Sharp increase in profit, equity and the solvency 1 ratio

Results: clear increase in profit and further improvement of solvency 1 ratio
The 2010 half-year profit stands at CHF 49.8 million, an increase compared with the same period in the previous year of more than 150 %. Despite the dividend payment of nearly CHF 28 million made in June 2010, equity as of 30 June 2010 was a solid CHF 741.7 million. At 13.6 %, the annualised return on equity for 2010 more than doubled compared with the first half of 2009. At Group level, the solvency 1 ratio thus stands at 191.4 % compared with 181.0 % at the end of 2009. Compared internationally, this represents a very good level.

"We are very satisfied with this year's result for the first six months. At present, all the lights are on green. Our enormous efforts in recent years are slowly but surely bearing fruit. We have been able to increase our equity and solvency 1 ratio consistently, in particular since 2007, despite the financial and economic crisis", says CEO Hans Künzle, commenting on the results.

Gross premiums: positive growth rates in all segments - pleasing increase in volume in specialty lines
The growth of gross premiums also followed an extremely pleasing trend in the first half of 2010 - despite only a slow recovery in the economy as a whole and largely saturated insurance markets. Overall growth in original currencies stands at 4.8 %, in which both non-life (+ 5.2 % in original currencies) and life business (+ 4.0 % in original currencies) contributed to this remarkable increase. The reported gross premiums in the first half of 2010 amounted to CHF 1 032.4 million (2009: 997.8 million).

There were renewed strong gains in specialty lines, which at 14.9 % in original currencies made a major contribution to premium growth. The continued double-digit growth of specialty lines justifies the Group's strategic orientation. Nationale Suisse further boosted this business by targeted investments and the creation of more jobs.

Non-life business: persistently low combined ratio thanks to good claims ratio
The combined ratio in non-life business increased slightly compared with the same period in the previous year from 96.1 % to 96.9 %. As a result of a favourable trend in claims and the fact that there were no major natural disasters, the claims ratio fell to 63.6 % (2009: 64.9 %). The cost ratio increased both in Switzerland and abroad as a result of higher acquisition costs.

Life business: considerable improvement in result thanks to higher investment income
In the investment-intensive life business, investment income made a material contribution to the pleasing result. As well as being attributable to essentially stable current income from financial instruments, which experienced only a slight decline in the period under review, this good result is due above all to a positive balance of gains and losses in investments. In contrast to the first six months of 2009, not only group life but also the individual life Switzerland and individual life foreign countries segments recorded a pleasing pre-tax profit. A special positive note in this regard is the fact that individual life Switzerland achieved a return on sales of 4.5 %.

Investments: solid investment result, based on stable earnings pillars
Nationale Suisse recorded a net investment income of CHF 134.3 million during the first half of 2010, as against CHF 81.2 million in the corresponding period of the previous year. This equates to a high annualised return on investment of 4.2 % following 2.6 % in the first half of 2009.

Exposure to government bonds from the "GIIPS" countries (Portugal, Ireland, Italy, Greece, Spain) stands at 9.0 % or approximately CHF 418 million of debt instruments, which is a relatively low percentage. The largest exposure is in Italy, with smaller volumes in Spain. The reason for this is that there is a similar volume of liabilities in both these countries from the local insurance business. No impairments on these investments - for instance on the exposure to Greek government bonds of CHF 34 million - were necessary.

Outlook: first half of the year as a solid basis for a promising 2010 in a challenging environment
Assuming that no negative surprises spring up in investment terms and that a moderate trend in claims continues, an attractive profit can be expected for 2010. In specialty lines, the necessary preconditions have been established to enable double-digit growth once again to be recorded over the whole of 2010. The "Schlagkraft Schweiz" project is being driven forward and should increasingly bring improved levels of quality in customer service as well as greater sales capacity.


Contact:
Nationale Suisse Steinengraben 41 4003 Basel I.: www.nationalesuisse.ch Sophia Schor Media relations T.: 061 275 23 86 F.: 061 275 22 21 E.: sophia.schor@nationalesuisse.ch