4 Segment Information

Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the management in deciding how to allocate resources and in assessing performance.

The reportable segments have been identified based on the information about the components of the entity that management uses to make decisions about operating matters. The information that is provided to management is focused on the category of product lines and services. The organisational and management structure within the insurance business is based on geography. The reportable segments have therefore been identified as follows:

  • Insurance Switzerland

  • Insurance France

  • Insurance Germany

  • Insurance Other

  • Investment Management

  • AWD

  • Other

  • Insurance (Discontinued)

  • Banking (Discontinued)

The insurance businesses primarily consist of life insurance operations. These operations offer a broad range of life, pension, annuity and investment-type policies to both groups and individuals, including accident, health and disability coverage. The Group’s strategy focuses primarily on the life and pension business in a number of key European markets, such as Switzerland, France, Germany, Luxembourg and Liechtenstein. The insurance businesses also include a number of companies which hold investments primarily pertaining to life insurance.

Non-life operations consist of operations in France and Belgium and principally include property and casualty, liability and motor insurance.

“Insurance Other” comprises the insurance operations in Liechtenstein and Luxembourg.

“Investment Management” refers to the management of assets for institutional clients and the Group’s insurance business, as well as the provision of expert advice for such clients.

“AWD” comprises the Hanover-based AWD Group which was acquired by the Swiss Life Group on 19 March 2008 and the Proventus Group which was acquired in November 2008. The AWD Group specialises in financial advisory services for medium and high-income customer segments.

“Other” refers principally to various finance and service companies.

The insurance operations in the Netherlands and Belgium, which were disposed of on 29 April 2008, are presented as a separate segment “Insurance (Discontinued)”.

Banca del Gottardo, Lugano, was disposed of on 7 March 2008. For the purposes of segment reporting Banca del Gottardo, Lugano, is presented as a separate segment “Banking (Discontinued)”.

The accounting policies for the segments are the same as those described in the summary of significant accounting policies. Inter-segmental services and transfers of assets and liabilities are treated as if the transactions were with third parties, i.e. at market prices applicable at the time of the transaction.

Corporate costs were not allocated to the individual segments as they consist of general administrative expenses and head office expenses that relate to the Swiss Life Group as a whole.

The statement of income and balance sheet for the segments are given on the following pages:

Premiums and policy fees from external customers
In CHF million  2008200720082007
  Net earned
Net earned
Net earned
policy fees
Net earned
policy fees
Individual life  4 8674 772300481
Group life  8 6049 8831757
Total life  13 47114 655317538
Accident and health  1844
Property, casualty and other  542557
Total non-life  560601
Total  14 03115 256317538

The Swiss Life Group operates in selected European countries. The Group’s income and non-current assets by geographical location are detailed below:

Geographical information
In CHF million  2008200731.12.200831.12.2007
Total income

Total income
Switzerland  9 04911 49711 19310 739
France  3 7634 9601 7551 845
Germany  2 8653 1112 511831
Liechtenstein  4549177180
Luxembourg  1131383436
Netherlands  2 0802 470
Belgium  105623
Other countries  2281088
Total  18 24822 95615 67813 631

Non-current assets for this purpose consist of investment property, property and equipment and intangible assets (except for intangible assets arising from insurance contracts).

Information about major customers

No revenue from transactions with a single external customer amounted to 10% or more of the Group’s revenue.