FINANCIAL RESULT  Swiss Life posted a strong financial result for 2009 with low impairment losses. The high level of uncertainty on the capital markets brought about by the financial crisis persisted into the beginning of the year but eased noticeably in later months. The stabilisation of the market had a positive effect on the financial result. Direct investment income came to 3.8%, despite lower dividend income from equity investments and reduced income from hedge fund investments. In contrast to the previous year, asset changes relevant to the income statement showed a positive trend. Only a few impairments were required on the investment portfolio which were more than offset by realised and unrealised gains. Taking into account asset management costs, the net investment return came to 3.9% (2008: 0.3%). The total investment return of 5.4% (2008: 0.5%) also includes the asset changes directly reflected in equity. When the fair value of investments not reported at market value on the balance sheet is factored in, the overall performance was 7.5%. Substantially lower credit risk spreads, in particular, had a positive impact on fixed-income investments. The reduction in risks carried on the balance sheet in the second half of 2008 thus proved effective. Despite volatile market conditions and low interest rate levels, Swiss Life generated investment income which was significantly higher than the interest guaranteed to clients.

Asset Allocation on Fair Value Basis as at 31 december (insurance portfolio at Group’s own risk)
Amounts in CHF million 
Equity securities and equity funds
  3 8033.4%2 3352.2%
Alternative investments
  1 9581.7%3 2723.1%
Real estate
  13 28411.8%12 66211.9%
  5 5534.9%5 6445.3%
  12 10910.8%13 35512.6%
  70 51762.6%62 35058.6%
Cash and cash equivalents and other
  5 3874.8%6 7096.3%
  112 611100.0%106 327100.0%
Net equity exposure
Duration of bonds
  8.5 years9.2 years