AWD — The AWD segment posted a loss of CHF 92 million for 2009, compared to a loss of CHF 41 million the previous year. In addition to one-off and restructuring charges, this figure also includes expenditure for the amortisation of customer relationship assets taken on in the acquisition. AWD has been included in the accounts of the Swiss Life Group since March 2008. As a result, the previous year’s figures include sales revenues and costs for only nine months, thus permitting only a limited comparison.

In 2009 AWD generated sales of EUR 528.7 million, which corresponds to a decline of 17%. Sales of unit-linked products fell by 20% and investment funds showed a drop of 36% from the previous year’s level. AWD achieved 10% growth in sales of life insurance and pension products vis-à-vis the previous year and increased its sales of private health insurance by 11% and of property and accident insurance by 21%.

Restructuring measures have already boosted AWD’s operating result to EUR 12.6 million. A total of EUR 53.7 million in one-off and restructuring charges was incurred during 2009 in connection with the reorganisation. EBIT stood at EUR –41.1 million (2008: EUR 19.7 million). The restructuring measures aim to return AWD to stable and profitable growth from 2010.

In its core market Germany, AWD merged the back offices of Horbach and AWD Deutschland GmbH and downsized the holding. In the United Kingdom, stricter requirements under the Retail Distribution Review posed major challenges to management. The implementation of regulatory requirements and the deterioration in market conditions were the main reasons behind the decision in November 2008 to reorganise AWD UK and to dispose of business units. The restructuring process in the UK was completed in 2009 and the region has returned to profitability. The business model in Austria was also redesigned. Widespread media coverage of court cases relating to past selling of real estate equities hampered business here. AWD’s decision to pull out of Romania and Croatia was based on an inability to achieve critical mass. The remaining markets in the CEE region continue to be a growth region for AWD, with future development here also focusing on profitability.

At the end of 2009, the AWD Group had 5726 fully trained and registered financial advisors, as well as 2902 trainee advisors under contract. As a result of the withdrawal from Romania and Croatia, the number of advisors at the turn of the year decreased by 384 to 5342. In the year under review, AWD advisors serviced the needs of 267 777 clients – a rise of 8% – and acquired 173 866 new clients (including Romania and Croatia).

Key figures for AWD
Amounts in CHF million 
  20092008+/–
Commission income
  7897505.2%
Financial result
  02n/a
Other income
  15150.0%
Total income
  8047674.8%
Interest expense
  –40n/a
Operating expense
  –892–80810.4%
Segment result
  –92–41n/a
Number of employees (full-time equivalents)
  1 5541 749–11.1%
Financial advisors 1
  5 3425 937–10.0%
Advised clients 1
  436 380423 1883.1%
1 without Romania and Croatia


 
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