Zurich - Directors’ report

Zurich Insurance Company
South Africa Annual Report 2010

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On 26 January 2011 the Directors approved the accompanying financial statements set out on this website and take pleasure in presenting their report.

1.	Review of activities
	Nature of business
	The Company conducts all classes of short-term insurance business and offers premium collection services in the Republic of South Africa, and through its operations in Botswana. Details of investments in subsidiaries and associated companies are set out in notes 7 and 8.



2.	Share capital
	The Company’s share capital remained unchanged at 12,179,500 issued shares and 13,207,360 authorised shares with a par value of 25 cents each.


3.	Operations in 2010
3.1	Premium income
	The Group’s gross premiums for the year totalled R4,632 million (2009: R5,404 million). After deducting reinsurance premiums of R979 million (2009: R1,140 million), net premiums amounted to R3,653 million (2009: R4,265 million).


3.2	Underwriting results
	The Group’s underwriting result for the year was a profit of R94.8 million compared to a loss of R564 million in the previous year.


3.3	Contingency reserve
	As required by the regulatory authorities in South Africa and Botswana, the Group’s contingency reserve now stands at R375 million (2009: R414 million).


3.4	Investment income
	The Group’s dividends and interest income amounted to R241 million for the year (2009: R259 million), whilst the realised and unrealised surplus on available-for-sale financial assets amounted to R7 million (2009: R109 million).


5.	Directors
	The Directors of the Company during the year and to the date of this report are as follows:

	Name	Changes
	JPG de Rauville
	GRC Munnoch
	P Bezuidenhout
	S Mäder	Resigned 27 October 2010
	S Mered	Appointed 27 October 2010
	CJ Cron	Resigned 24 February 2010
	JPM Deiss
	MN Mbekeni
	DD Mokgatle
	SG Morris
	DS Phiri	Resigned 5 May 2010
	PC Rörich	Appointed 1 September 2010
	Full details of the Directors and Executive Management are set out on this website.


6.	Directors’ shareholding
	The aggregate shareholding of Directors of the Company is as follows:

	Fully paid shares	2010	2009
	Indirect beneficial – PC Rörich	17,382	-
	Indirect non-beneficial	1,000	1,000
	Breakdown: Indirect non-beneficial
	Shareholder
	GRC Munnoch	100	-
	SG Morris	100	200
	NV Beyers	-	200
	JPM Deiss	100	100
	S Mäder	-	-
	PC Rörich	100	-
	P Bezuidenhout	200	-
	JPG de Rauville	100	100
	S Mered	100	-
	CJ Cron	-	100
	MN Mbekeni	100	100
	DD Mokgatle	100	100
	DS Phiri	-	100
	Total	1,000	1,000

The above interests changed between the end of the prior financial year-end and current financial year-end:

7.	Secretary
	The Group Company Secretary is G Kostopoulos.


	Business address
	Zurich Insurance Company South Africa Limited
	15 Marshall Street
	Ferreirasdorp
	Johannesburg
	2001

	Postal address
	PO Box 61489
	Marshalltown
	2107

8.	Holding and ultimate holding company
	The immediate holding company is SA Fire House Limited, incorporated in South Africa, which directly and indirectly owns 58.95% (2009: 73.6%) of the issued and fully paid share capital of the Company. The ultimate holding company is Zurich Financial Services Limited, incorporated in Switzerland.



9.	Special resolutions passed
	A special resolution was passed on 5 May 2010 giving general authority to the Directors to repurchase issued shares in the Company, to purchase shares in the Company’s holding company and permitting a subsidiary of the Company to purchase shares in the Company, subject to the limitations as in the notice to the meeting.



10.	Events after the reporting period
	The Directors are not aware of any significant matter or circumstance arising since the end of the financial year.