Annual report Swiss Reinsurance Company, Zurich

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Reinsurance and holding company

Swiss Reinsurance Company, Zurich, performs a dual role within the Swiss Re Group as both a reinsurance company and a holding company. The assessment of the market position, profitability and financial strength of Swiss Re’s worldwide organisation must focus primarily on the consolidated financial statements.

The following commentary on the 2003 financial year of the parent company therefore complements the review of the financial year of the Swiss Re Group.

 

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Financial year 2003

The business year was characterised by a good technical result. The reinsurance market either remained stable or improved in all regions and lines of business and the upturn in securities markets had a positive impact on the investment result. After-tax profit for the financial year based on the Swiss legal accounting regulations amounted to CHF 1 190 million, compared to CHF 106 million in the previous year.


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Result from technical and deposit account

Net premiums written increased by 10.45% to CHF 17 397 million. Growth was equally from the property and casualty and life and health businesses. The net result from the technical and the deposit account improved by CHF 3 041 million to a profit of CHF 1 537 million for the year.


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Investments

The investment result increased by CHF 872 million to a profit of CHF 139 million. Investment income, consisting of current income and realised gains, increased by CHF 717 million to
CHF 3 861 million. Investment expenses decreased by CHF 236 million to CHF 3 036 million, due to reduced depreciation as a result of the favourable market conditions.


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Liabilities from technical account

Liabilities from technical account rose by 13% to CHF 39 967 million. More than 90% of the liabilities are technical provisions; the remainder comprised liabilities from technical account and cash deposits. The equalisation reserve as of 31 December 2003 decreased by
CHF 206 million to CHF 206 million.


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Subordinated liabilities

As of 31 December 2003, the company held perpetual subordinated liabilities totalling CHF 1 968 million. These liabilities combine elements of debt and equity, and may be included in solvency calculations.


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Shareholders' equity

Shareholders’ equity at 31 December 2002 amounted to CHF 10 287 million before allocation of profit. After deduction of the dividend payment of CHF 310 million and the inclusion of the profit for the financial year 2003, shareholders’ equity equalled CHF 11 167 million at year-end 2003.

The nominal share capital of the company remained unchanged at CHF 32 million on 31 December 2003.

 

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