Press Release

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

3.2.2012

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).

Invitation to teleconference for financial analysts and the media
Friday, 3 February 2012, 9.00 a.m.
Hans Künzle, CEO, and Thomas Widmer, CFO, will hold a teleconference to provide financial analysts and media representatives with more detailed information both on the reserve release in the Non-Life Switzerland segment and on the effects of IAS 19 (revised) on Nationale Suisse. They will also be available to answer questions.

Language: German

Dial-in number: +41 (91) 610 41 20
Access code: 0359952#

Please dial in 10 minutes before the start of the conference call.

Brief profile
Nationale Suisse is an innovative, international and independent Swiss insurance group providing first-rate risk and pension solutions in non-life and life business as well as a growing number of tailored specialty lines products. Consolidated gross premiums came to CHF 1.8 billion in 2010. The Group comprises the parent company and about 20 subsidiaries and branch offices in focused product lines in Switzerland, Italy, Spain, Germany, Belgium, Liechtenstein, Malaysia, Latin America and Turkey. The headquarters of Swiss National Insurance Company Ltd are in Basel. Nationale Suisse is listed on the SIX Swiss Exchange (NATN). On 30 June 2011, the Group employed 1,932 staff (full-time equivalents).

Information
Remo Meier	Nationale Suisse
Investor Relations	Steinengraben 41
Tel.       +41 61 275 22 45	4003 Basel
Fax      +41 61 275 22 21	Switzerland
remo.meier@nationalesuisse.ch	www.nationalesuisse.com
Christina Hartmann	Nationale Suisse
Media Relations	Steinengraben 41
Tel. +41 61 275 23 40	CH-4003 Basel
Fax +41 61 275 22 21	Switzerland
christina.hartmann@nationalesuisse.ch	www.nationalesuisse.com
Key dates
Publication of annual report	28.03.2012
Media conference to announce financial results at Hotel Widder, Zurich	28.03.2012
Financial analysts' conference at Hotel Widder, Zurich	28.03.2012
Annual General Meeting	10.05.2012

Disclaimer and exclusion of liability
The purpose of this press release is to inform the public about certain events or developments arising from the company's business. The information published in this article is not an advertisement, offer or recommendation to engage in transactions involving securities or other products of Nationale Suisse or any other type of transaction. This press release may contain certain forward-looking statements. Even if these forward-looking statements reflect the opinion and expectations of Nationale Suisse, a number of risks, uncertainties and other important factors may lead to actual developments and results differing strongly from the expectations of Nationale Suisse. It is pointed out expressly that the statements and projections contained in this press release are selective in nature. Nationale Suisse provides no guarantee, either explicitly or implicitly, regarding the accuracy and completeness of the statements and forecasts published in this press release. Neither Nationale Suisse nor its executive bodies or senior managers accept any liability for any damage or losses arising directly or indirectly from the use of this press release. Unless otherwise provided by applicable binding law Nationale Suisse is under no obligation to update or amend the statements contained in this press release, be it in response to new information, future events or any other reasons.

Updated post-publication information is available on our website www.nationalesuisse.com. You may find further details and forecasts about the business of Nationale Suisse there.

 

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