MILESTONE — With its Group-wide MILESTONE programme to boost profitability and efficiency, Swiss Life set the course for profitable growth in 2009. The Group presented the programme in detail at its Investors’ Day in December 2009. MILESTONE is much more than just a cost-cutting programme. The programme will change key areas of the value chain. It has five main thrusts: Firstly, to increase value to customers and boost product profitability; secondly, to leverage distribution power – in terms of both the quality of advice and the expansion of distribution structures; thirdly, to improve operational efficiency and cut costs; fourthly, to further strengthen the Group’s balance sheet and capital base; finally, the fifth aim is disciplined execution. The Group has identified and is resolutely pursuing some 500 initiatives. A consequence of this disciplined execution is evident in the improvements in the Group’s costs situation, to which the Switzerland division and AWD have made a significant contribution. Overall, operating costs have already fallen by around 10%. Swiss Life has also made good progress in gearing its new business towards modern life and pensions products with variable guarantees and also towards risk products. Their share of new business increased to 60% in 2009.

Margins and the value of new business are still unsatisfactory. Negative trends in the new business margin which fell from 1.1% in 2008 to 0.9% in 2009 were particularly disappointing. The value of new business remained flat at CHF 123 million in 2009, compared to CHF 119 million in 2008. These two indicators will gain in importance for Swiss Life, given the MILESTONE goals set for 2012. The Group aims to achieve a return on equity of 10% to 12%, increase its new business margin to around 2.2%, improve its cost base by CHF 350 to CHF 400 million from the 2008 level, pay a dividend of 20% to 40% of the net profit and achieve 70% of its new business from modern products and in the area of risk coverage. The 520 job losses in Switzerland announced in connection with MILESTONE were accompanied by a comprehensive package of measures, which were worked out with employee and management representatives and had already been deployed in the past. Even though the reorientation process of the employees in question is still ongoing in some cases, results are positive, proving that the support measures have, on the whole, been successful. Swiss Life has already found a new solution (including early retirement) for 75 of the 221 employees it has supported to date. 146 employees are still participating in the professional reorientation programme offered by Swiss Life.