MILESTONE supports implementation of strategy — Swiss Life continues to pursue its ambition of becoming the leading international life and pensions specialist. To ensure this can become a reality, even in the wake of the financial crisis, Swiss Life introduced MILESTONE, a long-term programme focusing on profitable growth and enhanced competitiveness.

Five main thrusts lie at the heart of the MILESTONE programme:

1. Consistent focus on modern life and pensions solutions with variable guarantees and risk products with the objective of enhancing customer value and boosting profitability
2. Ambitious leveraging of distribution power
3. Continual improvement in operational efficiency and a substantial reduction in costs
4. Reduction in earnings volatility and strengthening of the balance sheet
5. Disciplined execution of measures

All five thrusts are instrumental to the central issue of adding value: Swiss Life is gearing its priorities to profitable growth.

1. By consistently focusing on modern life and pensions solutions with variable guarantees and on risk products, Swiss Life aims, in particular, to enhance customer value by providing greater flexibility and improved margins. At the same time, the Group is also ensuring a reduction in the capital requirements associated with new business.

2. Swiss Life is pursuing a multi-channel strategy in distribution which has proved its worth. On this basis, the Group wants to further increase distribution quality and productivity across the board. Swiss Life is therefore focusing on independent distribution channels such as banks, brokers and financial advisors like AWD, in addition to its own distribution network.

3. The cost savings objective of CHF 350 to CHF 400 million vis-à-vis 2008, announced in the context of the 2009 half-year results, has already led to a substantial improvement in the cost base; about half of the cost-cutting measures have already been implemented. In addition to the savings announced in August 2009 in Switzerland and at AWD, Swiss Life in Germany will eliminate the negative administrative cost result of EUR 25 million. Swiss Life in France is currently working on an efficiency boosting programme to support the growth strategy.

4. A further objective is to reduce earnings volatility, while strengthening the balance sheet. On the one hand, Swiss Life is increasing the profitability of its in-force business. On the other hand, on the investment side, the company is continuing to work towards the goal of generating stable, sustainable investment income.

5. Swiss Life is strengthening its internal controlling process and focusing it consistently on the defined objectives. The Group is also developing a new set of key figures, by which the company can be measured more efficiently.

Swiss Life has set ambitious goals for 2012 within the framework of MILESTONE:

Doubling the new business margin to over 2.2%
Writing more than 70% of its new business with modern life and pensions solutions and risk products
20% to 25% share of Swiss Life products in relevant AWD product categories
CHF 350 to CHF 400 million lower costs than in 2008
Return on equity of 10% to 12%
Dividend payout ratio of 20% to 40%