The 2003 Annual Report of Helvetia Patria Group is available in German, French and English.
Corporation. As the Board of Directors re-examines the business strategy on a regular basis it passed last summer a new corporate strategy which defines our corporate policy until 2006. Focussing consistently on our core competencies and applying a strict cost
The downward trend on the stock markets, for example, has significantly impacted the earnings power. Rapidly changing markets and natural disasters have led to changed conditions also for our actual core activities –
Strict return rate requirements on the allocated capital and corresponding control instruments ensure the alignment of all business units to increase the earnings power in the insurance business and the achievement of the set goals on the return on capital. Pursuing a continuously quality-oriented, selective underwriting policy assists in achieving the objectives of a combined ratio of below 100 per cent (sum of claims ratio and expense ratio).
Part of it is the focus in all of our country markets on the business with private customers and small and medium-size companies.
The term of office of the individual Members is coordinated in such a way that each year one-third of the
The Members of the Board of Directors of Helvetia Patria Holding Office Joined1 Current Committee memberships term SGC NCC IRC AC
The Management of Helvetia Patria Group * Member of the Group Management As of April 2004
Ralph-Thomas Honegger (1959) a Aesch, Swiss b Dr. rer. pol. c Head of the Investment Division (CIO), Chairman of the Board of Trustees of
Helvetia Patria see corporate governance as an ongoing process being periodically analyzed and adjusted with consideration given to new developments, findings and needs. Various changes to the Organisation Regulations as well as appropriate control measures in connection with restructuring the top management are only a few examples.
In the year under review the Board of Directors did not issue any new exceptions with regard to transferability restrictions.
Directors of the Helvetia Patria Holding attaches great importance to its members being individuals with strengths of character (such as integrity), with particular specialist and industry knowledge, strategic and operative experience, visionary thinking as well as with social competence.
There are, however, the following business connections with some of the companies they are representing: Silvio Borner, Marguerite Florio and Olivier Vodoz are representing Patria Genossenschaft in the shareholder pool, Pierin Vincenz is representing the Raiffeisen Group and Peter Wagner the Vontobel Group, where he is, among other functions, the Chairman of the Board of Directors of the Vontobel Holding AG.
Management of the Company with reference to good corporate governance. If the circumstances require it, he calls for a Meeting of the Board of Directors, draws up the agenda and presides over the meeting, decides on the attendance of the meeting by the Chairman and
Board of Directors regularly informed about activities at Helvetia Patria, the course of business and the developments in the market. The Board is thus regularly receiving information at its meetings on topics such as: The course and contents of discussions, the decisions reached and proposals put forward in the committees, whose minutes are immediately forwarded to the Board’s Members, the general course of business, the market and the most important projects, if necessary, from the individual representatives responsible for the country markets and divisions, the status of the budget and of other objectives for the year, the results and findings from the external and internal auditors regarding their auditing activities, compliance with the law, regulations and internal directives, important issues and events which could affect the interests of the stakeholders.
5. Remunerations, shareholdings and loans 5.1. Contents and procedure for remuneration and shareholdings
The Nomination- and Compensation Committee proposes the remuneration for the Members of the Board of Directors which need to be approved by the entire
Delegate. The current Chairman/CEO is remunerated and compensated for his position as Chairman of the Board according to the above mentioned remuneration directives and for his function as CEO
– including his own shares – do not represent more than 10 per cent of the aggregate share capital. Shareholders, for example, who are affiliated through capital or voting rights or otherwise, or who are under common management, are to be considered as one shareholder.
The auditing company charged the following amounts for the year under review: Audit fees CHF 1805289
new category of cases – when customers are massively threatening our employees – requires a growing amount of attention. This is the reason why the office will be further expanded this year. The fight against fraud has a lot of potential.
Europe on a basis that forces the insurance companies to ensure the availability of the equity capital required to support risk exposure by the business (Solvency II).
(such as operating risk, reputation, regulatory environment or legal issues). The above described risk concept is based on financial risks (please see graph above).
Calculated in Swiss Francs, the premium income in the direct business reports a growth rate of 3.8 per cent
In 2003, the German insurance industry managed to find its bearings again after the previous year and despite the continuously prevailing difficult economic environment. The non-life and the accident insurance business saw their sales advancing and the situation significantly easing with regard to major- and elementary losses after the extreme year in 2002. The life insurance sector increased its new business as well despite further reduced policyholders’ dividends.
Our goal for the coming years is a distinct abovemarket -average growth in the life sector by expanding both our product range and the distribution channels.
Besides sharpening the market profile we have also implemented far-reaching measures to optimize the internal value creation. Increasing the marketing efficiency, streamlining the decentralised structures, centralising the claims settlement and reducing the costs in administrative areas have all been initiated as important projects to raise earnings. Using those deliberate growth-increasing- and cost-reducing impulses should lead to a gross combined ratio (sum of claims ratio and expense ratio) of below 100 per cent during the strategy period.
In the past year, the Spanish economy took again a more favourable path than the one of its neighbours.
Spanish population is changing its mentality regarding the need for insurance protection. Proof for the change are the continuously higher premium growth rates over the years. Last year’s premium volume advance of 9.4 percentage points – according to estimates of the insurance association – for the whole non-life business confirmed the trend again. Furthermore, the non-life insurers reported on average an improvement of their already good underwriting result. All in all, the Spanish insurance industry is further advancing from a good start position. Those companies will take the most advantage which are able – thanks to modern and streamlined business procedures – to efficiently meet the increasing demands for quality by their customers.
Continuing its strict emphasis on private clients as well as on small and mid-size companies Helvetia
Our company’s position is that of a classic niche insurer which has a specialised know-how in the transport insurance sector. With its market share of about 6 per cent of the overall transport insurance market and of 10 per cent in the segment of “goods in transit”, respectively, Helvetia France ranks fourth nationally and will thus remain one of the leading transport insurers in France. Competitive rates and especially the quality of the consulting and the products are playing as important key roles as the customer segmentation and the systematic customer care. Opening up new distribution channels, regularly innovating new products as well as reinforcing marketing- and communications measures will all further strengthen our competitiveness.
As a result of the partnership with the Azur Group a nation-wide network of several hundreds of general agents market Helvetia products under the Azur Transports brand name. This new distribution channels strengthen the about 1700 partly specialised brokers who are cooperating with us. They are jointly managing transport contracts for almost 15000 customers.
by 7.4 per cent to 94.7 per cent far exceeded our expectations and reconfirm once more the outstanding quality of our reinsurance business.
After two years of massive losses the financial markets regained last year their former strength. 2003 turned out to be a pleasing year for shares with a positive performance of 17.0 per cent in Swiss Francs of the MSCI
St.Gallen. At four weekends the whole population of the celebrating Canton as well as of both Cantons
Appenzell could take the train at half price and ride right around the canton on an especially built railway line without changing trains. More than 8000 railway enthusiasts took advantage of this offer.
Result from non-life underwriting activities 95827 132079 37.8% Result from life underwriting activities –87168 29562 –133.9% Result from non-underwriting activities –343135 76410 –122.3% Amortization of goodwill –16158 –90779 461.8% Result before taxation –350634 147272 –142.0% Taxation –11277 –54756 385.6% Minority interests –91 –120 31.9% Result after taxation and minority interests –362002 92396 –125.5%
Patria Group contain the annual accounts at December 31, 2003, of Helvetia Patria Holding and all those companies in which the holding company controls, directly or indirectly, more than 50% of voting rights
Investments for unit-linked life insurance policies 39.7 0.9 0.0 0.0 1.5 –36.1 6.0
In our opinion, the consolidated financial statements give a true and fair view of the financial position, the results of the operations and the cash flows in accordance with Swiss GAAP ARR and comply with Swiss law.
Patria Holding held 291136 Helvetia Patria Holding registered shares (2002: 291136 such shares). These shares are held in a deposit for the 2% convertible bond issued by Helvetia Finance Ltd., Jersey. A corresponding own-shares reserve is reported in the shareholders’