Improved profit, double-digit increase in specialty lines, very solid solvency 1 ratio
(Thomson Reuters ONE) -
Nationale Suisse /
Improved profit, double-digit increase in specialty lines, very solid solvency 1
ratio
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Nationale Suisse is able to report a pleasing consolidated result for the first
half of 2011, with improved profit and a very solid solvency 1 ratio. The
insurance group posted excellent premium growth, with specialty lines in
particular also making an outstanding contribution to this figure. Despite the
tensions in the financial system and the corresponding implications on insurance
markets, Nationale Suisse remains cautiously optimistic for the 2011 financial
year.
Key figures from the 2011 semi-annual result at a glance:
* Increase in consolidated profit of 8.4 % to CHF 54.0 million
* Excellent, purely organic growth in gross premiums of 6.0 % at constant
exchange rates
* Outstanding premium growth in specialty lines of +28.4 %, in keeping with
the Group's strategy
* Improvement in the combined ratio to 94.5 % (96.9 % in the first half of
2010)
* Increase in equity to CHF 749.0 million (CHF 746.5 million as of the end of
2010) and in annualised return on equity to 14.5 % (13.6 % in the first half
of 2010)
* Increase in the solvency 1 ratio from 183.8 % as of the end of 2010 to
227.7 %, due primarily to the sale of Group Life Switzerland
Unless otherwise stated, the comments are based on continuing operations.
Improved profit and very solid solvency 1 ratio
Nationale Suisse generated a half-year profit of CHF 54.0 million during the
first six months of 2011, an increase of 8.4 % compared to the same period of
2010. The half-year profit incorporates discontinued operations, which include
the post-tax transaction profit of CHF 6.1 million net following the sale of
Group Life Switzerland to Swiss Life at the start of the year. Equity rose
slightly to CHF 749.0 million as against the end of 2010. The solvency 1 ratio
thus reached the very solid level of 227.7 % compared to 183.8 % at the end of
2010. This increase is due most notably to the sale of the Group life business.
Sharp rise in gross premiums in non-life business
"Despite muted economic growth, Nationale Suisse generated excellent, purely
organic premium growth in the first half of 2011. Our strategically important
specialty lines in particular also made an outstanding contribution to this
growth", said CEO Hans Künzle, commenting on gross written premiums of CHF
894.3 million (CHF 878.3 million in the same period of the previous year).
The 10.5 % growth in original currencies recorded in non-life, which is an
important business area for Nationale Suisse, was influential to premium growth.
However, gross premiums in life business, where only Credit Life expanded,
decreased by 13.0 % at constant exchange rates in line with the Group's
strategy. Specialty lines, especially Engineering and Credit Life, once again
grew sharply. The share of specialty lines premiums in total premiums increased
from 27.6 % in the same period of the previous year to 32.9 % during the
reporting period.
Low claims burden in non-life business
During the first six months of the year, the combined ratio in non-life business
once again benefited from a low claims burden and improved to 94.5 % compared to
96.9 % in the same period of the previous year. This was achieved in spite of
two factors: firstly, the greater costs resulting from the increasing broker
business, which is important for specialty lines growth and associated with
higher commission payments; and secondly, the financial strains connected with
the restructuring of the Belgian units.
Focus in life business on less capital-intensive products
In life business, the sale of traditional contracts guaranteeing fixed rates of
interest was reduced in favour of less capital-intensive products, in keeping
with the Group's strategy. This resulted in a reduction in the life premiums to
be posted under IFRS, both in Switzerland and abroad. Nevertheless, Individual
Life Switzerland increased pre-tax profit slightly in the reporting period, from
CHF 6.6 million to CHF 6.7 million. In Individual Life Foreign Countries, pre-
tax profit fell from CHF 1.3 million in the same period of the previous year to
CHF 0.8 million.
Lasting investment result thanks to robust and defensive allocation of assets
Net investment income amounted to CHF 93.5 million in the first half of 2011,
compared to CHF 109.1 million for the same period in the previous year. A good
annualised yield of 3.7 % (2010: 4.6 %) was achieved in a difficult climate. The
change can be attributed mainly to lower gains and losses on investments.
During the reporting period, there was only a minor change in the allocation of
investments. At 69.3 % (-0.2 percentage points), debt instruments (especially
bonds) were by far the largest investment type. However, targeted improvements
and diversification continued to be made to the debtor structure in this
investment category. Moreover, exposure to bonds from GIIPS countries,
especially Italy, was reduced by 17.2 % in total to CHF 332.8 million. No
impairments were made on sovereign Greek bonds. The reduction in GIIPS positions
was continued after the balance sheet date.
Chief Investment Officer to assume responsibility for the Life Switzerland
business area
With effect from 1 January 2012, Benno Flury, Chief Investment Officer, will
assume responsibility for Life Switzerland at Executive Board level. This will
be managed as a business area and no longer as an independent business unit. As
already notified in July 2011, the operational management of the business area
and management of Swiss National Life Ltd will be transferred to Marc Gamba.
Anton Peter, who has been responsible for the Life Switzerland business unit to
date at Executive Board level, will take early retirement on 31 January 2012.
Cautious optimism in an extremely tense climate
The pressure on the financial markets stemming from debt problems most notably
in Europe and the USA has increased once more. The associated tensions in the
financial system are likely to have a negative impact on the real economy and,
by extension, on the growth of the insurance markets and the trend in claims.
The severe weather in early July 2011 resulted in gross claims of some CHF 12
million for Nationale Suisse in Switzerland. "However, based on developments in
underwriting business to date, we are confident for 2011 as a whole. Investment
activity nevertheless continues to be defined by volatile equity markets, low
interest rates and the strong franc", said CEO Hans Künzle. "Despite this
challenging environment, we are cautiously optimistic for the 2011 financial
year."
The Interim Report 1st Half-Year 2011 can be accessed via the following link:
www.nationalesuisse.com/semiannualreport2011
Key figures: see attachement
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Brief profile
Nationale Suisse is an innovative, international focused product lines in
and independent Swiss insurance group providing Switzerland, Italy, Spain,
first-rate risk and pension solutions in non-life Germany, Belgium,
and life business as well as a growing number of Liechtenstein, Malaysia,
tailored specialty lines products. Consolidated Latin America and Turkey.
gross premiums came to CHF 1.8 billion in 2010. The The headquarters of Swiss
Group comprises the parent company and about 20 National Insurance Company
subsidiaries and branch offices for Ltd are in Basel. Nationale
Suisse is listed on the SIX
Swiss Exchange (NATN). On
30 June 2011, the Group
employed 1,932 staff (full-
time equivalents).
--------------------------------------------------------------------------------
Information
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.ch www.nationalesuisse.com
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Key dates
Publication of Annual Report 28.03.2012
Media conference to announce financial results at 28.03.2012
Hotel Widder, Zurich
Financial analysts' conference at Hotel Widder, 28.03.2012
Zurich
Annual General Meeting 10.05.2012
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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.
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--- End of Message ---
Nationale Suisse
Steinengraben 41 Basel
WKN: 1081197;ISIN: CH0010811971;
Pressrelease_Halfyearresult2011:
http://hugin.info/100296/R/1544470/473533.pdf
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Source: Nationale Suisse via Thomson Reuters ONE
[HUG#1544470]
Unternehmensinformation / Kurzprofil:
Datum: 08.09.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 62850
Anzahl Zeichen: 12692
contact information:
Town:
Basel
Kategorie:
Business News
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