Financial highlights (unaudited)

The following table presents the summarized consolidated results of the Group for the years ended December 31, 2013 and 2012, and the financial position as of December 31, 2013 and 2012, respectively. All amounts are shown in U.S. dollars and rounded to the nearest million unless otherwise stated, with the consequence that the rounded amounts may not add to the rounded total in all cases. All ratios and variances are calculated using the underlying amounts rather than the rounded amounts. This document should be read in conjunction with the Annual Report 2013 for the Zurich Insurance Group and with its Consolidated financial statements to December 31, 2013. Certain comparative figures have been restated as set out in note 1 of the Consolidated financial statements.

In addition to the figures stated in accordance with International Financial Reporting Standards (IFRS), the Group uses business operating profit (BOP), new business measures and other performance indicators to enhance the understanding of its results. Details of these additional measures are set out in the separately published Glossary. These should be viewed as complementary to, and not as substitutes for the IFRS figures. For a reconciliation of BOP to net income attributable to shareholders, see note 28 of the Consolidated financial statements.

Financial highlights

in USD millions, for the years ended December 31, unless otherwise stated 2013 20121 Change2
Business operating profit 4,680 4,084 15%
Net income attributable to shareholders 4,028 3,887 4%
       
General Insurance gross written premiums and policy fees 36,438 35,610 2%
Global Life gross written premiums, policy fees and insurance deposits 27,095 30,259 (10%)
Farmers Management Services management fees and other related revenues 2,810 2,846 (1%)
Farmers Re gross written premiums and policy fees 4,045 4,361 (7%)
       
General Insurance business operating profit 2,859 2,112 35%
General Insurance combined ratio 95.5% 98.4% 2.9 pts
       
Global Life business operating profit 1,272 1,351 (6%)
Global Life new business annual premium equivalent (APE)3 4,418 4,030 10%
Global Life new business margin, after tax (as % of APE)3 28.3% 22.1% 6.2 pts
Global Life new business value, after tax3 1,251 890 41%
       
Farmers business operating profit 1,516 1,402 8%
Farmers Management Services gross management result 1,353 1,366 (1%)
Farmers Management Services managed gross earned premium margin 7.2% 7.3% (0.1pts)
       
Average Group investments 208,431 204,066 2%
Net investment result on Group investments 7,398 8,983 (18%)
Net investment return on Group investments4 3.5% 4.4% (0.9 pts)
Total return on Group investments4 1.3% 7.0% (5.7 pts)
       
Shareholders’ equity 32,503 34,505 (6%)
Swiss Solvency Test capitalization ratio5 206% 185% 21 pts
       
Diluted earnings per share (in CHF) 25.23 24.72 2%
Book value per share (in CHF) 196.14 214.86 (9%)
       
Return on  shareholders’ equity (ROE) 12.0% 11.8% 0.2 pts
Business operating profit (after tax) return on  shareholders’ equity (BOPAT ROE) 10.5% 9.3% 1.2 pts

 

1

December 31, 2012 has been restated as set out in note 1 of the Consolidated financial statements.

2

Parentheses around numbers represent an adverse variance.

3

New business amounts are calculated on embedded value principles before the effect of non-controlling interests. See Embedded value report for details of these principles. New business amounts for the year ended December 31, 2012 do not include Zurich Santander or new operations in Asia (including Zurich Insurance Malaysia Berhad – ZIMB).

4

Calculated on average Group investments.

5

Ratios as of July 1, 2013 and January 1, 2013, respectively, are calculated based on the Group’s internal model, which is subject to the review and approval of the Group’s regulator, the Swiss Financial Market Supervisory Authority (FINMA).