Insurance Germany | Swiss Life achieved a segment result of CHF 65 million. Based on the good financial result and further enhancements in efficiency, a considerable year-on-year improvement was realised on a comparable basis. The segment result posted represents a decline of CHF 19 million on the previous year, as the spin-off of investment management into a separate investment company and the passing on of the tax rate reduction in the form of policyholder bonuses added one-off costs of CHF 40 million to the accounts in the period under review.
Premium volume in the German life insurance market stagnated in 2007 at EUR 79 billion (+0.6%). The population is noticeably reluctant to commit to long-term retirement pension policies because of the uncertainty surrounding the implications of the current political reforms. Swiss Life grew its premium volume by 2% (–2% in local currency) to CHF 2158 million. In individual insurance Swiss Life increased its premium income to CHF 1648 million (unchanged in local currency). Premium income in group insurance went down 5% (–9% in local currency) to CHF 509 million as a result of the drop in single premiums. However, the company recorded a further increase in periodic premiums. Income climbed 8% to CHF 3109 million, mainly due to the sound financial result. The 9% rise in expenses is attributable in particular to the one-off effects mentioned above and to the higher bonus allocation based on the improved financial result. The efficiency improvements attained led to a further reduction in operating costs, which fell by 5%.
Product development is shaped by current market requirements. In the year under review the company launched a new tranche of its index-linked annuity insurance and a unit-linked Riester annuity insurance with guarantees. Another new development in 2008 was a capitalisation product based on an attractive investment funded by capital not currently required. Thanks to further product innovations and the strategic partnership with AWD, Swiss Life expects a spurt in growth in the coming years.
| Key figures for Insurance Germany |
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| | | | | | |
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| Gross written premiums, policy fees and deposits received | | 2 158 | | 2 116 | | 2.0% | |
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| Net earned premiums and policy fees | | 2 009 | | 1 950 | | 3.0% | |
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| Asset management and other commission income | | 32 | | 30 | | 6.7% | |
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| Financial result (without share of results of associates) | | 1 064 | | 872 | | 22.0% | |
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| Other income | | 4 | | 16 | | –75.0% | |
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| Total income | | 3 109 | | 2 868 | | 8.4% | |
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| Net insurance benefits and claims | | –2 119 | | –1 988 | | 6.6% | |
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| Policyholder participation | | –502 | | –420 | | 19.5% | |
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| Interest expense | | –22 | | –26 | | –15.4% | |
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| Operating expenses | | –401 | | –350 | | 14.6% | |
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| Total expenses | | –3 044 | | –2 784 | | 9.3% | |
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| Segment result | | 65 | | 84 | | –22.6% | |
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| Assets under control | | 20 249 | | 19 678 | | 2.9% | |
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| Insurance reserves | | 21 243 | | 19 871 | | 6.9% | |
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| Number of employees (full-time equivalents) | | 732 | | 791 | | –7.5% | |
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