In both markets, customers are being offered first fully integrated financial services.
Market capitalization as of 12.31. in CHF m 10,093 8,462 - 16.2
So you’ll be glad to know that your financial arrangements can be modified at short notice. As your personal advisors, we will be at your service whenever you care to contact us. Besides, you have 24-hour online access to your investments and accounts with us and can make use of tools such as the finance portal balfolio.com at any time.”
The newly created business unit Baloise Asset Management manages the securities of the Baloise Group. The new business unit also defines the strategy, investment structure and stock picking of Baloise Fund Invest’s twelve investment funds launched during the year under review. On December 31, 2001, the Baloise Group’s assets under management amounted to CHF 55.6 billion, which represents a decrease of 4.1 percent compared with the equivalent yearback figure. Owing to the difficult situation on the capital markets, the Group’s earnings on Group investments came to CHF 2,231 million. At CHF 149 million, the net realized capital gains included in this figure were 81.9 percent lower than in the previous year, mainly because of the very restrictive equity sales in the second half of the year.
Against the background of the unfavorable conditions on the stock markets, traditional life insurance products experienced a veritable renaissance in 2001. With its strong market presence and diverse range of attractive products, the Baloise benefited from this trend, upping its premium volume by 13.9 percent (adjusted for the one-off effect to the amount of CHF 400 million arising from the integration of the Sarasura collective foundation in 2000) to CHF 2,837 million.
With the “Riester” products due to be launched in 2002, many customers approached the life segment with something of a wait-and-see attitude.
For Deutscher Ring, the focus over the past financial year was on the company’s strategic repositioning as a provider of life insurance and pensions for low- and medium-income households. The efficiency and advisory competence of the sales organization was systematically strengthened to enable the advisors to customize solutions to their clients’ individual needs as far as possible. For this purpose, Deutscher Ring expanded the size of its own field operations organization to nearly 1000, and equipped sales staff with innovative technological resources such as an interactive sales software package. The existing network of intermediaries and insurance brokers was also enlarged.
The investment category comprising alternative financial investments, derivatives, participating interests in associates, and other short-term capital investments and cash and cash equivalents sustained a diminishment in value of 2.9 percent owing to the negative development in the private equity investment field.
The Baloise’s risk management lays the foundations for an optimized segment, investment and equity policy with a long-term perspective. All risks are continuously examined and assessed using statistical methods and scenario analyses.
Over the past five years, consistent control and optimization of the structure of capital and reserves involving all business units has enabled the
There are two ways of handling trust: “I have to be able to trust you” or “I trust you”.
W. believes we have been spreading our assets in a rather uncoordinated way. All these various bank accounts and insurance policies. Your investment funds and securities portfolios and my medium-term notes that
This year’s Annual Report publishes, for the first time, the compensation remitted to the Board of Directors and the Corporate
List of members of the Board of Directors, including details of their terms of office page 33 ✓
Return on equity (ROE): ROE on capital and reserves as shown in the balance sheet3 Percent 6.6 7.2 7.4 8.5 6.3
Investments and assets relating to reinsurance business - 3.4 - 81.9
Purchase/sale of options in treasury stock - 49.8 – – – – - 49.8
Change in unearned premiums reserves for own account 7.9 10.3 28.3 4.6
Group acquires financial instruments which correspond as closely as possible in
Alternative financial assets such as private equity investments and hedge funds are held as Available for sale. However, private equity investments that have a substantial influence on management policy are classified under
Deferred acquisition costs: Costs which are directly associated with the acquisition of insurance contracts (e.g. commission) are deferred and written off over the period of the contract, or over the premium payment period, if that is shorter. Deferred acquisition costs are reviewed when the contract is acquired and thereafter on an annual basis for recoverability.
On the basis of such reviews, the projection process can be adjusted if necessary.
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 in the International Accounting Standards, otherwise the contract would be dealt with outside the income statement as deposit accounting.
Deposits arising from reinsurance ceded are calculated on the same basis and for the same period as the original transaction and shown in Investments and deposits arising from reinsurance business. Where deposits are at risk due to insolvency, appropriate write-downs are made in the income statement.
5. Acquisitions and Disposals of Subsidiaries and Other Business Units 5.1 Acquisitions and disposals of subsidiaries and other business units in 2000
In the course of the year, the remaining outstanding minority shareholdings in Mercator of 3.9 percent were purchased for CHF 38.4 m. Mercator is now 100 percent owned by the Baloise Group.
Disposals due to changes in composition of consolidated Group – –
Accumulated amortization and write-downs - 370.5 47.1 – - 78.2 - 401.6 in CHF m
Accumulated depreciation and write-downs – - 299.5 - 103.6 - 403.1 of which assets under finance leases – 146.0 – 146.0 in CHF m 13.2 Property, plant and equipment for own use: 2001
Loss reserves at December 31 (gross) 4,021.5 4,182.0 in CHF m
The diluted net earnings coincide with the basic earnings per share because no option rights exist (either for capital market transactions or for employee share schemes) that could raise the current number of outstanding shares. The average number of shares has been adjusted for the years 2000 and 2001 owing to the 1:10 share split of July 24, 2001.
Total commitments entered into 159.9 532.6 of which relating to joint ventures – –
Articles of Incorporation and results in a distribution of CHF 2.40 gross per share