Nationale Suisse announces a pleasing semi-annual result and
structural changes to its Swiss busines
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ In the first half of 2009, the last period to be reported inaccordance with Swiss GAAP FER accounting standards, Nationale Suisseattained pleasing results:- The Group result increased markedly by 36% to CHF 91.1 million(2008: 67 million).- Premiums grew slightly by 0.8% to CHF 998.8 million on acurrency-adjusted basis, due to the rigorous application of aquality-oriented underwriting policy.- The combined ratio improved to 96.2% (2008: 97.8%).- The real estate weighting in the investment portfolio was reducedto 22.7%.- The Group's equity capital was strengthened substantially by CHF47.5 million to CHF 649.2 million.- The Solvency 1 Ratio increased strongly to 165.6% (from 156.1% atthe end of 2008).Nationale Suisse is strengthening its market activities inSwitzerland. With effect from 1 October 2009, all sales activitieswill be concentrated in the business unit "Multi-Channel SalesSwitzerland", headed by Ralph Jeitziner, the current Head of thebusiness unit "Non-Personal/Sales Switzerland". Sven Cattelan willjoin the Nationale Suisse Executive Board and will lead the newlycreated business unit "Customer Service & Non-Life Switzerland". Thisbusiness unit will encompass all operational activities in theinsurance area.Another good Group resultNationale Suisse Group reported profit of CHF 91.1 million for thefirst half of 2009, an increase of 36% on the previous year's levelof CHF 67 million. The positive result reflects further operationalprogress and a good return on investment, largely due to gainsrealised on the disposal of real estate.Slight growth in premiums and rigorous application ofquality-oriented underwriting principlesIn the first half of 2009, gross premiums written were CHF 998.8million on a currency-adjusted basis (2008: 990.7 million). Thiscorresponds to growth of 0.8%. In the same period last year a fall of12.4% was reported, but at that time growth was negatively influencedby the sale of the French subsidiary and the receipt of a singlepremium totalling some CHF 80 million in occupational pensionprovision. At 10.4%, premium development in specialty lines isextremely plea-sing.Reported gross premiums in non-life were CHF 681.1 million (2008:685.1 million), registering a fall of 0.6% on the first half of 2008.Adjusted for fluctuations in exchange rates (euro), growth isreported at 1.4% (2008: 0.2%, excl. the French subsidiary sold in2007). Premium growth in our European subsidiaries is pleasing at3.7% (on a currency-adjusted basis).Gross premiums in life insurance came to CHF 317.7 million (2008:322.4 million), showing a slight decline over the first half of theprevious year of 1.5% (2008: -15.2%), or a 0.4% reduction in localcurrency. The main reason for the slight decline is the negativedevelopment in occupational pensions in Switzerland due to lowersingle premiums.In spite of the increased competition, it is worthy of note thatNationale Suisse has rigorously adhered to and applied itsunderwriting principles geared to quality in all markets. As aconsequence it has consciously relinquished business at rates thatare too low.Non-life reports strong improvement and a pleasing fall in thecombined ratioThe underwriting result in non-life increased by more than 40%against the same period last year, rising to CHF 86.8 million. Thisis attributable to operational improvements (predominantly proactiveclaims management), greatly improved pricing expertise and gainsrealised on the disposal of real estate. The combined ratio nowstands at 96.2% (2008: 97.8%), i.e. has been reduced by 1.6percentage points.The underwriting result in life was CHF 8.2 million (2008: 10.7million). The allocated investment return improved by more than 40%on the previous year's value of CHF 43.4 million, increasing to CHF62.4 million. Since the investment return often forms a component oflife products, which policyholders thus participate in, the cost ofparticipation in profits has also increased significantly, risingfrom CHF 4.7 million in the previous year to CHF 17.4 million for theperiod under review. Claims experience was again favourable in thedomestic market.Excellent result in investment activity; reduction in the real estateweightingNationale Suisse once again achieved a good investment return. Theincrease in gains on the sale of investments boosted total investmentincome from CHF 276.4 million to CHF 332.0 million. Gains were madeon the disposal of real estate of around CHF 87 million (2008:approx. 65 million), which reduced the real estate weighting in theinvestment portfolio to 22.7%, in line with strategy.Solidity strengthened by increased shareholders' equity and a higherSolvency 1 RatioAs of the end of the first half of 2009, the Group's equity capitalstands at a pleasing level of CHF 649.2 million (before deduction ofminority interests). This represents an increase of CHF 47.5 millionon the level as of 31 December 2008. This development is attributableto the strong interim result and the share dividends approved at thisyear's Annual General Meeting, which have placed only a minimalburden on shareholders' equity.The annualised return on equity amounted to 29.4% (2008: 23.5%). Thevalue of shareholders' equity last year was reduced by the largeholding of own shares. The deduction due to own shares has beenmarkedly reduced since the sale of this holding to the VHV Group inNovember 2008.The growth in shareholders' equity facilitated a marked improvementin the Solvency 1 Ratio, which increased from 156.1% as of 31December 2008 to a favourable level of 165.6%. The risk capacity ofNationale Suisse derived from this ratio has thus increased onceagain and is at a sound level in an international comparison.Adoption of IFRS (International Financial Reporting Standards) forthe 2009 financial yearNationale Suisse will adopt International Financial ReportingStandards (IFRS) for the first time when it publishes its businessresults for the 2009 financial year. The 2009 Semi-Annual Report hasbeen compiled according to Swiss GAAP FER. The principles applied bythese two standards differ considerably, in particular in theiraccounting treatment of investments. The 2009 interim figures will bepresented in the 2009 annual financial statements according to IFRS.The change will strongly affect profit and shareholders' equity. Forexample, gains from the disposal of real estate, amounting toapproximately CHF 87 million under Swiss GAAP FER, will appearsignificantly lower under IFRS. Given the conversion effects, aninterpretation of this semi-annual report with view to the expectedfull-year net profit and shareholders' equity as of the end of theyear under IFRS is possible only to a limited extent.Outlook for the 2009 financial year and medium-term goalsAs a result of the economic and financial crisis and the harsh pricewar in the insurance industry, adverse market conditions stillprevail. It is also to be assumed that investment returns will belower than they were before the onset of the crisis on the financialmarkets.In spite of the difficult market environment, the results for thefirst half of the year provide a good basis for an attractive overallannual result. It should be noted that the storms, and in particularthe hailstorm on 23 July 2009, will have an impact on the results ofthe second half of the year. The events are expected to generate anet loss burden of CHF 7.5 million.Traditionally, Nationale Suisse announces medium-term goals in autumnof each year. As the consequences of the financial crisis are stilldifficult to estimate and a recession has set in, we will refrainfrom making any announcements this year. It would also be difficultto compare targets published according to Swiss GAAP FER with IFRS.Organisational changes in the Swiss business strengthen sales forceand efficiencyBy implementing the following measures, Nationale Suisse isstrengthening its efforts to boost sales and increase efficiency inthe Swiss business:- A new business unit "Multi-Channel Sales Switzerland" willencompass all sales activities in Switzerland (Nationale Suisse,smile.direct, European Travel Insurance). The unit aims to implementa comprehensive multi-channel approach and design sales processeswith greater efficiency.- The new business unit "Customer Service & Non-Life Switzerland"will comprise all the operational insurance activities of NationaleSuisse Switzerland (factory approach). The business area"Accident/Health" (including claims handling) will be transferred tothe new unit from its current location in the "Personal" businessunit. The unit aims to achieve further, quantitative improvementswith even better coordinated underwriting and more professional andcustomer-oriented claims management. Customer service will also bestrengthened in first and second level support.The business unit "Multi-Channel Sales Switzerland" will be headed byRalph Jeitziner, who currently heads the business unit"Non-Personal/Sales Switzerland". Sven Cattelan has been appointed anew member of the Executive Board of Nationale Suisse with effectfrom 1 October 2009, when he will also assume leadership of the newlycreated business unit "Customer Service & Non-Life Switzerland". MrCattelan has been working for Nationale Suisse since 2001, holdingroles such as manager of the former regional Basel offices. SinceSeptember 2005 he has held overall responsibility for claimsmanagement within the business unit "Non-Personal/Sales Switzerland".Nationale Suisse believes these changes will increase customer value,facilitate positive overall growth of 2% and generate additionalincome of CHF 20 million by 2012. This growth target is 1% abovemarket growth, and would therefore expand the position of NationaleSuisse in Switzerland.Brief profileNationale Suisse is an innovative, The headquarters of Swissinternational Swiss insurer providing National Insurance Company Ltdfirst-rate risk and pension solutions is in Basel. Nationale Suisseand tailored niche products. The Group is listed on the SIX Swisshas gross premiums of CHF 1.67 Exchange (NATN). On 30 Junebillion, about 30% of which come from 2009 the Group employed 1,796their subsidiaries in Germany, persons (FTEs).Belgium, Italy and Spain.Downloads DisclaimerYou can access this media release on Swiss National Insuranceour website www.nationalesuisse.ch Company wishes to point outunder Medien/Medienmitteilung. that any forward-looking statements in this report are based on projections, estimates and assumptions. The influence of uncertain and unforeseeable circumstances and certain risks may mean that actual performance deviates significantly from our expectations.InformationSophia Schor Nationale SuisseMedia relations Steinengraben 41Tel. +41 61 275 23 86 4003 BaselFax +41 61 275 22 21 www.nationalesuisse.chsophia.schor(at)nationalesuisse.chImportant datesPublication of Annual Report 22.04.2010Media conference to announce financial 22.04.2010results at Hotel Widder, ZurichFinancial analysts' conference at 22.04.2010Hotel Widder, ZurichAnnual General Meeting 07.06.2010Publication of Semi-Annual Report 23.09.2010http://hugin.info/100296/R/1341489/320882.pdf --- End of Message ---Nationale SuisseSteinengraben 41 Basel WKN: 1081197; ISIN: CH0010811971; Index: SMCI, SPI, SPIEX;Listed: Main Market in SIX Swiss Exchange;
Datum: 16.09.2009 - 06:55 Uhr
Sprache: Deutsch
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