Nationale Suisse. Interim report 1 st half-year In the Studio kunstbericht.ch

Transcription

1 Nationale Suisse Interim report 1 st half-year 2014 In the Studio kunstbericht.ch

2 Publishing details Published by Swiss National Insurance Company Ltd Steinengraben Basel The Interim report 1 st half-year 2014 is available in English and German. The German text shall be binding. Concept, design and realisation TBS & Partner AG, Zurich Publishing system Multimedia Solutions AG, Zurich Lithographer/Printing and binding Printed internally 2014 Schweizerische National-Versicherungs-Gesellschaft AG

3 Content Consolidated half-year financial statements (condensed, unaudited) 2 Consolidated balance sheet 2 Consolidated income statement 4 Consolidated statement of comprehensive income 5 Consolidated cash flow statement 6 Consolidated statement of changes in equity 8 Notes to the consolidated half-year financial statements 10 1 General information 10 2 Summary of significant accounting policies 10 3 Segment reporting 12 Notes to the consolidated balance sheet 20 4 Financial instruments 20 5 Share capital and treasury shares 28 6 Technical reserves for insurance contracts 29 Notes to the consolidated income statement 30 7 Result from financial instruments 30 8 Result from investment property (net) 32 9 Foreign currency gains and losses Income Taxes Earnings per share 33 Notes to the consolidated statement of comprehensive income Other comprehensive income before and after taxes 34 Other information Changes in the group of consolidated companies Related party transactions Contingent liabilities and contractual commitments Dividends Events occurring after the balance sheet date 37

4 Consolidated half-year financial statements (condensed, unaudited) Consolidated balance sheet Assets Notes Fixed assets Intangible assets Investments in associates Investment property Equity instruments available for sale (AFS) fair value through profit or loss (FVTPL) Debt instruments held to maturity (HTM) available for sale (AFS) fair value through profit or loss (FVTPL) Mortgages and loans Derivative financial instruments Deferred acquisition costs (DAC) Reinsurance assets Receivables from insurance business Receivables from employee benefits Other receivables, accruals and deferrals Current income tax assets Deferred income tax assets Cash and cash equivalents Non-current assets held for sale Total Assets Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

5 Equity and Liabilities Notes Equity Share capital Capital reserves Treasury shares Accumulated other comprehensive income Retained earnings including profit or loss for the year Equity without non-controlling interests Non-controlling interests Total Equity Liabilities Technical reserves for insurance contracts Liabilities from financial contracts Financial provisions Derivative financial instruments Payables from insurance business and reinsurance Liabilities from employee benefits Other liabilities, accruals and deferrals Current income tax liabilities Deferred income tax liabilities Total Liabilities Total Equity and Liabilities Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 3

6 Consolidated income statement Consolidated income statement Notes 1 st HY st HY 2013 Gross written premiums Change in unearned premium reserves Earned premiums (gross) Reinsurers share of earned premiums Earned premiums (net) Income from financial instruments Gains and losses on financial instruments Result from investment property (net) Other operating income Income Paid claims and benefits (gross) Change in technical reserves (gross) and financial contracts with DPF Reinsurers share of paid claims and benefits and change in technical reserves Acquisition costs Operating and administrative costs for insurance business Reinsurers share of costs Investment management costs Other operating expenses Expenses Result from investments in associates Profit before income taxes Income taxes Profit after income taxes attributable to shareholders attributable to non-controlling interests Earning per share (in CHF) basic diluted Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

7 Consolidated statement of comprehensive income Consolidated statement of comprehensive income Notes 1 st HY st HY 2013 Profit after income taxes attributable to shareholders attributable to non-controlling interests Other comprehensive income Items that may be reclassified to profit or loss Financial instruments AFS Associates Financial instruments recategorised from AFS to HTM Deferred dividends to policyholders Foreign currency translation Deferred income taxes Other comprehensive income from items that may be reclassified to profit or loss Items that will not be reclassified to profit or loss Remeasurement of the net defined benefit liability Deferred income taxes Other comprehensive income from items that will not be reclassified to profit or loss Other comprehensive income attributable to shareholders attributable to non-controlling interests Total comprehensive income attributable to shareholders attributable to non-controlling interests Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 5

8 Consolidated cash flow statement Consolidated cash flow statement Notes 1 st HY st HY 2013 Cash Flow from operating activities Profit before income taxes Adjustments for Impairment and amortisation / depreciation of intangible and fixed assets Gains and losses on financial instruments, investment property 7/ Gains and losses on fixed and intangible assets Change in technical reserves including unearned premium reserves (gross) and financial contracts with DPF Reinsurers share of change in technical reserves including unearned premium reserves Result from investments in associates Other foreign currency gains and losses Other non-cash income and expenses Income taxes paid Change in assets and liabilities from operating activities Purchase of / investments in investment property Sale of investment property Purchase of equity instruments Sale of equity instruments Purchase of debt instruments Sale and maturity of debt instruments Additions mortgages and loans Disposals mortgages and loans Additions / disposals derivative financial instruments Receivables and payables from insurance business and reinsurance Receivables and liabilities from employee benefits Financial contracts without DPF Financial provisions Other receivables and payables, accruals and deferrals Cash flow from operating activities Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

9 Consolidated cash flow statement, continuation Notes 1 st HY st HY 2013 Cash flow from investing activities Purchase of fixed assets Sale of fixed assets Purchase of intangible assets Sale of intangible assets 0 1 Disposal of investments in associated companies Dividends from associated companies Cash flow from investing activities (net) Cash flow from financing activities Purchase of treasury shares Sale of treasury shares Purchase of shares of fully consolidated companies Dividend payments Dividend payments to non-controlling interests 7 7 Income taxes paid for financing activities Cash flow from financing activities (net) Total cash flow Cash and cash equivalents Balance as of 1 January Changes in the period Foreign currency effects on cash and cash equivalents Balance as of 30 June thereof cash on hand / post accounts / bank accounts thereof cash equivalents with a maturity of 90 days or less Additional information on cash flow from operating activities Interest received Dividend received Interest paid Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 7

10 Consolidated statement of changes in equity 1 st HY 2014 Notes Share capital Capital reserves Treasury shares Accumulated other comprehensive income Retained earnings Shareholders equity Non-controlling interests Total Equity Balance as of 1 January Profit for the period Other comprehensive income Total comprehensive income Dividends paid Dividends from treasury shares Capital increase / decrease Purchase / sale of treasury shares Income taxes on dividends from and on transactions with treasury shares Share-based payment Increase / decrease in non-controlling interests due to change in percentage of shareholding / group structure Total transactions with shareholders Balance as of 30 June Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

11 1 st HY 2013 Notes Share capital Capital reserves Treasury shares Accumulated other comprehensive income Retained earnings Shareholders equity Non-controlling interests Total Equity Balance as of 1 January Profit for the period Other comprehensive income Total comprehensive income Dividends paid Dividends from treasury shares Capital increase / decrease Purchase / sale of treasury shares Income taxes on dividends from and on transactions with treasury shares Share-based payment Increase / decrease in non-controlling interests due to change in percentage of shareholding / group structure Total transactions with shareholders Balance as of 30 June Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 9

12 Notes to the consolidated half-year financial statements 1 General information Nationale Suisse is an international Swiss insurer providing risk and pension solutions in the life and non-life areas and customised specialty lines covers. The Group comprises the parent company and around 20 fully consolidated subsidiaries and branch offices. The basis for the business activity is the home market Switzerland and the established operations in Germany, Italy, Spain and Belgium. Activities are strengthened in Europe and worldwide, currently with a focus on Asia, Latin America and Turkey. The parent company is Swiss National Insurance Company Ltd a Swiss public limited company with its registered office in Basel. Its shares are listed on the Swiss Exchange (SIX) with the securities symbol NATN. 2 Summary of significant accounting policies The consolidated half-year financial statements of Nationale Suisse have been prepared in accordance with International Accounting Standards (IAS) 34 Interim Financial Reporting. The accounting policies applied for the preparation of the half-year financial statements agree with those published in the latest financial report except for the changes mentioned below. The half-year financial statements thus have to be read in connection with the latest published financial report. 2.1 Standards applied for the first time in the actual half-year In the first half-year 2014 no new or amended standards which are relevant for Nationale Suisse have been applied for the first time. 10 Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

13 2.2 Translation of the functional currency into the reporting currency The half-year financial statements of all group entities not prepared in CHF are translated for presentation in the consolidated half-year financial statements as follows: Exchange rates Balance sheet Income statement st HY st HY 2013 Currency 100 EUR (euro) USD (US dollar) Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 11

14 3 Segment reporting 3.1 Segment reporting: Income statement 1 st HY 2014 Non-life Switzerland Non-life Foreign Countries Life Gross written premiums external revenue Gross written premiums internal revenue Change in unearned premium reserves Earned premiums (gross) Reinsurer s share of earned premiums Earned premiums (net) Income from financial instruments Gains and losses on financial instruments Result from investment property (net) Other operating income Income per segment Paid claims and benefits (gross) Change in technical reserves (gross) and financial contracts with DPF Reinsurers share of paid claims and benefits and change in technical reserves Acquisition costs Operating and administrative costs for insurance business Reinsurers share of costs Investment management costs Other operating expense Expenses per segment Financing costs Result from investments in associates Result per segment before income taxes Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

15 Group Reinsurance Total segments Reconciliation Group 1 st HY Gross written premiums external revenue Gross written premiums internal revenue Change in unearned premium reserves Earned premiums (gross) Reinsurer s share of earned premiums Earned premiums (net) Income from financial instruments Gains and losses on financial instruments Result from investment property (net) Other operating income Income Paid claims and benefits (gross) Change in technical reserves (gross) and financial contracts with DPF Reinsurers share of paid claims and benefits and change in technical reserves Acquisition costs Operating and administrative costs for insurance business Reinsurers share of costs Investment management costs Other operating expense Expenses Financing costs Result from investments in associates Profit before income taxes Income taxes Profit after income taxes Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 13

16 1 st HY 2013 Non-life Switzerland Non-life Foreign Countries Life Gross written premiums external revenue Gross written premiums internal revenue Change in unearned premium reserves Earned premiums (gross) Reinsurer s share of earned premiums Earned premiums (net) Income from financial instruments Gains and losses on financial instruments Result from investment property (net) Other operating income Income per segment Paid claims and benefits (gross) Change in technical reserves (gross) and financial contracts with DPF Reinsurers share of paid claims and benefits and change in technical reserves Acquisition costs Operating and administrative costs for insurance business Reinsurers share of costs Investment management costs Other operating expense Expenses per segment Financing costs Result from investments in associates Result per segment before income taxes Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

17 Group Reinsurance Total segments Reconciliation Group 1 st HY Gross written premiums external revenue Gross written premiums internal revenue Change in unearned premium reserves Earned premiums (gross) Reinsurer s share of earned premiums Earned premiums (net) Income from financial instruments Gains and losses on financial instruments Result from investment property (net) Other operating income Income Paid claims and benefits (gross) Change in technical reserves (gross) and financial contracts with DPF Reinsurers share of paid claims and benefits and change in technical reserves Acquisition costs Operating and administrative costs for insurance business Reinsurers share of costs Investment management costs Other operating expense Expenses Financing costs Result from investments in associates Profit before income taxes Income taxes Profit after income taxes Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 15

18 3.2 Segment reporting: Assets and liabilities Non-life Switzerland Non-life Foreign Countries Life Fixed and intangible assets Investments in associates Investment property Financial instruments Deferred acquisition costs (DAC) Reinsurance assets Assets held for sale Technical reserves Liabilities from financial contracts Other assets and liabilities Net assets by segment Non-life Switzerland Non-life Foreign Countries Life Fixed and intangible assets Investments in associates Investment property Financial instruments Deferred acquisition costs (DAC) Reinsurance assets Assets held for sale Technical reserves Liabilities from financial contracts Other assets and liabilities Net assets by segment Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

19 Group Reinsurance Total Segments Reconciliation Group Fixed and intangible assets Investments in associates Investment property Financial instruments Deferred acquisition costs (DAC) Reinsurance assets Assets held for sale Technical reserves Liabilities from financial contracts Other assets and liabilities Net assets excluding income tax assets and liabilities Current and deferred income tax assets and liabilities Total Equity Group Reinsurance Total Segments Reconciliation Group Fixed and intangible assets Investments in associates Investment property Financial instruments Deferred acquisition costs (DAC) Reinsurance assets Assets held for sale Technical reserves Liabilities from financial contracts Other assets and liabilities Net assets excluding income tax assets and liabilities Current and deferred income tax assets and liabilities Total Equity Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 17

20 3.3 Segment reporting: Premium income (gross) from external clients by lines of business Premium income (gross) from external clients by types of insurance business 1 st HY st HY 2013 in CHF in % in CHF in % Non-life Motor Health / Accident Property Liability Engineering Marine Art Travel Credit Life (Non-life) Other Non-life Total Non-life Life Traditional life insurance Credit Life Life insurance for the account and at the risk of policyholders Total Life Total Premium income (gross) from external clients Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

21 Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 19

22 Notes to the consolidated balance sheet 4 Financial instruments 4.1 Financial instruments by class IFRS 7 requires that equity and debt instruments are grouped into classes. The carrying amounts of financial instruments are split into those classes separately for every category defined under IAS 39. Nationale Suisse groups equity instruments into nine classes, following the characteristic of an investment. Debt instruments are divided into four classes, therefore considering the issuer of the instrument. Fair value through profit or loss (FVTPL) Held to maturity (HTM) Available for sale (AFS) Trading Designated Total Shares Equity funds Mixed funds Bond funds Real estate funds Private equity Hedge funds Commodities Money market funds Equity instruments Debt instruments (government) Debt instruments (industrial corporations) Debt instruments (financial institutions) Debt instruments (other) Debt instruments Equity and debt instruments Fair value financial assets held to maturity (HTM) Debt instruments (government) Debt instruments (industrial corporations) Debt instruments (financial institutions) Debt instruments (other) 0 Total fair value financial assets held to maturity (HTM) Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

23 Fair value through profit or loss (FVTPL) Held to maturity (HTM) Available for sale (AFS) Trading Designated Total Shares Equity funds Mixed funds Bond funds Real estate funds Private equity Hedge funds Commodities Money market funds Equity instruments Debt instruments (government) Debt instruments (industrial corporations) Debt instruments (financial institutions) Debt instruments (other) Debt instruments Equity and debt instruments Fair value financial assets held to maturity (HTM) Debt instruments (government) Debt instruments (industrial corporations) Debt instruments (financial institutions) Debt instruments (other) Total fair value financial assets held to maturity (HTM) Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 21

24 4.2 Investments in financial instruments issued by GIIPS governments The following table shows the exposure towards government bonds of Greece, Italy, Ireland, Portugal and Spain. Fair value through profit or loss (FVTPL) Held to maturity (HTM) Carrying amount of debt instruments issued by GIIPS governments Available for sale (AFS) Trading Designated Total Greece Italy Ireland Portugal Spain Total carrying amount of debt instruments issued by GIIPS governments Fair value of debt instruments issued by GIIPS governments Greece Italy Ireland Portugal Spain Total fair value of debt instruments issued by GIIPS governments Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

25 Fair value through profit or loss (FVTPL) Held to maturity (HTM) Carrying amount of debt instruments issued by GIIPS governments Available for sale (AFS) Trading Designated Total Greece Italy Ireland Portugal Spain Total carrying amount of debt instruments issued by GIIPS governments Fair value of debt instruments issued by GIIPS governments Greece Italy Ireland Portugal Spain Total fair value of debt instruments issued by GIIPS governments Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 23

26 4.3 Financial assets and liabilities measured at fair value IFRS 13 defines the fair value as price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard requires a disclosure of the valuation methods for financial assets and liabilities measured at fair value. For this purpose it specifies a valuation hierarchy that comprises the levels 1 to 3. The allocation to the levels shows which of the disclosed fair values have derived from market transactions and to what extend the measurement is based on valuation models because of the absence of market data. The allocation of the assets and liabilities to the levels is reviewed prior to every year-end and half-year closing. Reallocations in the valuation hierarchy occur when indicated. The interim report discloses those reallocations and comments on them. Wherever possible, the fair value of a financial instrument is based on quoted prices at which an asset or liability could be exchanged between two knowledgeable, willing parties in an arm s length transaction on an active market. Where the fair value can be ascertained from prices on an active market (exchange prices), the financial instrument is classified as Level 1 according to the measurement hierarchy. If quoted prices are not available, the fair value of financial instruments is determined on the basis of generally recognised valuation methods, a comparison with current market transactions or with reference to transactions with similar financial instruments. If the measurement of these financial instruments is mostly based on observed market data, the instruments are classified as Level 2. If, however, at least one material, non-observable parameter is used in determining the value, the instrument is classified as Level 3. The fair value of bonds on inactive markets is determined on the basis of an internal model. This model considers the issuer s rating, observable risk premiums and the current yield curve. Asset categories like private-equity investments and hedge funds cannot be traded in an active market. The fair value of those investments is determined using the net asset values (NAV) provided by the issuer and the audited financial statements. For fund of hedge funds the fair value is determined on the basis of the NAVs of the single hedge funds contained. For privateequity investments the issuer normally calculates the NAV by using the discounted cash flows (DCF) of the single companies he is invested in. The fair value of derivative financial instruments is based on models commonly used in the market like the DCF method, the Black-Scholes- or the White-Hull model. For liabilities measured at fair value through profit or loss that result from financial contracts where a third party bears the investment risk, the fair value is determined on the basis of the underlying asset. 24 Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

27 4.3.1 Financial instruments and financial liabilities carried at fair value The table below shows the carrying amounts seperately for each level and category of financial assets that are measured at fair value in accordance with IAS 39 and for all financial liabilities measured at fair value Level 1 Level 2 Level 3 Total Equity instruments available for sale designated as fair value through profit or loss Debt instruments available for sale designated as fair value through profit or loss Derivative financial instruments (assets) Total financial assets measured at fair value Financial contracts without DPF at FVTPL, designated Derivative financial instruments (liabilities) Total financial liabilities measured at fair value As per 30 June 2014 there were the following transfers between the valuation hierarchies: CHF 1.2 Mio of debt instruments from Level 2 to Level 1 CHF 0.2 Mio of equity intruments from Level 1 to Level Level 1 Level 2 Level 3 Total Equity instruments available for sale designated as fair value through profit or loss Debt instruments available for sale designated as fair value through profit or loss Derivative financial instruments (assets) Total financial assets measured at fair value Financial contracts without DPF at FVTPL, designated Derivative financial instruments (liabilities) Total financial liabilities measured at fair value Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 25

28 4.3.2 Fair values of financial instruments and financial liabilities carried at amortised cost The table below shows the fair value seperately for each level and category of financial assets that are measured at amortised cost in accordance with IAS 39 and for all financial liabilities measured at amortised cost. A comparison between the fair value and the carryimg amount is also shown Level 1 Level 2 Level 3 Total fair value Total carrying amount Debt instruments held to maturity Mortgages and loans Mortgages loans Total financial assets measured at amortised cost For all financial assets and liabilities not mentioned above, the fair value approximately equals the carrying amount Level 1 Level 2 Level 3 Total fair value Total carrying amount Debt instruments held to maturity Mortgages and loans Mortgages loans Total financial assets measured at amortised cost Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

29 4.4 Reconciliation of Level 3 financial instruments measured at fair value IFRS 13 requires a reconciliation from opening to closing balance for financial instruments categorised within Level 3. The changes in fair value recognised in profit or loss include impairments. Equity instruments Debt instruments 2014 Available for sale (AFS) Fair Value through profit or loss (DES) Available for sale (AFS) Fair Value through profit or loss (DES) Derivative financial instruments Total Balance as of 1 January Changes in fair value recognised in profit or loss Changes in fair value recognised in other comprehensive income Additions Disposals Reclassification to / from Level 3 (net) Foreign currency effects Balance as of 30 June Changes in fair value recognised in profit or loss from financial instruments held at balance sheet date The equity instruments in Level 3 are private equity investments. As those are not traded in an active market, there is no market price available on a regular basis. The fair value of those investments is determined using the net asset values (NAV) provided by the issuer. For those NAVs received a plausibility check is performed periodically by the responsible Nationale Suisse Asset Manager using the audited financial statements of the respective private equity investment. In an exceptional case a fair value adjustment can result from this evaluation. Equity instruments Debt instruments 2013 Available for sale (AFS) Fair Value through profit or loss (DES) Available for sale (AFS) Fair Value through profit or loss (DES) Derivative financial instruments Total Balance as of 1 January Changes in fair value recognised in profit or loss Changes in fair value recognised in other comprehensive income Additions Disposals Reclassification to / from Level 3 (net) Foreign currency effects Balance as of 31 December Changes in fair value recognised in profit or loss from financial instruments held at balance sheet date Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 27

30 5 Share capital and treasury shares 2014 Number of treasury shares Number of shares outstanding Number of shares issued Nominal value per share (in CHF) Share capital Balance as of 1 January Purchase / sale of treasury shares Balance as of 30 June Number of treasury shares Number of shares outstanding Number of shares issued Nominal value per share (in CHF) Share capital Balance as of 1 January Purchase / sale of treasury shares Balance as of 31 December Authorised increase in share capital The Annual General Meeting of Swiss National Insurance Company Ltd held on 19 May 2014 approved the motion put forward by the Board of Directors to create authorised capital in the maximum amount of CHF 2.8 Mio. no later than by 19 May This may be accomplished by issuing a maximum of registered shares with a nominal value of CHF 0.40 each, to be fully paid up. The Board of Directors is authorised, on the occasion of this increase in capital, to limit or exclude shareholders rights of subscription and allocate the shares to third parties if the new shares are to be used for the purpose of taking over companies, parts of companies, participations or new investment projects. 28 Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

31 6 Technical reserves for insurance contracts Technical reserves Gross Reinsurers share Non-life Net Gross Reinsurers share Net Unearned premium reserves Case reserves IBNR reserves Reserves for unallocated loss adjustment expenses (ULAE) Total Claims reserves Reserves for annuities Reserves for dividends to policyholders Other technical reserves Technical reserves non-life Life Reserves for policyholder benefits Claims reserves Reserves for unit-linked contracts Total Actuarial reserves Reserves for dividends credited to policyholders Reserves for not yet credited and deferred dividends to policyholders Total Reserves for dividends to policyholders Technical reserves life Technical reserves Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 29

32 Notes to the consolidated income statement 7 Result from financial instruments 7.1 Income from financial instruments Income from equity instruments is mainly from dividends; income from debt instrument is primarily from interest received and amortisation resulting from the application of the effective interest rate method. Income from mortgages and loans is mainly the interest earned on these lendings. Income from financial instruments 1 st HY st HY 2013 Equity instruments available for sale at fair value through profit or loss, designated Income from equity instruments Debt instruments held to maturity available for sale at fair value through profit or loss, designated Mortgages and loans Income from debt instruments Total income from financial instruments Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

33 7.2 Gains and losses on financial instruments by category Gains and losses on financial instruments comprise realisations, book value adjustments and foreign currency effects recognised in profit or loss as well as impairments. 1 st HY 2014 Equity instruments Debt instruments Mortgages and loans Derivative financial instruments Total Gains and losses 1 (net) excluding impairments held to maturity available for sale at fair value through profit or loss Gains and losses 1 (net) excluding impairments Impairments held to maturity available for sale Mortgages and loans Reversal of impairments Mortgages and loans Impairments (net) Total gains and losses on financial instruments st HY 2013 Equity instruments Debt instruments Mortgages and loans Derivative financial instruments Total Gains and losses 1 (net) excluding impairments held to maturity available for sale at fair value through profit or loss Gains and losses 1 (net) excluding impairments Impairments held to maturity available for sale Mortgages and loans Reversal of impairments Mortgages and loans Impairments (net) Total gains and losses on financial instruments Including foreign currency effects in the respective category Gains and losses on derivative financial instruments result mainly from foreign currency forwards and derivatives on shares, entered into for hedging purposes. Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 31

34 8 Result from investment property (net) Result from investment property 1 st HY st HY 2013 Rental income Gains and losses from valuation of investment property Operating expenses for investment property with rental income Operating expenses for investment property without rental income 19 2 Realised gains and losses from sale of investment property Total result from investment property (net) Foreign currency gains and losses Foreign currency gains and losses excluding those on financial instruments measured at fair value through profit or loss amount to kchf (PY kchf 5 468). Thereof, kchf (PY kchf 399) are reported under Other operating expenses, kchf (PY kchf 739) under Other operating income and kchf (PY kchf 5 128) under Gains and losses on financial instruments. 10 Income Taxes Current and deferred income taxes 1 st HY st HY 2013 Current income taxes Deferred income taxes Total current and deferred income taxes Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

35 11 Earnings per share Undiluted earnings per share are calculated using the weighted average number of shares outstanding of Swiss National Insurance Company Ltd and the consolidated profit for the period attributable to shareholders. Diluted earnings per share equal undiluted earnings per share for both periods presented, as there are no convertible instruments or options outstanding which could cause dilution. Earnings per share 1 st HY st HY 2013 Profit for the period (attributable to shareholders) Average number of shares outstanding Earnings per share in CHF Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 33

36 Notes to the consolidated statement of comprehensive income 12 Other comprehensive income before and after taxes Other comprehensive income before and after taxes 1 st HY st HY 2013 Before Taxes Taxes After Taxes Before Taxes Taxes After Taxes Items that may be reclassified to profit or loss Equity instruments AFS Investments in associates Debt instruments recategorised from AFS to HTM Deferred dividends to policyholders Currency translation Other comprehensive income from Items that may be reclassified to profit or loss Items that will not be reclassified to profit or loss Remeasurement of the net liability from defined benefit plans Other comprehensive income from Items that will not be reclassified to profit or loss Total other comprehensive income Compared to the year end 2013, the discount rate used to determine the defined benefit obligation (DBO) was adjusted by 50 basis points from 2.25 % to 1.75 %. The resulting increase of the DBO of CHF 52 Mio. was recognised in other comprehensive income. The remeasurement of the net defined benefit obligation also includes the difference of CHF 18.7 Mio. between the actual result from plan assets and the calculated interst on those assets. Considering the effect of CHF 0.7 Mio. from asset ceiling, the increase of the net liability from defined benefit plans amounts to a total of CHF 34 Mio.. 34 Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

37 Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 35

38 Other information 13 Changes in the group of consolidated companies The group structure changed as follows: Insignificant increase in the shareholding in Swiss National Life ltd., Bottmingen, Switzerland; percentage of shareholding remains unaffected. Increase in the share capital of Compagnie Européenne d'assurance des Marchandises et des Bagages S.A., Brussels, Belgium, by EUR Increase in the shareholding in Nationale Suisse Assurances S.A. Brussels, Belgium from the previous 99.9 % to 100 %, thereby increases the shareholding in Vander Haeghen & Co. S.A., Brussels, Belgium, and in ARENA S.A., Brussels, Belgium, from 99.9 % to 100 % Decrease in the invested capital of Swiss Capital PRO Orange Fund, Dublin, Ireland, from USD to USD Related party transactions In the first half year 2014 a loan granted to a member of executive management increased from kchf to kchf Beyond that increase there were no material changes in terms of extent and manner of related party transactions. Detailed information regarding such transactions is disclosed in the latest published financial report. 15 Contingent liabilities and contractual commitments 15.1 Litigation Group companies have to deal with litigation, claims and lawsuits, generally arising in the normal course of insurance business. Unless analysis of these cases indicates the need to set aside a provision, they are not recognised in the balance sheet. The Executive Board was not aware of any circumstances on the balance sheet date suggesting that these cases will have a material influence on the consolidated financial position of the Group Contractual commitments Contractual commitments exist in relation to investments in and repair and maintenance expenditure for investment properties. Nationale Suisse has also agreed to provide funds to associates companies and third parties to acquire financial assets. Contractual commitments Contractual commitments for Purchase of fixed assets Investment property Financial instruments and investments in associates Total contractual commitments Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

39 16 Dividends The Annual General Meeting held on 19 May 2014 decided to distribute a dividend of CHF 2.50 per share. The total amount of CHF was paid out in the first halfyear A dividend was distributed to all shares, that were outstanding at the date of dividend payment. For the shares that were directly owned by the company no dividend was paid out. 17 Events occurring after the balance sheet date The Board of Directors of Swiss National Insurance Company Ltd, Basel approved these consolidated half-year financial statements on 28 August Up to this date, no events came to our attention which would materially influence the consolidated half-year financial statements. Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 37

40 38 Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd

41 Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd 39

42 Liability disclaimer and statement of caution This half-year report is intended to inform shareholders of Nationale Suisse and the general public about the business performance and the financial situation of the company. The information contained does not constitute a solicitation, an offer or a recommendation for transactions concerning financial instruments or other products of Nationale Suisse or any other type of legal transaction. This publication contains forward-looking statements. While these forward-looking statements reflect the outlook and expectations of Nationale Suisse, a number of risks, uncertainties and other important factors such as (I) the general state of the economy and competitive conditions, especially in our key markets; (II) the performance of financial markets; (III) interest rates and currency exchange rates; (IV) the frequency, severity and trend in claims for insured losses; (V) the mortality and sickness rate; (VI) insurance policy renewal and termination rates; (VII) legal disputes and official proceedings; (VIII) loss of key staff; (IX) negative publicity and media reports; (X) changes to statutory and regulatory conditions including accounting standards and altered guidelines of supervisory authorities can lead to actual developments and results significantly deviating from the expectations of Nationale Suisse. Nationale Suisse neither implicitly nor explicitly makes representation or provides warranty for the correctness and completeness of the published information. Neither Nationale Suisse nor its directors, officers and members of its management assume liability for damages or losses which may directly or in directly arise from the use of information contained in this financial report. Unless in cases in which it is obliged to do so by mandatory legislation, Nationale Suisse is not under an obligation to revise or change its forward-looking statements to take account of new information, future events or for any other reason. Attention is drawn to the fact that past performance is not necessarily indicative of future results. In case of doubt concerning an investment, it is recommended that an independent financial advisor is consulted. Updated information will be available on our website as of the date of publication. This may include further details about the business performance and the financial situation of Nationale Suisse. 40 Interim report 1 st half-year 2014 of Swiss National Insurance Company Ltd