Financial highlights
The following table presents the summarized consolidated results of the Group for the years ended December 31, 2006 and 2005 and the financial positions as of December 31, 2006 and 2005. Certain prior year amounts have been reclassified to conform to the 2006 presentation.
| in USD millions, for the years ended December 31 | 2006 | 2005 | Change 1 |
|---|---|---|---|
| Business operating profit | 5,861 | 3,947 | 48% |
| Net income attributable to shareholders | 4,527 | 3,214 | 41% |
| General Insurance gross written premiums and policy fees | 34,178 | 33,401 | 2% |
| Global Life gross written premiums, policy fees and insurance deposits | 21,022 | 19,536 | 8% |
| Farmers Management Services management fees | 2,133 | 2,058 | 4% |
| General Insurance business operating profit | 3,831 | 1,913 | 100% |
| General Insurance combined ratio (in %) 2 | 94.2% | 100.8% | 6.6 pts |
| Global Life business operating profit | 1,162 | 1,079 | 8% |
| Global Life new business value, after tax 3 | 515 | 406 | 27% |
| Global Life gross new business annual premium equivalent (APE) | 2,368 | 2,303 | 3% |
| Farmers Management Services business operating profit | 1,202 | 1,221 | (2%) |
| Farmers Management Services gross operating margin (in %) 4 | 49.1% | 51.9% | (2.8 pts) |
| Group investments average invested assets 5 | 185,370 | 185,072 | – |
| Group investments result, net | 9,435 | 10,294 | (8%) |
| Group investments return (as % of average invested assets) | 5.1% | 5.6% | (0.5 pts) |
| Shareholders' equity | 26,531 | 22,426 | 18% |
| Diluted earnings per share (in CHF) | 38.71 | 27.11 | 43% |
| Return on common shareholders' equity (ROE) | 19.0% | 15.5% | 3.5 pts |
| Business operating profit (after tax) return on common shareholders' equity | 18.1% | 13.6% | 4.5 pts |
| 1 | Positive / (negative) change. |
|---|---|
| 2 | The General Insurance combined ratio is calculated as the sum of net earned premiums and policy fees less the net underwriting result, divided by net earned premiums and policy fees. |
| 3 | Global Life new business value is the present value of the projected after tax profit from life insurance contracts sold in the year. |
| 4 | Farmers Management Services gross operating margin is calculated as the sum of Farmers management fees less management expenses, divided by Farmers management fees. |
| 5 | Excluding cash collateral received for securities lending. |
Zurich share performance (indexed) since September 4, 2002
Key performance indicators
Business operating profit
General Insurance - combined ratio
Global Life - 1 new business margin, after tax (in % of APE)
1 In %, for the years ended December 31.
