General Managers Paul E. Christen Rolf Gamper Paul-Francis Niquille Hermann Odermatt Herbert Schönenberger
were not able to avoid ttie need for extensive write-offs to tfie low price level at tfie end of ttie year. Ttie stock market recovery since ttien fias, tiowever, caused these depre­ ciated values to rise again substantially. - Since the future developments of interest rates, foreign exchange rates and stock market prices are highly unpredictable, underwriting results receive our unabated attention.
In Accident reinsurance, the premium volume - ex­ pressed in Swiss francs - has been increased by almost 5%. - After two difficult years an undenwhting profit can again be reported. Workers' Compensation business in the United States and Accident reinsurance in Great Britain were largely responsible for this improvement.
Over the years, Swiss Re has developed a whole range of services which clearly go beyond the scope of rein­ surance in the narrow sense, i.e. the assumption of risk against payment of a premium, but which play a vital role in maintaining customer relations. These include, for example, medical consultancy in Life, Disability and Health insurance and the various tools of risk analysis and advice on the containment and handling of risks which come under the general heading of "risk manage­ ment".
Of the total amount of Sw. frs. 563.0 million, Sw. frs. 561.3 million was for bank balances. The major part of this amount is invested short-term in the principal currencies for our business activity and is used to meet current obli­ gations on time.
The balance-sheet value of holdings rose by Sw.frs. 2.0 million to Sw. frs. 46.8 million. Loans to Group companies increased by Sw.frs. 147.5 million; on the balance-sheet date they amounted to Sw.frs. 840.6 million.
The development of foreign exchange rates, which was again marked by the weakness of the US dollar, has basi­ cally had the same effect on the Group Accounts as on the Annual Accounts of Swiss Re, Zurich (cf. page 11). The conversion of foreign currencies into Swiss francs is ex­ plained on page 42.
The SwissRe Holding Limited comprises all majority holdings whose figures have been consolidated - with the exception of Swiss Re, Zurich, and the North Ameri­ can Specialty Insurance Company, Manchester, New Hampshire - together with a number of minority holdings.
The structure of the holding portfolio underwent no major changes during the year under report. In contrast, the funds employed have risen substantially following capital increases of company holdings. The loan granted by Swiss Re rose as a result by Sw. frs. 67.0 million to Sw. frs. 567.3 million.
Current-account balances 1,012 865 1,919 1,795 Casfi deposits 199 157 356 456
Life Insurance Life Insurance and annuity fund 2,417 3,470 5,887 5,651 Outstanding claims reserve 396 36 432 441 Reserve for profit commission 5 853 858 940
In % of Life Insurance In force, net 2.1% 26.1 % 4.7% 4.2%
Non-Life insurance: All classes of insurance business with the exception of -• Life.
Treaty reinsurance: The participation of the -»• reinsurer in certain sections of the ^ insurer's business as agreed by treaty (cf. facultative reinsurance).