New Re's Facts and figuresFinancial key figures | | 2008 | 2007 | 2006 | | Gross premiums written | CHF m | 1.124 | 1.241 | 1.007 | | Life and Health | CHF m | 515 | 647 | 455 | | Property and Casualty | CHF m | 609 | 594 | 552 | | Net earned premiums | CHF m | 1.066 | 1.188 | 974 | | Life and Health | CHF m | 503 | 632 | 443 | | Property and Casualty | CHF m | 563 | 556 | 531 | | Combined ratio Non-Life | % | 102,0 | 85,8 | 96,8 | | Result for the year | CHF m | 46,0 | 227,3 | 299,4 | | Investments | CHF m | 4.004 | 4.387 | 4.066 | | Shareholder's equity | CHF m | 986 | 941 | 715 | | S&P Rating | | AA- | AA- | AA- |
Financial highlights 2008 – Statement by the CFOFocus on cycle managementIn 2008, the main focus of New Re’s business activities was on cycle management. In softening markets, New Re deliberately declined business in areas where pricing levels fell below the risk-adequate level. As a result, premiums reduced, in some segments up to –15%.
Together with the depreciation of the major currencies against the Swiss franc, gross premiums written decreased in total from CHF 1.24bn in 2007 to CHF 1.12bn (–9.7%) in 2008.
Life volume fell by an above-average 20.4% to CHF 515m due to the termination of a single contract. In non-life, however, new segments filled the gap and premium volumes increased by 2.5% to CHF 609m. Major event: Hurricane Ike2008 was a successful year for New Re, exceeding expectations in almost all segments. Hurricane Ike, however, was an exceptional nat. cat. event. Totalling CHF 75.6m, this single major claim accounted for 13.4% of New Re’s combined ratio, bringing it up to 102.0% as against 85.8% in the previous year. Financial crisis managed successfullyNew Re has been successful in dealing with the shocks of the financial crisis. Equities were divested in 2006 and, on the fixed-income side, New Re incurred basically no loss of capital at all. Counterparty credit risks have been reduced to a minimum, with currencies and duration ALM-matched. The performance of assets in original currencies amounted to 4.5%. Positive result and strengthened equity baseWith a result of CHF 46.0m, New Re could again strengthen its equity, which rose to CHF 986m. The capital base thus remains excellent and New Re continues to enjoy a AA- rating. In addition, New Re is a core company of the Munich Re Group, also build on solid foundations. Positive outlook for 2009In 2009, New Re continues its strict technical approach towards a further softening of conditions in specific markets. The resulting loss in business volume, however, will be counterbalanced by actively promoting new contracts and new segments. The Munich Re Group significantly extended New Re’s mandate regarding further business growth and continued development. This very promising outlook led to the decision by New Re to relocate its offices to Zurich to be even closer to its clients, partners and potential employees.
Wolfgang Wandhoven – CFO |