Nationale Suisse reports an exceptionally high profit in 2011, very good profitability in its Swiss business and an extremely robust solvency 1 ratio
(Thomson Reuters ONE) -
Nationale Suisse /
Nationale Suisse reports an exceptionally high profit in 2011, very good
profitability in its Swiss business and an extremely robust solvency 1 ratio
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.
The Nationale Suisse Group held up well in 2011 in what was a tough economic
environment. The insurer posted an exceptionally high profit and significantly
increased its solvency 1 ratio. The profitable non-life business in Switzerland
put in a very good performance. Nationale Suisse is moderately optimistic
regarding the 2012 financial year.
2011 key figures at a glance:
* Exceptionally high consolidated profit of CHF 167.7 million (+ 82.1 %)
including CHF 67.1 million after taxes from reserve release and CHF 6.1
million after taxes from discontinued operations (sale of Group life)
* Profit up by a pleasing 14.3 % to CHF 94.5 million from continuing
operations excluding reserve release
* Slight increase in gross premiums to CHF 1 500.4 million (+ 0.4 % in local
currencies) with the business mix fine-tuned by cutting down on life
business
* Very positive growth in non-life premiums of + 6.7 % in local currencies,
with specialty lines again enjoying double-digit growth (+ 11.9 %)
* Combined ratio improved from 96.6 % to 92.6 % (84.8 % including reserve
release) thanks to a good claims trend
* Significantly higher equity and solvency 1 ratio increased to 271.9 % (2010:
183.8 %)
* Proposed dividend of CHF 1.80 (2010: CHF 1.50)
Exceptionally high consolidated profit
The Nationale Suisse Group recorded an exceptionally high profit of CHF 167.7
million (+ 82.1 %) in 2011 in a challenging economic environment. This includes
a one-off reserve release of CHF 67.1 million after taxes in the Non-Life
Switzerland segment as well as a post-tax transaction profit of CHF 6.1 million
from the sale of the Group life business. Excluding the reserve release,
continuing operations contributed a profit of CHF 94.5 million, a pleasing
increase of 14.3 % on the previous year.
Commenting on the result, CEO Hans Künzle said: "Thanks to its clear strategy,
Nationale Suisse once again succeeded in seizing the opportunities offered by
the market in the 2011 reporting year. Our success is founded on our profitable
business in Switzerland with increased focus on our target groups and on greater
market cultivation and risk selection expertise in the strong growth area of our
specialty lines."
Very good premium growth in non-life, business mix fine-tuned in the life
business
The Group's gross premiums were increased slightly to CHF 1 500.4 million, up
0.4 % at constant exchange rates.
The non-life business performed very positively, posting gross premiums of CHF
1 216.9 million (+ 6.7% in local currencies). "Motor", the most important line
of business in premium terms at CHF 423.9 million, reported a 1.3 % increase in
premiums. In local currencies, premiums in the specialty lines were up by 11.9 %
to CHF 521.3 million. In line with strategy, they now make up 34.7 % of the
Group's premium volume as against 31.5 % in the previous year.
By contrast, the life business was affected by low interest rates and the
implementation of Nationale Suisse's new individual life strategy. For the
purposes of fine-tuning the business mix, traditional life insurance products
were underwritten with even greater caution in favour of less capital-intensive
products. This strategy saw life premiums fall by 20.0 % in local currencies to
CHF 283.5 million.
Further improvement in combined ratio thanks to good claims trend
Positive claims handling in the Non-Life Switzerland segment over the past few
years necessitated a reserve release of CHF 85.0 million before taxes. This was
underpinned by good claims experience in Switzerland and caused the underwriting
result in the non-life business to rise sharply in the reporting year, up from
CHF 24.3 million to CHF 67.4 million excluding the reserve release or as much as
CHF 152.4 million including the reserve release. The Group's combined ratio and
claims ratio improved accordingly, falling respectively from 96.6 % to 92.6 %
(or as low as 84.8 % including reserve release) and from 62.7 % to 59.7 % (51.9
% including reserve release).
In the profitable Non-Life Switzerland segment, the combined ratio improved to
85.1 % excluding the reserve release (2010: 92.2 %) with a slightly lower cost
ratio. The improvements achieved during the reporting year not connected with
the reserve release are mainly down to the implementation of the "Schlagkraft
Schweiz" projects. The combined ratio in the Non-Life Foreign Countries segment
suffered mainly from claims due to natural events, particularly in Italy, and
from isolated major claims in Spain and Germany. The underwriting result was
also adversely affected by the restructuring measures in Belgium, which were
largely completed in 2011. The combined ratio in foreign countries thus
increased from 105.2 % to 107.0 % despite a fall in the cost ratio by three
percentage points.
Life result influenced by a fall in premiums and a lower investment result
The life business remained affected by persistently low bond yields in 2011.
These placed continuing pressure on profitability in the traditional life
business. The deliberately cautious underwriting policy adopted as a result led
to a sharp fall in single premiums. This was only partially offset by an
increased focus on less capital-intensive Credit Life and unit-linked products
as well as pure risk cover. The result contributed by the life business fell
from CHF 17.5 million to CHF 6.0 million before income taxes, with the
impairments on Greek government bonds having a negative impact on the investment
result. The restructuring measures introduced in Belgium in 2011 also adversely
affected the result.
Pleasing return on investment against a background of low interest rates
Despite low interest rates and quality improvements within the portfolio, the
current return on investment was kept constant at 2.7 %. By contrast, the return
on investment fell from 4.3 % to 3.2 % due to lower gains and losses on
investments and the impairments on Greek bonds in the amount of CHF 25.2
million. These effects were partially mitigated by significantly higher gains
and losses from real estate management.
With investment policy continuing to focus on security, changes to the asset
allocation were kept within tightly defined limits. Debt instruments
(particularly bonds) as a percentage of total investments were increased by 0.9
% to 70.4 %. These are the most significant form of investment by some margin.
Bonds issued by GIIPS countries were reduced significantly from CHF 401.7
million to CHF 162.9 million.
Marked increase in solvency 1 ratio
Equity increased substantially to CHF 914.5 million, with the solvency 1 ratio
improving accordingly from 183.8 % to 271.9 % as at the end of 2011. This large
increase was primarily the result of the high profit for the period. In late
2011, the rating agency A. M. Best awarded Nationale Suisse a Financial Strength
Rating of "A-" (Excellent) with a stable outlook, underlining the Group's
excellent capital base.
Dividend increased once again and authorised share capital created
In view of the excellent result and the strong capital base, the Board of
Directors is once again proposing an increased cash dividend of CHF 1.80 per
share for the 2011 financial year (2010: CHF 1.50). It will also propose to the
Annual General Meeting that the authorised share capital be retained.
Elections to the Board of Directors and consultative vote on the compensation
report
Stephan A. J. Bachmann, a federally certified auditor, will present himself to
the Annual General Meeting and the shareholders for reelection to the Board of
Directors. He is Chairman of the Commission of the Swiss Institute of Certified
Accountants and Tax Consultants and a member of the Board of Directors of Banque
Cantonale Vaudoise.
As in the previous year, the Board of Directors will put the compensation report
to the Annual General Meeting for a consultative vote. It contains the basic
principles governing the compensation of the Board of Directors and Executive
Board, as well as the reporting on compensation in 2011.
Cautiously optimistic outlook for 2012
The debt crisis and historically low interest rates look set to curb economic
growth in 2012 too. Fierce competition can be expected to continue on the
saturated insurance markets. With renewals having gone well in January 2012,
however, Nationale Suisse has grounds for cautious optimism. In addition,
another good technical result is expected at Group level, provided that natural
disasters and major claims remain at a normal level in 2012. CEO Hans Künzle:
"The foundations have been laid to achieve another pleasing Group result in
2012. In view of the vagaries of the economy and investments, however, forecasts
for the financial year can only be made with great uncertainty. We dare to be
different and do all we can to remain successful in this environment."
The annual report 2011 can be accessed via the following link:
www.nationalesuisse.com/annualreport
Brief profile
Nationale Suisse is an innovative, international and independent Swiss insurance
group providing first-rate risk and pension solutions in non-life and life
business as well as a growing number of tailored specialty lines products.
Consolidated gross premiums came to CHF 1.5 billion in 2011. The Group comprises
the parent company and about 20 subsidiaries and branch offices for focused
product lines in Switzerland, Italy, Spain, Germany, Belgium, Liechtenstein,
Malaysia, Latin America and Turkey. The headquarters of Swiss National Insurance
Company Ltd are in Basel. Nationale Suisse is listed on the SIX Swiss Exchange
(NATN). On 31 December 2011, the Group employed 1 874 staff (full-time
equivalents).
Information
Remo Meier Nationale Suisse
Investor Relations Steinengraben 41
Phone +41 61 275 22 45 4003 Basel
Fax +41 61 275 22 21 Switzerland
remo.meier(at)nationalesuisse.com www.nationalesuisse.com/investor-
relations
Christina Hartmann Nationale Suisse
Media Relations Steinengraben 41
Phone +41 61 275 23 40 4003 Basel
Fax +41 61 275 22 21 Switzerland
christina.hartmann(at)nationalesuisse.com www.nationalesuisse.com/media-
relations
Key dates
Publication of Annual Report 28.03.2012
Media conference to announce financial 28.03.2012
results at Widder Hotel, Zurich
Financial analysts' conference at 28.03.2012
Widder Hotel, Zurich
Annual General Meeting 10.05.2012
Publication of the interim report 05.09.2012
Disclaimer and exclusion of liability
The purpose of this press release is to inform the public about certain events
or developments arising from the company's business. The information published
in this article is not an advertisement, offer or recommendation to engage in
transactions involving securities or other products of Nationale Suisse or any
other type of transaction. This press release may contain certain forward-
looking statements. Even if these forward-looking statements reflect the
opinion and expectations of Nationale Suisse, a number of risks, uncertainties
and other important factors may lead to actual developments and results
differing strongly from the expectations of Nationale Suisse. It is pointed out
expressly that the statements and projections contained in this press release
are selective in nature. Nationale Suisse provides no guarantee, either
explicitly or implicitly, regarding the accuracy and completeness of the
statements and forecasts published in this press release. Neither Nationale
Suisse nor its executive bodies or senior managers accept any liability for any
damage or losses arising directly or indirectly from the use of this press
release. Unless otherwise provided by applicable binding law Nationale Suisse
is under no obligation to update or amend the statements contained in this press
release, be it in response to new information, future events or any other
reasons.
Updated post-publication information is available on our website
www.nationalesuisse.com. You may find further details and forecasts about the
business of Nationale Suisse there.
Press_Release_Annual_Result_2011:
http://hugin.info/100296/R/1597536/503645.pdf
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originality of the information contained therein.
Source: Nationale Suisse via Thomson Reuters ONE
[HUG#1597536]
Unternehmensinformation / Kurzprofil:
Datum: 28.03.2012 - 07:02 Uhr
Sprache: Deutsch
News-ID 129164
Anzahl Zeichen: 14693
contact information:
Town:
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Kategorie:
Business News
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