insurance germany | Swiss Life posted a segment result of CHF 29 million in Germany. The year-on-year decline of CHF 36 million is a result of the negative performance of the financial result – down to CHF 552 million from CHF 1064 million.

As in the previous year, the German life insurance market advanced only a marginal 0.8% in 2008. Swiss Life saw its premium volume decline by 8% (–5% in local currency) to CHF 1977 million. Although Swiss Life was able to keep periodic premiums stable, income from single premiums was down 25%. In the second half Swiss Life launched new products and realigned existing ones resulting in positive premium income growth. Along with the intensification of the cooperation with AWD, the traditional broker distribution channel also contributed to an upswing in new business.

At CHF 1961 million, insurance benefits and policyholder participation were down 25% on the 2007 figure due to the lower premium income and the significantly reduced financial result. The increase in operating expenses by 1% (5% in local currency) to CHF 406 million is mainly due to one-off expenses in connection with the revised law on insurance contracts, the launch of new products and salary increases due to contractual tariff considerations. Successful product innovations in 2008 include “Swiss Life Cash Growth”, a capitalisation product for the reinvestment of final benefits with an attractive return, and “Swiss Life Champion”, a flexible, unit-linked product with guaranteed pension benefits. Swiss Life also received a number of top ratings in 2008, including a “very good” quality rating from the Assekurata rating agency. Assekurata assesses the quality requirements of German primary insurers from the policyholder’s perspective.

Klaus G. Leyh held the position of CEO Germany since 1 October 2008. Previously in charge of distribution, he took over from Manfred Behrens, who is now serving on AWD’s Board of Management as Co-CEO.

Key figures for Insurance Germany 
In CHF million20082007+/–
Gross written premiums, policy fees and deposits received1 9772 158–8.4%
Net earned premiums and policy fees1 8192 009–9.5%
Asset management and other commission income2732–15.6%
Financial result (without share of results of associates)5521 064–48.1%
Other income174n.a.
Total income2 4153 109–22.3%
Net insurance benefits and claims–2 030–2 119–4.2%
Policyholder participation69–502n.a.
Interest expense–19–22–13.6%
Operating expense–406–4011.2%
Total expense–2 386–3 044–21.6%
Segment result2965–55.4%
Assets under control18 87320 249–6.8%
Insurance reserves19 09821 243–10.1%
Number of employees (full-time equivalents)7507322.5%