Report on the Examination of 23 the Group Accounts 47 24 Consolidated Profit and Loss Account 48 25 Consolidated Balance Sheet 49 26 Notes on Group Accounts 50 30 Key Figures of Group Companies in 1990 53 32 Addresses of Group Companies 58
The drop in value of foreign currencies ­ Swiss Re oper­ ates in over 130 currencies ­ meant that income earned abroad (especially premiums and investment income) fell after conversion into Swiss francs, although the outgo payable abroad (in particular claims payments, commis­ sions and management expenses) was likewise reduced. The growth in gross premiums by 0.9% shown in the year under report would have been 11.4%, if exchange rates had remained constant.
The underwriting resuit deteriorated to a massive extent, in that the underwriting loss increased from Sw. frs. 253 mil­ lion to Sw. frs. 478 million, the burden from the winter storms alone being some Sw. frs. 450 million. In addition, certain branches of insurance which in the past usually operated at a profit showed an underwriting loss in the year under report. In contrast, better results were achieved in some other classes, such as General Liability.
These peak values are not representa­ tive of the severity of a storm; it is, however, known that storm damage correlates closely with peak gusts and far less with mean wind speeds. It should also be borne In mind that the force and duration of the gales varied as they swept across Europe causing certain regions to be more severely affected than others.
The commissions and profit commissions accounted for gross business totalled Sw.frs. 1,127.2 million. Of this amount, Sw.frs. 219.9 million referred to retrocession­ aires, leaving Sw.frs. 907.3 million for own account.
The tax outgo contains both taxes on profit and on capital as well as indirect taxes. It amounted to Sw.frs. 52.1 mil­ lion, as against Sw. frs. 88.7 million in the previous year and comprises current taxes levied abroad together with the outgo expected in Switzerland on the basis of the 1990 re­ sult. The decline is due, on the one hand, to the fact that the stamp duty payable in the previous year on the capital increase was no longer applicable and, on the other hand, to far lower taxes abroad.
Technical reserves comprise, in Non­Life reinsurance, the reserves for unearned premiums and outstanding claims and, in Life reinsurance, the policy and claims reserves. The changes in the reporting year and the composition are shown in the following table. The decrease of technical re­ serves by Sw.frs. 403.4 million is due exclusively to lower conversion rates giving a negative valuation difference of Sw.frs. 704.1 million. This decrease could only be partly offset by strengthening the technical reserves in the year under report in the amount of Sw.frs. 300.7 million.
The General Meeting to be held in Zurich on 22 November 1991 has at its disposal the following profit (of. Profit and Loss Account and Balance Sheet, pages 24/25):
If the proposal of the Board of Directors is accepted, divi­ dends of Sw.frs. 45 ­ per share (nominal value Sw.frs. 100.­) and Sw. frs. 9.­ per non­voting share (nominal value Sw.frs. 20.­) will be paid.
After deduction of the Federal Withholding Tax of 35%, the dividends of Sw.frs. 29.25 and Sw.frs. 5.85 respectively will be paid after 26 November 1991 as follows: yxwvutsrponmlkihgfedcbaWTSRPONMLJIHGEDCBA
The following changes have taken place in the structure ot the Swiss Re Group: In the year under report Lloyd Adria­ tico 8.P.A., Trieste, founded two companies, GiulianaAssi­ curazioniS.p.A., Trieste, and Giuliana Vita S.p.A., Trieste. In the current year the minority holding ot SwissRe Holding Limited in the European International Reinsurance Com­ pany Limited, Bridgetown, Barbados, a company operat­ ing in the field ot non­traditional reinsurance, was in­ creased to 100%. In addition, the Saar­Rhein Allgemeine Versicherungs­AG, Saarbrücken, transferred its insurance portfolio to the Vereinte Versicherung AG, Munich, and will pursue a new activity under the name Vereinte SpezialVer­ sicherung AG. Finally, the insurance business ot The Fed­ eration Insurance Limited, Melbourne, was sold.
In the 1990 Group accounts, the consolidated gross pre­ miums amounted in the year under report to Sw.trs. 14,881 million, which was 1.2% above the previous year's amount ot Sw.trs. 14,697 million. Expressed in original currencies, this represented a growth ot 10.8% (previous year, 9.2%). The consolidated net premiums rose by 1.2% to Sw.trs. 13,869 million, reinsurance business account­ ing tor 53% and insurance tor 47%.
derwriting profit is the result of inadequate premium rates and a more adverse loss experience. ­ The gross amount of business in force in Life reinsurance was increased by 11.2% to Rand 15,900 million and the underwriting result improved thanks to a more favourable development of mortality experience and despite afurther strengthening of the Aids reserve. ­ Investment income again rose. The published profit amounted to Rand 12.5 million (previous year. Rand 17.1 million), from which a dividend of Rand 8.0 million was paid, an increase of Rand 1.0 million.
The pronounced drop in foreign exchange rates also had a considerable influence on the consolidated balance sheet. Important balance­sheet items showed only a minimal in­ crease or decrease from the combined effect of growth in local currency and foreign currency rate fluctuations. The balance­sheet amount fell slightly.
with branch offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, Philadelphia and San Francisco
SwissRe Advisers Limited Dona Narcisa Building, Room 703 8751 Paseo de Roxas Makati, Metro Manila
­ Gross amount: Life insurance in force of the insurer before deduction of the ̂ cessions or Life business of the ^ reinsurer before deduction of ^ retrocessions.
­ Retrocession premium: Premium paid to the retro­ cessionaire for the part of the risk accepted.
­ Motor Insurance: Insurance against accident and lia­ bility, as well as against accidental collision damage, in connection with motor vehicles.