105 Sw. frs. 48.Sw, frs. 9.60 * subject to the resolutions of the General Meeting in millions of Swiss francs
Reinsurance Services Risk management, claims service A. Schneeberger M. Bürge Members of Senior Management J. Hofmann, T. Lörtscher
Credit and Surety A. Suizer H. Voser Members of Senior Management M. Freyiinger, J. Leis
The overall result figure is made up of the following prin­ cipal components: - The underwriting loss In Non-Life reinsurance rose by Sw.frs. 155.3 million (33.2%) to Sw.frs. 623.4 million.
The management of the Swiss Re Group is based on del­ egation suitable to subject matter and job level.
With an increase of 15%, the premium volume in Accident reinsurance rose at about the same rate as in the previous year. Whereas individual European and Far Eastern mar­ kets brought significant additional income, there was a sharp drop in premiums from the USA. - The negative result is primarily due to difficulties in American workers' compensation business, where there was again a rise in late-reported claims and a pronounced inflation of claims amounts. Business in Europe closed the year with a mar­ ginally positive result.
Accident 330 288 Sickness 174 171 General Third Party Liability 786 715
The foreign exchange markets experienced pronounced fluctuations in the course of the year.The US dollar initially strengthened Its position against other currencies. It then came under increasing pressure as a result of dis­ appointing economic performance and widening discre­ pancies in interest rates, before recovering again towards the end of the year. In Europe, the ongoing discussions on the Maastricht treaties and the insufficient range al­ lowed to monetary policies within the European Monetary
Loans (including mortgages) 6% (8%) IH Fixed-interest securities with equity character 1% (2%) 1 Shares 12% (10%) ••• Real estate 15% (16%) mHHi
In view of the less than encouraging economic develop­ ment and the continued potential for a decrease in in­ terest rates, new investments were made primarily in nominal values, as in the previous year,The balance-sheet value of all fixed-interest investments (bonds, loans and equity-linked securities) increased by Sw, frs, 474 million to Sw, frs, 6,256 million. With a contraction in the USA counterbalanced by an extension in Europe, the average life of the bond portfolio is only slightly shorter than that of the previous year. Selective buying in favourablyassessed markets and positive currency influences raised the balance-sheet value of shares by Sw. frs, 262 million to Sw.frs, 1,021 million. The real estate portfolio advanced by Sw.frs,41 million to Sw.frs, 1,279 million; this resulted primarily from the completion of already existing projects.
Casfi in hand, postal bank acoount, bank balances Current-account balances Cash deposits
Gross premiums in the year under report totalled Sw.frs. 6,069.0 million. After deduction of retrocession pre­ miums of Sw. frs.738.1 million, the remaining net premiums amounted to Sw.frs. 5,330.9 million, corresponding to an increase of 22.5% over the previous year. The effect of foreign currency fluctuations was insignificant in the year under report.
Claims comprise benefits for term and endowment insur­ ance and for annuities of Sw.frs. 418.7 million and an amount of Sw. frs. 58.8 million for the adjustment in the out­ standing claims reserve. The total figure for own account rose in the year under report by Sw.frs. 73.9 million to Sw. frs. 477.5 million.
Of the total amount of Sw.frs. 1,127.0 million, Sw.frs.1,126.2 million was for bank balances. A substantial part of these funds is invested short-term in the principal currencies for our business activity and is used to meet current obliga­ tions on time.
These include, in addition to various accounts payable, in particular the value adjustments on outstanding balances together with reserves for foreign-currency risks, taxes and imminent losses.
The Englewood Reinsurance Company Limited, Hamilton, Bermuda, which is primarily active in the sector of finan­ cial reinsurance, increased its gross premium volume by 52.9% to LIS$ 50.6 million.The published profit amounted to US$ 3.8 million (previous year, US$ 3.5 million). The company paid a dividend of US$ 1.2 million (previous year, LIS$ 0.9 million).
The gross premiums of Lloyd Adriatico S.p.A., Trieste, increased in the year under report by 20.2% to Lit. 1,487,400 million. Of this amount, 11.9% was attributable to Life insurance with an amount of business in force of Lit.4,237,100 million (previous year. Lit. 3,540,800 million). The profit for the year amounted to Lit. 48,400 million (pre­ vious year, Lit. 52,000 million), from which unchanged div­ idends were paid of Lit. 18,000 million on ordinary shares and Lit. 3,900 million on savings (risparmio) shares.
The General Surety & Guarantee Company Limited, Wilmslow, which is active in the Surety field, registered a slight drop in gross premiums to £5.9 million (previous year, £6.1 million). The published profit of £442,000 is signifi­ cantly higher than in 1991 (£97,000). A dividend of £200,000 (previous year, £50,000) was paid.
Based on our audit we conclude that the consolidated financial statements are presented In accordance with the consolidation and valuation principles set out In the notes on Group accounts.
Tecfinical reserves Non-Life insurance 17,052 12,014 29,066 24,569 Life insurance 5,401 11,713 17,114 12,149
Building society deposits - - 1,612 1,406 Transitory entries, value adjustments
This group shows a positive balance of Sw. frs.486 million (previous year, Sw.frs.203 million). Realized capital gains on investments produced a profit of Sw.frs. 1,205 million (previous year, Sw.frs.628 million), while depreciation on investments amounted to Sw.frs. 627 miliion (previous year, Sw.frs.449 million). Monetary transfers and conver­ sion of foreign currency balances produced a loss of Sw.frs.7million (previous year, profit of Sw.frs.26 miilion). For value adjustments and depreciation on assets outside the investment sphere Sw.frs. 85 million (previous year, Sw.frs. 2 million) was needed. Of this amount, Group companies in Germany transferred Sw.frs. 62 million of realized gains to tax-free reserves.
The consolidated balance-sheet values of capital invest­ ments (incl. non-consolidated holdings) rose by 24,3% to Sw. frs.48,379 million.The rise is due to growth in the port­ folios of fixed-interest investments, shares and real estate; this is largely the result of changes in the scope of con­ solidation.The real estate portfolio rose by 41.7% following inclusion of property from the ELVIA Group.The drop in the item "Non-consolidated holdings" reflects the consolida­ tion of the ELVIA Group for the first time.
Japan Swiss Reinsurance Company Representative Office Tokyo Sansho Building 7F, 2-9 NIfionbastii 3-chiome, Ctiuo-ku, Tokyo 103
Magdeburger Versicherungsgruppe Kirchhorster Strasse 2 D-30659 Hanover mh Bausparkasse AG Wotanstrasse 88 D-80639 Munich
- Equalization fund: Reserve set up to smooth out ex­ ceptionally high fluctuations in claims experience.
Facultative reinsurance: Reinsurance of the er's ^ risks on an individual basis.
Retention: The amount of a risk which the -+ insurer does not reinsure but keeps for own account.
- Accident insurance: Insurance of individuals (per­ sonal accident) or of groups (group accident) against the economic ->• risks in the event of death or tempo­ rary or permanent disability.