Consolidated financial statements
Consolidated income statements
| in USD millions, for the years ended December 31 | Notes | 2006 | 2005 |
|---|---|---|---|
| Revenues | |||
| Gross written premiums and policy fees | 30 | 46,465 | 46,797 |
| Less premiums ceded to reinsurers | 30 | (5,811) | (6,377) |
| Net written premiums and policy fees | 30 | 40,654 | 40,420 |
| Net change in reserves for unearned premiums | 10 | (145) | 37 |
| Net earned premiums and policy fees | 30 | 40,509 | 40,457 |
| Farmers management fees | 14 | 2,133 | 2,058 |
| Net investment income | 7 | 10,283 | 9,765 |
| Net capital gains on investments and impairments | 7 | 10,739 | 13,382 |
| Net loss on divestments of businesses | 4 | (43) | (2) |
| Other income | 1,379 | 1,526 | |
| Total revenues | 65,000 | 67,186 | |
| Benefits, losses and expenses | |||
| Insurance benefits and losses, gross of reinsurance | 10 | 33,874 | 38,261 |
| Less ceded insurance benefits and losses | 10 | (3,668) | (5,842) |
| Insurance benefits and losses, net of reinsurance | 10 | 30,206 | 32,419 |
| Policyholder dividends and participation in profits | 10 | 12,906 | 14,432 |
| Underwriting and policy acquisition costs, net of reinsurance | 10 | 6,982 | 7,253 |
| Administrative and other operating expense | 6,393 | 5,860 | |
| Amortization and impairments of intangible assets | 20 | 257 | 254 |
| Interest expense on debt | 22 | 608 | 446 |
| Interest credited to policyholders and other interest | 915 | 1,056 | |
| Total benefits, losses and expenses | 58,267 | 61,720 | |
| Net income before income taxes | 6,733 | 5,466 | |
| Income tax expense | 18 | (2,108) | (2,136) |
| Net income after taxes | 4,625 | 3,330 | |
| Net income attributable to minority interests | (98) | (116) | |
| Net income attributable to shareholders | 4,527 | 3,214 | |
| in USD | |||
| Basic earnings per share | 23 | 31.07 | 22.04 |
| Diluted earnings per share | 23 | 30.89 | 21.80 |
| in CHF | |||
| Basic earnings per share | 23 | 38.93 | 27.41 |
| Diluted earnings per share | 23 | 38.71 | 27.11 |
The notes to the consolidated financial statements are an integral part of these consolidated financial statements.
