Performance overview

Financial highlights

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1

Parentheses around numbers represent an adverse variance.

2

Details of the principles for calculating new business are included in the embedded value report in the annual results 2018. New business value and new business margin are calculated after the effect of non-controlling interests, whereas APE is presented before non-controlling interests.

3

An adjustment made related to the adoption of IFRS 15 ‘Revenue from Contracts with Customers’ resulted in a USD 289 million increase to revenues and a USD 287 million increase to expenses.

4

Including investment cash.

5

Calculated on average Group investments.

6

2017 balance includes adjustment for effect of adoption of IFRS 15 ‘Revenue from Contracts with Customers’.

7

Ratio as of December 31, 2018 reflects midpoint estimate with an error margin of +/–5 pts.

8

Shareholders’ equity used to determine ROE and BOPAT ROE is adjusted for net unrealized gains/(losses) on available-for-sale investments and cash flow hedges.

in USD millions, for the years ended December 31, unless otherwise stated

2018

2017

Change1

Business operating profit

4,566

3,803

20%

Net income attributable to shareholders

3,716

3,004

24%

 

 

 

 

P&C business operating profit

2,085

1,546

35%

P&C gross written premiums and policy fees

33,505

33,024

1%

P&C combined ratio

97.8%

100.9%

3.1 pts

 

 

 

 

Life business operating profit

1,554

1,258

23%

Life gross written premiums, policy fees and insurance deposit

33,448

33,242

1%

Life new business annual premium equivalent (APE)2

4,639

4,868

(5%)

Life new business margin, after tax (as % of APE)2

24.1%

23.3%

0.8 pts

Life new business value, after tax2

981

999

(2%)

 

 

 

 

Farmers business operating profit

1,643

1,691

(3%)

Farmers Management Services management fees and other related revenues3

3,204

2,892

11%

Farmers Management Services managed gross earned premium margin

7.0%

7.0%

–

Farmers Re gross written premiums and policy fees

194

995

(81%)

Farmers Life new business annual premium equivalent (APE)2

84

91

(7%)

 

 

 

 

Average Group investments4

190,235

189,723

–

Net investment result on Group investments4

6,288

7,249

(13%)

Net investment return on Group investments4,5

3.3%

3.8%

(0.5 pts)

Total return on Group investments4,5

0.6%

4.1%

(3.4 pts)

 

 

 

 

Shareholders’ equity6

30,189

32,993

(8%)

Z-ECM7

125%

132%

(7.0 pts)

 

 

 

 

Return on common shareholders’ equity (ROE)8

13.1%

10.9%

2.1 pts

Business operating profit (after tax) return on common shareholders’ equity (BOPAT ROE)8

12.1%

9.2%

2.8 pts