insurance france | Swiss Life posted a segment result of CHF 324 million. The sale of ERISA and ERISA IARD to HSBC France in 2007 renders a year-on-year comparison difficult. Both companies were fully consolidated into the results for the first half of 2007; but only the gain on disposals was included in the second half. On a comparable basis, the segment result increased from CHF 142 million to CHF 187 million (+32%).
Following a strong growth in premium volume in 2006, the French life insurance market experienced a 3% decline in 2007. Swiss Life generated premium income of CHF 7411 million. Disregarding the ERISA companies, the premium volume amounted to CHF 5518 million, which, on a comparable basis, corresponds to a 6% rise (1% in local currency). Thus Swiss Life outperformed the market in the area of life insurance, mainly due to ongoing premium growth in unit-linked products, which came to 39% (33% in local currency). One major factor of the company’s success in this field is its strong distribution partnerships with various private banks. Premium income in health insurance went up 12% (7% in local currency) to CHF 1887 million, exceeding the market growth of 4%. The changes in income and expenses vis-à-vis the previous year are primarily due to the deconsolidation of the ERISA companies. Income grew by 9% on a comparable basis to CHF 4283 million (4% in local currency). On the same basis, expenses increased by 4% to CHF 3929 million, which, however, represents a decline of 1% in local currency.
Swiss Life is continuing to expand it distribution capabilities and service portfolio with systematic acquisitions as part of its private insurer concept. In August, Swiss Life acquired the banking and asset management business of Banque Privée Fideuram Wargny. In September, it announced that it was purchasing the insurance subsidiary of the French-based Meeschaert Group and, in January 2008, it reported that it was buying the internet brokers Placement Direct. Swiss Life has intensified its cooperation with independent financial consultants by launching a new internet platform.
| Key figures for Insurance France |
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| Gross written premiums, policy fees and deposits received | | 7 411 | | 8 204 | | –9.7% | |
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| Net earned premiums and policy fees | | 3 401 | | 3 287 | | 3.5% | |
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| Asset management and other commission income | | 46 | | 31 | | 48.4% | |
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| Financial result (without share of results of associates) | | 1 326 | | 1 719 | | –22.9% | |
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| Other income | | 155 | | 14 | | n.a. | |
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| Total income | | 4 928 | | 5 051 | | –2.4% | |
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| Net insurance benefits and claims | | –2 372 | | –2 268 | | 4.6% | |
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| Policyholder participation | | –777 | | –857 | | –9.3% | |
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| Interest expense | | –287 | | –547 | | –47.5% | |
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| Operating expenses | | –1 168 | | –1 168 | | 0.0% | |
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| Total expenses | | –4 604 | | –4 840 | | –4.9% | |
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| Segment result | | 324 | | 211 | | 53.6% | |
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| Assets under control | | 24 071 | | 43 442 | | –44.6% | |
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| Insurance reserves | | 23 657 | | 41 384 | | –42.8% | |
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| Number of employees (full-time equivalents) | | 2 191 | | 2 279 | | –3.9% | |
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