In the first half of 2013, Nationale Suisse increases operating profits despite a downward trend in premiums, and its solvency 1 ratio remains very solid
(Thomson Reuters ONE) -
Nationale Suisse /
In the first half of 2013, Nationale Suisse increases operating profits despite
a downward trend in premiums, and its solvency 1 ratio remains very solid
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.
Nationale Suisse generated a higher operating profit in the first half of 2013;
this increase follows the reduction in the profit for the same period in the
previous year by a positive one-off effect. Against the backdrop of the
challenging economic and market environment, the insurance group recorded a
downward trend in premiums. In non-life business, it achieved a very good
combined ratio. Its solvency 1 ratio was already very solid, and it has recorded
a further improvement. Markus Deplazes is confirmed as a member of the Executive
Board and Head of Customer Service & Non-life Switzerland. For 2013 Nationale
Suisse is cautiously optimistic for the Group as a whole. It will keep to its
risk-conscious underwriting policy.
Key figures from the 2013 semi-annual result at a glance:
* Increase in operating consolidated profit of 6.4% to CHF 53.2 million
following the reduction in the profit for the same period in the previous
year by the positive one-off effect of the change to the rules relating to
the Nationale Suisse pension fund in Switzerland, namely CHF 6.8 million
after taxes
* Without this reduction, consolidated profit has actually fallen by 6.4% (CHF
56.8 million for the first half of 2012)
* Downward trend in gross premiums of 3.8% at constant exchange rates to CHF
880.4 million against the backdrop of a selective underwriting policy in a
difficult environment
* Downward trend in premiums of 7.2% in the specialty lines, depressed by the
cyclical Engineering and Credit Life specialty lines
* Very good combined ratio of 92.9% (91.5% for the first half of 2012) thanks
to a low claims burden in Switzerland, but unsatisfactory result abroad
* Solid annualised return on investment of 3.1% (2012: 3.4%)
* Equity virtually unchanged at CHF 888.3 million (CHF 893.9 million as at end
of 2012)
* Substantial return on equity of 12.0% (2012: 14.2%)
* Already very solid solvency 1 ratio further improved to 264.6% (259.2% as at
the end of 2012)
Increased operating profit, and solvency 1 ratio remains at a very solid level
Nationale Suisse generated an operating consolidated profit of CHF 53.2 million
during the first half of 2013, up a pleasing 6.4% on the previous year. This
increase was achieved after reducing the previous year's profit for the period
by the one-time effect from the change in rules relating to the Nationale Suisse
pension fund in Switzerland, namely CHF 6.8 million after taxes. Without this
reduction, consolidated profit has actually fallen by 6.4%.
At constant exchange rates, gross premiums fell by 3.8% to CHF 880.4 million at
Group level. "A recessionary market environment and the austerity measures
adopted by many countries as well as tough competitive conditions led to this
development", says Hans Künzle, CEO of Nationale Suisse. "However, the
considerable falls in premiums in some lines were softened at Group level by
growth in other lines. Nationale Suisse's diversification strategy, which is
based on two pillars, made a considerable contribution here." This strategy
encompasses the less volatile client segments private clients and corporate
clients and the six specialty lines, some of which are cyclical.
The Group's equity is practically unchanged at CHF 888.3 million (CHF 893.9
million as at the end of 2012) and the return on equity was a high 12.0% (2012:
14.2%). Nationale Suisse again achieved an increase in its very solid solvency
1 ratio to 264.6% as at 30 June 2013 (2012: 259.2%).
Non-life decreased slightly due to a selective underwriting policy and a
difficult market environment
In the first half of 2013, Nationale Suisse recorded a fall in non-life premiums
of 2.6% to CHF 775.0 million at constant exchange rates (2012: CHF 791.3
million). At -15.1% in original currencies, the cyclical Engineering specialty
line contributed in particular to this negative growth. This is attributable to
the adverse economic situation, the challenging market environment and a
correspondingly selective underwriting policy. The fall in premiums of 18.9% at
constant exchange rates in the motor liability business of the Non-life Foreign
Countries segment also had a major impact on the overall premium decrease; this
was a consequence of the economic situation in Italy, Spain and Belgium and
ongoing portfolio restructuring measures.
Non-life Switzerland remained highly profitable - Non-life Foreign Countries
segment produced an unsatisfactory result
In the first half of 2013, the Group's combined ratio in non-life business came
to a very good 92.9% compared with 91.5% in the same period in the previous year
- this is thanks to the low claims burden in the Non-life Switzerland segment
and despite the burden imposed by some major claims in the Non-life Foreign
Countries segment. The improved profit before taxes of CHF 87.8 million (+9.7%)
in the Non-life Switzerland segment was not sufficient to offset the
deterioration abroad. "The disappointing result in the Non-Life Foreign
Countries segment is attributable to operational, strategic and macroeconomic
factors", states Hans Künzle. "Against this background, we are now reviewing
Nationale Suisse's transformation process in the foreign subsidiaries in
Europe."
Higher Life segment profits before taxes, despite the fall in premiums
In the life business, gross premium volume decreased by 11.6% to CHF 105.4
million at constant exchange rates. This fall in premiums is due, in particular,
to a severe slump in the Credit Life specialty line in the Individual Life
Foreign Countries segment, caused by the economic situation. Nationale Suisse's
traditional business involving single premiums in Switzerland also shrank
because of the strategy-driven switch to a new, capital-efficient product range.
An improvement in pre-tax profits was produced in both Life segments.
Solid investment result thanks to slightly higher current income despite low
interest rates
Nationale Suisse's investment portfolio, which had changed little in terms of
composition, again proved its ability to cope with anything in the face of
continuing volatility in the financial markets. This is also clear from the fact
that the net income from investments only fell slightly, by 6.2% to CHF 78.1
million, despite persistently low interest rates and few realised gains. This is
equal to an annualised return on investment of 3.1% (2012: 3.4%). Net current
income from investments rose slightly, after deducting administrative costs, by
5.6% to CHF 68.4 million. The return on investment from current income therefore
increased slightly to 2.7% compared with 2.6% in the first half of 2012.
Markus Deplazes confirmed as a member of the Executive Board
Markus Deplazes, who has been running Customer Service & Non-life Switzerland on
an interim basis since 1 May 2013, will become a member of the Executive Board
of Nationale Suisse with immediate effect and will perform his role on a
permanent basis. Here, he is responsible for technical services, customer
service and claims management in the Swiss private and corporate clients segment
which comprises both the traditional and the business differentiated by specific
target groups.
Outlook: disciplined underwriting is a priority - initiatives for growth to be
continued
Despite signs of an economic recovery in Switzerland and large parts of Europe,
the economic situation remains uncertain. Nationale Suisse aims to profit from a
possible increase in volume in the insurance market, while applying risk-
conscious underwriting guidelines. "We are therefore concentrating in a
consistent and focused manner on growth and earnings drivers, such as the
recently agreed cooperative ventures in art insurance, the application for a
licence in Singapore and the new product range in Individual Life Switzerland",
says Hans Künzle. "Thanks to the pleasing profit for the half-year period, we
are cautiously optimistic for the year as a whole at Group level."
The interim report for the first half of 2013 is available at:
www.nationalesuisse.com/semi-annual-report
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 1.51 billion in 2012. 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 30 June 2013, the Group employed 1 889 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 the annual report 2013 26.03.2014
Media conference to announce financial 26.03.2014
results
at Widder Hotel, Zurich
Financial analysts' conference at Widder 26.03.2014
Hotel, Zurich
Annual General Meeting, Basel 19.05.2014
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:
http://hugin.info/100296/R/1727313/576545.pdf
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Nationale Suisse via Thomson Reuters ONE
[HUG#1727313]
Unternehmensinformation / Kurzprofil:
Datum: 05.09.2013 - 07:01 Uhr
Sprache: Deutsch
News-ID 293678
Anzahl Zeichen: 13700
contact information:
Town:
Basel
Kategorie:
Business News
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