AWD — The AWD Group posted a segment result of CHF 43 million, as compared to a loss of CHF 92 million the previous year. This figure also includes expenditure for the amortisation of customer relationship assets taken on as part of the acquisition.

All areas of AWD contributed to the improvement in the result. In the core market of Germany, efficiency improvements such as the merger of the back offices of Horbach and AWD Deutschland GmbH, together with the downsizing of the holding company, made a very significant contribution to the overall result of the AWD Group. The operating result (EBIT) amounted to EUR 58.4 million (2009: EUR 28.8 million). As a result of the restructuring undertaken in previous years and the improvement in advisor quality, AWD UK increased EBIT from EUR 1.2 million the previous year to EUR 6.3 million. In Austria, a restructuring of the business model was initiated in 2009. A number of comprehensive cost-cutting measures have already been put into effect as part of this project. The increased focus on life insurance and risk protection policies brought about a tangible improvement in results in 2010. The presence of group companies in the CEE region (Central and Eastern Europe) is to be further optimised. A return to profitability remains the objective for the Austria & CEE region, which posted an operating loss of EUR 4.5 million (2009: EUR –42.3 million). At AWD Switzerland, rigorous cost discipline resulted in an improvement of the operating result from EUR 6.2 million to EUR 7.8 million.

In the year under review, AWD generated overall sales revenue of EUR 547 million (+3.5%). Commission income from new business rose by 4.7%. Sales of unit-linked products rose by 2.7%, while sales for life insurance and pension products rose by 13.7%. Sales of private health insurance increased by 0.3%, those of property and accident insurance by 8.1%. Sales of investment funds declined by 0.5%.

The successes of restructuring measures played their part in ensuring that AWD once again posted positive EBIT of EUR 49.1 million, an improvement of EUR 90.2 million compared to the previous year. As part of the efficiency improvement programme, administrative costs were cut by EUR 48.4 million compared to the previous year.

At the end of 2010, the AWD Group had 5292 fully trained and registered financial advisors, as well as 2280 trainee advisors under contract. 148 107 new clients were acquired in the year under review.

AWD has once again delivered solid profitability. Only in the Austria & CEE region is a need for further optimisation evident. In 2011, AWD will improve its processes further, with a view to meeting the medium-term financial targets in the Austria & CEE region too.

Key figures for AWD
Amounts in CHF million  
  2010 2009 +/–
Commission income
  756 789 –4.2%
Financial result
  –3 0 n/a
Other income
  7 15 –53.3%
Total income
  760 804 –5.5%
Interest expense
  –2 –4 –50.0%
Operating expense
  –715 –892 –19.8%
Segment result
  43 –92 n/a
Number of employees (full-time equivalents)
  1 445 1 554 –7.0%
Financial advisors 1
  5 292 5 342 –0.9%
1 without Romania and Croatia