FACTS AND FIGURES

CFO Wolfgang Wandhoven on New Re’s current financial developments

New Re’s facts and figures

Financial key figures

2009200820072006
Gross premiums written CHF m 1,5181,1241,2411,007
Life and Health CHF m577515647455
Property and CasualtyCHF m941609594552
Net earned premiums CHF m1,4651.0661.188974
Life and HealthCHF m578503632443
Property and CasualtyCHF m887563556531
Combined ratio Non-Life%89.4102.085.896.8
Result for the year CHF m205.846.0227.3299.4
Investments CHF m4,3874,0044,3874,066
Shareholder's equity CHF m1,191986941715
S&P Rating AA-AA-AA-AA-

       

Main events in 2009 – Statement by the CFO

New products generate strong growth

2009 was a very successful year for New Re. The range of products offered has been significantly expanded. New Re successfully offers full service for structured products including Agro business and Variable Annuity business (Life). Clients show an active interest in these products. Despite further softening markets, total premium volume (gross, written) thus reached CHF 1,518 mio., a 35% growth compared to 2008.

A strong partner with profound technical knowledge

Maintaining its strong technical underwriting approach, New Re aspires to be a reliable long-term oriented partner to its core clients. The Non-Life combined ratio of 89,4% is a result of this professional underwriting approach. NatCat claims resulted mainly from Storms “Xystus/Wolfgang” and “Klaus”, but were, at CHF 36.1 mio., slightly below expectations (long-term averages).

Stable investment returns despite financial crisis

Despite the financial crisis, New Re again could achieve a very stable investment result of (net) 137.6 mio. This includes 26.4 mio. (net) as the result of the Variable Annuity business. The hedging elements of this Variable Annuity business are included in “investment income” and “investment expenses”.

Exceptional result and strong capital basis

With a result of CHF 205.8 mio., New Re could almost achieve the same level as in its record year 2007 (CHF 227.3 mio.). The capital base again increased significantly: Equalisation reserves rose by CHF 6.9 mio. to a total of CHF 193.2 mio., and equity rose by CHF 205.2 mio. to a total of CHF 1,191.1 mio. New Re enjoys a AA- rating. New Re is a core company of Munich Re (Group).

Promising outlook for 2010

New Re has successfully completed its move from Geneva to Zurich. Staff in Zurich are fully trained and operational. The same high level of professional service is being delivered to our clients. In the renewal for 2010, New Re maintained its reliable professional approach in view of continuing soft market conditions. As a result, business volume is likely to decline. Inherent profitability of New Re remains sound.

Wolfgang Wandhoven – CFO

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