The Swiss Life Group generated a profit from continuing operations of CHF 172 million (+13%) in the first half of the year. The net profit totalled CHF 139 million. This was impacted by a charge of CHF 33 million in connection with the sale of Banca del Gottardo. The prior-year figure of CHF 1.6 billion included CHF 1.5 billion in extraordinary gains from the disposals of the Dutch and Belgian insurance business and Banca del Gottardo.

POSITIVE RESULT IN DIFFICULT MARKET ENVIRONMENT | The profit from operations came to CHF 251 million (+11%), to which insurance contributed CHF 280 million (+28%).

A profit was achieved again in Switzerland after the loss recorded in 2008 for the full financial year. Thanks to cost savings and the substantial improvement in the financial result, this profit – at CHF 193 million – was 61% above the comparable first-half 2008 figure, despite higher bonus allocations. The segment result in Germany was also increased to CHF 31 million (+63%), while the segment result in France came in 30% lower than the prior-year figure, at CHF 70 million. The result for the Insurance Other segment (CHF –14 million; +33%) was an improvement over the prior-year figure, reflecting the investments in the growth markets for cross-border business.

The Investment Management segment result decreased to CHF 35 million (–27%), primarily due to lower commissions resulting from the decline in assets under management, but also due to project costs.

The AWD Group turned in a segment loss of CHF 28 million. With revenues lower in all markets and due to restructuring charges at holding company level and in Austria, the AWD Group reported an operating loss of EUR 10 million (EBIT HY08: EUR 27 million). The partnership between Swiss Life and AWD continued to develop well: The premium volume generated through AWD in Germany was increased by more than one third.

POSITIVE PREMIUM GROWTH FOR NON-TRADITIONAL PRODUCTS | The Swiss Life Group reported CHF 10.4 billion in gross written premiums, policy fees and deposits received under insurance and investment contracts. Adjusted for currency effects and extraordinary impacts, this corresponds to an increase of 7%. A major contributor was the positive growth in innovative life and pension products.

In Switzerland, Swiss Life’s premium income decreased by 10% to CHF 5.3 billion. Adjusted for extraordinary impacts, the decline was only 2%, which was in line with the market. The decrease was recorded mainly in group business; individual insurance held the level of the prior-year period. In France, Swiss Life generated CHF 2.5 billion in premium income over the first six months, which corresponds to a decline of 1% in local currency after adjustment for extraordinary impacts. The decrease was mainly because Swiss Life, for profitability reasons, refrained from joining the competition on promised short-term interest rates. In the health insurance business, Swiss Life boosted its premium income by 5%. Premium volume increased in Germany by 7% to around CHF 971 million (+14% in local currency). Both the single and periodic premium businesses outperformed the market significantly, especially in occupational disability insurance. Thanks to the qualification as “best select partner” for AWD in a number of product groups, there was a strong rise in new business production. In the Insurance Other segment, premium was increased by 70% to CHF 1.6 billion in the first half. An important contribution came from the global business for high net worth individuals (Private Placement Life Insurance), which recorded a premium growth of 80% to CHF 1.4 billion.

The value of new business, as measured by MCEV, came to CHF 76 million at a margin of 1.2%.

INVESTMENT RESULT CLEARLY UP | The alignment of the asset allocation to the changed market environment in the second half of 2008 and the reduction of balance sheet risks again paid off in the first half of 2009. Swiss Life achieved a direct investment income of 1.9% (HY 2008: 2.1%) in its insurance business in the period under review. Hedging costs and impairments led to a moderate net capital loss of CHF 49 million (HY 2008: CHF 1.2 billion). The net investment result for the insurance portfolio thus improved from the prior-year figure of 1.0% to 1.8%, despite the higher liquidity position.

DECLINE IN OPERATING EXPENSES THANKS TO STRICT COST MANAGEMENT | Benefits paid and changes in insurance reserves went down by 12% to CHF 7.4 billion. Policyholder participation was increased from CHF 77 million to CHF 651 million, on the strength of the substantial improvement in the financial result compared to the same period last year. Adjusted operating expenses were reduced by 3% to CHF 688 million, with Switzerland’s progress in pushing down costs amounting to 8%.

CAPITAL BASE AND SHAREHOLDERS’ EQUITY STABLE | Insurance reserves increased 4% (+3% in local currency) in the first half of the year to CHF 118 billion. As at 30 June 2009, assets under control at the Swiss Life Group stood at CHF 139 billion (+4%). Shareholders’ equity also rose, going up 2% from its year-end position to stand at CHF 6.8 billion. At 155% the IFRS group solvency ratio on 30 June 2009 was in line with the prior-year figure (end 2008: 158%). The statutory solvency ratio increased to 190% from 176% at the end of 2008. Swiss Life’s capital base thus remains solid.

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