WhAT WE WAnT To AChIEvE By 2012: Building on our efficient and profitable core business we aim – as before – to achieve a return on equity over the insurance cycle of 15 % and to continue to steadily increase earnings per share. In the nonlife business, we aim to continue to keep the combined ratio appreciably below 100 %. We want to sustainably increase profitability by CHF 200 million by 2012 by means of our strategic programme “Baloise 2012.”
For him, good preparation means success through safety in both sport and life.
Do you sometimes lack motivation? Sure. You have to get fit during the winter. To get up and run at 5:30 in the morning is not something that comes easily even to me. Sometimes I have to tell myself: It’s time to go now. But afterwards I’m happy.
What role does the thrill of anticipation play? That’s important. It’s got to be fun. I’ve been preparing for a big project for a year now. I’d love to fly right now! That’s really positive. If you don’t look forward to the climb you’ll never get on top of the mountain.
How important is it to think the almost impossible to be able to achieve it?
“ Neurology is a very tough field. You have very high attendance times and occasionally operate all through the night. You have to have your heart in it, otherwise you couldn’t cope.”
“ It’s all in the mind. If there is enough will to get from A to B, we are ready for our life. This journey might take me two or three minutes longer – but I always get to where I want.”
“ Year-on-year we are keen to satisfy the high expectations of our customers and shareholders. Higher earning power, attractive growth and improved financial targets confirm our success.”
INVESTMENTS: hIGhEr NET INCoME The capital markets were characterised by the European debt crisis and its negative impact on interest rates and currencies. The fall in value of the euro and the dollar against the Swiss franc influenced the investment result: book losses on external debt instruments, currency-related (consequential) impairment, lower current income on foreign currency bonds and reduced contribution to earnings by foreign business units. Nevertheless, net income for policyholders rose from CHF 1,697.1 million to CHF 1,934.4 million. This equates to a net return of 3.5 %. Recurrent income amounted to CHF 1,811.2 million and was, as such, just below the previous year’s value, above all due to currency-related issues. IFRS performance (including net adjustments of investments not recognised in profit and loss) amounted to 3.5 %, down on the previous year’s value of 4.9 % for currency and interest rate reasons.
ECo-EFFICIENCY IN oPErATIoN The material and energy flows involve the consumption of the large office buildings used operationally and the computer centres in Switzerland. We record the consumption of just under 53 % of the 8,797 employees at the Baloise Group. The energy consumption per person was again reduced by nearly 1 %, although the energy consumption of the Baloise Group in Switzerland increased slightly due to the merging of the computer centres. It is our aim to reduce the energy consumption by 2 to 3 % each year in the years 2004 to 2013. We remain * UNEP = United Nations Environment Programme
Copy paper consumption 93.6 million A4 sheets 90.7 million A4 sheets 99.4 million A4 sheets 21,300 A4 sheets / employee
1. grouP And shAreholder structure group structure Headquartered in Basel, Switzerland, Bâloise Holding is organised as a joint-stock holding company, incorporated under Swiss law, and listed on the SIX Swiss Exchange. As of 31 December 2010, the Baloise Group had a market capitalisation of CHF 4,550.0 million.
→→ Information on the Baloise share can be found in the Annual Report from page 24 onwards.
equity of Bâloise holding The following table shows how equity has changed during the last three reporting periods.
It will be proposed to the 2011 Annual General Meeting to elect the following persons as new members of the Board of Directors: →→ Dr Georges-Antoine de Boccard (1951, CH). Dr de Boccard studied medicine at the University of Geneva and is a self-employed, practising physician based in Geneva. He is a member of various organisations related to his profession.
MeMBers chairman’s committee Audit committee compensation committee Investment committee nationality Born in
Board of directors and committee meetings The full Board of Directors meets as often as business requires, but no less than four times a year, in compliance with organisational regulations.
Martin Wenk (1957, CH, lic. iur.) graduated in law at the University of Basel obtaining his doctorate (lic. iur.) prior to holding various posts with a major bank from 1982 to 1992. He initially worked as an investment advisor to institutional clients, then went on to head a private banking group in New York and subsequently became a sector head in securities sales, where he primarily looked after major institutional clients. During this time, he attended several professional training courses in Switzerland and the United States of America. From 1992 until 2000, he was Head of Portfolio Management Switzerland within the Baloise Group, with responsibility for managing the assets of various companies in Switzerland and within the Group, including the pension funds. He joined the Corporate Executive Committee (as Head of the Corporate Division Asset Management) in 2001, with responsibility for Asset Management, including the Investment Strategy, Investment Controlling, Baloise Asset Management, Real Estate and Baloise Fund Invest units (fund business). Martin Wenk is a member of the board of Unigestion Holding, Geneva.
From left to right: Olav Noack, Jan De Meulder, German Egloff, Martin Strobel, Martin Wenk, Thomas Sieber
→→ Employee incentive plans for all function levels in Switzerland (compare section 5.6.)
→→ Share Subscription Scheme and Employee Ownership Plan for function levels 1 to 5 in Switzerland (compare section 5.7.)
In order to increase the impact of this Employee Share Ownership Plan, each employee receives an interest-bearing loan on market terms, which allows the employee to draw more shares in relation to the incentive granted at fair value less the discounted dividend right over a three-year period. The repayment of the loan after the three-year blocking period is hedged using a put option, which is financed by the sale of a complementary call option. After the three-year blocking period has expired, the shares remaining after the options have been exercised, less the repayment of the loan and the interest accrued, are placed at the employee’s disposal.
The number of shares that can be subscribed for after three years, i. e. at the end of the performance period, depends on how the Baloise share has performed relative to a peer group. This comparative performance factor can hereby assume values between 0.5 and 1.5. The peer group includes the most important European insurance companies in the STOXX Europe 600 Insurance Index.
A talent management target was again set for the most senior levels of management in 2010. This also emphasises that the retention and development of talent represents an important factor in Baloise’s future ability to create value. Here the targets focus on adding value today and in the future, as well as on tools that the Corporate Executive Committee has at hand to operationally optimise current results and to set the course for medium-term success.
Liabilities from banking business and financial contracts 6,744.0 8,300.6 8,127.2 11,396.4 12,863.3 vorabdruck
Funding ratio in percent 187.7 180.5 1 Not including capitalised settlement premiums.
Expenses for policyholders’ dividends – 19.1 – 17.3 – 238.5 – 351.6 total technical result for own account 122.3 101.3 – 1,261.2 – 1,379.6
105Bâloise Holding Appropriation of retained earnings retained earnings and aPProPriation oF earnings Net retained earnings amount to CHF 233,435,876.98.
non-recurrent deposits Non-recurrent deposits finance life insurance policies with a one-off deposit made when the policy begins. Primarily used as a financing tool for asset-building life insurance, with special emphasis on profitability and security aspects.