SWX Swiss Exchange Issues Reprimand To Swiss Life

The SWX Swiss Exchange has issued a formal reprimand, including public disclosure of the facts, with regard to the 2001 interim financial report of Schweizerische Lebensversicherungs- und Rentenanstalt, Zurich (Swiss Life), due to violation of the SWX Listing Rules. The SWX reprimand pertains to the fact that, in the aforementioned report, the time frame covered by Swiss Life's comparable income and cash flow statements comprised 12 months instead of the prescribed 6 months. The ability to assess the financial results and profits of the company was materially hindered due to the impaired comparability of the figures contained in its 2001 interim financial report. The quality (valuation, etc.) of the reported figures has not been under investigation.

In 2000, Swiss Life changed its financial reporting method from Swiss GAAP ARR (Swiss Accounting and Reporting Regulations) to IAS (International Accounting Standards). IAS stipulates that comparable numbers for the corresponding time frame of the previous year are to be reported. Nonetheless, Swiss Life failed to prepare income and cash flow statements in accordance with IAS (i.e. a restatement of prior-year figures) for the first half of 2000. Instead of reflecting IAS-compliant figures for the first half of 2000, the 2001 interim financial report was published using IAS methods but with the entire 2000 financial year being shown as the comparable period. Because the company's reporting of prior-year figures (12 months instead of 6 months) in its income and cash flow statements violated the provisions of IAS provisions and Arts. 66/67 of the Listing Rules, the Committee of the SWX Swiss Exchange Admission Board, in its decision of 3 April 2002, issued Swiss Life a formal reprimand, including public disclosure of the facts, for its violation of accounting rules. In the opinion of the Committee of the Admission Board, the lack of comparability of the published numbers have the effect of materially impairing an assessment of its first half 2001 financial statements. Swiss Life has waived seeking redress against this decision. Consequently, legal force has accrued to this sanction.