Ag speech _3903

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Ag speech
 
 
Ladies and gentlemen, dear shareholders finishing Union of papers from China. XXX  behalf of the Group Board of Directors welcome you to participate in today's shareholders meeting. This is the new shareholders after the stock unification XXX Group for the first time the General Assembly. Since 2000, the Group's shareholding structure of the combined unified, the company now by Zurich Allied AG and Allied Zurich plc formed after the merger of shares. You can visit the conference that the interest of my company, I am deeply grateful. As we all know, this session via satellite broadcast to the London and Zurich, which facilitate the former shareholders of Allied Zurich plc participation. We are honored to welcome the conference in London attended by former shareholders of Allied Zurich plc.  In the past, I will be together with Günther Gose, chief financial officer to report the main data for 2000. Then, of you I will review the company's operating policies and principles. Board of Directors of the five instances of my colleagues will elaborate on how the strategy is to integrate into the real, the company also will show you how to consolidate the world's leading financial services group status.  Last year we did not achieve the expected profit growth target, just like you, which we regret. In accordance with international accounting standards, the Group's profit of 3.26 billion in 1999 billion U.S. dollars fell to 2.33 billion U.S. dollars in 2000. According to standard accounting terms, net profit fell 5.5% to 2.1 billion, we and many others believe this indicator to measure the results more reliable. Mr. Gose further expand on this issue. But first allow me to net profit and the nature of our business to emphasize two points. On the one hand, the market in 1998 and 1999 provided us with unusually high return on investment. Last year we achieved return on investment, but last year's capital gains in a sustainable long-term expectations. We are referring to the concept of standardized net profits of the market volatility. Also in the specific implementation, in particular the Group's non-life insurance business will inevitably be fluctuations. Occurred in the fourth quarter of 2000, many events, these factors accumulate the negative impact of the more healthy we would have the core business.  Last group does not meet the expectations of profitability. However, to 2000 (including 2000) in the past 5 years, we have increased the average annual earnings per share rose 19.2%, has been developed to achieve the Group's long-term target range. However, positive developments over the past few years, investors expect not only that we have received quite number of equity income, but also expect to continue to receive high profits and achieve further profitable growth. Failure to achieve the expectations of investors, stock prices fell sharply this year, is caused by one of the reasons. In addition, we communicate with the outside world failed to do its work. As we announced in 2001 the Group's profit is forecast to between 1.8 to 2 billion, resulting in the deterioration reflected the market in March, the stock price fell slightly again, we call the transition years. The good news is, since the beginning of the year on behalf of the European insurance industry's MSCI index fell a full 18 percentage points. However, this does not alter the market price represented by the sharp drop in earnings prospects for this fact. We can also appreciate you for this very regrettable. That is why we are more grateful of you to continue to maintain the loyalty of the group. XXX Group  the past few months gone through some ups and downs, but that does not mean that the whole group in danger of sinking. We will not forget the creation of shareholder value long-term sustainable development. Past experience tells us over and over again: look ahead and demonstrate the proper attitude of entrepreneurs to quickly respond to changes in market conditions how important it is. So, last April, we decided to rethink the business direction and the implementation of specific measures with far-reaching challenge to try something new, very important point is that science and technology concerns. Board of Directors, Group management and staff believe this will strengthen our leading position in key markets, and will in future be reflected in the income statement.  We come from?  The start of this new question, first let me recall the mid-90s. At that time in Europe and Switzerland, the financial services industry at the end stage of the illegal operation. We recognize that open markets will drive a wave of fierce competition, inevitably, the financial services sector will form a series of mergers. Meanwhile, the Group Board of Directors and the management is aware of the opportunities that this development. Our goal was to strengthen the position in key markets, while in the financial services category added investment products to closely reflect the strategic direction of the business. We do not blindly pursue  large, our goal is to help the market expand in the new sales channel customer segments, these areas are expected in the medium and long-term appeal. To this end, we have established a customer center within the group mechanism, this system has been established for many years and is extremely strong. In fact, the customer also taught us: to specific customer groups by providing customized products and services, we can best meet their needs. We decided to decision-making steps   directly involved in asset management. We also know we can not rely solely on internal resources to achieve this business expansion, the group needs a set of strategic plans that can provide a suitable partner. One thing is clear: we promised to consolidate the leading position in core business areas. In order to ensure future profitability and improve the high-capacity, we know we have the core business in a leading position.  Ladies and gentlemen, today we can say this is a global provider of financial services to the reasonable development. However, the fact we need a thorough examination. We must break old habits, to retain the familiar pattern, to try new methods. In fact, XXX Group has made rapid progress in implementing the goals. In 1996, we acquired Kemper's two life insurance companies and financial services company Kemper a few years ago we had just merged with a long history of New York House and the Stevens & Clark, United States, these initiatives enable us to become a leading asset management company. In 1998, XXX Group successfully merged BAT Industries plc in the UK financial services business. These three steps make big strides forward the development of the Group. This is the first time XXX Group has a competitive asset management capability. We are life insurance has taken the decisive share. We work in the U.S. and British markets for many years, and our market position in Switzerland compared to the creation of these measures is extremely important to us, while steady development of business units. Since the development trend of the world today can easily be identified, we the world's largest market, the United States, UK and the largest European market, which occupies the position of financial services will no doubt be of decisive significance. Future success depends on the requirements according to the development of the ability to make appropriate adjustments. Last November, as part of the restructuring plan, we implement the unified capital structure and begin to reposition the business, we also restructured its asset management business will be under the control of classified Steven Gluckstern. The challenges of new technology   XXX expansion of the Group and the Group's positioning in key business paved the way for their own development. In addition to strengthening market position, we also began to focus on the development of science and technology. Since the mid-90s, it was clear to all of our Internet business activities had an impact, but to continue to strengthen the Group's strength, we need to use the new technology.  The use of digital communication to the marketing staff really made us better and more effective support. We use new technology not only to accelerate growth and enable us to significantly reduce the cost of implementing the new business. Sales growth and cost reduction will ultimately lead to higher profits. Here the most basic is: We in the existing infrastructure and new means of communication gap between a bridge. In other words, we would like as much as possible This is exactly why we are all integrated into the existing network of business operations to, but not set to an independent unit. A few years ago, there are rumors that that a However, we still stick to their sales organization to support and develop independent sales channels. We want to locate in accordance with the direction ------ new growth and efficiency, the benefits of development of science and technology opportunities. First, the new technology makes possible separation of marketing and production. Sales organizations in the first line, whether it is an insurance agent or representative of asset management business, to profit from low-cost centralized services. As we did, we will use your intranet to connect different systems within the Group and ensure that data and information about more than 300 in the global flow between business units, particularly in the United States.   Support the use of new technology is only one sales organization, on the other hand we can also use Internet platforms. This is the business strategy of the corporate network, another independent sales channels to improve the principle of profitability. Through the Internet we are able to staff and independent sales organizations and distribution system linked. As simple as at first glance, the implementation of the program complex and challenging. I am afraid of you not surprised, we have achieved rapid development in North America. Now we have been able to see: Internet-based support for its North American institutions and independent agents in the United States the link between the system a success. Canada has recently followed the American model, we will in the foreseeable future, the introduction of this model to other regions.  Ladies and gentlemen, the implementation of new technologies is not a simple matter, need to cope with many difficulties and setbacks. But I can assure you: We will strictly control the risk and cost. We have established guidelines to measure success are also in place. Last year's shareholders meeting, I disclosed to you in science and technology within three years we will spend about 10 billion U.S. dollars, according to plan last year we spent in this area slightly less than the figure of 1 / 3. These are what we do in the future, investment, according to our experience gained in the United States, we have developed a profitability goal is realistic. My colleagues with the Group's management believes we will achieve more development.  There are two reasons to explain why we so confident. First, we spread the growth of risk. The Group currently engaged in a total of 200 different projects, all of which are built on the basis of existing technology. The key lies in the combination with the existing business. Secondly, we and other firms, we do not have to limit ourselves to the development of so-called We are not primarily developed everywhere solutions directly committed to customers, also need high-risk, as recently occurred in as many companies. We have over 60% of the projects committed to improving sales channels and the efficiency of internal business processes. In this way, we can to intermediaries and customers faster, more cheaply provide new products and services. In addition, I must point out that we have successfully introduced a front-end solution, you can, including Japan, Germany, Britain and Switzerland, including many of the market to see. At the same time, taking into account some of the properties of the unknown has publicly declared that we will terminate a small part of science and technology.  Management of resources is a key factor in successful implementation of the strategy is the key to human resources and organizational resources, it is these factors that the Group's development has brought vitality. In order to most effectively organize our employees and management personnel, the Group announced in November last year, the new management structure, including the Group reorganized into regional and global business. New structure for the Group, I am not going to go into details, I just want you to submit to the company's manual, this booklet lists some important points of you can pick up at the entrance.  Adapt to rapidly changing environment is one of the most concern. This is also a great desire of the board of directors, board of directors since 1995 and gradually based on the Anglo - Saxon (Anglo-Saxon) model of the modern corporate governance challenges and to make preparations. We also mentioned in the report, we established a series of independent committee members in these committees informed decision can be formulated in advance, but also to ensure that the examination and comparison of system implementation. The Board also had to repeatedly examine the responsibility of CEO and Chairman of the Board whether to pay in the appropriate issue. These assessments indicate that: changes in the fast phase of the most important factor is the short-term decision-making, while the dual functions are best to solve this problem, in the XXX group to be so. However, both Board of Directors, or I do not want to deal with arbitrary services. So we are still testing whether it is suitable time for implementation if appropriate separation of ownership.  Where we are in today?  If we do not increase their strength, XXX Group will not be the world's leading financial services group. This is why we solve the thorny problems facing the only way out. One of the strengths of our 35 million customers with frequent interaction. We also rooted in the market through the products and services through well-trained workforce, product and service areas by broadening the technology platform to increase strength.  Finally, another advantage is the ability to provide a wide range of products and services. In other words, we must broaden the scope of products imported from third-party investment products. In addition to asset management, we increased the strategic partner to share the platform from the traditional investment banking products. We are also willing to establish strategic partnerships for new customers. This is why a few weeks ago announced that the United States Farmers Group for the reason many alliances, including the largest U.S. retail bank with 27 million customers of Bank of America (Bank of America) and with the AFL / CIO pension funds of all insurance Company Ulico its 16 million members. The end of March, we will announce the institution in the UK and Scottish banks (Bank of Scotland) of the Union.  Our shareholders, please allow me to make a few brief overview of you. According to the Group's strategic objectives, the mid-90s Group is committed to strong global financial services group leader. Last year, as the company re-positioning, we confirmed with the challenges of the market expansion goals. This does not limit the amount now does not limit the development of traditional business. We have set goals to expand the products and services, particularly asset management services, creating value for shareholders. This includes additional open architecture and multiple forms of Internet strategic alliances, we can thus expand its customer base and existing customers to new products from external resources. Implementation of the strategy is flexible in each market to be used, compliance with local preferences and the environment has become a decisive factor. Different markets in the specific implementation steps will need to debug. Swiss market is a good example, in Zurich for the family and the insurance companies are, XXX Group in this market has the leading position.   The right strategy if you want to ask how we succeeded together so many problems, I want to tell you that in most of the extent to thank our employees. Of course they are also our most important resource. Their experience and contribution to the indomitable XXX is the basis for our success. We are also very grateful for their efforts last year.  Ladies and gentlemen, one-third of this fiscal year has passed. In the mid-year report will be presented in this six-month operating results, so here I am not going to tell you about the specific situation so far this year, but as usual I will look to the future development for instructions. We envisage the early initiative in the United States so that we benefit from good market conditions, business trends. The development of strong premium income, double-digit growth and significant reduction in the rate of cost increases our expectations for the future. I am also the UK non-life business optimism, so far found no adverse signs exist in the European tradition of profitable insurance business. Farmers Group and our life insurance business is as expected progress. In contrast, asset management by the effects of changes in equity market, its performance so far can not achieve the desired objectives. Dear shareholders, the Group's strategic direction must continue to adjust with market changes. XXX group as early as 1875 that three years after its establishment,You are not allowed to view links. Register or Login, management implemented a radical change to the direction of development. Zurich Insurance Association (Versicherungs-VerEin) has been changed to Zurich Marine and accident insurance company (Transport & Unfall-Versicherungs-Actien-Gesellschaft Zürich profitable, the company will develop such demand since then. Today we are in need of such flexibility to respond to changing market conditions.  This principle is embodied on the first location. We note that the most important in the world markets such as North America, UK and Europe. But that does not mean that we will ignore other areas. then, we have investment in other parts of the world. However, the capital will be strictly in accordance with the arrangements for the strategic importance and profitability. This focus on strength of the approach are that we will no longer be stripped of that part of the core business. We have already told you we'll Zurich Re as an independent listed company. This approach will enable Zurich Re and XXX group more focused on their core business areas. But the most important is the Zurich Re will be the further development of its territory, without regard to other members of the original and the internal conflicts of interest. by Zurich Re show the intrinsic value of the stock market, we offer to our shareholders to become very promising opportunity to re-insurance company investors. Of course, in the next few months we will provide all the details of the divestiture matters.  prospect  our shareholders, we will be called in 2001 In turn, this is Mythenquai important restructuring of the Group Headquarters, a turning point in years. but only from the perspective of the process of downsizing and undesirable. Indeed, we will be the end of 2002 the group cut 230 headquarters jobs, while 380 jobs was sent to some areas and profit center. The key issue is the Group headquarters as the various business areas and regions that focus on critical tasks, including strategic leadership, the group control and monitoring, and exchange of knowledge throughout the Group.  year We will continue to start at the beginning of the year 2000 issues. We want to enable the Group to optimize and implement the development of strategies to achieve tangible results. But these are not a setback in respect of the matter, underestimate the difficulties of any approach is unwise. Isaac Newton was saying: considered walking along this road, we feel confident because we have a solid foundation. Of course, we have also been the challenge of changing times. But XXX Group has long been ready, choose the right path and meet future challenges with confidence.  Ladies and gentlemen, we are proud achievements.  · 2000 annual profit of CHF 3.9 billion, the highest income six Minglieruishi companies.  · Since 1995, our Swiss francs per share dividend from 6 to 17 Swiss francs, an increase of nearly 3 times.  · 11% return on equity, the industry-leading level.  · Early on, we develop strategies based on market conditions and adjust the company structure.  XXX Group is set foot on the right track. We are determined to implement development strategies, I think we will be effective from and higher business volume, lower costs and higher profits. I Board of Directors and management of the Group's colleagues were convinced that, through constant along this path, by taking concrete steps, we are more victory efforts. We hope that you will continue to maintain our trust.