Shareholder information - Nationale Suisse Group

Nationale Suisse
Financial year 2010
Shareholder information
April 2011

Distinct increase in profit combined with strong growth in specialty lines –
improved equity position and higher dividend
Nationale Suisse posted a very good result in 2010 with key segments demonstrating improved
earnings capacity and strategically central areas reporting a further increase in premium
growth. Although the recession has largely been overcome, competition in the insurance
markets remained fierce in 2010. The debt crisis of peripheral euro nations also impacted on the
financial markets, which in turn caused the Swiss franc to appreciate. Against this challenging
backdrop, Nationale Suisse increased gross premiums by 4.8 % (by an excellent 7.8 % in local
currencies). Major advances in strategy implementation strengthened our position in the
domestic market thanks to the «Schlagkraft Schweiz» business model and enabled us to
achieve high double-digit premium growth in the specialty lines. The combined ratio improved
to 96.6 % due to a lower claims ratio. Investment income was substantially higher than in the
previous year. At CHF 92.1 million (+20.6 %), net profit was very pleasing, even from a long-term
perspective. This means that we can propose to the Annual General Meeting a dividend
increase of 20 %, to CHF 1.50.
In January 2011, the sale of Group life business in Switzerland was announced. The necessary regulatory
approvals have been granted for the transaction to be carried out retrospectively as of 1 January 2011.
The comments and figures contained in this shareholder information relate to the Nationale Suisse Group
and how it was composed in the 2010 financial year, i.e. including Group Life Switzerland.
Excellent premium growth
The partial improvement in the economic climate only benefitted the insurance sector to a limited
degree. Price pressure on premiums in the non-life business was sustained, while the low guarantees
due to low interest rates hampered the life business. Nevertheless, Nationale Suisse succeeded in
increasing gross written premiums by 4.8 % to CHF 1 780.8 million in 2010, with non-life premiums
advancing by 6.5 % to CHF 1 186.4 million. In this respect, market conditions in the non-life business
continued to point to a cautious underwriting policy. Life premiums rose by 1.6 % to CHF 594.4 million.
In local currencies, thus excluding the negative effects of the weak euro, gross premium growth at
Group level reached an excellent 7.8 %.
Strategy on track
The high premium growth was, for the most part, attributable to the strategically important specialty
lines, where premium growth proceeded as planned in 2010, at an above-average rate to CHF
489.6 million (+26.8 %). In local currencies, premiums even jumped by as much as 32.5 %. Accordingly,
the share of specialty lines premiums in the total volume once again increased sharply in 2010. We also
made considerable strides during the reporting year in implementing «Schlagkraft Schweiz», a core
element of our differentiation strategy. The intensive training measures for the sales force which
accompanied this strategy and focused on sales and customer orientation proved a success. The customer
service centres which have been in operation since March 2010 improve not only our levels of
availability but also the quality of service for private and corporate clients, as well as for the increasingly
important brokers. The customer service centres also made it possible to carry out the expected
improvements in claims management. The implementation of «Schlagkraft Schweiz» to date and the
differentiation by selected target groups, which we have driven forward, meant that we were able to
considerably improve both quality and efficiency in Switzerland, by far our most important market. This
resulted in key successes in the private and corporate client segments.
Improved combined ratio amid higher costs
The underwriting result in non-life business rose sharply during the reporting year, from CHF 10.1
million to CHF 24.3 million. The combined ratio improved accordingly from 97.3 % to 96.6 %, falling to
92.2 % in the important Non-Life Switzerland segment in 2010 following 94.7 % in the previous year. The
Shareholder information 2010 of Swiss National Insurance Company Ltd

Group’s claims ratio improved from 67.2 % to 62.7 %, due in particular to the positive trend in claims in
Switzerland. Major progress was made in claims management in 2010. Together with the selective
underwriting policy and further changes to the pricing structure, this had a positive impact on the
claims ratio. Moreover, claims from major natural events had a lower than average impact on Nationale
Suisse in 2010. However, the cost ratio prevented any further significant improvement in the combined
ratio. In Switzerland especially, but also abroad, this ratio rose noticeably and reached a total of 33.9 %,
following 30.1 % in 2009. There are several reasons for the increase in the cost ratio. The expansion of
the specialty lines means that more business is being sold via brokers and cooperation partners, which
is leading to higher sales costs. In the domestic market, the number of sales staff was increased by
approximately 10 %. As a result, we will be able to provide even better support for existing and new
clients, which will impact positively on our rates of growth in the medium term. We regard the costs
arising from this expansion as an investment in our future profitable growth in this area. The implementation
of the «Schlagkraft Schweiz» project also created additional costs. Carrying out the differentiation
strategy with a focus on target groups requires spending on marketing and launching products.
These costs too are mostly investments in competitiveness and in future growth. This also applies to
the costs associated with the expansion of specialty lines.
Further rise in profits in life business
Profit before taxes in life business rose markedly, by 124.9 % to CHF 28.5 million. The biggest increase
in the IFRS segments was registered by Individual Life Switzerland, which reported a pre-tax profit
of CHF 16.1 million (2009: CHF 1.7 million). Following a pre-tax loss of CHF 1.3 million in 2009, Individual
Life Foreign Countries recorded a profit of CHF 0.8 million. Investment income made a key contribution
to the improved result in life business.
Investment result marked by movements in interest rates and exchange rates
Investments increased by 7.9 % on the whole to CHF 6 670.4 million as liquid funds were reallocated
into longer-term, fixed-income securities. The weighting of debt instruments rose by 0.7 percentage
points to 71.1 %, while real estate investments were reduced by 1.9 percentage points to represent
18.1 % of the total portfolio. Net current investment income fell by 4.6 % to CHF 172.4 million due to a
reduction in the number of investment properties, the persistently low level of interest rates and foreign
currency effects. Current return on investment declined by 0.2 percentage points to 2.7 %. Taking
into account other currency result and the result from investments in associates, this created overall
gains and losses on investments through profit and loss of CHF 91.6 million (2009: CHF 38.4 million). The
increase can be attributed primarily to gains and losses on financial instruments recognised in profit
and loss, which rose to CHF 71.5 million in 2010 (2009: CHF 7.0 million). In particular, this includes gains
from currency hedging which offset the loss in value from converting financial instruments held in foreign
currencies into Swiss francs. The consistent hedging of these assets has therefore been instrumental
in underpinning the good investment result. In contrast, the gains and losses on real estate
recognised in profit and loss only recorded CHF 18.1 million (2009: CHF 52.0 million), whereas the result
from associates improved to CHF 3.7 million, following a loss of CHF 17.1 million in the previous year.
As a result, net investment income increased by 20.5 % to CHF 264.1 million, which in turn led to an
increase in the return on investment to an extraordinarily high figure of 4.1 % (2009: 3.5 %).
Encouraging increase in profit and further strengthening of equity
Profit before income taxes posted an 18.6 % increase to CHF 118.2 million. At a tax rate of 22.1 %, this
results in a profit for the year attributable to shareholders of CHF 91.6 million (+20.2 %). Equity was
further increased to CHF 746.5 million. The solvency 1 ratio also improved, from 181.0 % to 183.8 %, and
will rise sharply during the first half of 2011 due to the sale of the Group life business. On an international
basis, the ratio is therefore at a good level and underlines the Group’s strong capacity for taking risks. The
Shareholder information 2010 of Swiss National Insurance Company Ltd

eturn on equity following the deduction of non-controlling interests stands at a good 12.5 % compared
to 11.5 % in 2009. With a slightly lower average number of shares outstanding, this translates into earnings
per share of CHF 4.16, which represents an increase of 20.2 %. The book value per share increased
by 2.8 % to CHF 33.68.
Unchanged payout ratio and attractive dividend yield
The encouraging Group profit for the year, together with the profit of CHF 38.0 million reported by the
parent company, mean that we are able to increase our dividend. The Board of Directors will propose to
the Annual General Meeting payment of a dividend of CHF 1.50 per share, an increase of 20 % as against
the previous year. The corresponding payout ratio will therefore remain unchanged at 36 %. As a result,
Nationale Suisse offers its shareholders an attractive dividend yield of 4.6 %.
Outlook
In view of the anticipated economic growth, demand for non-life insurance in Nationale Suisse’s key
markets is likely to increase slightly. However, due to the moderate growth in claims to date, there will
only be a few premium increases possible for the time being. In life insurance, the low guarantee
pledges associated with low interest rates, coupled with volatile financial markets, are continuing to
curb growth.
Despite saturated markets, Nationale Suisse has significant potential for growth in both life and
non-life areas. This is to be exploited by means of consistent strategy implementation. In the specialty
lines, sales networks are being expanded by new broker relationships and cooperations. By focusing on
selected target groups and tailored insurance solutions, traditional business is being given major impetus.
Unit-linked life products that will help to preserve capital and the Credit Life business are underpinning
growth in the life business.
We are also continuing to focus on improving efficiency and the quality of our service. Nationale
Suisse seeks to be a successful quality insurer of high standing in the market and aims to increase its
corporate value and continue pursuing an attractive dividend policy. Although the economic climate
remains unstable, the performance of the first few months of the year makes us cautiously optimistic
for 2011.
Earnings and dividends per share in CHF, adjusted
2001 2002 2003 2004 2005 2006 2007 1,2 2008 3 2009 2010 5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
–1.0
–7.0
–8.0
1.59
1.10
–7.31
0.55
1.32
1.00
0.28
1.05 1.08 1.10
2.89
1.19
4.00
1.43
3.12
n.a. 4 3.46
1.25
4.16
1.50
1 Up to 2007, financial statements prepared under Swiss GAAP ARR; EPS calculated on the basis of the shares issued
2 Dividend 2007 includes nominal value repayment of CHF 0.57
3 From 2008 onwards, financial statements prepared under IFRS
4 Stock dividend in the form of a subscription right, theoretical value CHF 1.30, one bonus share in exchange for 20 rights
5 As proposed to the Annual General Meeting
Earnings per share
Dividend per share
Shareholder information 2010 of Swiss National Insurance Company Ltd

Key Figures
Employees 31.12.2010 31.12.2009 Change
Full time equivalents 1 948 1 862 86
Statement of income (in 1000 CHF) 2010 2009 in %
Gross written premiums 1 780 797 1 698 539 4.8
of which Non-life 1 186 382 1 113 494 6.5
of which Life 594 415 585 045 1.6
of which from continuing operations 1 367 459 361 922 1.5
Net investment income 2 264 062 219 179 20.5
Profit 92 106 76 362 20.6
of which from continuing operations 82 690 67 117 23.2
Profit attributable to shareholders 91 586 76 191 20.2
of which from continuing operations 82 288 67 067 22.7
Total comprehensive income 3 46 201 120 655 − 61.7
Balance sheet (in 1000 CHF) 31.12.2010 31.12.2009 in %
Investments 4 6 670 435 6 180 395 7.9
Claims reserves Non-life, net 5 1 548 184 1 575 700 − 1.7
Technical reserves Life, net 4 307 322 4 220 574 2.1
Total equity 746 465 728 623 2.4
Key ratios 2010 2009 in %-age points
Net claims ratio in % 62.7 67.2 − 4.5
Net cost ratio in % 33.9 30.1 3.8
Net combined ratio in % 6 96.6 97.3 − 0.7
Return on investment in % 7 4.1 3.5 0.6
Return on equity in % 8 12.5 11.5 1.0
Earnings per share, diluted and basic in CHF 4.16 3.46 20.2
of which from continuing operations in CHF 3.74 3.05 22.6
in %
31.12.2010 31.12.2009 in %-age points
Solvency 1 ratio in % 183.8 181.0 2.8
in %
Book value per share in CHF 33.68 32.75 2.8
Dividend in CHF 9 1.50 1.25 20.0
Share price in CHF 32.95 30.90 6.6
Market capitalisation in 1000 CHF 723 754 681 097 6.3
1
Continuing operations: excluding Group Life Switzerland; 2009 adjusted
2
Current investment income after deduction of investment management expenses, capital gains and losses (including impairments), other currency effects and result from
investments in associates
3
Profit according to IFRS plus other comprehensive income
4
Investments in associated companies, investment property, financial instruments, mortgages and loans and derivative financial instruments (net)
5
Including reserves for annuities and other technical reserves, not including reserves for dividends to policyholders non-life
6
Not including policyholders’ dividends
7
Net investment result in % of average investments
8
Group profit attributable to shareholders in % of average equity excluding non-controlling interests
9
2010 subject to approval of the Annual General Meeting

Share performance from 1 January 2009 to 31 December 2010
Nationale Suisse share price compared to relevant indices (based on total return, index base 1 January 2009 = 100)
140
120
100
80
60
40
20
2009 Q1 Q2 Q3 Q4 2010
Q1 Q2 Q3 Q4
Nationale Suisse
SPI Index
Dow STOXX 600 Insurance
SWX Insurance
Brief profile
Nationale Suisse is an innovative Swiss insurer providing risk and pension solutions and tailored
specialty lines products. We cultivate the art of insurance as a personal and successful company
that cares.
Downloads
You can download this shareholder information from our website www.nationalesuisse.ch under
Investor Relations/Shareholder Information.
Disclaimer
This publication is intended to inform the shareholders of Nationale Suisse about its business performance.
This publication may contain forward-looking statements. While these forward-looking statements
reflect the view and future expectations of Nationale Suisse, a number of risks, uncertainties and
other important factors can lead to actual developments and results significantly deviating from the
expectations of Nationale Suisse. Nationale Suisse explicitly draws attention to the fact that information
contained in the publication is by nature selective. Nationale Suisse neither implicitly nor explicitly
makes assurances or guarantees the correctness and completeness of this shareholder information.
Neither Nationale Suisse nor its directors, officers and members of its management assume liability for
damages or losses which may directly or indirectly arise from the use of published information. Unless
in cases in which it is obliged to do so by mandatory legislation, Nationale Suisse is under no obligation
to revise or change its forward-looking statements to take account of new information, future events
or for any other reason. Attention is drawn to the fact that past performance is not necessarily indicative
of future results. In case of doubt concerning an investment, it is recommended that an independent
financial advisor is consulted.
Contacts
Important dates
Remo Meier Arnold Seematter Annual Results
Head of Investor Relations
Share Register
13 April 2011
Tel. +41 61 275 22 45 Tel. +41 61 275 23 32
Annual General Meeting
Fax +41 61 275 22 46 Fax +41 61 275 26 68
16 May 2011
remo.meier@nationalesuisse.ch
arnold.seematter@nationalesuisse.ch
Semi-Annual Results
8 September 2011
Nationale Suisse
Steinengraben 41
4003 Basel
www.nationalesuisse.ch
info@nationalesuisse.ch
Serviceline 24 h: 00800 6004 6004