number of reinsurers, particularly many companies which write reinsurance as a sideline to insurance, are reducing their commitments or are dropping out of the business altogether. It is to be hoped that the develop­ ments mentioned will instigate a return to fundamental but long neglected underwriting and commercial prin­ ciples. The prerequisites for this would appear to be at hand at the present time.
With a total of Sw.frs. 11,079 million the net new business increased by 8.8% over the previous year. Our subsidiary reinsurance companies in the United Kingdom and Aus­ tralia largely contributed to this growth in production. The business in force at the end of the year was Sw. frs. 47,131 million, i.e. 5.4% more than in the previous year.
Capital market investments and real estate 4,700 4,545 Holdings and loans 487 487 Cash deposits from reinsurance transactions* 1,323 1,370 Total investments 6,510 6,402 * Net amount, i.e. after deduction of the shares due to retro­ cessionaires. Investments in the amount of Sw.frs. 57 million (previous year, Sw.frs. 77 million) were held by trustees appointed by us In overseas territories.
Prudentia Services Ltd., Zurich, a broking and consulting firm, was founded in June 1984 to mediate insurance and reinsurance cover between clients of the Swiss Re. In addition, Prudentia Services undertakes against remu­ neration consulting assignments which for reasons of time or cost extend beyond the scope of Swiss Re's usual services.
Changes Valuation difference based on exchange rate fluctuations -145.8 + 57.6 Increase of technical reserves in year under report -1-200.5 -1-472.5 Total business in force on balance-sheet date 6,195.3 6,140.6
On the balance-sheet date the capital comprised the share capital of Sw.frs. Ill million (400,000 registered and
The consolidated net premiums rose in the year under re­ port by 2% to Sw.frs. 3,006 million (previous year, Sw.frs. 2,945 million). The lower valuation of the German mark against the Swiss franc had a negative effectof 5%on the growth rate, as 88% of the insurance premiums are pro­ duced by Group companies in Germany. Overall, the un­ derwriting result improved appreciably. In Non-Life insur­ ance the losses declined steeply, while in Sickness and Life insurance higher positive results were shown. Satis­ factory investment income, but with a sharp increase in management expenses, gave overall a Group profit from insurance companies of Sw. frs. 22 million (previous year, Sw.frs. 15 million).
Casfi in fiand, postal bank account, bank balances 291 61 364 341 Current-account balances 2,021 256 2,283 2,235 Gasti deposits 2,238 118 2,356 2,423
Fidelity and Deposit Company of Maryland* US $ 50 143,661 268,340 122,803
United Kingdom General Surety & Guarantee Co. Limited Hawthorn Hail, Hail Road, Wiimslow, Cheshire, SK9 5BZ Palatine insurance Company Limited 108 Cannon Street, London, EC4N 6HE SWITZERLAND General insurance Company (London) Limited Three Cuays, Tower Hill, London, EC3R 6DS
South Africa Swiss-South African Reinsurance Company Limited Swiss Park, 10 Cueens Road, Parktown, 2193, Johannesburg with branch offices in Cape Town and Pretoria
Quota share reinsurance: Form of ^ proportional rein­ surance providing that the ^ reinsurer accepts a speci­ fied share of each -»- risk of an -»- insurer in a specific class of business.