Nationale Suisse financial statement 2011: Result benefits from a reserve release, and disclosure of the future impact of IAS 19 (revised)

Nationale Suisse anticipates a profit for the financial year 2011 that significantly exceeds the previous year's figure of CHF 92.1 million. This is a result of a reserve release of CHF 85 million (before tax) in the Non-Life Switzerland segment.

In addition, the impact of the amended IFRS standard IAS 19 (employee benefits) is being disclosed in the financial report 2011. By 2013 at the latest, Nationale Suisse equity is expected to be impacted by this amendment. Were Nationale Suisse to apply this revised standard as of 31 December 2011, it would lead to a reduction in equity of some CHF 120 million. Figures for 2011 will be released on 28 March 2012.


Reserve release in the Non-Life Switzerland segment benefits the result for 2011

Due to the positive settling of claims in the last few years, Nationale Suisse has had the claims reserves in the Non-Life Switzerland segment reviewed by internal and external specialists. As a result of these analyses and due both to the cautious reserving methods applied and to the altered settlement practice for personal injuries in particular (primarily cervical spine injuries), a CHF 85 million reduction in claims reserves is being announced. This will benefit the result for 2011 accordingly after deduction of taxes.


Significant future impact on equity as a result of IAS 19 (revised)

Nationale Suisse will disclose the impact of the revised IFRS standard IAS 19 (employee benefits, in particular pensions) in the financial report 2011. This amendment, adopted by the International Accounting Standards Board (IASB) in June 2011, must be applied from the financial year 2013 at the latest. In accordance with IAS 19 (revised), the corridor method used by Nationale Suisse is no longer permitted. The positions not yet recognised under this method (in particular "actuarial gains / losses") must be charged directly to equity with the application of the revised standard.

Were Nationale Suisse to apply IAS 19 (revised) as of 31 December 2011, it would lead to a reduction in consolidated equity of some CHF 120 million (after taking into account deferred taxes). This burden is due in particular to personal pension solutions that are considered as defined benefits under IFRS. At Nationale Suisse, this is the case for pension plans in Switzerland, where most of the Group's employees work, and in Germany and Spain. A crucial parameter in calculating this burden is the discount rate, which is dependent on the interest rate level and will lead to volatility in total comprehensive income and thus also in equity following the application of IAS 19 (revised).