insurance france | Swiss Life posted a segment result of CHF 40 million in France. The sale of ERISA and ERISA IARD in July 2007 renders a year-on-year comparison difficult. On a comparable basis, the segment result for 2007 amounted to CHF 187 million. The decline was largely caused by the lower financial result – down 93% at CHF 57 million in 2008.
Premium income in the French life insurance market slid 11%. In health insurance, premium volume rose by 5%. Overall, Swiss Life generated premium income of CHF 5763 million. On a comparable basis, Swiss Life grew premium income by 4% (8% in local currency), whereby life insurance was up 7% (11% in local currency) and health insurance gained 2% (5% in local currency). Premium volume at Swiss Life outperformed the market due to the strength of its multichannel distribution and the attractive range of products.
Insurance benefits were up 20% at CHF 2804 million on the back of the higher premium volume. Policyholder participation generated income as a result of large differences between the local, statutory valuation guidelines and IFRS valuation guidelines. Although personnel expenses were down, operating costs rose 12% on a comparable basis. This increase is due in particular to higher expenses for commissions as a result of the growth and costs associated with the expansion of distribution. In addition to acquiring the internet broker Placement Direct, the company intensified relationships with independent financial consultants in particular, and bought a stake in Financière du Capitole, an independent asset management company.
On 1 July 2008, Charles Relecom, formerly CEO of Swiss Life in Belgium, took over as CEO France from Jacques Richier, who has assumed a new challenge outside the Swiss Life Group.
| Key figures for Insurance France |
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| | | | | | |
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| Gross written premiums, policy fees and deposits received | | 5 763 | | 7 411 | | –22.2% | |
|
| Net earned premiums and policy fees | | 3 618 | | 3 401 | | 6.4% | |
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| Asset management and other commission income | | 66 | | 46 | | 43.5% | |
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| Financial result (without share of results of associates) | | 57 | | 1 326 | | –95.7% | |
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| Other income | | 16 | | 155 | | –89.7% | |
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| Total income | | 3 757 | | 4 928 | | –23.8% | |
|
| Net insurance benefits and claims | | –2 804 | | –2 372 | | 18.2% | |
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| Policyholder participation | | 472 | | –777 | | n.a. | |
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| Interest expense | | –219 | | –287 | | –23.7% | |
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| Operating expense | | –1 166 | | –1 168 | | –0.2% | |
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| Total expense | | –3 717 | | –4 604 | | –19.3% | |
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| Segment result | | 40 | | 324 | | –87.7% | |
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| Assets under control | | 25 399 | | 24 071 | | 5.5% | |
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| Insurance reserves | | 20 716 | | 23 657 | | –12.4% | |
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| Number of employees (full-time equivalents) | | 2 134 | | 2 191 | | –2.6% | |
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