Shareholder information
Zurich Financial Services registered share data
Key indicators
| 12/31/2006 | 12/31/2005 | |
|---|---|---|
| Number of shares issued | 144,749,399 | 144,006,955 |
| Number of dividend-bearing shares | 144,749,399 | 144,006,955 |
| Market capitalization (in CHF millions at end of period) | 47,478 | 40,322 |
| Authorized capital, number of shares | 6,000,000 | 6,000,000 |
| Contingent capital, number of shares | 6,239,384 | 6,981,828 |
Per share data
| in CHF | 2006 | 2005 |
|---|---|---|
| Gross dividend/payout per registered share | 11.00 1 | 7.00 2 |
| Basic earnings per share | 38.93 | 27.41 |
| Diluted earnings per share | 38.71 | 27.11 |
| Book value per share, as of December 31 | 218.02 | 194.53 |
| Nominal value per share | 0.10 2 | 2.50 3 |
| Price at end of period | 328.00 | 280.00 |
| Price period high | 330.50 | 282.25 |
| Price period low | 251.75 | 188.00 |
1 Proposed gross dividend, subject to approval by shareholders at the Annual General Meeting 2007; expected payment date is on April 10, 2007.
2 Payout to shareholders of CHF 7.00 per share (comprising of a regular dividend of CHF 4.60 and a payout of CHF 2.40 per share in form of a reduction of the nominal value) effective July 3, 2006; payment was made on July 4, 2006.
3 Nominal value reduction of CHF 4.00 per registered share was effective as of July 1, 2005.
Zurich share performance (indexed) over the last 10 years
Dividend/payout history
| Financial Year | Gross amount per registered share in CHF | Payment date | |
|---|---|---|---|
| Dividend | 2006 | 11.00 1 | April 10, 2007 1 |
| Dividend/nominal value reduction | 2005 | 7.00 | July 4, 2006 |
| Nominal value reduction | 2004 | 4.00 | July 4, 2005 |
| Nominal value reduction | 2003 | 2.50 | July 1, 2004 |
| Nominal value reduction | 2002 | 1.00 | July 15, 2003 |
1 Proposed gross dividend, subject to approval by shareholders at the Annual General Meeting 2007; expected payment date is on April 10, 2007.
Share trading
Zurich Financial Services shares are listed on the SWX Swiss Exchange and traded on the EU Regulated Market Segment of virt-x; ticker symbol: ZURN; the Swiss security number (Valorennummer) is 1107539. Trading in Zurich Financial Services shares on virt-x is conducted in Swiss francs. 100 percent of the shares are in free float.
De-listing of Zurich Financial Services shares from London Stock Exchange
Effective October 2, 2006, Zurich Financial Services cancelled its secondary listing of Zurich Financial Services shares on the London Stock Exchange and such shares were de-listed from the Official List of the United Kingdom Listing Authority. Following the de-listing, Zurich Financial Services shares will no longer be traded on the London Stock Exchange’s market for listed securities but will continue to be listed on the SWX EU-Compatible Segment.
Zurich Financial Services shareholders registered in the share ledger
The shares registered in the share ledger as of December 31, 2006, were owned by 112,662 shareholders of whom 106,839 were private individuals holding 20.15 percent of the registered shares (or 11.78 percent of all outstanding shares), 2,226 were foundations and pension funds holding 8.00 percent of the registered shares (or 4.67 percent of all outstanding shares), and 3,597 were other legal entities holding 71.85 percent of the registered shares (or 41.99 percent of all outstanding shares).
According to the information available to us on December 31, 2006, no shareholder of Zurich Financial Services held 5 percent or more of the voting rights of the issued share capital.
Securities custody service
Zurich offers its shareholders the opportunity to deposit a range of Zurich Financial Services securities free of charge at S A G SIS Aktienregister AG in Switzerland. The securities deposit regulations as well as the application form for a securities custody account can be downloaded from S A G’s Web site at www.sag.ch.
Financial calendar
| Investors’ Day – Capital Management | March 28, 2007 |
|---|---|
| Annual General Meeting 2007 | April 3, 2007 |
| Record date | April 9, 2007 |
| Ex-dividend date | April 10, 2007 |
| Dividend payable (Note) | April 10, 2007 |
| Results Reporting for the Three Months to March 31, 2007 | May 16, 2007 |
| Investors’ Day – Strategy Update | May 23, 2007 |
| Half Year Results Reporting 2007 | August 16, 2007 |
| Results Reporting for the Nine Months to September 30, 2007 | November 15, 2007 |
NOTE: To CDI holders within the Zurich Financial Services Corporate Nominee Service with Lloyds TSB Registrars: payable within the week following April 22, 2007
Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 55,000 people serving customers in more than 120 countries.
Contacts
| Registered Office | Zurich Financial Services Mythenquai 2 8022 Zurich, Switzerland |
|---|---|
| Media Inquiries | Corporate Communications Media and Public Relations Zurich Financial Services, Switzerland Telephone: +41 (0)44 625 21 00 E-mail: media@zurich.com |
| Investor Inquiries | Investor Relations Zurich Financial Services, Switzerland Telephone: +41 (0)44 625 22 99 E-mail: investor.relations@zurich.com Share Register Services Zurich Financial Services, Switzerland Telephone: +41 (0)44 625 22 55 E-mail: shareholder.services@zurich.com |
| Corporate Citizenship/ Responsibility Inquiries | Group Government and Industry Affairs Zurich Financial Services, Switzerland Telephone: +41 (0)44 625 20 07 E-mail: zurich.basics@zurich.com |
| Securities Custody Service | Zurich Financial Services, Custody Accounts c/o SAG SIS Aktienregister AG P.O. Box 4601 Olten, Switzerland Telephone: +41 (0) 62 311 61 45 Fax: +41 (0) 62 205 39 71 Web site: www.sag.ch |
| CDI Holder Inquiries within the Zurich Financial Services corporate nominee service |
Lloyds TSB Registrars The Causeway, Worthing West Sussex, BN99 6DA, United Kingdom Nominee Service helpline: 0870 600 3979 Lloyds TSB share dealing helpline: 0870 850 0852 International: +44 131 527 3903 Hard of hearing (text phone, domestic): 0121 415 7028 Web site: www.shareview.co.uk |
| American Depositary Receipts | Zurich Financial Services has an
American Depositary Receipt program with The Bank of New York (BNY). For more information call BNY’s ADR Services Center in the USA +1-888-BNY-ADRs (1-888-269-2377) or outside the USA on +1-212-815-3700. ADR holder assistance may also be obtained from BNY at www.adrbny.com. |
The Annual Report 2006 of Zurich Financial Services Group consists of two publications: the Corporate Review and the Financial Report. Both reports are available on our Web site and can be downloaded at www.zurich.com.
The Corporate Review contains a description of the Group’s performance as well as risk management report, corporate governance and remuneration reports. The Corporate Review is published in English, German and French.
The Financial Report consists of the financial review, the audited consolidated financial statements including the notes, as well as the audited financial statements of the Zurich Financial Services holding company. The Financial Report is published in English.
Glossary
Agent
A person acting as an independent contractor for one insurance company, called an exclusive or tied agent, or for multiple companies, called an independent agent, authorized to represent those companies to insureds. In life insurance an agent is also called a life underwriter and is responsible for sales and service of policies.
American Depositary Receipt (ADR)
Also called AD shares. They are US dollar denominated certificates representing shares of non-US companies created primarily for use by American investors as a way to invest in foreign companies using American currency.
Annual Premium Equivalent (APE)
New annual premiums plus 10 percent of single premiums. APE is an industry standard measure of life insurance new business volume.
Broker
Similar to an independent agent, however without the qualification of legal representative. Brokers advise and assign policies of their clients to insurance companies in exchange for commissions.
Business division
We have four General Insurance business divisions: Global Corporate; Europe General Insurance; North America Commercial; International Businesses. Each focuses on specific customer segments, giving the Group a broad footprint across a diverse range of geographies, customers and insurance needs.
Business operating profit (BOP)
Zurich’s internal metric for assessing performance. It reflects adjustments for taxes, net realized capital gains (excluding Capital Markets & Banking) and net unrealized capital losses on investments, policyholders’ share of investment results for the life business, and significant items attributable to special circumstances.
Business segment
We have primary and secondary segments. Our primary segments are General Insurance, Global Life, Farmers Management Services, Other Businesses and Corporate Functions. Our secondary segments are geographic: North America, Europe, International Businesses and Central Region.
Combined Ratio
A critical measure of success for an insurance company. The sum of the loss ratio, expense ratio and policyholder dividends and participation in profit ratio for a general insurance company or a reinsurance company. A combined ratio below 100 generally indicates profitable underwriting. A combined ratio over 100 generally indicates unprofitable underwriting. An insurance company with a combined ratio over 100 may be profitable to the extent net investment results exceed underwriting losses.
Consolidated Financial Statements
Include the assets, liabilities, equity, revenues, expenses and cash flows of a company and its subsidiaries. The results of subsidiaries acquired are included from the date of acquisition. The results of subsidiaries that have been sold during the reporting period are included up to the date of disposal. All significant intercompany balances, profits and transactions are eliminated.
Distribution Channel
A way of delivering products and services to target customers, as part of a chosen market strategy. Our distribution channels include our own sales force, independent financial advisers, franchisees, brokers, banks, affinity groups and direct marketing.
Embedded Value
Method of measuring profitability commonly used by life insurance companies. It is equal to the net asset value of the company, plus the present value of the projected stream of future after-tax profits on in-force insurance contracts. In July 2006 Zurich announced the adoption of the European Embedded Value principles, using a “bottom-up” market consistent approach to allow explicitly for market risk.
Expense Ratio
The ratio of general insurance or reinsurance operating expenses (acquisition costs, plus policy administration expenses, less reinsurance commission and profit participation, plus other technical expenses) to net premiums earned. These operating expenses are also referred to as technical expenses.
Gross Written Premiums and Policy Fees (GWP)
The total premium we charge our customers for insurance, including certain fees.
Income Statement
Zurich’s financial statement that summarizes revenues and expenses for a specific period. Also known as an operating statement or profit and loss statement.
International Financial Reporting Standards (IFRS)
Formerly IAS (International Accounting Standards). This is the Group’s accounting standard.
Key Performance Indicators (KPIs)
Quantifiable measurements that reflect the critical success factors of an organization. They help define and measure progress toward organizational goals. Some of our KPIs are: return on equity, combined ratio and business operating profit for our General Insurance operations, new business profit margins, embedded value operating returns after tax, and business operating profit for our Global Life operations.
Net Income After Tax (NIAT)
Generally defined, this is total revenues (primarily premiums earned, fee revenue and investment result) less total benefits, losses and expenses less income tax.
Net Written Premiums (NWP)
Gross written premiums (GWP) less the portion ceded to reinsurers.
Net Underwriting Result
The remaining profit/(loss) after deducting insurance losses and other technical expenses from net earned premiums.
New Business Margin
The value added by new business at point of sale, divided by the new business premiums written over the period (measured on an Annual Premium Equivalent basis (APE).
New Business Value
The present value of the projected after-tax stream of profits from new life insurance contracts sold in the year.
Performance Management
Process which links the Strategic Direction and Key Success Factors to organizational and individual goals, actions, measurements, performance appraisals and rewards.
Return on Equity (ROE)
ROE tells shareholders how effectively their money is being used. It also shows how a company compares with its competitors. ROE is the amount, expressed as a percentage, of the net income for a given period available to common stock shareholders, divided by the shareholders’ equity.
Shareholders’ Equity
A measure of balance-sheet strength. Also known as net worth, it is a company’s total assets minus its total liabilities and minority interests. It consists of common and preferred securities deducted by treasury shares (issued shares that have been reacquired by the company), additional paid-in capital, retained earnings (accumulated earnings of the company since its inception, less dividends) and valuation differences not reflected in the income statement.
Zurich Basics
Zurich’s core values and basic principles, constituting our Group’s code of conduct.
The Zurich Way
A unique Zurich approach to the delivery of our products and services, and the performance of our internal business practices, designed to drive profitable growth by ensuring a consistent, best-inclass customer experience on a world-wide basis.
Disclaimer & Cautionary Statement
Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Forward-looking statements include statements regarding our targeted profit improvement, return on equity targets, expense reductions, pricing conditions, dividend policy and underwriting claims improvements. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and Zurich Financial Services’ plans and objectives to differ materially from those expressed or implied in the forward looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in our key markets; (ii) performance of financial markets; (iii) levels of interest rates and currency exchange rates; (iv) frequency, severity and development of insured claims events; (v) mortality and morbidity experience; (vi) policy renewal and lapse rates; and (vii) changes in laws and regulations and in the policies of regulators may have a direct bearing on Zurich Financial Services’ results of operations and on whether Zurich Financial Services will achieve its targets. Zurich Financial Services undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.
It should be noted that past performance is not a guide to future performance.
Persons requiring advice should consult an independent adviser.
The offer to repurchase securities of Zurich Financial Services is not made in the United States of America and to US persons and may be accepted only by non-US persons and outside the United States. Offering materials with respect to this offer may not be distributed in or sent to the United States and may not be used for the purpose of solicitation of an offer to purchase or sell any securities in the United States.
