Discontinued Insurance | The Discontinued Insurance segment comprises Swiss Life’s insurance business in the Netherlands and Belgium. In November 2007, the company announced it was selling this to SNS REAAL. The transaction is expected to be completed by the second quarter of 2008. In January 2008, SNS REAAL, in turn, announced that it was selling on the Belgian business it acquired from Swiss Life to Delta Lloyd.
In the period under review, Swiss Life generated a segment result of CHF 471 million in the Netherlands and Belgium. This significant increase on the previous year is primarily due to a change in the Dutch accounting standards, which led to a release of deferred bonus liabilities, improving the result by CHF 300 million.
In the Netherlands, Swiss Life grew its gross premium income by 21% to CHF 2302 million or 16% in local currency, which considerably exceeds the overall market growth. The rise in premiums written is attributable to the impressive growth recorded in corporate business. As in previous years, Swiss Life was especially successful in the acquisition of corporate clients such as autonomous pension funds who were looking for the security provided by a leading life insurance company.
In Belgium, gross premium income came to CHF 656 million, down 12% on the previous year (–16% in local currency). This decline stems from the cancellation of a distribution agreement in the area of individual insurance. On the other hand, premium volume in group insurance rose 18% (13% in local currency) to CHF 340 million and 5% in the non-life business (0% in local currency) to CHF 75 million.
| Key figures for Discontinued Insurance |
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| | | | | | |
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| Gross written premiums, policy fees and deposits received | | 2 957 | | 2 643 | | 11.9% | |
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| Net earned premiums and policy fees | | 2 083 | | 1 588 | | 31.2% | |
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| Asset management and other commission income | | 31 | | 26 | | 19.2% | |
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| Financial result (without share of results of associates) | | 1 008 | | 999 | | 0.9% | |
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| Other income | | 1 | | 11 | | –90.9% | |
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| Total income | | 3 123 | | 2 624 | | 19.0% | |
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| Net insurance benefits and claims | | –2 347 | | –1 826 | | 28.5% | |
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| Policyholder participation | | 221 | | –175 | | n.a. | |
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| Interest expense | | –105 | | – 94 | | 11.7% | |
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| Operating expenses | | –421 | | –385 | | 9.4% | |
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| Total expenses | | –2 652 | | –2 480 | | 6.9% | |
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| Segment result | | 471 | | 144 | | n.a. | |
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| Number of employees (full-time equivalents) | | 1 128 | | 1 081 | | 4.3% | |
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