The Baloise Group achieved a net profit of CHF 222 million in fiscal 2004, compared to CHF 91 million the previous year. All business lines contributed to this profit, and every single business unit raised its operating profitability. Here we can emphasize the excellent results of the non-life sector, whose net profit lay nearly four times higher than in 2003. The gross combined ratio again improved strongly from 97.6% to 93.0%. The life insurance sector likewise saw improved results, although the introduction of the “legal quote” in Swiss group insurance brought a negative impact of around CHF 26 million. New business recorded an increase in margins.
Non-life premium incomes came to CHF 3.1 billion, thus remaining in line with the previous year’s level.
Outlook For 2005 we anticipate continuing uncertainty in the economies of our core European markets. We remain cautiously optimistic with respect to the financial markets. We shall continue to concentrate on increasing sustainable operating profitability in all markets with the goal of obtaining return on equity of at least 10% by 2006. To do so we are aiming for above-average growth in the customer segments where we anticipate the greatest earnings potential in the long term.
Baloise Bank SoBa Baloise Bank SoBa achieved a net profit of CHF 14.5 million
(2003: CHF –121.9 million). The main causes were the loss of approximately CHF 70.2 million from the sale of Mercator Bank in the second half of 2004 and extraordinary adjustments to the value of Mercator Insurance investments. Operationally, Mercator has achieved a turnaround and successfully restructured its insurance portfolio. Bâloise Assurance, Luxembourg, saw a significant growth in profit over the previous year.
and 7.4% in EUR. Since 2001 the Austrian company has invested judiciously in profitable growth: in that period customer and contract figures have grown by approximately a third, the sales organization has been expanded and administrative overhead substantially reduced.
In the non-life sector — three-quarters of the premium volume — the companies achieved premium growth of 12.6% in CHF and 11.0% in EUR, well above the market average. The main drivers of this growth were motor vehicle and accident insurance. A strong increase in sales productivity, differentiated underwriting polices and lower total costs despite expansion of the sales organization resulted in a substantially improved 105.2% gross combined ratio
(RMS) to address the following main points: � Organization and accountabilities
Executive Committee of Baloise-Holding expired in November 2004 and was not renewed.
Gallen) has been a Member of the Board of Directors since 2003. He graduated with a PhD in economics from the University of St. Gallen. From 1987 Klaus Jenny was a Member of the Executive Board of Credit Suisse (later the Credit Suisse Group), Before leaving the Credit Suisse Group, he was
Mitchell (today KPMG Fides), Zurich, and from 1985 to 1992 for Baker & McKenzie, Zurich and Chicago. In 1992 she joined the firm Homburger Attorneys, Zurich, where she is a partner. Eveline Saupper is Chairman of the Board of Directors of BZ Bank AG, Freienbach, and Member of the Board of
Chamber of Commerce as well as a Member of the Board of
German Egloff (born 1958, CH, lic. oec. HSG) studied economics at the University of St. Gallen, before joining Winterthur Insurance, Switzerland, in 1985 where he held a variety of management positions. As Head of Management
Chairman of the Board of Directors cannot be a Member of the Audit Committee. The committees’ basic tasks are defined by the organizational regulations and the written regulations applicable to the committees.
The Chairman’s Committee is responsible for deliberating on particularly important business, especially in connection with major decisions on strategy or personnel. The
Switzerland and abroad, including pension funds. In 2001 he was appointed a Member of the Corporate Executive
Committee, responsible for Corporate Asset Management comprising the units Baloise Asset Management, Real Estate and Mortgages, and Baloise Fund Invest. Martin Wenk is a Member of the Board of Directors of Unigestion Holding,
After expiry of the blocking period, employees receive the shares remaining after repayment of the loan for their free disposal.
Convening the Annual General Meeting As a rule, the Annual General Meeting takes place in May, but no later than six months after the end of the financial year. Bâloise-Holding’s financial year ends on March 31.
1 In accordance with the accounting policies of the Baloise Group, investment-type premiums are not included in gross premiums and policy fees.
Group are prepared on a historical cost basis, taking into account adjustments resulting from regular reassessments of the fair market value of certain investments, and are established in accordance with the International Financial Reporting Standards (IFRS). They comply with Swiss legal requirements. As the IFRS do not currently contain any insurance-specific guidelines, insurance business has been valued in accordance with the Generally Accepted
“Non-Current Assets Held for Sale and Discontinued Operations ”, as well as the revised IAS 36 “Impairment of
When a foreign subsidiary is disposed of, exchange differences from the sale are recognized in the income statement as transaction income or expenses.
The process involves the application of mathematical, statistical methods and the expertise of claims-handling specialists. The aim is to establish provisions for outstanding claims and for claims-processing costs which are as realistic as possible. An additional provision is set for claimsprocessing costs.
3.14 Reinsurance Reinsurance contracts are insurance contracts between insurance companies. If a transaction is to be recognized as a reinsurance transaction, there must be a transfer of risk as defined the US GAAP, otherwise the contract would be dealt with outside the income statement as deposit accounting.
Policyholder bonuses credited: Bonuses already allocated which have been accrued on an interest-bearing basis are included in policyholder bonuses credited and provision for future policyholder bonuses.
3.17 Financial provisions Financial (nontechnical) provisions are recognized when the Baloise has a present obligation (legal or de facto), when it is probable that an outflow of resources will be required to settle the obligation and when a reliable estimate can be made of the amount of the obligation. The amount of the provision is based on the best estimate of possible outcomes. If no reliable estimate can be made of the liability, it is disclosed as a contingent liability.
Claims and benefits paid (life) –2,372.1 –2,735.3 –1,096.1 –1,054.8 –204.5 –112.8 –23.6 –16.7 –7.9 3.2 –3,704.2 –3,916.4
Annual net profit/loss by region 62.1 127.2 –17.1 58.5 –121.9 –116.1 168.3 152.1 –/– –/– 91.4 221.7
During the year 2004, no fixed-interest securities without market value were sold. The change in book value is due to the reclassification of securities for which, in the meantime, reliable market values have become available.
Provision for future policyholder bonuses 849.3 1,223.9 in CHF m 18. Reinsurance 18.1 Technical provisions and assets from reinsurance Reinsurance
Expected increases in pension benefits 1.2 0.8 in percent 23.6 Equity benefits: direct allocation of shares
Liabilities without fixed due date –/– –/– –/– –45,097.1 in CHF m 30.7.2 Liquidity risk at December 31, 2004
Total warranties and guaranties for the benefit of third parties 962.6 976.2
Business Holding Method of company capital Total assets policy fees Switzerland Principal activity segments1 in percent inclusion2 Currency in millions in millions in millions
Baloise Beteiligungs-Holding GmbH, Bad Homburg Holding O 100.00 F EUR 0.0 115.1 –/–
OVB Vermögensberatung AG, Köln Other O 54.44 F/P EUR 10.0 59.4 –/–
Amid N.V., Ghent Other O 97.85 F EUR 0.5 2.7 –/–