Form 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of April, 2007
CONVERIUM HOLDING AG
(Translation of registrant's name into English)
Dammstrasse 19
CH-6301 Zug
Switzerland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- Not Applicable
News release
Converium Holding Ltd, Zug
Zug, Switzerland - April 17, 2007 - Converium reports strong growth of 35% in
April 1 open market treaty renewals at improved profitability.
Converium recorded a very successful April 1 renewal of open-market non-life
treaties. The Company wrote and bound non-life contracts of USD 142 million, an
increase of 35%. New and restructured business amounts to USD 52 million, while
increases due to share or price increases resulted in a growth of USD 8 million.
Business of USD 23 million was not renewed as it did not meet Converium's
profitability standards.
This excellent result reflects Converium's success in regaining business and
establishing new client relationships following the recent ratings upgrade by
Standard & Poor's to "A-" ("strong"). The April 1 renewals primarily included
business written in Asia-Pacific. Compared with last year the profitability of
the renewed business has slightly improved even though overall market conditions
have continued to soften. As anticipated, Converium has clearly benefited from
access to more attractive business as a result of the ratings upgrade.
In addition to the open-market business, Converium agreed on the pricing for the
medical malpractice insurance policies of the members of the Medical Defence
Union (MDU) in the UK with whom the Company has a long-standing strategic
alliance. Business from this key relationship is expected to reach USD 198
million in 2007. This brings the total of renewed business to USD 340 million,
an increase of 25% compared with last year's April renewals. Overall, the April
renewals account for roughly 15% of Converium's business that is expected to
reach USD 2.2 billion in 2007.
Inga Beale, Chief Executive Officer: "I am very pleased with the April 1
renewals. The great results demonstrate that we deliver on our promises:
Converium has taken a powerful first step towards restoring its market position
and improving profitability following the ratings upgrade."
Inga Beale continued: "We believe that the renewals are an unequivocal
indication of our clients' desire to maintain and rebuild strong business
relationships with Converium as a stand-alone entity. We are very encouraged by
our clients' support."
Standard Property & Casualty Reinsurance: Dynamic expansion in Asia-Pacific and
Latin America
In Asia-Pacific, Converium wrote and bound non-life business of USD 57 million,
an increase of 15%. In the Japanese market, which accounts for two thirds of the
renewed Asia-Pacific book of business, premium volume grew by 12%. This success
was achieved despite a softening pricing environment and a continuing trend
towards increasing retentions among direct insurers. In India, the Company's
book of business almost doubled through the establishment of new client
relationships in a very dynamic market environment. Converium's Latin American
business also recorded strong growth of 21%, with USD 14 million written and
bound. In the Middle East, Converium grew by 38%. Finally, in North America,
Converium managed to win smaller property books of business.
Kobi Eugster, Executive Vice President for Standard Property & Casualty
Reinsurance, comments: "These strong results clearly demonstrate how successful
we are in restoring and expanding our position in the emerging insurance
markets, one of Converium's core strategic areas."
Specialty Lines: Strong recovery following ratings upgrade and new business from
Brazilian deal
In global Specialty Lines, another core area for Converium, the Company wrote
and bound business of USD 52 million, an increase of 70% compared to last year's
April renewals. Business expansion was particularly pronounced in the
agribusiness and credit & surety lines of business, with increases of 305% (from
USD 3 to 13 million) and 212% (from 3 to 8 million), respectively. The strong
growth in agribusiness reflects Converium's success in further expanding an
innovative insurance program in the Brazilian market targeted at local farmers
and landowners.
The excellent renewal results in Standard Property & Casualty and Specialty
Lines are testament to the Company's strong franchise which was successfully
maintained after the downgrades in 2004 and now, as anticipated, proves to be a
promising basis for significant profitable growth going forward.
Benjamin Gentsch, Executive Vice President for Specialty Lines and Life & Health
Reinsurance: "I am very pleased with this year's April renewals. We have taken a
first important step towards returning Converium to a leading specialty
reinsurer."
Reiteration of overall premium target for 2007
Following the results of the April renewals, Converium reiterates its
expectation of writing gross premiums for the 2007 calendar year of USD 2.2
billion, including Life & Health business. The Company also re-affirms its
commitment to adhere to strict underwriting standards in order to achieve its
core target of growing the book of business at an improved profitability.
Enquiries
Beat W. Werder Marco Circelli
Head of Public Relations Head of Investor Relations
beat.werder@converium.com marco.circelli@converium.com
Phone: +41 (0) 44 639 90 22 Phone: +41 (0) 44 639 91 31
Fax: +41 (0) 44 639 70 22 Fax: +41 (0) 44 639 71 31
Dr. Kai-Uwe Schanz Inken Ehrich
Chief Communication & Corporate Development Investor Relations Specialist
Officer
kai-uwe.schanz@converium.com inken.ehrich@converium.com
Phone: +41 (0) 44 639 90 35 Phone: +41 (0) 44 639 90 94
Fax: +41 (0) 44 639 70 35 Fax: +41 (0) 44 639 70 94
About Converium
Converium is an independent international multi-line reinsurer known for its
innovation, professionalism and service. Today Converium employs about 500
people in 15 offices around the globe and is organized into three business
segments: Standard Property & Casualty Reinsurance, Specialty Lines and Life &
Health Reinsurance. Converium has an "A-" ("strong") financial strength rating
(outlook stable) from Standard & Poor's and a "B++" financial strength rating
(outlook positive) from A.M. Best Company.
Important Disclaimers
This document contains forward-looking statements as defined in the U.S. Private
Securities Litigation Reform Act of 1995. It contains forward-looking statements
and information relating to the Company's financial condition, results of
operations, business, strategy and plans, based on currently available
information. These statements are often, but not always, made through the use of
words or phrases such as `seek to', `expects', `aims' `should continue',
`believes', `anticipates', `estimates' and `intends'. The specific
forward-looking statements cover, among other matters, our premium volume and
expense reduction targets, our plans to use capital more efficiently and to
return capital to shareholders, the reinsurance market, the Company's operating
results, the prospects for improving our results, investment yield and market
share. Such statements are inherently subject to certain risks and
uncertainties. Actual future results and trends could differ materially from
those set forth in such statements due to various factors. Such factors include
whether SCOR S.A. is successful in its unsolicited tender offer, our ability to
refinance our outstanding indebtedness and increase our use of hybrid capital;
uncertainties of assumptions used in our reserving process; risk associated with
implementing our business strategies and our capital improvement measures;
cyclicality of the reinsurance industry; the occurrence of natural and man-made
catastrophic events with a frequency or severity exceeding our estimates; acts
of terrorism and acts of war; changes in economic conditions, including interest
and currency rate conditions that could affect our investment portfolio; actions
of competitors, including industry consolidation and development of competing
financial products; a decrease in the level of demand for our reinsurance or
increased competition in our industries or markets; our ability to expand into
emerging markets; our ability to enter into strategic investment partnerships; a
loss of our key employees or executive officers without suitable replacements
being recruited within a suitable period of time; our ability to address
material weaknesses we have identified in our internal control environment;
political risks in the countries in which we operate or in which we reinsure
risks; the passage of additional legislation or the promulgation of new
regulation in a jurisdiction in which we or our clients operate or where our
subsidiaries are organized; the effect on us and the insurance industry as a
result of the investigations being carried out by the US Securities and Exchange
Commission, New York's Attorney General and other governmental authorities; our
ability to regain past customers following any rating upgrades and the
resolution of the investigations being carried out by the US Securities and
Exchange Commission, New York's Attorney General and other governmental
authorities; changes in our investment results due to the changed composition of
our invested assets or changes in our investment policy; failure of our
retrocessional reinsurers to honor their obligations or changes in the credit
worthiness of our reinsurers; our failure to prevail in any current or future
arbitration or litigation; and extraordinary events affecting our clients, such
as bankruptcies and liquidations, and other risks and uncertainties, including
those detailed in the Company's filings with the U.S. Securities and Exchange
Commission (including, but not limited to, our Annual Report on Form 20-F filed
with the U.S. Securities and Exchange Commission) and the SWX Swiss Exchange.
The Company does not assume any obligation to update any forward-looking
statements, whether as a result of new information, future events or otherwise.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CONVERIUM HOLDING AG
By: /s/ Inga Beale
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Name: Inga Beale
Title: CEO
By: /s/ Christian Felderer
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Name: Christian Felderer
Title: General Legal Counsel
Date: April 18, 2007