Financial highlights (unaudited)
We may be operating in a difficult market environment, but the strength of our balance sheet, the diversity of our risk portfolio and our ability to execute on our strategy delivered excellent results in 2007, and make us confident in our ability to continue driving success going forward.
| in USD millions, for the years ended December 31 | 2007 | 2006 | Change1 |
|---|---|---|---|
| Business operating profit | 6,614 | 6,035 | 10% |
| Net income attributable to shareholders | 5,626 | 4,620 | 22% |
| General Insurance gross written premiums and policy fees | 35,650 | 34,123 | 4% |
| Global Life gross written premiums, policy fees and insurance deposits | 21,703 | 21,022 | 3% |
| Farmers Management Services management fees and other related revenues |
2,266 | 2,133 | 6% |
| General Insurance business operating profit | 4,024 | 3,804 | 6% |
| General Insurance combined ratio | 95.6% | 93.9% | (1.7 pts) |
| Global Life business operating profit | 1,443 | 1,200 | 20% |
| Global Life new business annual premium equivalent (APE) | 2,947 | 2,500 | 18% |
| Global Life new business margin, after tax (as % of APE) | 24.7% | 21.6% | 3.1 pts |
| Global Life new business value, after tax | 729 | 539 | 35% |
| Farmers Management Services business operating profit | 1,271 | 1,225 | 4% |
| Farmers Management Services gross operating margin | 46.6% | 50.1% | (3.5 pts) |
| Farmers Management Services managed gross earned premium margin 2 | 6.8% | 7.3% | (0.5 pts) |
| Group investments average invested assets | 191,790 | 185,371 | 3% |
| Group investments result, net | 10,089 | 9,434 | 7% |
| Group investments return (as % of average invested assets) | 5.3% | 5.1% | 0.2 pts |
| Shareholders' equity | 28,804 | 25,587 | 13% |
| Diluted earnings per share (in CHF) | 46.37 | 39.52 | 17% |
| Return on common shareholders' equity (ROE) | 21.0% | 20.4% | 0.6 pts |
| Business operating profit (after tax) return on common shareholders' equity | 18.7% | 19.5% | (0.8 pts) |
1 Parentheses around numbers represent an adverse variance.
2 Farmers Management Services managed gross earned premium margin is calculated as gross operating profit of Farmers Management Services divided by the gross earned premiums of the Farmers Exchanges, which we manage, but do not own.
