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Investment Management Swiss Life’s Investment Management generated a segment result of CHF 43 million. Assets under management at the end of 2006 totalled CHF 74.4 billion, of which CHF 71.1 billion consisted of insurance assets and CHF 3.3 billion was third-party mandates.
The Investment Management segment is primarily responsible for managing Swiss Life’s insurance assets in Switzerland and third-party mandates. The main companies grouped under Swiss Life Investment Management Holding AG include key firms in this segment, namely, Swiss Life Asset Management, Swiss Life Funds AG and Swiss Life Funds Business AG, as well as two companies that are active in the real estate sector, Swiss Life Property Management AG and Livit AG. The key objective of the Investment Management segment is to generate an optimal return on the insurance portfolio while maintaining a competitive cost structure. Furthermore, the available know-how should be applied to the management of third-party mandates, thereby generating additional income.
Swiss Life Investment Management Holding AG was founded in 2005 to simplify Investment Management’s operational structures and to enhance the transparency and efficiency of the asset management activities. In 2006, Swiss Life transferred some tasks, such as the processing of securities transactions and the exercise of control functions, from the Insurance segment to the Investment Management segment to further optimise operational structures. Approximately 70 employees have been transferred as a result of these measures. The Investment Management segment companies receive compensation for managing the insurance assets and providing other services on the basis of service agreements. Due to these changes, a year-on-year comparison of segment results is not very informative. For example, income for 2006 amounted to CHF 212 million while expenses amounted to CHF 169 million, an increase of 18% and 42%, respectively, vis-à-vis the previous year. Continued growth in income and the segment result is expected in the years ahead. Swiss Life also adjusted the method used to calculate assets under management, which resulted in the elimination of certain double counts and the exclusion of the real estate assets managed by Livit AG. On a comparable basis, assets under management were up 13% to CHF 74.4 billion, of which CHF 71.1 billion consisted of insurance assets and CHF 3.3 billion of third-party mandates.
After optimising the Investment Management segment structures in 2005 and 2006, the primary goal now is to fully exploit the existing income and synergy potential. Another major aim is to enhance efficiency by intensifying cooperation throughout the entire Group. In the coming years, investments will also be made to improve the asset management infrastructure to ensure that these goals are reached.
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