years ago, in particular in the area of US asbestos and environmental liability. The following table shows the payments made by the Swiss Re Group as well as the estimated, non-discounted obligations for own account as a result of these claims: Claims paid: in USD millions
The routine reassessment showed the provisions to be adequate. In the same way as for other claims, the Swiss Re Group continues to make provisions for long latent injury claims on a cautious but realistic basis, being the undiscounted value of potential ultimate claims payments and claims settlement charges, less amounts paid to date.
Other provisions contain a provision of CHF 450 million (1997: CHF 450 million) in the books of Swiss Re, Zurich, relating to a guarantee made in connection with the minority holding in Credit Suisse Financial Products, London. The provision was established at the direction of the Swiss insurance supervisory authority.
Convertible bonds in Swiss Re shares 2.00% 07/2000 USD 140 193 492
Other liabilities contain net liabilities for current taxes of CHF 233 million (1997: CHF108 million).
There are liabilities due after more than five years in the sum of CHF 1326 million (1997: CHF14 million).
Contingent liabilities at 31 December were as follows: in CHF millions 1998 1997
In addition, there are four unlimited guarantees. It is not expected that any payments will be made under these guarantees.
The following derivative instruments were held on 31 December in the year under review: Contract Replacement values Balance-sheet values in CHF millions amounts positive negative assets liabilities
In our opinion, the consolidated financial statements give a true and fair view of the financial position, the results of operations and the cash flows in accordance with the 4th and 7th Directives and the Insurance Directive of the European Union, and comply with the law.
As part of the Swiss Re Group’s divisional reorganisation, Union Reinsurance Company, Zurich, was merged with Swiss Re, Zurich, on 1 January 1998. The merger of the business activities of both companies took effect on 1 July 1998 and has now been completed successfully.
The financial year was marked once again by a favourable trend on the capital markets.The investment result rose by 61% to CHF 2424 million. Net realised gains on the sale of investments climbed to CHF 2210 million and were accompanied by valuation adjustments of CHF 1359 million.To a large extent these include legally permitted, precautionary valuation adjustments to the securities portfolio as well as the write-off of goodwill resulting from acquisitions in recent years.
Investments stated in the balance sheet increased again over the previous year, which can mainly be attributed to the merger with Union Re. The book value of investments in subsidiaries and affiliated companies continued to climb, primarily as a result of the acquisition of Life Re Corporation, Stamford, United States, in the year under review. Moreover, additional loans were granted to subsidiaries and affiliated companies. The increase in deposits with ceding companies is due in particular to intra-Group transactions.
The technical provisions continued to rise and amounted to CHF 18 535 million on the balance-sheet date. A large part of the CHF 3205 million increase can be attributed to provisions acquired through the merger with Union Re. CHF 58 million were released from the provision for catastrophe claims due to the higher incidence of catastrophic losses; this provision amounted to CHF 1708 million on the balance-sheet date.
The taxes relate to the financial year and include taxes on income and capital as well as indirect taxes. The taxes attributable to foreign branches are included on the basis of local financial statements.
The following assets are stated at cost, less necessary and legally permissible depreciation: – Land and buildings (purchase or construction cost) – Investments in subsidiaries and affiliated companies – Shares – Fixed income securities and registered debt instruments These assets are not subject to revaluation. The valuation rules prescribed by the Swiss insurance supervisory authority are observed.
With the exception of property, fixed assets are stated at cost, less individually scheduled straight-line depreciation over their useful lives. Items of minor value and all purchase costs prior to 1994 are not capitalised.
The following items are stated at nominal value in the balance sheet, after deduction of known credit risks if applicable: – Loans to subsidiaries and affiliated companies – Loans – Mortgages – Time deposits – Deposits with ceding companies – Debtors – Cash at bank and in hand
Capital funds on 31 December after allocation of profit 1 Board of Directors’ proposal to the General Meeting of 25 June 1999
To secure the technical reserves on the 1998 balance-sheet date securities in the amount of CHF 2369 million were deposited in favour of ceding companies (1997: CHF1228 million).
The insurance value of tangible assets, comprising the real estate portfolio and other tangible assets, amounted on 31 December 1998 to CHF 2287 million (1997: CHF1987 million).
Other liabilities are long-term liabilities in the amount of CHF 2699 million (1997: CHF 2610 million) and short-term liabilities in the amount of CHF 3627 million (1997: CHF 3031 million).
The company has the following outstanding debenture: 33⁄4% interest, 2 July1997–2007, CHF 500 million.
Details on the Swiss Re Group’s subsidiaries and affiliated companies are to be found on pages 48 ff.
Swiss Re, Zurich, employed a staff of 2750 on the balance-sheet date (1997: 2339). Personnel expenses for the 1998 financial year amounted to CHF 562 million (1997: CHF 451 million).
The Board of Directors proposes to the General Meeting to allocate this profit as follows: in CHF 1998 1997
As statutory auditors, we have audited the accounting records and the financial statements (balance sheet, profit and loss account and notes) of Swiss Reinsurance Company on pages 39 to 46 for the year ended
These financial statements are the responsibility of the Board of Directors. Our responsibility is to express an opinion on these financial statements based on our audit.We confirm that we meet the legal requirements concerning professional qualification and independence.
Our audit was conducted in accordance with auditing standards promulgated by the profession, which require that an audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement.We have examined on a test basis evidence supporting the amounts and disclosures in the financial statements.We have also assessed the accounting principles used, significant estimates made and the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.
ca p it a l a n d r e se rv e s in m il li o n s a s o f 3
European Reinsurance d 100 f CHF 149.7 518.1 Company of Zurich
Euler Société Anonyme j 19.99 e FRF 685.2 4 525.3 1 consolidated figures 2 previous years’ figures 3 sold as of 15 April 1999 4 acquired on 18 March 1999 5 voting share 22.67% 6 limited partnership 7 balance sheet
Credit Suisse Financial Products 3 s 20 e USD 114.5 1 500.5
Swiss Reinsurance d 100 f GBP – 1.2 126.6 Company UK Limited
SR International Business Insurance j 100 f GBP 7.9 42.3 Company Ltd.
The Mercantile & General d 100 f GBP – 399.2 172.2 Reinsurance Company
Algemene Levensherverzekering d 100 f NLG 68.7 306.5 Maatschappij nv 48 Swiss Re Group
ca p it a l d r e se rv e s in m il li o n s o f 3
Swiss Re Life & Health Moscow m 100 – – – –
Atlantic International Reinsurance d 100 f USD 2.8 24.8 Company Ltd.
European International d 100 f USD 40.6 354.3 Reinsurance Company Ltd.
Securitas Capital Partners I, L.P.6 j – – USD 21.4 59.2
Swiss Re Life & Health Canada d 100 f CAD 43.7 269.4
International Risk m 70 f USD 1.7 14.5 Management Group Ltd.1
North American j 100 f USD 11.9 111.3 Specialty Insurance Company
o d o f co n so li d a ti o n e n cy lt i n m il li o n s e h o ld e rs
’ ca p it a l re se rv e s in m il li o n s f 3
Swiss Re Capital Partners (US) Inc.2 j – – – – –
SwissRe Investors, Inc. m 100 f USD – 1.4 – 0.6
Swiss Re New Markets Corporation1 m 100 f USD 2.7 95.3
Swiss Re Brasil Serviços e m 100 – – – – Participações Ltda.
Compañía Suiza de Reaseguros m 100 – – – – Oficina de Asesoría Técnica
S h a r a n d a s o 1 consolidated figures 3 balance sheet
Swiss Re Southern Africa Limited d 100 f ZAR 8.3 409.7
Administrative reinsurance is the acceptance of closed blocks of inforce life and health insurance business either through acquisition or through the assumption of a reinsurance agreement.
Remuneration paid by the insurer to its agents, brokers or intermediaries or by the reinsurer to the insurer for its costs in connection with the acquisition and administration of insurance business.
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.
Accident insurance: Insurance of individuals or of groups against the economic risks in the event of death or temporary or permanent disability by accident.
Burglary, fidelity guarantee 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.
On 2 December 1993 and on 1 December 1995 respectively, the bearer participation certificates and the bearer shares were converted into registered shares.
Profit on ordinary activities before tax Tax on ordinary activities Profit on ordinary activities after tax